Even if a company is making a profit, by making more revenue than it incurs in expenses, it will have to manage its cash flow correctly to be successful. A company’s cash flow is tied to its operations or business activities, to its investment activities (such as the purchase or the sale of capital equipment), and to its financing activities (such as raising debt or equity funding or repaying such funding). The cash that a company generates from its operations is tied to its core business activities and provides the best opportunities for cash flow management.
ONE DAY, a family friend approached me regarding some bookkeeping he needed help with for his business. This was my first encounter with accounting and I could not have been happier. I loved how there was harmony in the numbers and how I could provide financial advice. I remember very specifically thinking: I found my passion and I want to do this forever.
After having received my CPA and working with lo…