29th December 2020
Cash is king and that's the key concept that restaurant operators should pay attention to. A profit-making company can still have cash flow problems and can even become bankrupt. It's key the operators understand the cash cycle and look out for any red flags.
There are various forms of cash that a restaurant operation needs;
The cash is generated from various sources (Revenues, borrowing and asset sales). The key concept here is that profit does not equal cash and this could be due to various factors including excessive spending on Capex, delay in getting the outstanding receivables from the corporate bookings/events or generous supplier terms. All of these factors can disturb the cash cycle.
Following are some of the ways you can stay on top of your cashflow;
We provide comprehensive tools that help you manage your cash flows effectively which include daily/weekly cash flow forecasting keeping you well aware of what's ahead/
Get in touch if you need support on managing the cashflow for your small business.