1. Marketing
Management
Indicator 2.03
Implement accounting procedures to
track money flow and to determine
financial status.

2. The Importance of Adequate
Cash Flow to Business Success
• Making sure there is enough cash to operate is one
of business’s most important financial activities
• Movement of cash is important
• Determines the amount can work with at any given time
• If running low
• May not be able to cover expenses
• May not be able to pay the employees
• May fail
• Businesses that are profitable may experience
cash-flow problems
• Sources of cash that flow into a business
• Some sources are more reliable and steady than others

3. Sources of Cash
• Start-up money
• Funds to cover expenses until revenue starts to come in
• Sale of products
• Main source of cash for established businesses
• Loans
• Businesses borrow cash to expand
• Possibly needed when sales are slow
• Interest
• Invest extra cash to earn interest
• Sale of assets
• Anything of value a business owns that can be sold

4. Sources of Cash That Flow Out of a
Business

5. How do Cash Flow Statements Tell
When, Where, and How Much?
• When
• Warns when business will
be low on cash
• Identifies high and low
points
• Identifies months when
certain sources of income
will be collected
• Where
• What source
• Debit cards, cash, credit
cards
• How much
• Tells how much cash is
flowing into the business
• Can plan ahead for
expected shortages

6. How do Cash Flow Statements Tell
When, Where, and How Much?
• When
• Warns when business will
be low on cash
• Identifies high and low
points
• Identifies months when
certain sources of income
will be collected
• Where
• What source
• Debit cards, cash, credit
cards
• How much
• Tells how much cash is
flowing into the business
• Can plan ahead for
expected shortages