“Cash Flow” are two small words that are vital to the success of any company be they a huge conglomerate or a one man band. Being a Financial Director I spend a lot of time looking through a wide range of different financial documents including Profit and Loss, Balance Sheets and Income Statements but the Cash Flow is by far the most important.
Without cash your organisation will not be able to pay its creditors (no matter how small) and it will fail! I encourage everyone on the team at Virtual Studio to focus a lot of their attention on cash flow and as a result we have become almost obsessive about it. We all know the impact future work has on the business and we can predict with a high level of accuracy where the company will be financially in the future.