Cash Flow: The Artistry Of Accounting

Topics:
Payables and Receivables
Tags:
Accountant,
Accounting,
Cash Flow,
Finance,
Operational Accounting
Source:
The CPA Journal

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Overview: Cash flow is essential to a business’ health and is often a reliable indicator of the business’ income opportunities. Cash flow can reveal how a proprietor has allocated available funding. For many accountants, telling a business owner about the role cash flow plays is a sensitive issue. Some accountants avoid raising concerns about cash flow problems or minimize the issue until the situation is critical. Depending on how an accountant describes a cash flow problem, it may be the first fracture in the business owner/accountant relationship. A company operating with regular cash flow communicates a level of confidence to its employees (who often have a very good sense about what is going on). By meeting the cash flow challenge, business owners will gain an understanding of the vital contribution their accountants bring to the business process.

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Format: HTML | Date: Sep 2003 | Pages: 1


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