The Utility Of Process Mapping And Cash Flow Chart
There are small businesses and large businesses but irrespective of the size of the business the importance of cash flow chart and process mapping never diminishes.
It is certainly true that the plastic money has nearly overtaken cash transactions, but cash still remains a common mode of payment. It might have gone out of fashion to some extent but not out of existence so far.
Therefore, when it comes to process mapping cash flow charts have their own significance. Now, you might be wondering what process mapping is. In all probability you are aware of what process mapping is, if you are in business. What you might not be aware of how it is done systematically for the overall good of the organization.
The fact is process mapping is not a new tool. It has been there and has been used by people in business to make their businesses more productive for a very long time. These days it has gathered popularity and process mapping is done more professionally these days. In other words, from an art form of people in business, it has transformed into a scientific way of detecting problems and engineering solutions. To put it simply, it is what every person in business, big or small, does when he feels that their business is not prospering as well as it should and so it might require some change of strategy. Sometimes, increasing competition makes one do lot of thinking about how to cope with it. The first thing that one does is analyzing what is right in one's business process and what must necessarily be changed. The exercising of analyzing different processes in one's business is called process mapping. Earlier, one used to do it through writing on paper, making crude graphs with the help of rough statistics and sketches. Now, it is done with more sophisticated tools and software. The idea has not changed one bit, just the way one does it has. A part of process mapping is preparing cash flow chart, which is an integral part of one's business. The term 'cash flow' does not always mean hard cash. It also means the funds that flow from one place to another. This is sometimes done as part of the process map itself and sometime cash flow chart is prepared to understand the movement of funds better. A flow chart is a simple diagram representing graphically what might not be as easy to describe and communicate in words. It also makes it easier for people to comprehend because visual representations are better and more readily understood than words used to communicate the same idea. In order to analyze the flow of funds a cash flow chart is used as part of the process mapping in order to show the resource leakage or to suggest how funds could be better managed. Therefore, a cash flow chart as part of process mapping holds immense importance and must therefore be very diligently prepared.
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