ALWAYS MAINTAIN A CASH RESERVE

​Business enterprises are created to make profit. It is the goal of every business to make money from the goods and services offered to the public. Though being successful is dependent on the amount of money made by a business enterprise, it also needs to know how to manage the profits earned. It is advisable for a business enterprise to always maintain a cash reserve. It is important for a business enterprise to always maintain a cash reserve that it could fall on when it is in need of money.
There are times when a business enterprise would be need of money to attend to pressing issues like purchasing raw materials, purchasing and maintaining equipment, paying salaries of staffs etc. The cash reserve can be banked on when the business is out of money. It is very important for a business enterprise to have a backup plan.