When it comes to accounting, there are two main methods of determining a firm's financial health and profitability. One method is to calculate the firm's accounting profits, otherwise known as net ...

Learn how accounting spreadsheets work with real examples of journals plus when to switch to accounting software.

Learn how to calculate operating cash flow margin, a vital indicator of earnings quality and efficiency, with a detailed formula and practical example.

Cash basis accounting records when cash actually changes hands in a transaction, providing a real-time view of your financial position that reflects the actual cash flow of a business or individual.

Cash flow is essential to running a successful business. As a business owner, you need to have a good read on your company’s fiscal health; cash flow statements can help you with this. These reports ...

Cash flow and earnings are two different accounting concepts, featuring the time difference between cash movements and business transactions. A cash flow may not be reported as earnings unless it ...

FASB ISSUED CONCEPTS STATEMENT NO. 7 TO HELP CPAs who use present value and cash flow information as the basis for accounting measurements. Using Cash Flow Information and Present Value in Accounting ...

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Katrina Ávila Munichiello is an experienced editor, ...

One of the toughest rites of passage investors go through is learning how to navigate financial statements. In particular, understanding the difference between accounting income and cash flow is a ...

Most small business owners wear several hats: marketing manager, human resources (HR) director and customer service ...