Level 3 - Commercial terms you need to know - Cashflow-L3B2

Video Transcription

Video Summary

The transcript explains cash flow: money comes into a company from sales and goes out to cover expenses like electricity, salaries, and supplies. Sales revenue is essential because it pays the bills and keeps the organization running smoothly. Salespeople are therefore given revenue targets to help maintain healthy cash flow. If too much money goes out and not enough comes in, the business can struggle or even grind to a halt. Employees, especially salespeople, should avoid wasting resources, giving excessive discounts, offering too much credit, or missing targets, since these actions can hurt the company’s finances.

Keywords

cash flow

sales revenue

expenses

revenue targets

financial management