Provide additional reasons cash flow is important or suggest another approach or perspective on conducting a cash-flow analysis.
Read the posts of your peers and respond to at least one. Provide additional reasons cash flow is important or suggest another approach or perspective on conducting a cash-flow analysis. As you did in your initial post, use your research to support your claims and be sure to cite your sources according to APA guidelines.
Student post down below:
It’s important to keep in mind that cash flow analysis is a method of management that’s used to determine how much cash is available and that it’s ready at times most necessary (McLaughlin, 2016). By monitoring the flow of cash in a business’s daily operation and planning for it in the context of the expansion or other operations cash-flow analysis is useful in the human services sector for non-profits (Weikart, Chen & Sermier, 2013). As discussed in Weikart, Chen & Sermier (2013), their strategy and approach was a detailed spreadsheet of the inflow and outflow of all funding and expenses. For example, monitoring of the influx of total revenue of cash is reviewed alongside with donations, grant monies, and fundraising endeavors to determine the total cash inflow. These figures were subtracted from the distinguishment of cash used within programs alongside funding expenses and the general salaries of administration to determine the total cash outflow. The differences in the net cash were subtracted from the beginning cash balance to determine the ending cash balance and a detailed spreadsheet of the cash flow analysis. According to Merrill Lynch (2000) cash flow analysis is required as a means to properly determine investment decisions and the maintaining of company operations. While the cash flow is a reflection of recent changes in the flow of money resulting from business activities, it separates itself from daily business activity expenses (Merrill Lynch, 2000). Yet liquidity is important for cash flow management and cash flow projections which are used to take advantage of opportunities within the business aligned with its mission without ending up in context which requires emergency cash. Therefore liquidity targeting and have any proper budgeted cash-flow analysis is essential for proper nonprofit operations while equally advancing the accomplishment of the organization’s mission goals.
Answer preview to provide additional reasons cash flow is important or suggest another approach or perspective on conducting a cash-flow analysis.
APA
193 words