Agency Cash Flow 101: Ultimate Guide for Execs
Cash flow is the net amount of money that moves in and out of your agency during a given time period. This includes: A positive cash flow means your agency earns more than it spends, while a negative cash flow indicates higher expenses than income. Managing cash flow effectively is crucial for smooth operations. With a positive cash flow, you can cover payroll, pay contractors on time, and set aside funds for unexpected delays, late client payments, or contract cancellations.