Posted: December 30th, 2021
Compose a 500 words assignment on the challenges of cash flow. Needs to be plagiarism free! The Challenges of Cash Flow al affiliation Question The success of any business depends on the effectivemanagement of cash flow. Cash flow management is a major problem affecting small businesses. Some of the reasons for this problem are highlighted bellow.
1. Declining sales have a negative effect on profitability thus reducing cash inflow. A decline in gross margin of profit also reduces profits.
2. Unprofitable business leads to the accumulation of losses to a point where one cannot pay for purchases thereby leading to borrowing (Linzer, 2006).
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