Posts Tagged ‘statement of cash flows’

Financial Literacy for Business Owners

If you are a business owner you may already be financially literate, but just how strong is that literacy? Even if you are there are likely some things your CFO, Controller, or in-house accountant can do to improve your understanding of your financial situation. On the other hand if you aren’t financially literate then these same people should be helping you to become so. Read the rest of this entry »

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Every Business Needs Accounting Done Right

Whether you’re a sole proprietor or a multi-employee small company, every business needs accounting done right. In the article Does a Part-time CFO Makes Sense? I touched on this issue, but let’s look a little deeper. Read the rest of this entry »

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Make Profit Count

Ever wondered why a company that seemed to be doing so well suddenly failed? Often times the reason is that management took their eyes of the ball, with the ball being defined as cash. I touched on this earlier in Cash Flow – The Bottom Line. Basically the issue comes down to realizing that in order to make profit count it is essential that profit is converted to cash.

Cash is Critical

Without adequate cash a company will be hard-pressed to pay bills. I’ve had clients and been an employee of companies that were very profitable on paper. But, that’s on paper only. If you looked only at Read the rest of this entry »

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Understanding the Statement of Cash Flows

A number of my recent postings have been related to definitions of financial terms, financial ratios, and how to make use of them. Among these, a large percentage related to cash and the various things that impact it. In my posting Cash Management-It’s Not About the Cash Account I pointed that to manage cash we needed to get away from focusing so much on the cash account. To understand how cash is generated and used, let’s take a look at the flow of activity that impacts the cash balance. Understanding the statement of cash flows will help accomplish that. Read the rest of this entry »

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