Every business has cash going in and going out. This is cash flow. A cash flow statement accounts for the cash moving in and out of the company. It reflects the cash impacts of revenues, expenses, ...

When using accrual accounting, which recognizes revenues when earned and expenses when incurred, companies use three key financial statements -- the income, or profit and loss, statement; the balance ...

A cash flow statement is a financial report that describes the sources of a company’s cash and how that cash was spent over a specified time period. It does not include non-cash items such as ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Andy Smith is a Certified Financial ...

On financial statements, your business income and your cash are not the same things. On the company income statement, accounts payable – the bills you haven't paid yet – is a negative entry, ...

Cash flow is essential to running a successful business. As a business owner, you need to have a good read on your company’s fiscal health; cash flow statements can help you with this. These reports ...

Operating cash flow (OCF) is an important measurement to understand. It’s used to calculate financial success of a company’s critical activities. OCF is the first section portrayed on a cash flow ...

Cash flow is, understandably, one of a company’s most significant concerns. To stay on top of this vital financial metric, business owners rely on accurate, consistent cash flow statements. These ...

How come the net profit on my income statement is so much more than the money I have in the bank? Where did it go? Profits do not equal cash! You don’t pay your bills with profits. You pay your bills ...

Cash generation is “king” for many investors selecting stocks. Earnings, dividends and asset values may be important factors, but it is ultimately a company’s ability to generate cash that fuels the ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Andy Smith is a Certified Financial ...

Free cash flow is the amount of cash a business has remaining from operations after paying capital expenditures. Find out how investors can use free cash flow to measure the financial health of a ...