Stacy Luft

Think of cash flow as the lifeblood of your operation. Without a solid handle on it, even the best ideas or largest contracts can leave you scrambling to pay the bills.

Instead of viewing bookkeeping as a dull chore, think of it as a game plan for your finances. By gathering clear information about what’s coming in and what’s going out, you make confident decisions.

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Proper bookkeeping systems created by accountants provide insight into HOW your business is doing. An accountant will interpret this information to provide you with data to make informed business decisions. Accounting takes the guesswork out of the question, “So how’s business?”

Business owners tell me, “It’s always the same. Every time I hire a new bookkeeper, all they want to do is organize my files and ask me questions about how I want a bill “coded.” I don’t even know what that means!”

The three sections of the cash flow statement are operating, investing, and financing. There are two methods to use when preparing your cash flow statement: direct and indirect.