As I explained in my second blog post, a cash flow projection is a tool to track the actual cash that goes in and out of your business. You review your Profit and Loss Statement each month which may show a decent profit. This may not mean you have a healthy cash . . . → Read More: Why Is A Cash Flow Projection So Important?

Part Two: Cash Basis

We’ve discussed tracking your finances on an accrual basis, but what if you track your finances on a cash basis? Cash basis is when you report the revenue and expenses when they are actually received or paid.

In this case revenue refers to actual cash receipts . . . → Read More: Cash Flow Projection and the Shortcomings of Total Reliance on the Profit and Loss Statement

Part One: Accrual Basis

A cash flow projection is a tool to track the actual cash a business brings in and the actual cash that goes out the door to pay for expenses during a month. It’s as simple as that. Many small business owners already review their monthly revenue and expenses . . . → Read More: Cash Flow Projection and the Shortcomings of Total Reliance on the Profit and Loss Statement