…I was in a training this afternoon at my Bank and it was all on Business Cash Flow…

…it was really interesting to see how businesses handle their accounting, and how to interpret their financial statements and tax returns…

What Makes Healthy Cash Flow?

…and what makes a business healthy…

…like blood circulating through a body, the sign of a businesses health is the cash flow…

…our instructor said that Cash Is King, and cash is what a business will use to pay back their loan…

…so in order to figure out the cash flow, we had to take the Net Income and then add in things that are taken out for tax purposes (amortization, depreciation…) to get a company’s true cash flow…

…also need to subtract out various expenses…