Cash is the lifeblood of any business. Without cash, an organization can't afford to keep its day-to-day operations running. Cash is important for two reasons; it offers flexibility to make investments for the future, and it offers security to be able to weather storms.

Cash flow is an important aspect of business. Whether you’re a new business owner or a seasoned pro, it's important to maintain a positive cash flow. Every business needs cash on hand to be able to meet their current obligations and to be able to make investments for the future. Having cash on hand is a simple concept to understand, but it can be difficult to maintain a positive cash flow consistently when you have a lot of expenses and not much income. In this article, we'll talk about ways you can improve cash flow in your business, the difference between cash and profit, and why maintaining a positive cash flow is important—especially during times when a recession may be on the horizon.

Forecasting cash flow is the key to the survival of many organizations, yet it’s a non-existent process in others. Often, organizations with abundant cash see little value in taking the time to put a system in place to do this. Other organizations that operate with little or no cash see forecasting cash flow as a critical element in running their business in such a manner as to avoid a crisis of liquidity.