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Cash Flow Management
Rating: 4.0 out of 5(53 ratings)
1,227 students

Cash Flow Management

Understanding Cash Flow And How Cash Flow Differs From Net Profit
Created byDesarie Anderson, CPA, EA
Last updated 7/2017
English
English [Auto],

What you'll learn

  • Understand why having a cash flow problem is much risker than having a few months of losses in your business

Course content

1 section • 9 lectures • 52m total length

  • Introduction2:26

    Master cash flow management by understanding the difference between cash flow and net profit, and learn why cash is king to keep your business afloat.

  • The Difference Between Cash Flow and Net Income1:20

    Clarify difference between cash flow and net income, noting they are not the same or interchangeable, and define a cash flow problem as insufficient cash to cover expenses when due.

  • The Importance of Keeping Good Accounting Records4:20

    Maintain good accounting records to monitor spending, enable lending for cash flow, save on taxes with deductible expenses, plan for growth, and access timely financial information.

  • Is It Time To Switch From a Spreadsheet To Software?2:09

    Consider switching from a spreadsheet to accounting software as your business grows to generate income statements, cash flow statements, and a balance sheet, with audit trails and controlled staff access.

  • The Difference Between Gross Profit and Net Income4:29

    Learn how gross profit equals sales minus cost of goods sold and how net income equals gross profit minus expenses, with industry context and apples-to-apples comparisons.

  • What Is Cash Flow Management?4:00

    Learn how to manage cash inflows and outflows to maintain liquidity, avoid insolvency, and optimize accounts receivable and payable, preventing shortfalls.

  • The Cash Flow Worksheet Exercise24:23

    Explore how cash inflows and outflows shape cash flow using an Excel worksheet, tracing January to March for David's apparel and linking net income to beginning and ending cash.

  • Hands On Project Review4:42

    evaluate your cash flow with a hands-on project using a spreadsheet, entering beginning cash balance, income, and expenses, and calculating net profit and ending cash balance across months.

  • Wrap up0:24

    Thank you for watching the cash flow management class. Learn something from this session and plan to join future classes.

  • Class Project

Requirements

  • This course has no prerequisites

Description

We have all heard the saying "CASH IS KING."  The old time phrase is extremely relevant if you run a small business.    

Without sufficient cash flow, a business will most likely fail even if the business has consistent positive monthly net profits.  

This class will demonstrate the difference between cash flow and net profit.  The class will also provide you with a simple tool that will help you understand and visualize how profit and cash flow work side by side. 

Who this course is for:

  • This course is for anyone who wants to understand how cash flows through a business. The course demonstrates how a business can pay its monthly bills while at the same time encountering consecutive months of losses. You will also learn how having a cash flow problem is more detrimental to your business than experiencing consecutive monthly losses.
  • Anyone who always wondered the difference between earned income and cash flow

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