Planning, Startups, Stories


Tim Berry on business planning, starting and growing your business, and having a life in the meantime.

Standard Business Plan Financials: Important Cash Flow Vocabulary

As I continue with my series on standard business plan financials, I want to look at the basic cash flow These words put some people off because they sound like accounting and financial analysis. But they’re good terms to know, especially if you’re running a business. This is important cash flow vocabulary.

Word of warning:

Unfortunately, even with financial analysts and accountants as literal as they are, with their insistence on things being exactly correct, there are different ways to calculate some of these numbers. And, to make matters worse, many of them calculate a number one way and don’t realize that there is more than one way. For example:

And other discrepancies will turn up. Don’t take them too seriously when they say that one of these calculations are wrong. It’s just different.

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