View Padgett President Roger Harris' congressional testimony on the impact of the Corporate Transparency Act and the BOI reporting requirements here.
Business owners: Are you classifying cash flows correctly?
November 20th, 2024 | Accounting, Business Tips
Accurate financial statements are essential for understanding your business’s financial health. But as your business grows, financial transactions can become more complex, and preparing these statements properly isn’t always straightforward. One area that often trips up business owners is the statement of cash flows. This report shows where your cash is coming from and where it’s going. Simple, right? Not always! Ensuring cash flows are classified correctly can be a challenge, especially when following U.S. Generally Accepted Accounting Principles (GAAP). Here’s a breakdown to help you make sense of it all: What Are the Three Types of Cash Flows? 1. Operating Activities This section shows the cash your business generates or uses during its normal operations. Think of it as […]
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Business owners: Are you classifying cash flows correctly?
Accurate financial statements are essential for understanding your business’s financial health. But as your business grows, financial transactions can become more complex, and preparing these statements properly isn’t always straightforward. One area that often trips up business owners is the statement of cash flows. This report shows where your cash is coming from and where it’s going. Simple, right? Not always! Ensuring cash flows are classified correctly can be a challenge, especially when following U.S. Generally Accepted Accounting Principles (GAAP). Here’s a breakdown to help you make sense of it all: What Are the Three Types of Cash Flows? 1. Operating Activities This section shows the cash your business generates or uses during its normal operations. Think of it as […]
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