Cash flow common mistakes

Common mistakes

• Cash flow forecasting and interpretation common mistake 1

  Giving a vague answer instead of directly addressing: Explain consequences of cash flow problems and effects of positive cash flow..

  Fix itAnswer by clearly explaining how to explain consequences of cash flow problems and effects of positive cash flow..

• Cash flow forecasting and interpretation common mistake 1

  Giving a vague answer instead of directly addressing: Explain how and why cash flow forecasts are constructed..

  Fix itAnswer by clearly explaining how to explain how and why cash flow forecasts are constructed..

• Cash flow forecasting and interpretation common mistake 1

  Giving a vague answer instead of directly addressing: Complete and interpret sections of a cash flow forecast, including cash inflows, cash outflows, net cash flow, opening balance and closing balance..

  Fix itAnswer by clearly explaining how to complete and interpret sections of a cash flow forecast, including cash inflows, cash outflows, net cash flow, opening balance and closing balance..

• Cash flow forecasting and interpretation common mistake 1

  Giving a vague answer instead of directly addressing: Distinguish cash from profit..

  Fix itAnswer by clearly explaining how to distinguish cash from profit..

• Solving cash flow problems common mistake 1

  Giving a vague answer instead of directly addressing: Evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance..

  Fix itAnswer by clearly explaining how to evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance..