Understanding Cash Flow

It would be difficult to overestimate the importance of cash flow to a business: it is a vital index of a company2s health, affecting its ability to make purchases, pay its debts, invest in research and development, expand, and more. Yet, important as it is, cash flow remains a mysterious process to many people in decision-making positions, people who need to know everything they can about a company2s financial activities to make sound, informed judgments. Understanding Cash Flow is written for nonfinancial managers, small business owners, investors, and others who appreciate the importance of the cash flow process, but feel they lack the formal training to understand how it works. With Understanding Cash Flow, you will learn quickly and simply everything you need to know about the basics of cash flow-without the abstract theories and complex formulas. It will give you a deeper, more sophisticated understanding of your company, and therefore enhance your decision-making ability. Through a combination of clear writing and illustrative examples drawn from small companies as well as Fortune 500 corporations, this book shows you how cash flow works and how it impacts various aspects of the company. It provides a broad perspective on cash management and the effects of forecasting, collecting, disbursing, and investing on a company2s general objectives. Specifically, you will learn: The difference between cash flow and net income-accrual accounting versus cash flow The role of a formal cash budget in planning and control How cash balances are analyzed and monitored How the cash manager makes investments and payments The importance of a company2s relationship with its banks And more, including chapters on fraud, internal control, credit, and liquidity. If you are a manager, owner, investor or business student, Understanding Cash Flow will enable you to gain a secure grasp of this vitally important aspect of your work.Friedlob, George T. is the author of 'Understanding Cash Flow' with ISBN 9780471103851 and ISBN 0471103853.