The importance of creating (and understanding) a cash-flow statement.
Question: My sister is a photographer’s representative and my brother-in-law is an architect. Both run their own businesses. While they have numerous clients and generate billings, they can’t manage their money because of late payments. They have to turn to family to borrow. Are there any cash-flow tools or contract templates with fee structures that could help? - Carolyn, Dallas, Texas
Answer: Cash and profit are both very good things, but they’re also very different. Understanding the disparity between them could be the key to preventing your sister and brother-in-law’s monthly scramble - and calls to you for money.
‘A lot of people don’t understand the difference between cash and profit,’ says SCORE counselor John Bjeldanes, who teaches a class about managing cash flow through the organization’s San Diego chapter. “Your business can grow and show a profit, and you could still be short on money if the timing of the cash flow is not correct.’
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[…] Chiropractic: News | Schools | Classifieds | Chiropractor Directory wrote an interesting post today on Lots Of Money But Always BrokeHere’s a quick excerptFORTUNE Small Business: Question: My sister is a photographer’s representative and my brother-in-law is an architect. […]