I always say there are three days in the life of a project give me an emotional left.
When I make the sale
When I send the invoice
When I get the check.
The foundation of cash management starts with an understanding of how much money you have in the bank, knowing when the checks will arrive and how much you are anticipating in the next 30, 60 or 90 days?
Those sales boost your numbers but what will your expenses be to deliver on those sales?
One way to look at your cash management is to check your balance sheet and compare your accounts receivable to accounts payable. That will tell you if you have enough money coming in to pay your bills. If not, you're going to have to dip into your savings and assets.
Cash management helps you identify when you'll need cash to fill a gap and pay bills before a big payment from a client comes in.
The time to try to line up a line of credit and financing is not when you need the money the most so advanced cash management planning helps ensure that you have money when you need it.