A company reports revenues and expenses on its income statement. Since most companies use accrual accounting, the income statement reveals little about cash flowing into and out of the business. To ...

A cash flow statement consists of three sections: operating, investing and financing. Companies report investing and financing activities directly on a cash basis, but often use the indirect method to ...

Find out what to include in a cash flow statement, as well as its limitations and how cash flow is calculated.

Just about everyone has heard the phrase “cash is king” in investing. That’s true for business finances, too. Cash flow is how businesses pay their employees, buy materials and cover basic expenses.

Cash flow is a measurement of the money moving in and out of a business. It helps to determine financial health. Many, or all, of the products featured on this page are from our advertising partners ...

Many small businesses start off strong with a solid business plan, an impressive product, sufficient funding and a growing customer base. Then, somewhere along with the way, the business stalls, ...

While there are many financial metrics to track in business, operating cash flow is among the most crucial. Many entrepreneurs look at these numbers as an indication of how well (or poorly) their ...