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Reading and Understanding Cash Flow Analysis, by Lorman

Reading and Understanding Cash Flow Analysis is brought to you by Lorman

Understanding and managing cash flow in your business is critical to your success.

A balance sheet is often described as a snapshot of your financial situation at a single point in time. Think of it as the balance in your personal checking account. An income statement summarizes revenue, expenses, and net income for the entire year or another period of time. Both of these financial statements are important tools to measure the success of your business but do little to tell you where the cash actually went. Learn more about how cash truly moves through your business, how to prepare a cash flow budget, and how to identify ways to put your working capital to work to increase shareholder value.

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