Cash Flow Checklist

Cash flow is one of the most important concepts of financial analysis, financial planning and financial management.

Cash Flow Checklist

Cash Flow in Dubai

Cash flow or cash flow, cash flow, cash-flow, cash-flow – a combination of time-distributed receipts (inflows) and payments (outflows) of money generated by the economic activities of an enterprise, regardless of the sources of their formation and appearance.

Cash flow is one of the most important concepts of financial analysis, financial planning and financial management.

The concept of cash flow includes various types of flows associated with economic activity. Streams can be classified on various grounds.

In accordance with international accounting standards, the following cash flows are distinguished:

– From operating (current) activities
– From investment activities
– From financial activities

This classification is the most important, since it is the basis of financial analysis, forecasting, financial reporting, etc. Other grounds for classification are the following properties of cash flows.


1. Manage your money cycles
It is very important to shorten money cycles. Shortening your money cycle will increase your cash reserves, support your business, and provide a buffer in times of financial uncertainty. Encourage your customers to pay in all ways, for example, using online and mobile payment methods – cash will immediately arrive in your account. If you need to invoice, do it immediately and encourage your customers to pay earlier, for example, by offering discounts.

2. Stable payment system for your bills
It is important to have a clear billing process. Invoices must be delivered to your customers on time and in a standard and familiar format.

3. Manage your working capital
It is very important to reduce the need for working capital. The less capital you need, the better. And there are always areas where you can cut costs. Avoid large personal seizures.

4. Conduct a cash flow forecast
This should be done regularly so that you always have a clear idea of your financial situation. If you can get accurate cash flow forecasts, you will be in a much better position. You will see what is happening with your working capital, and you can take steps to improve it. You will be able to predict when you will need short-term funds to fill in the gaps.

5. Understand your business cycle
A business cycle is the time it takes to produce a product or provide a service. This is the time required to receive the payment and, finally, to receive it in your bank account. Thus, the longer your business cycle, the more capital you will need, since you need to wait for payment.

As you know, the list is much larger, and our company CAPEX will be happy to advise you on all matters related to cash flows in your company.