How often have you heard the phrase "cash is king"? The reason you hear that so often is because it is accurate. A business that regularly loses money and has negative cash flow is destined to collapse. The answer is to create positive cash flow on a monthly basis, which will ensure that workers are paid on time and that payments are made on time. While it's clear that income and expenditures should be prioritized, that's a broad statement. Cash flow refers to the movement of cash equivalent funds associated with a particular construction project. The following article discusses multiple strategies like cost segregation analysis which construction and contracting firms may use to increase their short term cash flow.
