Updated: Mar 12
Do you know your numbers? Or do you say, "My accountant handles my books?" As a founder or CEO, you have to know your business finances. Knowing your numbers means you know key financial metrics regarding your organization. For example, you know your monthly spend or gross margin. A common missed financial metric is understanding the net cash position. This accounting term explains how much cash is on hand. The net cash position helps you identify the cash inflows and outflows.
A simple cash flow statement will tell you the net cash position. The statement is a financial report that describes the cash incoming and cash spent over a specific time. A crucial reason to generate a cash flow is to determine an organization's ability to pay the bills