radford tax logo
07 5495 4100 ◆

Cash flow statements

Posted on March 31, 2016 by admin

Contrary to what some business owners may assume, a cash flow forecast is different from a cash flow statement

Cash flow forecasts look forward while cash flow statements look at the past to report cash generated. Cash flow statements are critical financial statements and are very useful in determining the short-term viability of a business; particularly its ability to pay bills.

A cash flow statement accounts for the cash that has come into a business over a quarter or year and the cash the owner has paid out. The statement is prepared along with a business’s balance sheet and profit and loss (P&L) statement.

While they are similar, P&L statements track revenues and expenses as and when they occur. A cash flow statement allows owners to see how much cash their business has generated and excludes non-cash revenues and expenses.

P&L statements do not track when cash enters a business’s bank account and going off these statements alone will not paint an accurate picture of a business’s cash posture.

For those who seek investment, a cash flow statement is particularly important as it provides a clear idea of the short-term viability of a business. For businesses that consistently generate more cash than they spend, the statement can also shed light on:

maximise your business's value

latest news

Things to consider before rebranding your business

Posted on February 13, 2020 by admin

Rebranding your business can seem like a daunting task, as it can involve a range of arduous tasks such as changing designs, updating clients, retraining staff and changing your marketing strategies.

However, rebranding can be an option for many businesses if:

To make the task of rebranding seem less daunting, consider these tips before starting to help you in your process.

Evaluate your need for rebranding
Make sure that the reason for your rebranding is valid and don’t act on impulse decisions. Rebranding can take a lot of time and resources and can often decrease your business if not done successfully, so it is important that you evaluate if rebranding is right for your business and outline the reasons why. It can be helpful to talk to staff about it to get ideas from people who are also invested in the success of your business.

Plan a budget
Before you rush into rebranding your business, make sure you have the funds to do so. Research and estimate how many resources will go into different areas of rebranding, e.g. marketing, website design, training staff etc. and outline a budget that can help you manage your finances through the process.

Have a strategy
Before you start rebranding, plan out a strategy that will guide you in the process and can increase the chances of success. This will help the process run more smoothly and prevent unexpected challenges that could detriment your business.

Solidify your mission and values
Having a clear understanding of the mission and values you want your business to have going forward can help you make important branding decisions and help build the foundation for your new brand. Having you and your staff on the same page with the business mission and values can improve efficiency and motivation when working on the rebrand.

radford tax associationsradford tax associationsradford tax associations