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 ...

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 ...

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 ...

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 ...

Discover the three essential financial statements required by GAAP: income statement, balance sheet, and 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, ...

As business owners, we all know it’s true: Cash is king! Without it, your business couldn’t survive. That’s because you need cash to operate and grow your business. How else will you ensure you’re ...

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, ...

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 ...

The Cash Flow Statement is a secret weapon for analysts and investors, a way to see through the accounting tricks companies play on the income statement, and I’m showing you exactly how to analyze it ...

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 ...

From misinterpreting financial statements to making uninformed investment decisions, these critical oversights could be draining your company’s lifeblood without you even knowing it. Cash Flow Blind ...