“Turnover is vanity profit is sanity and cash is king!” ~ We have all heard that old chestnut, but does not mean it is not true!

When it comes to running a successful business, the most important aspect of financial management is cash flow. Whilst it may look impressive to have vast levels of revenue from sales, your primary focus should be on ensuring a regular inflow of cash. Don’t forget – even a multi million pound enterprise can still fail due to poor cash flow management.

So here we discuss just because you are increasing turnover do not always mean profit is increasing. And sometimes the increase in turn over does not always mean its worth having for a smaller increase in profits!