Cash flow problem is not only a problem for small business. It can be a problem for medium size enterprises (> S$10M in revenue).
This happens when
1) No budgeting carried out. Revenue forecast is important
2) Poor management of account receivables
3) Poor visibility of account payables resulting in too much outflow of cash
4) Poor project management resulting delay in project completion and invoicing
Financial management is necessary from a budgeting perspective. The budgeting is carried out at the start of the work year and review quarterly.
Companies can also adopt an enterprise resource management system to address points 2) to 4). Such enterprise resource management will allow visibility of inflow and outflow of cash. Certain systems also have project management tools within.