Understanding and implementing a cash flow report

During these turbulent times Broadaway Limited would like to extend an offer, to small businesses, of free support for cash flow reporting .

Cash flow is the inflow and outflow of money from a business. It is a necessary control mechanism for daily operations, tax provisioning, purchasing inventory, paying employees, operating costs and asset purchasing / financing.

Positive cash flow indicates that a company’s liquid assets are increasing, which enables it to settle debts, reinvest in the business, provide shareholder return, pay expenses, and provision against future financial challenges. Negative cash flow indicates that a company’s liquid assets are decreasing.

This is increasingly important to report and review, providing early indicators of future issues and ensuring sufficient time to act pro-actively.

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