Keep Tabs on Cash Flow If the money disappears, so does your business.

There's no getting around it. Businesses run on cash. The current economic situation makes it painfully clear: When the cash goes, the business stops.

The amazing thing is that every company has the power to both predict and avert sales-related cash-flow problems. A few numbers from your balance sheet and income statement are all you need to be warned of an impending problem.

Let's say you run a fine-wine distribution business--the kind that sells by the case to restaurants and retailers. If all your customers paid cash on delivery, you'd have no problems. But these days, more and more customers are asking to pay on terms--and some are already falling behind on payments. How long can you keep that up?