It\u2019s always a good question. Some might say that there\u2019s never enough money and others may say that enough is when it\u2019s enough. Both are similarly vague and not really accurate.\u00a0<\/p>\n
Running a business means you need to be liquid. Taking this a bit further means that you need to be able to satisfy your suppliers and employees above all \u2013 pay up your payables.<\/p>\n
To make a simple enough example \u2013 you have 1,200 payables balance to your suppliers and just 900 cash. Those payables are what you need to pay up tomorrow and hence 1,200 is what you should have in cash latest at the time you will be making this payment.<\/p>\n
You know you will be making sales worth of 400 in the next day, but you will not most probably have them all pay up tomorrow. Here\u2019s hoping you will at least get that 300 in cash that you\u2019re missing (1,200 \u2013 900)!<\/p>\n
To summarize, you have enough money when you\u2019re sure you\u2019re able to pay up your debts at their due date. \u201cEnough money\u201d means what you have right now and what you\u2019ll be able to collect until the payment date arrives.<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s always a good question. Some might say that there\u2019s never enough money and others may say that enough is when it\u2019s enough. Both are similarly vague and not really accurate.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,29],"tags":[],"class_list":["post-4057","post","type-post","status-publish","format-standard","hentry","category-1-basic-accounting","category-1-1-cash"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4057"}],"version-history":[{"count":2,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4057\/revisions"}],"predecessor-version":[{"id":4061,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4057\/revisions\/4061"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4057"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}