Cash Flow

Sometimes construction businesses have profit but no cash. The Statement of Cash Flow shows the cash flowing in and out of your company.

In this video…

In this video, you’ll learn how important your cash flow report is to construction accounting, and why you need to keep an eye on it.

What is a Statement of Cash Flow?

The statement of cash flow or cash flow report shows the cash that’s flowing in and out of the company for a specific period of time.

How Can I Have Profit but No Cash?

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 by collecting accounts receivable.

Next Video: Accounts Receivable