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The fast and easy way to grasp cash flow management Cash Flow For Dummies offers small business owners, accountants, prospective entrepreneurs, and others responsible for cash management an informational manual to cash flow basics and proven success strategies. Cash Flow For Dummies is an essential guide to effective strategies that will make your business more appealing on the market. Loaded with valuable tips and techniques, it teaches individuals and companies the ins and outs of maximizing cash flow, the fundamentals of cash management, and how it affects the quality of a company's earnings.Cash flow is the movement of cash into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time, and can be used to measure rates of return, actual liquidity, real profits, and to evaluate the quality of investments. Cash Flow For Dummies gives you an understanding of the basic principles of cash management and its core principles to facilitate small business success. Covers how to read cash flow statementsIllustrates how cash balances are analyzed and monitored—including internal controls over cash receipts and disbursements, plus bank account reconciliation and activity analysisTips on how to avoid the pitfalls of granting credit—evaluating customer credit, sources of credit information, and overall credit policyAdvice on how to prevent fraud and wasteCovers cash-generating tactics when doing business with dot-coms, other start-ups, and bankrupt customersCash Flow For Dummies is an easy-to-understand guide that covers all of these essentials for success and more.
Tage C. Tracy is principal owner of TMK & Associates, an accounting, financial,and strategic business planning consulting firm.John A. Tracy is Professor of Accounting at the University of Colorado in Boulder and the author of Accounting For Dummies.
Introduction 1 Part I: Fitting Cash Flow into the Big Picture of Running a Business 7Chapter 1: Getting in Sync with the Rhythm of Cash 9Chapter 2: Why Accrual Accounting Is Essential 23Chapter 3: The Big Three Financial Statements 37Chapter 4: Getting a Grip on the Statement of Cash Flows 59Part II: Using Financial Statements to Assess Cash Health 81Chapter 5: Mining the Balance Sheet for Cash 83Chapter 6: Digging Deeper into Cash Flow 113Chapter 7: Understanding Liquidity versus Available Cash 131Part III: Getting Intimate with Your Company's Cash Flow Needs 157Chapter 8: Creating a Business Plan to Secure Cash 159Chapter 9: Building Best-in-Class Projection Models to Manage Cash 173Chapter 10: Identifying and Securing External Sources of Capital 193Chapter 11: Knowing When to Use Debt to Finance Your Business 213Part IV: Managing Your Business with Cash Flow in Mind 239Chapter 12: Covering the Basics of Cash and Cash Activity 241Chapter 13: Preventing Cash Losses from Embezzlement and Fraud 267Chapter 14: Managing the Selling Cycle to Improve Cash Flows 281Chapter 15: Managing the Disbursement Cycle to Improve Cash Flows 311Part V: The Part of Tens 331Chapter 16: Ten Keys to Managing Cash Flows in a Small Business 333Chapter 17: Ten Tales of Cash-Flow Woes 341Index 351