When you became a small business owner, you were likely well aware of the statistics: the majority of small businesses fail within the first five years. What’s lesser known is why. According to a recent study by the U.S. Bank, it all boils down to cash flow. At the time of the study, 82% of these businesses failed due to poor cash flow management or a poor understanding of cash flow.
For many small business owners, financial statements can be intimidating and they are always time consuming. But having a good understanding of your business financial statements is an extremely helpful way to better manage your operations and plan for growth. It helps you avoid making rash decisions and protects your business’ long-term financial health.
The Importance of Your Cash Flow Statement
So, you would like to understand your business finances better? Look no further than cash flow analysis. A … Read more