Cash flow statements: The essential report

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 […]

Starting a business? Avoid the common pitfalls

If you start your own business, improve your chances for success by avoiding these common pitfalls. Lack of money. You’ll probably need capital to start your business, plus a cash reserve until your business becomes self-sufficient. Plan your cash needs carefully and realistically, and provide a generous cushion for setbacks and unexpected expenses. Consider leasing equipment […]

Ratios and reports: Beyond the financial statements

Business ratios In addition to the traditional financial statements, you will want industry specific reports to allow you to compare your company’s performance to that of others. You will also want to learn the key ratios and the value of those ratios in month-to-month and year-to-year comparisons of your company’s performance. Here are several key […]

Use financial information to increase your business profits

Financial Statements Most successful business managers use financial statements and other special reports to generate higher profits. If you haven’t been using all the financial tools available to you, here are some ideas to get you started. There is no need to feel intimidated by financial statements. If your company’s record system is properly designed, […]

Starting a Business: The purpose of a Business Plan

A business plan is a written document created to detail all aspects of a business on a comprehensive level. Many banks and investors require a written business plan before lending to, or investing in, a business. Executive SummaryThe executive summary is a summary of the entire plan. It should be written when all other sections […]