Recent Articles

What is Cash Flow?

Cash flow is the dollar change in the bank account at the end of the accounting cycle (period). It is primarily attributed to the earnings from operations adding back some non-cash expenses such as depreciation and amortization. Any changes in the current assets or current liabilities section is included in the formula.

The Different Types of Bank Loans

02/19/2013

There are many different types of bank loans, each having their own respective purpose.  All bank loans are categorized into two distinct groupings; secured and unsecured loans.  Within in each category of loans there are several different [...]

What is Accrual Accounting?

02/11/2013

Accrual accounting is the preferred method of accounting for all business operations.  Any publicly traded company must comply with the principles of accrual accounting.  Small business operations can choose between cash and accrual accounting for [...]

Construction Draw Schedule

01/22/2013

A construction draw schedule is a financial tool used by contractors in identifying percentage of completion points in the project for the bank to advance proceeds to the contractor. The construction draw schedule is instrumental in keeping the [...]

Cash Flow – A Basic Definition

01/16/2013

Cash flow is the ability of a business to turn its product or service into cash.  It is generally measured in dollars or in dollars against a time period.  The simplest example I can think of is a child selling lemonade.  The child purchases the [...]

Cash is King – The Value of Cash Flow

11/19/2012

For any small business operation, getting cash into the bank account is critical to survival.  Without cash, the probability of success dissipates quickly.  So how do you get cash into the bank account?  There are several sources of cash: they [...]