Cash flow management strategies for freelancers and small businesses. Forecasting, improving cash flow, managing late payments, and understanding the difference between cash flow and profit.
The current ratio measures whether your short-term assets can cover your short-term debts. This guide gives the formula, a worked small-business example, the difference between the current, quick, and cash ratios, what benchmark counts as healthy, and how to improve the number.
The cash flow statement is the third core financial statement, and the one that reconciles your profit to the money in the bank. This guide breaks down the operating, investing, and financing sections, explains the direct and indirect methods, and walks a worked example for a small business.
