While not all small business owners fully understand the Income Statement and Balance Sheet, most recognise them and have a broad idea of what they are and how to use them. However, the Cash Flow Statement is probably the financial report most responsible for confusion, blank looks and mild panic in small business owners. This is a shame, because it’s actually an extremely handy report that can give you some very valuable insight into the health of your business.
“But if that’s my profit, why is my bank account so empty?” This is a question I encounter on a regular basis when a business owner looks at their Income Statement – especially at tax time! Your Income Statement has a lovely healthy profit but your bank balance is moth-eaten and sad, how can both […]
Managing your cash flow and forecasting not only helps you stay on top of things and stay in business, but it is also a vital part of business strategy. It should be your number one priority as a business owner.
This article was originally published in YourBiz magazine, you can find the original here. Cash is the lifeblood of your business – one cannot over emphasise the truth in these simple words. A good bookkeeper and accountant are essential for recording financial information and keeping you up to date with your financial situation, but the […]
