Cash Flow Analysis
Understanding Cash Flow
To be competitive, small business owners must plan and prepare for all future events and market changes.Possibly the most important aspect of preparation is effective cash-flow planning.Failure to properly plan cash flow is one of the leading causes for small business failures in the United States.
Experience has shown that many small business owners lack a general understanding of accounting principles.For this reason, a few of the basic principles will be covered.There also are self-instructional guides from which you can obtain a better understanding of accounting.
Cash in business serves several purposes.First, it is used for meeting normal cash obligations (i.e., paying bills).Second, it is held as a precautionary measure for unanticipated problems.Third, it is held for potential investment purposes.The term “cash” refers to:
- Checking Accounts More…