Cash Flow Statement
Cash flow is the lifeblood of a business, since it symbolizes the steady movement of cash in and out of a company. With a cash flow statement, you woll be able to keep tabs on when you expect to receive revenue, or money owed you by customers, and then manage this money so it is available when you need it to pay your bills. Getting the numbers down in writing will help you to figure which months you should stockpile extra cash, perhaps by postponing that renovation project you had planned, and which months you will have enough revenueflowing into your checking account to reschedule it. Or you can plan to hold a special sale for the months when you believe you will have more money going out than coming in; the discount you provide to your customers is worth it if your cash flow is positive instead of negative.
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