Nonsense At Work

The simplest measure of financial health:

During a recession, what is the best measure you can use to check your ongoing financial health? A measure that applies to organizations and to individuals?

Cash flow. Come to think of it, this also the best measure during good times.

Cash flow is the simplest and the sanest measure of financial health. Simply answer this question: Does your organization bring in more money than it pays out, yes or no? Do you earn more than you spend, yes or no?

The problem, of course, is that cash flow is easy to measure but difficult to manage. Nevertheless, it is worth the effort, because there is an unexpected bonus for you if you succeed. If you decrease the cash that goes out and increase the cash that comes in, then you will decrease your stress and increase your energy.

Improve cash flow and you improve health, whether yours or your organizations.

I’m james@nonsenseatwork.com