Understanding Financial Statements and Cash Flow - Session 1

Understanding your financial statements, Profit and Loss and Balance sheet is important for managing your business. However, managing and understanding cash flow is critical to making better decisions about the growth of your business. When combined with the monthly balance sheet and income statement reports, you can better plan the cash availability (to pay for inventory replacement and expansion), customer collection of outstanding invoices (to decrease the cost of capital), and timely vendor payments to capture early discounts (to reduce costs).