Why Cash Position Is so Important?
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Lastly the C in the ABC’s. That would be your cash position. Your customers and your key connections. Know your cash position. That’s the amount of cash or other highly liquid asset available to your business at any given time.
The cash position is key to be aware of, because your business may have certain needs depending on the time of year or the industry that your in. If you’re in a seasonal business, you may need more cash available prior to your big season to make sure you can buy inventory for instance or to maintain your equipment or purchase new equipment to get ready for that season.
Staying on top of cash position is key and your accountant, of course, can help you with that, along with your banker and your financial planner from a personal perspective.