How To Get Through A Period Of Negative Cash Flow

Why Your Cash Flow Statement Is Your Most Important Financial Statement:

Cash is the lifeblood of your business. Without it bills don’t get paid, there’s no new inventory coming in and you won’t get paid either. Without good cash flow, your business doesn’t have a secure future. That’s why the cash flow statement is the most important financial statement you can generate and study.

Yes, there are plenty of other accounting statements that can be helpful. Maybe you’re working with income reports and are keeping an eye on accounts payable and receivable. It still won’t get you the whole picture.

Here are a few key pieces of data you may be missing without a cash flow statement:

How much money you have available to pay suppliers, bills or invest into business upgrades.
How much money is tied up in the company and can’t be used for day-to-day operations.
How many of your customers have actually paid for the products and services ordered (as opposed to just being invoiced).
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