The Big Picture On Cash Flow

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Executive Summary

The global financial crisis is partly to blame. Falling financial markets saw the All Ordinaries Index fall by 43% in 2008. This was the biggest calendar year decline on record - by comparison, the share market fell by 33% in 1930. As a result, many Australians have seen their wealth significantly impacted. Combined with a seemingly endless string of bad news, that's severely dented consumer confidence. We all know cash flow is important. But as business owners every one tend to focus on other things. Sales, expenses, profitability. Often, managers only pay attention to cash flow when something goes wrong - and by then it may be too late.

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