Cash flow analysis is an important aspect of a company's financial management because it reveals the cash it has available to pay bills and invest in its business. The analysis goes beyond accounting ...

Learn how to tell if your business could be facing a cash crunch ...

In the “Understanding Financials: Your Income Statement” column, we learned that the accrual-basis method of accounting is based on the economic activity of the business, and that this preferred ...

How come the net profit on my income statement is so much more than the money I have in the bank? Where did it go? Profits do not equal cash! You don’t pay your bills with profits. You pay your bills ...

Just about everyone has heard the phrase " cash is king" in investing. That's true for business finances, too. A simple definition of a cash flow statement is how money, that is cash and cash ...

It’s vital for companies and investors to understand cash flow: the money coming into a company and leaving it. To understand this metric at a glance, companies will prepare a cash flow statement.

Companies generate financial statements to obtain a comprehensive view of performance, strength and stability. It is important to look at all three financial statements -- the income statement, ...

Managing when money goes out versus when it is coming in is something that small businesses have to work at; rarely does it simply happen. It is an unfortunate fact of life that small businesses ...

Learn 12 essential things about financial statements that investors need to know. These insights can guide smarter investment ...

A good business plan is an entrepreneur’s best friend. It’s an indispensable document, and every section matters, from the executive summary to the market analysis to the appendix; however, no section ...

A credit card sale is not the same thing as a credit sale. When you are paid with a credit card, you've been paid, and you can count the money as yours. Accepting a credit sale says you haven't been ...

Every business has cash going in and going out. This is cash flow. A cash flow statement accounts for the cash moving in and out of the company. It reflects the cash impacts of revenues, expenses, ...