In its simplest form, cash flow is the movement of money in and out of your business. |
If you were able to do business in a perfect world, you'd probably like to have a cash inflow (a cash sale) occur every time you experience a cash outflow (pay an expense). But you know all too well ... |
This example shows how easily a cash flow gap can occur in a small business. A cash flow gap is a shortage of cash caused by the mismatching of cash outflows and cash inflows. |
A good way to learn respect for the concept of cash flow is to compare it to the idea of profit. As a business owner, you understand and strive to make a profit. If a retail business is able to buy a ... |
If you keep your books on the cash method of accounting, this section is something you don't need to concern yourself with. If you keep your books on the |
If you keep your books on the accrual method of accounting, you'll have to make some adjustments to determine your |
Do you use the accrual method of accounting, but want to compute your cash flow profit? If so, any increase in ... |
Do you use the accrual method of accounting? If so, any increase in inventory must be subtracted from your accrual net profit amount to |
If you use the accrual method of accounting, any increase in accounts payable must be added back to your accrual net profit to |
If you use the accrual method of accounting, an increase in the amount of notes payable (bank loans) must be added to your accrual net profits to |
