Cash Flow Problems

Cash flow is the term for the overall incomings and outgoings at a business over a period. A cash flow test is a useful method of determining insolvency by looking at whether a business is able to pay its debts when they fall due and if not, how long the debts will be or have been overdue.

Cash flow problems is one of the main causes for a business falling behind in its tax payments – as they have diverted incoming cash into other channels to buy more time for repayment

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