How to See a Cash Flow Crisis Coming: Prevention is the Only Cure

As a strategy and finance turnaround consultant, I have worked with many companies in crisis – usually one triggered by cash flow problems. The company’s bank account is heading toward the red and the business owner wonders how to meet future expenses.

Cash flow crisis require fast action and the first step is to look closely at the financial statements. The income statement and balance sheet provide vital clues about cash flow and all the business practices that influence it. Within a short period of time the financial statements can tell me a story about the company—the good, bad and ugly!

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