When you operate with two or three months cash reserve, CompTIA says your approach can be a strategic, “forecast and monitor” approach. When businesses operate with little or no cash reserve, however, they take a tactical, short-term approach — in a worst-case scenario, paying bills as cash comes in. The guide states, “The danger with this mode of operation is that you will pay bills as you can, but then run short when it’s time to pay the routine monthly bills such as payroll. When this happens there is a high risk the company is not going to make it.”
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