Cash flow management is keeping track of this flow and analyzing any changes to it. This helps you spot trends, prepare for the future, and tackle any problems with your cash flow. e.g. Many property developers have been forced into bankruptcy because of negative cash flow because real estate development has always been a highly cyclical industry, and developers are often prone to cash flow problems. Property development requires significant initial capital investment, as well as ongoing cash outflows for operations.

Importance of Cash Flow Management

According to Jessie Hagen of U.S. Bank, 82% of businesses fail because of poor management of cash flow. If your business constantly spends more than it earns, you have a cash flow problem. For small businesses, the most important aspect of cash flow management is avoiding extended cash shortages, caused by an overly large gap between cash inflows and outflows. You won't be able to stay in business if you can't pay your bills for an extended period of time.

How to Better Manage Your Cash Flow ?
Essential Steps of cash flow management- 1.Measuring Cash Flow, 2. Improving Receivables, 3. Understand difference between real expenses & excess expenses of your business 4.Managing Payables, 5.Manage Shortfalls of cash with proper way, 6.Manage good loan & cut-off bad loans.