Business and Personal Finance: How These Statements Interconnect

Preparing Financial Statements – How These Statements Interconnect Even though they each contain very distinct information, the three main financial statements are completely connected. In fact, you can’t produce a balance sheet without first creating a statement of profit and loss, and you can’t prepare a statement of cash flows without having already produced the … Read more

Business and Personal Finance: The Basics of Cash Flow

Always Know Your Cash – The Basics of Cash Flow Cash flow describes the way money comes into and out of your business. As you might expect, when money comes in, it’s called cash inflow; when money goes out, it’s cash outflow. Keeping track of both sides of your cash equation is critical to the … Read more

Business and Personal Finance: Earning Profits but Out of Cash

Always Know Your Cash – Earning Profits but Out of Cash One of the most baffling accounting occurrences for the newly initiated is when their company shows a clear profit, but their cash is running frighteningly low. New business owners often confuse making money (i.e., earning profits) with having money. However, profits don’t always mean … Read more