SMALL BUSINESS REPORTS: Statement of Choice

WHEN MEASURING A COMPANY'S STRENGTH, A CAREFUL analysis of cash flow can be just as meaningful as the income statement. Owners must understand cash flow to get the most from their investments. Managers use it to spotlight strengths and weaknesses within their spheres. Suppliers often want to see it to make sure new customers can pay them. And customers sometimes check it to ensure that key vendors will be around for awhile.