Saturday, December 31, 2011

Which is more challenging, managing cash flow in a non-profit or a regular business? Why?

Managing cash flows in a non profit is much more difficult than managing cash flows from a regular business. Cash flows in a non profit organization is difficult to manage because there is uncertainty in the capital they will gain to fund their operation. whereas in a regular business it is easy to forecast revenue from previous financial statements and plan for projected economic growth. Non profits have variable cash flows due to the different projects they are allocating capital too. whereas a regular business is confident and certain of the cash flowing in and out of the business. 

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