Accounting calculations reveal a lot about a business’s financial health. Knowing the formulas attached to these essential calculations can provide small businesses with a comprehensive understanding of their finances. Take cash flow; if a business owner knows how much money is coming into and out of the company at all times, they can efficiently manage their expenses and revenue and improve profits and future cash flow.
This article will cover five critical cash flow formulas that can help your small business manage its finances. If you’re interested in learning more accounting measures, try using these common accounting formulas next time your small business requires financial calculations.