CASH FLOW STATEMENT & ANALYSIS SERVICES
Cash flow analysis is a type of financial statement that illustrates how changes in balance sheet accounts and income affect cash and cash equivalents by segmenting the analysis into operating, investing, and financing activities. It is one of the most critical components of a business's survival. It can be either positive or negative, which is an extremely undesirable situation. Funds are not always generated internally; they can also be generated externally.
The purpose of a cash flow statement should be to assist users in the following ways:
To determine the company's future ability to generate positive cash flows
To determine the company's ability to meet its obligations to service loans and pay dividends, among other things.
To ascertain the underlying causes of discrepancies between reported and related cash flows
To determine the financial impact of significant transactions during the year
As a result, the statement reflects changes in cash and cash equivalents as opposed to working capital.
CFOs' primary focus at the moment is on cash flow preservation. There is no substitute for cash in a volatile business environment. Despite the widely recognised importance of cash flow, we at Common Cents have discovered that the typical business has a significant amount of cash locked up in working capital. Cash flow analysis can assist you in locating your organization's hidden vaults. Cash flow analysis, as a critical component of effective cash flow management, can assist you in freeing up cash to invest in new products and markets, pay down debt, and fund strategic initiatives.
Common Cents, is expert in seeking sustainable measurements to help you evaluate your current cash flow operations against a variety of critical performance indicators and return on capital employed. We can show you how your cash flow performance compares to peers and top performers by leveraging our renowned benchmarking database,
Our expertise in process improvement extends to all process areas that impact working capital performance, including accounts payable and accounts receivable. Additionally, we provide the change management expertise necessary to transform good ideas into measurable results.
By combining our cash flow analysis and services with consulting on best practises and change management, Common Cents can help your organisation achieve operational excellence in all facets of working capital management.
To learn more about Common Cents' cash flow analysis services, as well as our other business solutions such as procurement outsourcing, financial strategy, and business cost management, contact us.
