Cash flow is the lifeline of every business. Many SMEs in Sri Lanka struggle despite good sales because cash inflows and outflows are not managed properly.
Effective cash flow management starts with tracking receivables and ensuring timely collections. Delayed payments can cripple even profitable businesses.
Expense control is equally important. Identifying unnecessary costs and planning supplier payments strategically helps maintain liquidity.
Cash flow forecasting allows SMEs to prepare for future obligations such as taxes, salaries, and loan repayments.
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