What is Cash Flow and Importance of Cash Flow

 

What is Cash Flow?

What is Cash Flow and the importance of Cash flow, Cash flow is simply defined as the increase or decrease of a flow of money in a business; the in and out the movement of called inflow and outflow. 

The cash inflow is generated majorly from the sale of goods and services of your business, but it is only generated from the sale of goods or receivables collection. The funds borrowed, cash generated from assets sale, and income from any investment are also part of cash inflow.

Paying of expenses, employee salaries, purchases of inventory or raw material, assets, operational cost, loan payment, and taxes come in Cash Outflows.

Cash Flow Analysis

Managing cash flow is the art in business, the more you efficiently manage cash flow the more analysis is strong and meaningful. And the ability to protect a company’s short term reputation for the long term success also comes from cash flow analysis and management. 

• Accounts receiveable
• Payment terms
• Policy of Credit
• Inventory
• Accounts payable

https://businessquora.com/what-is-cash-flow-and-importance-of-cash-flow/    

What are the Functions of Accounting? | Branches of Accounting

What are the Functions of Accounting? Accounting is the main function of any organization in order to perform analysis to inspect the past trend and errors to improve future planning and help in decision making. The following are the functions of accounting mentioned below:

• Financial Accounting
• Management Accounting
• Cost Accounting
• Tax Accounting
• Auditing
• Social Accounting

Tax Accounting

The main objective of tax accounting is to find out the taxable income, federal & state income tax returns generation, & operations planning with shapes that will hold. With the increase, if income tax rates & the calculation of Taxable income has become more difficult, both internal accountants & external public accountants have dedicated more time to taxation problems.

Social Accounting

Social Accounting is also known as Corporate Social Reporting, Non- Financial reporting, or sustainability accounting. It is a method of a business that pursues to place a worth on the impact of its operations on society.

The sectors which lead to the calculation and publication of economic statistics perform the analysis of the economy, like the gross national product and national income.

For more details, please visit below

http://businessquora.com/functions-of-accounting/