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Cash flow statements are an extremely useful but often overlooked tool among business owners.
If calculated properly, and implemented correctly, the information you learn from a cash flow statement (CFS) can show in detail the steps that need to be taken in order to boost efficiency, increase sales, and cut costs down dramatically.
A cash flow statement is a detailed record of how much capital is flowing in and out of a business. The types of capital accounted for in the statement include both cash, and cash equivalents such as assets and investments, which will be explored later on.
The most effective cash flow statements detail exactly where and how much specific streams of capital is flowing to or away from. The information gathered in this report will show clearly how your business can save thousands, increase profits, and boost the efficiency of your core operations and management strategies.
The flow of cash in and out of a company is most accurately calculated after taking into account capital lost and generated through through three main channels: core operations, investments, and financing. Each must be broken down and separated into many individual parts in order for an accurate calculation can be made.
Here are the calculations that need to be made within these three components in order to get the most accurate cash flow statement possible:
Once all these calculations are put together and put into standard CFS format like this example here, money gained and lost from each component will be immediately clear, with the end result being your business’s ending cash balance, which is the amount of “free cash” your business has after all types of expenses and assets are audited.
Every business needs help smoothing over cash flow issues at some point. Maybe it’s due to seasonal fluctuations. Or maybe your cash flow needs a boost in order to capitalize on a once-in-a-lifetime opportunity. Whatever your needs may be, National Business Capital has all the financing options and business services you need to cut costs, increase profits, and maximize cash flow!
Whether you need cash to fill in gaps between slow payments, ride out downturns in customer volumes, or fund the growth and expansion of your business, our vast variety of funding options and services are specialized to get small businesses the cash they need in as little as 24 hours, regardless of credit score and extensive financial history.
All you have to do is fill out this free, 1-minute application online. A Business Financing Advisor will call you in seconds to ask you what exactly you need, and how you wish to grow your business. Or, give them a call yourself at (877) 482-3008, and get the ball rolling immediately!
National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.