Cash basis accounting records when cash actually changes hands in a transaction, providing a real-time view of your financial position that reflects the actual cash flow of a business or individual.

When it comes to accounting, there are two main methods of determining a firm's financial health and profitability. One method is to calculate the firm's accounting profits, otherwise known as net ...

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, ...

Cash flow analysis is an important aspect of a company's financial management because it reveals the cash it has available to pay bills and invest in its business. The analysis goes beyond accounting ...

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 ...

John Parker is a business writer with 20+ years of experience as a business executive specializing in accounting and finance. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society ...

Effective cash flow management is critical to running a successful business. However, many companies overlook this fundamental principle, focusing primarily on revenue under the assumption that ...

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, ...

Accrual basis accounting is typically the preferred method, but cash basis accounting may work for very small businesses. Many, or all, of the products featured on this page are from our advertising ...

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small ...

Turnover is vanity, profit is sanity, and cash flow is reality. Cash is the lifeblood of a healthy business. Check how you’re doing with our cash flow calculator. Even the most profitable companies ...