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 […]
Continue reading
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 […]
Continue reading
A solid financial foundation is important for a business. Once you run out of cash, the game is over. Around 82% of business failures are due to cash flow problems according to a U.S. Bank survey. Poor cash flow management highly contributes to the failure of business especially start-ups and small businesses. What is a […]
Continue reading
Everyone wants the ability to see into the future, but unfortunately we can’t all look at a crystal ball and see our futures. However, a cash flow forecast will grant you the ability to look into your business’s future. A cash flow forecast allows you to track your cash inflows and outflows, see how fast […]
Continue reading
As a small business owner making a profit is important, but having cash on hand is critical. However, profitability is not the same as having a positive cash balance. Cash flow management is even more complicated as an eCommerce owner because gathering information from various sources can be a time consuming and error prone process. […]
Continue reading
Growing up, I watched my father relentlessly struggle with his business’ finances. He owned a small store, which was our family’s livelihood. My father’s desire to drive positive change and forge his own path, inspired him to start his business. However, as a small business owner, he had limited access to information, which made understanding […]
Continue reading