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Whether your business is a startup or an established company, there are many risks that can have serious consequences on your finances. If managing your business’ finances is something you struggle with, don’t worry. You’re not alone.

Working capital is defined as the amount by which your business’ current assets exceed its current liabilities. That is, your cash on hand. Surprisingly, there are many myths surrounding working capital that simply are not true.

With so many urgent issues competing for your attention, it’s not surprising that few entrepreneurs find or make the time to read their financial statements, specifically, their income statement, balance sheet and statement of cash flows.

If your small business is like most companies, credit risk may come with the territory. In many industries, customers expect to be granted payment terms; that is, the leeway to pay for goods/services at a point following delivery (typically 15, 30 or 60 days).

Starting a business can feel a lot like driving down a dark, winding road in the middle of the night. You know where you want to go, but are unsure of how to get there safely or what lies between point A and B.

Every startup entrepreneur and business owner has at least this one thing in common: a desire for their idea to flourish into a successful business venture. Unfortunately, the reality is always much more complicated.

Each day, the world of business becomes a little more complex than it was the day before. For the small business owner, it’s increasingly difficult for them to specialize in all the different disciplines a small business needs.

For some time now, one of the biggest business topics discussed is the struggle small businesses encounter when attempting to secure the capital they need to grow. In general, banks are hesitant to lend to startups and small businesses.

Even though the economic landscape has shifted in a positive direction for small businesses in the last few years, the Small Business American Dream Gap Report revealed that nearly three out of ten small businesses say it has become increasingly difficult to reduce their operating costs.

As the old adage says, “cash is king” when it comes to business. However, despite cash being one of the most critical components of a business’ success, many business owners don’t know how to properly handle their cash flow.