| This is part 4 in an 8-part series about
| |
| | Financial Statements enables a business
|
| the B-I Triangle (TM) put forth by
| |
| | to be able to spot trends in the
|
| Robert Kiyosaki in his book "Rich Dad's
| |
| | company's performance over time. If
|
| Guide to Investing".Cash Flow Management
| |
| | trends can be localized early enough, the
|
| is absolutely essential to a company's
| |
| | business may begin to evaluate what
|
| ability to fulfill the stated mission.
| |
| | factors led to the trend. If it's a
|
| Cash Flow is the lifeblood of any
| |
| | downward trend, the comapny might be able
|
| business enterprise. Cashflow can be
| |
| | to reverse a previously made suboptimal
|
| likened to the blood pumping through your
| |
| | decision, or further capitalize from
|
| body right now. You have a vast network
| |
| | upward trends.Basic parts of the
|
| of arteries and veins which carry
| |
| | financial statement are as follows:*
|
| life-giving and life-sustaining blood and
| |
| | Income/Earnings Statement* Expense
|
| oxygen to different parts of your body.
| |
| | Statement* Balance SheetThe first two are
|
| The body, through it's own autonomic
| |
| | fairly self-explanatory. The balance
|
| ability to control flow rates in each
| |
| | sheet is a sort of snapshot of where your
|
| area, mainains a perfect balance of blood
| |
| | company is at the time you look at it.
|
| flow to help ensure long life.Cash Flow
| |
| | The balance sheet shows your company's
|
| is, according to Robert Kiyosaki's Rich
| |
| | net worth, which in it's basic form is
|
| Dad, "the most important word in the
| |
| | income/assets minus expenses
|
| world of money."1
| |
| | liabilities.If accounting and numbers
|
| Cash Flow management encompasses one of
| |
| | aren't your thing, you may want to look
|
| the most seemingly-boring subjects in the
| |
| | into hiring an accountant AND a tax
|
| world of money: Accounting.Accounting is
| |
| | attorney. The tax attorney is useful to
|
| the collection of principles that concern
| |
| | help keep you abreast of tax law changes
|
| tracking the flow of money into an out of
| |
| | and any tax loopholes which might improve
|
| an organization. Along with accounting
| |
| | your tax position. And, a tax attorney
|
| come the things knows as Financial
| |
| | might be typically more effective in the
|
| Statements.Robert Kiyosaki has stressed
| |
| | case of an audit than an accountant. If
|
| the importance of being able to read
| |
| | you find yourself under audit, it also
|
| Financial Statements. If a person gets
| |
| | can't hurt to have BOTH of them present
|
| proficient at reading Financial
| |
| | with you.References: 1 "Rich Dad's Guide
|
| Statements, that person is now more
| |
| | to Investing", Robert T. Kiyosaki, with
|
| equipped to be able to evaluate the
| |
| | Sharon L. Lechter, C.P.A.Up next..."The
|
| fiscal health of a business before buying
| |
| | B-I Triangle (TM) : Communications"Bill
|
| stock, or buying the company outright. Of
| |
| | Perry is the creator of the Financial
|
| equal value is the current business owner
| |
| | Freedom Library, a collection of articles
|
| who knows how to read his own financial
| |
| | dedicated to helping as many people as
|
| statements.The keeping of regular
| |
| | possible break out of the rat race.
|
