Causes of cash flow gaps
Posted: Thu Jan 30, 2025 5:12 am
According to the financial magazine Plus, 96% of Russian small business representatives faced cash flow gaps in 2022.
One of the most common reasons for this is the lack of planning during times of instability. And such a lack of financial literacy is often fatal for business.
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Source
As experience shows, the reasons for a company's morocco consumer email list crisis and cash flow gaps can be:
1. Lack of financial transparency
Let's imagine that a company is a glass aquarium.
When there is transparency in financial processes, the water in it is clean, and the fish are healthy, swim briskly and live long. In muddy water, it is unclear how many fish are alive, where they are hiding.
In a murky financial system it is impossible to see what is inside: hidden expenses, unclear spending, insufficient income. Managers do not trust employees, there is no mutual understanding, no team. There is staff turnover, a bad reputation in the labor market and difficulties in managing the company.
To see resources, you need clarity and transparency.
A practical example : a hotel, which also served as a hostel, had a management accounting system, but there was no general accounting policy and clear division of responsibilities. Therefore, cash documents were entered every other time, expenses were not all written off, which resulted in negative balances, and the manager did not see real profit. Every month he had a question: "Why is there profit, but cash is decreasing?"
One of the most common reasons for this is the lack of planning during times of instability. And such a lack of financial literacy is often fatal for business.
unnamed(19).png
Source
As experience shows, the reasons for a company's morocco consumer email list crisis and cash flow gaps can be:
1. Lack of financial transparency
Let's imagine that a company is a glass aquarium.
When there is transparency in financial processes, the water in it is clean, and the fish are healthy, swim briskly and live long. In muddy water, it is unclear how many fish are alive, where they are hiding.
In a murky financial system it is impossible to see what is inside: hidden expenses, unclear spending, insufficient income. Managers do not trust employees, there is no mutual understanding, no team. There is staff turnover, a bad reputation in the labor market and difficulties in managing the company.
To see resources, you need clarity and transparency.
A practical example : a hotel, which also served as a hostel, had a management accounting system, but there was no general accounting policy and clear division of responsibilities. Therefore, cash documents were entered every other time, expenses were not all written off, which resulted in negative balances, and the manager did not see real profit. Every month he had a question: "Why is there profit, but cash is decreasing?"