To say that business owners talk about the efficient management of cashflow on a frequent basis is an understatement. Since business owners deal with cash on a daily basis, they are compelled to understand the mechanics of cashflow management in a very thorough manner. One way to do this is to know more about disbursements. Disbursements are basically your cash outflows or the money coming out of your business. To keep your cashflow positive, it is important to ensure that your cash inflows are greater than your disbursements.
In this modern day and age, some business owners typically do hands-on work in managing their own cashflow. While this may seem like a practical move, the problem is that this often leads to disbursement fraud, specifically when you are issuing checks for payments. But don’t worry, there are many tips to help you keep away from these kinds of fraud. Here are some of them:
Cash is a liquid asset. As such, it is very easy to convert to money. This is one reason why you should be very cautious about managing your cash flow—your inflows and of course, your disbursements.
Do you need help managing your business cashflow? Click on the link below to consult with our advisers at D&V.