A company can have profit but not cash, the Statement of Cash Flow shows the cash flowing in and out of your company.
In this video…
Hi, Greg here for On Track Business Management. In this video, we’ll be talking about your cash flow report. The statement of cash flow shows the cash that’s flowing in and out of the company for a specific period of time. The company can have a profit, but not have cash. Because profit is computed using revenues and expenses which can be different from the company’s cash receipts and cash disbursements. Cash is king. Run out, and your business is in trouble. So keep a close eye on your cash report.
In the next video, we’ll talk about turning your billings into cash.
Next Video: Accounts Receivable