When it comes to business financial terminology, it's easy to confuse cash flow with profit. After all, both terms mean you're making money, so what exactly is profit vs cash... Continue
Every small business owner knows that cash is king. Keeping cash flowing is critical to the survival and eventual success of your business. So, yeah, cash flow—as documented in your cash flow statement—is very important for a... Continue
A cash flow statement breaks down the various types of inflows and outflows of cash (and cash equivalents) that a business experiences. It can help you and other stakeholders clearly see how your business earns or spends cash, and it can... Continue
Cash flow is the money that streams in and out of your small business—and it's a key indicator of your company's overall financial health. The term cash flow is used to describe the amount of cash that is generated or spent within a... Continue
A cash flow statement is a financial statement that shows how much money is going in and out of your small business. The statement is a part of a formal document that is included in your company's financial statements. It breaks out your... Continue
Your small business is growing and you have the opportunity to make an investment in your business. The investment will cost you $30,000 and is estimated to generate $6,000 a year for the next five years. Should you do... Continue
The net present value and discounted cash flow analyses can be used together to help you make an informed decision. But they're not the same. The discounted cash flow analysis helps you determine how much projected cash flows are worth in... Continue
As a small business owner focused on success, you may reach a point where you're looking at acquiring new equipment or assets to help grow your company. But how do you know if investing in the equipment or asset is worth it and that you'll... Continue
I'll admit that, particularly in the last few years, not many of my clients have used the discounted cash flow (DCF) method for determining whether or not an investment is worthwhile over the longer term. It's not such a mystery why: The... Continue
