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rewona [7]
2 years ago
11

Why is looking at cash flow an important step in a good financial plan?

Business
2 answers:
Colt1911 [192]2 years ago
8 0

Cash  is the most liquid form of assets. Meaning that it can be easily traded with other resources within short a period of time.

Because of this, better cash flows usually provide financial planners with more flexibility in determining the actions that they need to take. Not only that, high amount of cash inflows indicates that there is a high volume transaction between the company and the consumers. This usually seen as favorable by investors.

stellarik [79]2 years ago
3 0
Looking at cash flow is an important step in a good financial plan because it can help you determine places where you need to scale back on spending.
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