480-354-1040 | hello@cdtax.com

CD Tax & Financial
Schedule your free consultation today
  • Home
  • Services
    • Accounting Services
    • Tax Preparation and Planning
    • Tax Resolution
      • Help with Your IRS Audit
      • Filing Prior Years Return
      • Owing the IRS Money
      • Behind on Payroll Taxes
      • When Your Spouse Owes the IRS
    • PPP Loan Forgiveness Assistance
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Cloud Accounting
  • Products
    • QuickBooks Online
    • QuickBooks Online Advanced
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Point of Sale
    • QuickBooks Payments
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Resources
    • Resources
    • Mobile Accounting
  • Testimonials
  • Blog
    • Blog
    • Newsletter
    • Weekly Tax Tip
  • About us
  • Contact
  • Home
  • Services
    • Accounting Services
    • Tax Preparation and Planning
    • Tax Resolution
      • Help with Your IRS Audit
      • Filing Prior Years Return
      • Owing the IRS Money
      • Behind on Payroll Taxes
      • When Your Spouse Owes the IRS
    • PPP Loan Forgiveness Assistance
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Cloud Accounting
  • Products
    • QuickBooks Online
    • QuickBooks Online Advanced
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Point of Sale
    • QuickBooks Payments
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Resources
    • Resources
    • Mobile Accounting
  • Testimonials
  • Blog
    • Blog
    • Newsletter
    • Weekly Tax Tip
  • About us
  • Contact

Cash flow statements: The essential report

December 15, 2020 In Accounting, Accounting Software, Bookkeeping Tips, Business Development, Business Growth, Business Tips, Cost-Savings Tips, For Your Business
ShareTweetPinterestLinkedin

Cash flow statements

One of the most perplexing concepts fcan be understanding cash flow. This is because cash flow is not profits, nor does operating losses necessarily mean poor cash flow.

However, cash flow is important. It can be very frustrating when payroll is due and you have no money to pay it. What do you do when the banker is calling you about not being able to make your payments, yet your income statement shows a healthy net profit? Your income statement properly reflects all your sales, even those made on accounts receivable. So the profit you should have available to meet expenses is tied up in accounts receivable.

Or perhaps you have acquired new equipment and paid for it with cash. With your operating profits tied up in new assets, you have a cash shortage. On the other side of the coin, you may have sold a piece of real estate or equipment and have a large cash balance in your checking account, yet your income statement shows a loss.

Here are the three elements to properly manage cash flow –

  • Collect your cash as rapidly as possible.
  • Pay out cash as slowly as possible and still maintain good credit and good vendor relationships.
  • Make the best use of cash held in the business.

A cash flow statement will show you where the cash is coming from and where it is going. Best results are usually obtained by using monthly cash flow statements and projections based on prior experience. Building a history of cash flow needs by using historical financial records will provide an invaluable tool for managing your business.

If you do not track your cash flow on a timely basis, now would be a good time to construct the proper reporting.

5 Tips on Bringing Home the Bacon


As always, should you have any questions or concerns regarding your tax situation please feel free to contact us.

Stay Up To Date on Taxes that Affect You!! Subscribe to our General Taxpayer Weekly Tax Tip that includes bite-size and informative tips on tax and financial changes, Monthly Client Update Newsletter, and updates on our events and seminars. Follow CD Tax on Facebook!

business plan cash flow financial statements profit and loss profits ratios reports small business

Monthly Archives

Categories

  • Accounting (41)
  • Accounting Software (11)
  • Amended Tax Return (3)
  • Blog (2)
  • Bookkeeping (2)
  • Bookkeeping Tips (11)
  • Business Development (25)
  • Business Growth (23)
  • Business Tips (82)
  • College (3)
  • Cool Tech Tools (13)
  • Cost-Saving Tips (13)
  • Cost-Savings Tips (5)
  • COVID-19 (41)
  • Customer Service Tips (6)
  • Decision-Making Tips (12)
  • Deductions (7)
  • Divorce (2)
  • Expense Reduction Tips (4)
  • Finance Management (9)
  • For Your Business (57)
  • Identity Theft (12)
  • Individual Tax (90)
  • IRS (38)
  • IRS Audit & Representation (4)
  • Legacy Planning (31)
  • Management Tips (9)
  • Marketing Tips (1)
  • Money Management (16)
  • News (4)
  • Payroll Tips (17)
  • Personal Development (5)
  • Profitability Tips (11)
  • QuickBooks Help (1)
  • QuickBooks Software (1)
  • QuickBooks Training (1)
  • Tax (35)
  • Tax Dates (21)
  • Tax Planning (20)
  • Tax Rates (4)
  • Tax Records (8)
  • Tax Resolution (2)
  • Time Management Tips (4)
  • Uncategorized (4)

Sitemap

  • Home
  • Services
  • Products
  • Industries
  • Resources
  • Testimonials
  • Blog
  • About Us
  • Contact

Contact Us

Tax Services, Accounting Services and Services for QuickBooks®

CD Tax & Financial
Tax Girl Enterprises LLC

8257 E. Guadalupe Rd Suite 115
Mesa, AZ 85212 United States

480-354-1040 | hello@cdtax.com


Intuit, QuickBooks, and QuickBooks ProAdvisor are registered trademarks of Intuit Inc. Used with permission under the QuickBooks ProAdvisor Agreement.

Client Portal Login CD Tax & Financial Mesa AZ

Schedule your free consultation today CD Tax & Financial Mesa AZ

©2020 CD Tax & Financial | Tax Girl Enterprises LLC
Site Design by Accelerator Websites