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Cash flow provide information about cash receipts & cash payments from the operating, investing, and financing activities of a company during the specific period.
We can analysis from cash flow stamenet that from which resources amounts are comming into our business and going out from our business.
Because cash is blood!.cash gives the managers the liquidity percentages, hence, the continuity of the project.
The income statement will record sales and profits but only the cash flow statement that will alert you if those sales aren’t generating enough cash to cover expenses.
If your startup uses loans beside equity:
The income statement will tell you how much interest you paid on teh loan and the balance sheet will tell you how much you owe, but only the cash flow analysis will tell you how much cash was consumed servicing that loan.
cash flow is the important for the business this based on the business profit and loss calculating so any company cash flow analysis the monthly and yearly
In simple terms, Cash flow gives you a detail view of where the money went,help focus on creating excess cash, a good key perfomance indicator and helps with financing decisions.
you cashflows are used in determining the worthiness of your investment or business undertaking in the first place, net present value (NPV) to be exact. a positive NPV or a higher IRR is crucial in the decision making. if your business operation is chosen as the result of this decision, having your monthly analysis very important to align your actual performance against what you have forecasted or budgeted, this is to monitor if your working capital is enough to support your operation, expand thru financing or not, or invest excess working capital to attract more return on your assets invested.
MONTHLY CASH FLOW PROVIDES IN A MONTH CASH POSITION IN A COMPANY . HERE ANYONE GET THE ACTUAL RECOEDE CASH RECEIVE & PAYMENT . SO CASH MANAGEMENT /CASH BUDGETING FOR NEXT OPERATION YOU NEET TO MONTHLY CASH FLOW ANALYSIS .
It is important to make a monthly cash flow analysis because it later becomes payment for things that make your business run.
BETTER TO CLOSE & ANALYSE EVERY WEAK.. ITS VERY USE OF LEDGER
Cash flow is important get the liquidity position of the month on the base of expences and receipts. by this we can budget for next month operations.
Cash flow provide information about cash receipts & cash payments from the operating, investing, and financing activities of a company during the specific period.
We can analysis from cash flow stamenet that from which resources amounts are comming into our business and going out from our business.
Because cash flow analysis reflects the movement of incoming and outgoing cash for the company and sources to got it.
