I chose an article from the Courier Times . This article is about cash flow statements and how crucial it is for business owners to understand them. Cash flow statements are important because cash flow problems are one of the top causes of business failure. This is because without cash, business owners will not be able to pay their suppliers and employees. In ACE 345 week four, we learned about cash flow statements also known as sources and uses statements. We learned that cash flow statements are used for
The article first starts off with what the definition of a cash flow statement is (“the measure of money flowing in and out of one’s business”) followed by stating it is one of the mandatory documents alongside the balance sheet and income statement. The article states that since small business owners are focused more on the operation of the business rather than planning, it is important to set up a plan to prevent failure. The article suggests hiring an accountant or for the owner to forecast future cash f
Cash flow statements are important to every business especially small ones. The article really emphasizes that it is better to have a plan then no plan at all. With Covid-19, we have witnessed the unforeseen circumstances that can affect a business. All we can do is try to support them during these troubling times.