A statement of cash flows can be an important tool in planning and managing a company’s cash flows. What is it? A statement of cash flows starts with a company’s profit or loss and then specifies areas where cash has increased or decreased. If used as part of a company’s planning process, a forecasted statement of cash flows can predict in advance when cash shortfalls may occur enabling a company to plan in advance on whether to secure financing and when large expenditures can be made more strategically rather than being unprepared when those needs arise.
A simple way to determine if you understand your statement of cash flows is to have your existing staff explain it to you. If you understand the statement with your staff’s explanation, then you are in good shape. If you have the opposite response, consider bringing in an experienced B2B CFO® partner to help you optimize your cash flow. A B2B CFO® partner has prepared and forecasted countless statements of cash flows and can help you run your company better and be in more control of your cash.
If you need help with this, my contact information is below. I welcome the opportunity to meet with you, understand your needs, and to determine if and how I can help you.