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Essay / Importance of Cash Flow Management - 720
For example, if the company is unable to repay its obligations or debts, it is declared bankrupt. So, if the company's cash management has been updated, this situation can be avoided. Cash is the lifeline of all kinds of businesses, whether large or small. For large companies such as Ford or GE, it is easy to do business, but of course they can take care of staff payroll or other debts can be paid because they have better cash management policies. On the other hand, for small businesses, this has always been a challenge. Financial administration is particularly critical for new and developing organizations. However, revenue can be an issue when a small business has different customers, offers a better product than its competitors, and has excellent brand awareness in its industry. Organizations facing revenue challenges have no welfare advantage in the event of unexpected costs. They might also encounter difficulty finding the assets necessary for their advancement or expansion. It is, to some unexpected extent, less demanding to obtain cash when you have it. Finally, low income makes it difficult to contract and maintain