Without money to pay the bills incurred in any enterprise such an enterprise will not survive

Although that is an obvious statement it is sometimes overlooked by many people who ignore Cash Flow

Cash in a business can be either capital, receivable or payable

There are two main sources of capital finance for an enterprise

Personal Savings
Borrowings which can be provided by family and friends or financial institutions

Receivable cash is that which you know is due to be received but invariably you don't know when you will have use of it

Payable cash is that which you have yet to pay

Return to Know Your Accounts

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Last Update 28-Feb-2010

Date first published 07-Nov-2005