Tag: Cash Flow – A Basic Definition
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Cash Flow From Operations – Basic Formula
In a pure cash only operation, the profit as reported on the income statement would also be cash flow from operations. But modern-day business is not pure in how it is conducted. Companies agree to pay suppliers at a later time, payroll is weekly or monthly, benefits that are paid in the future are offered to…
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Financial Statements for the Small Business
Financial statements serve the purpose of presenting economic activity and status related to a particular date and over a particular time frame. Accountants record monetary transactions and via financial reports present the information in an easy to understand format.
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Inventory – How to Finance
In financing a small business, there are a multitude of tools available. One way to finance inventory is by using the 30 day pay program with your vendors.
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What is Accrual Accounting?
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 their records. Although cash accounting is the easiest to work with as a small business operation, accrual accounting will provide a more…
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Construction Draw Schedule
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 project moving along.
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Cash Flow – A Basic Definition
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.
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Cash is King – The Value of Cash Flow
For any small business operation, getting cash into the bank account is critical to survival. Without cash, the probability of success dissipates quickly. How do you get cash into the bank account? There are several sources of cash: they include capital, loans and customer payments.