Monitor Your Statement of Cash Flows Carefully

A company’s Income Statement, Balance Sheet and Statement of Cash Flows are often called “The Big Three” financial statements common to all businesses, large or small. However, some business owners tend to focus on the Income Statement and Balance Sheet, at the expense of carefully examining their Statement of Cash Flows.

Unfortunately, this is often a monumental mistake. There are some veteran observers that believe the Statement of Cash Flows, in the shorter term, is more important the a company’s Income Statement (profit) or Balance Sheet (asset/liability level).

For example, you may have strong credit sales, improving your bottom line (profit). Your company may be in a strong asset vs liability position, but your Accounts Receivable (an asset) may be growing–and aging. Your cash flows, which you need for operating expenses, may show disturbing declines. Short-term credit line borrowing will help cover expenses, but longer term cash problems could destroy your business.

This situation dictates getting help from a top management consulting firm, such as The Carleton Group, based in Moorpark, California. One of their specialties is improving cash flows as a component of successful strategic planning.

Instead of committing to a full-time employee, contact The Carleton Group, to get the cash flows you need at a fraction of the cost of a permanent staff professional. This top management has a proven record of success helping businesses in cash flow binds. Don’t let your company face cash flow problems, even with a strong bottom line (Income Statement) and asset position (Balance Sheet).