Real physical cash is what keeps your business running. It helps you pay your employees, make prompt vendor payments, juggle your marketing budget, meet unforeseen emergency expenses etc.
Isn’t it surprising, nay, shocking then to find that many businesses don’t know how much cash they have in their kitty at a given moment of time? And, when accessing this information is difficult, taking adequate action when cash levels fall below a certain threshold isn’t easy either. That could upset the best laid plans of any business.
We wanted businesses regardless of their size, not to get caught unawares but to overcome such a situation. So the team behind Zoho Books, the makers of your favorite
online accounting software, has come up with a nice
cash flow report. This report pretty much summarizes everything that has to do with your cash & cash equivalent accounts like checking and savings accounts. It shows you how much cash you have at any given time interval – the money that is coming in due to your day-to-day activities like selling goods or services, the amount that you raised for financing and where you have invested your cash.
The cash flow report tells the ultimate truth. Unlike the ‘Balance Sheet’ or the ‘Profit & Loss Statement’, it remains largely unaffected by accounting idiosyncrasies. We encourage you to make use of
this report and we believe it will help you excel in cash flow management. May your cash registers keep ringing. Until next time …