It’s Accrual Business
by Elaine Orgain
Every business must track transactions to measure its financial results. The method its owners choose to record this activity will determine how much they pay in taxes. It also reflects the value of their ownership in the business. For these reasons, it is wise to understand the difference between the following two methods of accounting before making that choice.
Managing Cash Flow
Cash — The #1 Priority
The cash flow statement represents the third of the “big three” financial documents. According to Vistage speaker Ron Fleisher, most CEOs pay far too little attention to this document, usually turning to it after the income statement and balance sheet, if at all. Such an approach, however, may put your business at risk.