Technology has enhanced the way businesses run and has elevated the efficiency that accounting can provide. Software makes managing and tracking financial transactions a breeze. With cloud-based tools and extra layers of security, business owners, bookkeepers, managers, partners, and employees can all leverage up-to-date financial information in real time. However, the benefits are best realized by utilizing a number of tools for accounting in conjunction with one another to fully streamline and optimize every process.
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Whether you’re working with a remote bookkeeper or have someone internally handling your accounting needs, it’s imperative that as a business owner you’re watching for red flags that could signify trouble ahead.
The cash flow statement (CFS) is one of the three financial reports generated by businesses to gauge financial position, health, and efficiency. It details the amount and timing of cash flowing into and out of a business, and uses data from the profit & loss (P&L) statement and balance sheet. Today’s post will give you an overview of what the CFS is, what you’ll find in the report, and how you can use it for making smarter business decisions.
An income statement (also commonly known as a profit and loss [P&L] or earnings statement), answers a very important question: Is your company profitable? The accuracy of your P&L is critical to ensuring your business is running as efficiently as it could be and to identify opportunities for increasing revenue and/or decreasing costs.
Business owners know steady cash flow is critical to long-term survival. When owners struggle to collect payments, they have less cash on hand to manage operations, pay employees, or take care of other incurred expenses.
While collection problems are common for small businesses, employing some simple strategies to strengthen accounts receivable policies, practices, and technologies can have a dramatic impact on decreasing missed or late payments.
Here are three strategies to help you get paid by your clients more quickly and easily: