Finance How Do You Maintain Proper Cash Flow Statements?

[Good-Guy]

The field of finance is a vast one when it comes to business. One of the major aspect of maintaining proper records of finance is to maintain a proper cash flow statements. Cash flow statements are actually a record of money that came into your business and it is also a record of money that was spent by you. I believe that the proper way of maintaining a Cash flow statement is to deduct all the expenses from your earning/profits. One of the greatest aspect of Cash Flow statements is that it also includes financing of investors into your company and it all the expenses altogether. I think we must record each and every thing in cash flow in order to keep track of every thing. We must personally investigate the expenses of our business in order to avoid getting cheated by our employees and I think this is the best way to maintain cash flow statements. What do you say?

 

[Dr-Bedel]

Thank you for these informations!

 

[Good-Guy]

Thank you for these informations!

Well, you are welcome for your comments. I believe that proper cash flow statements can be maintained if you keep records smooth and simple. Preventing confusion is possible if you try to keep all the records of your debits, expenses, income, profits, etc in a deligent way. Many entrepreneurs make the mistake of not trying to trace and record each and everything and this creates an imbalance in the cash flow statement.

 

[btaliat]

There are so many business people that have mismanaged their businesses just because they don't know how to manage their cash flow. Some don't know how to keep record while some even spend from the money meant for the running of the business. Someone who doesn't know how to balance his expenses from his income will soon destabilize his business.

 

[Good-Guy]

There are so many business people that have mismanaged their businesses just because they don't know how to manage their cash flow. Some don't know how to keep record while some even spend from the money meant for the running of the business. Someone who doesn't know how to balance his expenses from his income will soon destabilize his business.

Managing a Cash Flow statement is easy if you know how to do it and if you are able to keep a record of each and every transaction and expenses that take place in your business. However, this is only possible if you keep a proper record of expenses by personally monitoring all the expenses yourself eithout relying on your manager.

 

[Yusra3]

Balanced cash flow statements are the result of well-performed inventory bookkeeping and record keeping for reconciliations. Thoroughly note down all the cash income from sales, income from accounts receivable, and from loans and invested funds. Write outflows to show payroll expense, accounts payable (A/P), loan payments, and other expenses. Develop the monthly statements governed by operating, investing, and financing activities organizable into the groups. Compare actual to forecasted positions often, re-evaluate and update forecasts regularly, and take the necessary actions immediately when the firms miss their projections. Proper cash-flow-recording gives your business both financial- and liquidity-visibility (investigations into its financial- and liquidity-management).