In this lesson, we give you a step-by-step demonstration of how to prepare a cash flow statement based on existing information. We’ll also guide you through an analysis of the cash flow statement and everything you can derive from it. Cash flow analysis – step by step Every cash flow statement is divided into three […]
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Effective cash flow management isn’t possible without a proper understanding of how the cash flow statement works. Every online business owner should be able to prepare and analyze their own cash flow statements. This lesson gives you a run-through on the essentials. What is a cash flow statement? The cash flow statement depicts how much […]
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Many eCommerce businesses are concerned with maximizing profit but often ignore the need to maintain adequate cash flow. It is important to realize that even after you make a good sale with a profit that far exceeds what you spent, it isn’t really considered a profit unless you have the money in hand, at your […]
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In the previous lesson, we gave you a quick step-by-step walkthrough on how to create a balance sheet for your online business. Now, let’s talk about the various methods you can use to analyze and read the balance sheet. We’ll be covering how you can use the statement to arrive at conclusions, spot patterns, notice […]
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In a previous lesson, we discussed the various items that are included in the balance sheet. However, if you’re a budding startup or a fairly young e-commerce venture, you might find it difficult to get started on preparing a balance sheet for your business. That’s why we’ve simplified the entire process for you, in several […]
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In a previous lesson we had listed out all the items that appear in an ecommerce balance sheet. Now we’ll be covering exactly why a balance sheet is important to any business, be it small or big. You’ll also get an idea of the various applications for this highly significant statement so that you can […]
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Income Statement: Examples and Analysis As we’ve discussed in the previous lessons, knowing how to read an income statement is a critical skill to have, no matter how big or small your ecommerce business is. Not only does it help you assess your company’s financial progress, it helps you predict and plan accordingly for future […]
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In this lesson, we’ll be covering some of the key steps in preparing an income statement. We’ll also take a look at all the items that are usually listed in the statement, especially when it comes to e-commerce businesses. Steps in preparing an income statement: Start with Revenue The first thing you need to start […]
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In this lesson we’ll be talking about the income statement and why it is so important to prepare one for your online business. Let’s begin with a brief explanation. What is an income statement? It is basically a detailed record of the income earned and expenses incurred by your business during a certain period of […]
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