Understanding and managing cash flow in a business can be tricky, especially when you're new to entrepreneurship. So, you can take help from the numerous books about cash flow that provide valuable insights and guidance.
Here, I’ve compiled a list of the best books about cash flow management that business owners can learn from. These cash flow management books will help you understanding how much money is coming in and going out of your business. You’ll be able to manage your cash flow effectively and ensure success for your business.
Table of Contents
Cash Rules, by Bill McGuinness
Cash Rules book is one of the top cash flow management books. It’s a comprehensive guide on managing and improving the cash flow of a business. It discusses all the components of money like cash inflows, cash outflows, and other payables and receivables. And it provides strategies to handle them. This cash flow book is designed for small business owners and entrepreneurs who want a better understanding of cash flow. It lays out a simple model to understand the different cash flows in a business.
Small Business Cash Flow, by Denise O'Berry
Small Business Cash Flow is another among the good books for business owners to know the intricacies in cash flows. It covers all the basics of cash flow management. It breaks down all concepts into actionable steps for businesses to stay cash positive. The book also touches different aspects of business development and provides ideas to keep money flowing in and out. Probably, the best book for small business cash flow management. It’s like a cheat sheet to better cash flow management.
Understanding Cash Flow, by Franklin J. Plewa Jr.
Understanding Cash Flow is another of the effective cash flow books. It’s designed to help readers understand the importance of cash flow in managing a business. The book covers the processes, the terminology and the factors associated with cash flow. And it provides practical guidance on how to monitor and manage cash flow on a regular basis. It’s also a good cash flow forecasting book. It covers several related topics like forecasting cash flow, identifying cash flow problems and preventing frauds.
Managing Cash Flow: An Operational Focus, by Rob Reider
Managing Cash Flow book is one of the popular books on cash flow analysis. It focuses on the importance of cash flow management in day-to-day business operations. And it provides tools and techniques to determine, evaluate and improve the effectiveness of a corporation's management of cash. It also touches on topics like cash flow management during growth and expansion, and using technology to improve cash flow management. It’s among the best books on cash flow management to read for entrepreneurs.
Accounting for the Numberphobic, by Dawn Fotopulos
Accounting for the Numberphobic is among the best accounting books for entrepreneurs to understand the basics of finances. It’s an introduction to accounting and finance designed for business owners and managers. The book explains the key terms and concepts in a simple language, and demystifies the essential financial statements. It explains not only the cash flow statement, but also digs into balance sheet and income statement. It’s the best books for new business owners to know financial statements and use them for better business decisions.
Top 5 Lessons from the book:
The goal is to build a profitable business, not maintain an expensive hobby that will leave you in the poorhouse.
The most successful small business managers are not the ones who never make a mistake; they are the ones who make their course corrections sooner.
Credit extension, invoicing policy, payable policy, dealing with customers, and negotiating with suppliers, banks, and internal staff are all management disciplines that have a direct impact on the cash cycle.
Every product or service must have a gross margin of at least 30 percent of net revenue or 45 percent above cost of goods sold.
Until net revenue from sales is consistently higher than the total of both fixed and variable expenses, a business is not self-sustaining.
Also Read: 9 Best Books for Finance
OK, those were all the popular cash flow management books. These are some of the best books related to business cashflow management and other finances. Small business owners and startup founders will find these cash management books valuable for their business.
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