This does not necessarily have to be physical cash, but it’s critically important that your business has access to 3 months’ cash flow via any variety of means, such as an overdraft, capital injections and so on.
The old, but oh so true saying is “Cash is King,” and it’s never more true than during a crisis.
As we (hopefully soon) re-enter recovery mode and start to build our businesses back up to full capacity, this is an important metric to keep front of mind in the good times – we need to rebuild our businesses’ access to cash flow, because no one knows what’s around the corner.
Contact us if you need a cash flow statement. accountants@sashneelaccountingandtax.co.nz
