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If you’re dealing with your company’s accounts, then you’ll likely have an idea about the importance of cold, hard cash to a business already. But when you receive cash or indeed spend it, you’ve simply got to deal with it in the correct way. And that means creating a CFS (Cash Flow Statement).
Why? Simply put, a CFS is important not only for looking at a business’s overall financial health, but to check its operating profitability. You need to know how much cash is available to pay your bills and work out a company strategy.
So, if you’re new to running a company’s accounts, then you’ll need to know the ins and outs of all the business dealings. How else can you keep track of finances? A CFS should be able to tell you and investors at a glance just how healthy your business is. Learning how to put one together is an investment you must make in yourself, and it’s one that will always pay dividends.
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