Cash Flow Related Articles

Does Cash Flow Mean Profit?

Kelly Spors

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,... Continue

So Just How Much Cash Is TOO Much Cash?

Gene Marks

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

How to Prepare a Cash Flow Statement

Kelly Spors

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

What Are the Different Types of Cash Flows?

Kelly Spors

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

What Is a Cash Flow Statement?

Eric Vo

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

Why Do You Discount Cash Flows?

Eric Vo

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

Is Discounted Cash Flow the Same as Net Present Value?

Eric Vo

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

What Does the Net Present Value Tell You?

Eric Vo, Gene Marks

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

Three Mistakes You Should Avoid When Calculating a Discounted Cash Flow

Gene Marks

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