Cash Flow Analysis

Cash flow analysis will enable your business to track cash as it flows in and out of your business and reveals to you the causes of both cash flow shortfalls and surpluses. The operating activities are the daily occurrences that are essential to any business operation. If these are positive, then it indicates to the owner that the business is self-sufficient in funding its daily operational cash flows internally. If the cash flow analysis number is negative, then it indicates that outside funds were needed to sustain the operation of the business.

The increase or decrease in cash figure at the bottom of the cash flow statement represents the net result of operating, investing and financing activities. If a business ever runs out of cash or have the resources to obtain additional cash it is out of business.

A cash flow statement will analyze your sources and uses of cash from month to month and from year to year if properly prepared and maintained. You will find the cash flow statement to be a valuable tool in understanding the cash flowing into and out of your business.

You will need accurate and timely financial information to help you manage your business effectively. Your financial statements will also be critical as a budgeting tool to achieve financial milestones in your business. We are experts at cash flow analysis, either as a single function or as part of a larger engagement.