Are you aware of the potential cash flow issues that businesses may encounter? In this interactive video, we will explore the reasons why businesses may face cash flow problems, using the example of Santa and his Christmas grotto. By highlighting the importance of cash flow forecasting and distinguishing it from a cash flow statement, we will delve into the main causes of cash flow issues, such as poor sales, excessive stock holding, and payment and receipt timing.

The video will also examine the impact of cash flow problems on a business, including the difficulties in paying running costs and obtaining finance at a high cost. But don't worry, there are possible solutions for resolving cash flow problems, such as increasing sales, reducing outgoings, rescheduling payments, and renegotiating payment terms with suppliers.

By the end of this video, you will have a better understanding of the importance of cash flow forecasting, the common causes of cash flow problems, and potential solutions for addressing these issues. Get ready to learn how to avoid common mistakes and ensure your future business stays on track financially.