Like blood that flows through our human bodies to keep us alive, cash flows through a business to keep it alive. Cash Flow and having cash to run continued operations is one of the most important parts of the business. Managing cash flow is one of the most critical skills within the business acumen portfolio.
As I continue my life’s journey of helping our client organizations build their business acumen skills, it has become more apparent than ever that we have a lot of work to do in this area.
Most of our learners “get” the Income Statement and Balance Sheet pretty easily. The Cash Flow Statement is a different story. The Cash Flow Statement, which helps us understand the sources and usages of cash from an operations perspective, investing perspective and financing perspective can be challenging because of its complexities and nuances. However, without a foundational understanding of how it works, senior leaders down to first-time supervisors can make huge, game-changing mistakes.
To help provide some insight and clarity, I am borrowing some of our very own business acumen content to share some ideas and information about the criticality of cash flow.
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