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3 Statement Model: A Complete Guide

The three-statement model is an approach to financial reporting that relies on just three core financial statements—profit and loss statement, cash flow statement, and balance sheet. The first is the profit and loss … See more

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Cash Flow vs. Free Cash Flow: What's The Difference

WEBCash flow is seen as a straightforward measure of the net cash that came into or left the business during a given period of time. Free cash flow is a figure that tells …

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Financial Dashboard: 24 Metrics You Should Include

WEBThe metrics you include in a basic financial dashboard should provide insight on both the short and long-term. Anyone can use it to get an idea of how much …

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20 Financial Metrics Every Business Should Track

WEBFinancial metrics are vital for assessing the performance and health of any business. From revenue and profitability to the costs you incur to attract new customers, …

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How to Read a Cash Flow Statement: A Beginner’s Guide

WEBThis section of your cash flow statement would show: Purchase of property and equipment: ($10,000) But remember: this section of your cash flow statement only …

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P&L Management: 8 Ways to Use Your P&L Statement For Growth …

WEBMonth 3 – $235,000. Month 4 – $266,000. In round numbers, you’re experiencing 10% revenue growth month-on-month, meaning by the end of the year, …

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Cash Flow vs Net Income: What’s the Difference

WEBPotential Limitations of Net Income and Cash Flow. The main differences–and thus the possible limitation–between these two figures is mainly due to …

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Balance Sheet Forecasting: A Guide For Beginners

WEBBalance sheets are an important part of financial reporting, and one of three statements that make up the widely-used three-statement model. What’s also important, …

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What is Financial Reporting

WEBFinancial reports are, in many cases, part of an organization’s obligation as a company to report earnings to the tax department. This becomes even more crucial as …

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What is Free Cash Flow

WEBThe net operating profits figure already accounts for your operating expenses and taxes, meaning you’ve essentially already taken care of the first step in the above method. So, …

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Cash Flow Statement vs. Balance Sheet (Compared)

WEBAs a reminder, the balance sheet provides a snapshot of the company’s liabilities and assets at a given time. On the other hand, the cash flow statement shows …

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11 Tips for Better Small Business Cash Flow Management

WEB11 Tips to Better Manage Your Small Business Cash Flow. If you need help with your small business cash flow, the following tips can help you do a better job and …

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8 Operational Metrics & KPIs Every Business Should Track

WEB1. Revenue Growth (Y/Y) Department: Finance. Revenue Growth (Y/Y) Formula: [ (Sales this year – sales last year) / Sales last year] * 100. Tracking your …

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What is Burn Rate

WEBBurn rate is used when calculating cash runway — the number of months until cash runs out. To calculate runway, we recommend taking the average burn rate over the last …

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Cash Flow Forecasting: How to Accurately Plan Ahead

WEB2. Choose a Forecasting tool. Cash flow forecasting can be done with a basic template for either Excel or Google Sheets. There are also financial planning tools like …

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Budget Variance Analysis (Step-by-Step Guide)

WEBStep 1: Gather Data. The first step in performing a budget variance analysis is gathering data. You will need both the budgeted and actual financial data for the …

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Cash Flow vs. Working Capital: What’s The Difference

WEBFor everyday monitoring of financial health, cash flow is generally the more important metric. While working capital gives you a sense of your ability to pay down …

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Financial Reporting vs. Management Reporting: Compared

WEBAudience. Financial and management reporting tend to serve two different audiences. While financial reporting can be useful for internal and external parties, its …

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What is Free Cash Flow Yield

WEBFCF Yield = Free Cash Flow per Share / Market Capitalization per Share. You calculate free cash flow with items from the cash flow statement using this formula. FCF = Cash Flow …

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