Cash Flow Management

The principles of Cash Flow Forecasting

• Use the costs you know you are committed to in Direct Debits

• Overhead fixed costs you must meet such as payroll and rent

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The Key Performance Indicators for Cash Management are as follows:

• Operating Cash Flow

• Cash Burn Rate

• Age of Money Owed to the business (AR)

• Age of Money Owed to other businesses (AP)

• Age of stock/inventory

• Cash Conversion Cycle (in days)