Cashflow forecasting helps businesses predict when issues may arise and allows them to take action proactively to avoid cash flow gaps. Opinions expressed by Entrepreneur contributors are their own. You might have heard that the biggest cause of business failures is cash flow issues , but to what extent is the severity of this widespread problem? To put things into perspective, more than 80% of business failures are due to a lack of cash, 20% of small businesses fail within a year, and half fail within five years. But it doesn’t have to be that way. In fact, many businesses can avoid cash flow problems with proper cash flow forecasting . Cashflow forecasting helps businesses predict when issues may arise and allows them to take action proactively to avoid cash flow gaps. That said, many businesses already operate at max bandwidth, and cash flow forecasting isn’t on business owners’ minds. It’s usually already too late when business owners are hit with a financial setback and realize they don’t have enough cash to cover it. Many business owners don’t realize that the scope of benefits that derives from good cash flow forecasting goes light years beyond helping the business plan […]
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