Each organisation has to manage and monitor its cash flows carefully. Cash does not just arrive; it must be chased, recorded and managed. At all times, there must be enough cash to pay bills.  For a retail business like The Warehouse, the main cash inflows or receipts will be from sales; the main cash outflows or payments will be for supplies and overheads associated with its stores, such as rents, rates, wages, power or transport.

If there is too much cash in any organisation, it needs to be put to work for instance, in a deposit account or investments where it will earn interest.  If there is too little, the business needs to know how much it will have to borrow to cover the shortfall and for how long.  Borrowing money also has costs which need to be managed.  Good cash flow management requires good information, professional training and good management decision making.