Though the role of a CFO is changing rapidly, a few financial topics remain consistent. One of those is cash flow – the movement of money in and out of your business. Measurements of cash flow can give you insight into your company’s value and financial health at any period in time. A Statement of Cash Flows indicates how cash has been allocated and whether it has increased or decreased over time. It is also less subjective to accounting decisions than an Income Statement, which is important when comparing a company’s performance versus others in the industry. When looking at a statement of cash flows, it’s important to highlight the most telling numbers first, the beginning and ending balances. These figures give you the big picture of your company’s sales and spending.
