Cash Flow Cash Flow – the life blood of all businesses and households. So why is it one of the most misunderstood of core concepts? Too often the bank account register serves as the cash flow metric. Sadly, many business owners and individuals fail to keep even this most basic of tools up to date.… Continue Reading
Cash Flow Statement This week’s post will explore the Cash Flow Statement. The statement begins with the Net Income reported on the Income Statement for the same period. To the Net Income or Loss, non-cash expenses such as depreciation are added back. The purpose of starting with Net Income or Loss and adding back non-cash… Continue Reading
The best way to understand this concept is to think of it as the length of time you have funds invested in inventory and labor before you receive payment. This concept applies to services, retail or wholesale sales, manufacturing, or to projects undertaken for the client. For services such as architecture, accounting, legal and many… Continue Reading
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