A Profitable Business Can Still Struggle to Pay Salaries

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A company can bring in ₦50 million in revenue and still struggle to pay salaries on time. Revenue is not the same as cash in the bank. Money may be tied up in unpaid invoices or inventory while operating expenses are due immediately. Employees need their salaries when payday arrives, not when customers eventually pay. I believe payroll should be part of a deliberate cash-flow strategy, rather than a monthly emergency. How should businesses manage payroll: as an ordinary operating expense or as a financial obligation that needs its own liquidity plan?

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