Is your cash flow positive each month?

Cash flow doesn't have to be positive every month, specially if the company is growing.

I think all has been said already - it's not the point to have positive cash flow every month. It depends on company's situation.

In my experience the main problem for cash flow management was huge stagnant stock or slow moving stock due to wrong market demand forecast. In that case you may need to update P&L forecast with regard to stock revaluation and plan additional stock clearance expenses there. Therefore if one of the business direction generate negative  cash flow it is the subject for urgent countermeasure plan work out.

Thanks Dear,

Good Question , especially now a days .

Basically , there is no stable profit due to :

• Changeable Cost.
• Changeable Currency (USD).
• Demand.
• Raw material cost.
• Increasing & decreasing Salaries.
• Economic Crisis.

So, as a management we need to review our monthly cost periodically and try to reduce the cost always but in right way which will not affect on quality and organization environment.

Regarding to positively view for our companies cash flow , that depend on what we need to gain some companies seeking for less profit more production , others seeking for more profits less customers satisfaction. But in general revenue not only comes from shrink the cost and expenditures ,because that sometimes ruin the business .

Anyways, monthly evaluation for you expenditures and revenue will give you a clearly view for your perfect profit.

Cash flow may not be positive every month. It could be negative under the following circumstances:

1.    When you sold goods but not received payment

2.    There is enough unused inventory in store waiting to be used in production.

3.    There are finished goods but not delivered to the customers and so on.

Under such circumstances, when you have negative cash flow you need to take short term loan from Bank or other financial institution

if each month ends with a benefite it will absolutly  be positive each month

The Govt. will or May Provide Construction cost/Finance or Quarterly as Per his Ability, I'll cotinue my running work as per His Order placement of Fund accordingly. if nedessary I revaluate the cost of Project Expences Well,

As per Govt. order of the Chief Executuve I warn them to do work properly Qualitatively attend office Properly Maintain work as per specificition of Schedule and as per that Govt. policy,Rules and Resulation Maintaining work Proper Quality.

As a business administration we are taught in business schools to calculate loss for few years and start business. 

Every business will have ups and downs, it is necessary to hold on and not get panic when business is down.

It is not necessary that your book will show positive cash flow, sometimes due to market conditions, expansion projects, diversion of funds, projection of better market and building up stocks. It is hence most important to see that the company is in healthy position and is expecting growth instead of saying cash flow is negative.  

it takes money to make money.” In order for your business to operate, you need money in the bank to pay your employees, purchase inventory or raw materials, and cover all your other operating costs. To do this, you use either working capital that’s been invested in your business or the money you’ve received from sales and receivables.