One of the most important principles of finance states that cash is king. More often than not, your books will reflect profits but they may not be realised the soonest because they are still receivables. The problem is you need to settle what you owe to your employees and suppliers and to sustain business operations. In this case, the solution is improved management of cash flow, which will make sure you have the cash to spend when needed

1. Collect Cash Quickly

One of the most important things to do is to make sure invoices are created the soonest to collect the money quickly. You do not need to wait for the end of the month before you create the billing statement. In the same way, be persistent with your collection.