An overview of the topic of cash flow for a small business.
Written in 2005; 675 words; 3 sources; $ 26.95
Paper Summary:
This paper is on cash flow for a small software company, noting the particular requirements of such a company and the way cash flow can be used to make decisions about the company.
From the Paper:
"Managerial accounting entails various specific elements of cash flow, but these and their effects may differ from one type of business to another. Different types of cash flow have to be considered for a software company, based on the business requirements, workforce, and business environment. One analyst notes that "growing software companies track the actual cash going in and out of the business very closely" (Crankshaw para. 7). Crankshaw also notes that in a software company, engineering, marketing, and operations often make product-related decisions "that not only strengthen the company's infrastructure and its competitive advantage in the marketplace, but that improve cash flow as well" (Crankshaw para. 3). The reason for this is because there are many non-cash events that can have a negative effect on profitability that can thus distort the image of the cash flowing through the business."
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