As a business owner, you know cash on hand allows you to invest in new equipment, pay expenses and even negotiate more favorable terms. But operating a successful business is more than just having cash on hand. Organized management of cash flow allows companies to make their operations more efficient and profitable.
According to Jerry Noonan, CPA and founder of CarrierNet and the TruckWin Connect program, the foundation of understanding and expanding cash flow is the cash flow statement.
“This statement offers a snapshot of business health by tracking the costs and returns for operating, investing and financing activities on a cash basis,” he says. “It will give management better reporting regarding where cash is being used for costs.”