Cash Flow Statements and Accounting Applications

Cash flow statements are one of the four financial statements prepared by the management at the end of the financial year in accordance with the accounting standards. It is concerned with the inflow and outflow of cash in a given time period from operating activities, investing activities and financing activities (not necessarily in the mentioned order). That means it is based on a cash basis of accounting as opposed to accrual basis used in the balance sheet and profit and loss statement. It shows a picture of the ability of the company to pay expenses including payroll and interests. A strong statement is required by investors if they are to make a decision when it comes to investing in business. In addition, for the business to invest for expansion, it has to study the statement.

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Personal Finance and Handling Money – An Owner/Operator Mindset

Many people believe money is the embodiment of material wealth and allegedly personal freedom. Regardless of our sophistication and education, we are typically swept up with this misrepresentation. We seek financial well-being anywhere we can find it. Those of us without real cash reserves or large disposable incomes mistakenly replace what we lack in funds with expensive lines of credit. We leverage what we have in order to acquire what we seek to possess.

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Finances and the Business Startup – Part I

A large number of small businesses fail each year. There are a number of reasons for these failures, but one of the main reasons is insufficient funds. Too many entrepreneurs try to start and operate a business without sufficient capital (money). To avoid this pitfall, first review your situation by analyzing these three questions:

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