Companies that use accrual basis accounting can assemble their statement of cash flows in one of two ways, using either the direct method or the indirect method. The more commonly used indirect method ...

Vipul Bansal is a seasoned finance professional with over ten years of experience in investment banking and capital markets. Deutsche Bank. Financial statements play a crucial role in evaluating a ...

Learn how to tell if your business could be facing a cash crunch—and what to do about it ...

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Every business has cash going in and going out. This is cash flow. A cash flow statement accounts for the cash moving in and out of the company. It reflects the cash impacts of revenues, expenses, ...

If there is any unfortunate thing about investing, it's that no investment can be made with perfect information. Not only are markets forward-looking, but accounting leaves a lot to be desired.

Cash flow is, understandably, one of a company’s most significant concerns. To stay on top of this vital financial metric, business owners rely on accurate, consistent cash flow statements. These ...

In accounting, the taxes you're going to pay down the road are as important as the ones you're currently writing a check for. Owing a big load of income tax bill affects your firm's financial future, ...

Cash flow is essential to running a successful business. Understanding your company’s liquidity is nonnegotiable, and a cash flow statement gives you clear visibility into how money moves through your ...

Savvy investors look at a company's financial health before buying its stock. Some investors monitor a company's free cash flow and review its cash flow statements to gauge how well it manages its ...

Editor’s Note: This post is focused on helping you understand profit and loss statements. This financial statement is used by most small business owners to help assess business profits and losses ...