It's Monday morning and you don't have enough cash on hand to make Friday's payroll. What options do you have?
There are two forms of accounting used by small businesses -- cash and accrual. The basic difference between the two methods is the timing of income and expense recording.
Cash flow problems often catch small business owners by surprise. An accurate cash flow projection can protect entrepreneurs against this situation.
Nearly every small business will face a cash flow crunch at some point, when money flowing into your company is not enough to cover short-term payables.
Proper bookkeeping is important to sustaining and expanding a business. Without it, you run the risk of hitting cash flow crunches, wasting money, and missing out on opportunities to expand.