Cash Flow

Cash flow is an important financial concept that refers to the movement of money into and out of a business. It is used to measure the liquidity, or amount of available cash, that a company has at any given time. Cash flow can also refer to the total amount of money coming in and going out during a specific period — typically either a day, week, month or year. The professionals at Wayne W. Stanforth, CPA can help you assess, understand, and manage your business's cash flow, enabling you to make strong financial decisions. 

Assessing a Business's Cash Flow

When it comes to accounting, cash flow is measured by calculating the difference between a company’s total incoming and outgoing funds. This can be done either on an accrual or cash basis. Accrual accounting records all income and expenses as they occur, while cash-basis accounting only takes into account income and expenses that have been actually received or spent in cash. To accurately measure a business’s cash flow, it's important to use the same method of accounting for all transactions. 

Why Are Cash Flow Statements Important?

Cash flow statements are one of the most important documents used in financial reporting and can help businesses track their current and past performance. They provide an overview of how much cash is available at any given time, as well as the sources and uses of cash. By analyzing cash flow statements, businesses can identify areas where they may be able to reduce expenses and improve their financial performance. 

How Can Cash Flow Management Help Me?

The goal of effective cash flow management is to ensure that there is enough money available to pay for day-to-day operations, as well as any other investments or expenses that may come up. By understanding and managing your business's cash flow, you can make better financial decisions that will help sustain and grow your company’s future success. 

Trust Wayne W. Stanforth, CPA With Your Cash Flow Management

At Wayne W. Stanforth, CPA, we specialize in helping our clients assess their current cash flow situation and develop sound strategies for improving it. Our experienced professionals are here to help you understand and manage your cash flow so that you can make the best financial decisions for your business. Contact us today to get started– we look forward to helping you succeed!

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