Ever wondered how a business can be profitable but run out of cash? In this article, we cover what is cash and profit and what it means for the health of your business…with examples!
There are two methods of calculating net cash flows, but which should you use? In this article we draw the differences between the direct and indirect cash flow methods and help you decide which method you should use for your cash flow report.
Financial forecasting is a skill you’ve got to put into practice if you want to improve at it. In this week’s article, we’ve formulated 18 top tips to help you improve and create more accurate, useful and meaningful cash flow forecasts. If you can crack this process, you’ll be more prepared for whatever the future will bring.
Cash flow from operating activities can be a bit of headache to get your head around. In this article, we break it down and explain what it means, the impact it has on your business and the differences it has over financing and investing activities.
Numbers can be open to interpretation, especially if you’re not used to arcane accounting methodologies.
Maybe you usually leave the numbers to the accountant, but if you’re a decision maker, then at some point you’ve got to figure out what it all means.
So, today, I’m going to explain some of the common ways cash flow can cause confusion and how you can avoid it.
A cash flow statement brings order to the chaos. Our easy coffee shop example shows how this report can make it easy to understand your business finances. We go through line by line what it all means and where all the important numbers should sit.
If you’re a seasonal business owner you’re probably all too familiar with the feeling of uncertainty, especially during the dreaded off-season.
Sound like you? Well, you’re in luck!
Today, I’m here to help you to plan ahead so your business survives throughout these quieter periods, reducing your off-season anxiety.
By the end of this article, you will know how to forge a plan of action that will allow your business to get through the off-season without any cash flow problems.
The 13 week cash flow forecast is a tool for improving cash management in your business. Dedicating just a small amount of time to plan ahead can have great benefits and in this article we explore how you can take action now to avoid problems in the future.
Once you’ve created a cash flow forecast, you’re in a great position to start examining future scenarios for your business. In this article we look at 6 common scenarios that almost any business should be modelling.