CASH FLOW MANAGEMENT: UNDERSTANDING CASH FLOW AND HOW CASH FLOW DIFFERS FROM NET PROFIT

Desarie Anderson, Cash Flow Management

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9 Lessons (48m)
    • 1. Introduction

      2:26
    • 2. Lesson 1 The importance of keeping good accounting records

      4:20
    • 3. Lesson 2 Is it time to switch from a spreadsheet to software

      2:09
    • 4. Lesson 3 Difference Between Gross Profit and Net Income

      4:29
    • 5. Cash Flow Step 4 What is cash flow management

      4:00
    • 6. Lesson 5 The difference between cash flow and net income

      1:20
    • 7. Lesson 6 The Cash Flow Worksheet Excerise

      24:23
    • 8. Lesson 7 Hands On Project

      4:42
    • 9. Final Thought

      0:24

Project Description

HOW IS YOUR CASH FLOW?  

 

  • Now let’s go over a few steps

     

    • You are going to start by Input your beginning cash balance into row 26 of the month you are using to begin the exercise

     

    • Input your income (cash inflow) and your expenses (cash outflow) for that same month.

     

    • Look at the net profit line in row 25 to see if you had a profit or loss for that month

     

    • Add your net income for that month from line 25 to your beginning cash balance for the same month (line 26). The total should equal row 27 which is your ending cash balance for the month.  This is the amount you have in your account for future cash flow needs.  

      

    • Hopefully, the number is positive. If it isn’t, you should consider reducing your variable expenses or increasing your cash inflows.

     

    Download the attached spreadsheet to start the exercise. 

     

    Feel free to ask questions or make comments.

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