Cash Flow Statement – A Management Tool

The statement of cash flows is one of the main financial statements. The balance sheet, income statement, and cash flow statement are three generally accepted financial statements used by most businesses for financial reporting. All three statements are prepared from the same accounting data, but each statement serves its own purpose. The purpose of the cash flow statement is to report the sources and uses of cash during the reporting period.

For planning the short and long term funding and viability of a business, it is important to forecast the cash flow financing statements requirements for project profitability. Cash flow statements format does not mean profit. These statements will be extremely helpful to plan and manage future financial commitments.

The Structure of the Cash Flow Statement

The cash flow statement is different from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that has been recorded on credit. Therefore, cash is not the same as net income, which, on the income statement and balance sheet, includes cash sales and sales made on credit.

The most commonly used format for the cash flow statement is broken down into three sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Cash flow is determined by looking at three components by which cash enters and leaves a company: core operations, investing and financing

Cash Flow statements can be made in four ways:

• Monthly

• Quarterly

• Six Monthly

• On Yearly Basis

The statement of cash flow reports the movement of cash into and out of your business in a given year. Cash is the lifeblood of your company. Cash includes currency, checks on hand and deposits in banks. Cash equivalents are short-term, temporary investments such as treasury bills, certificates of deposit, or commercial paper that can be quickly and easily converted to cash.

In short, the cash flow statement is used to analyze the cash income and expenditures during a designated time period. To know more about cash flow statement, you can visit us at http://www.hitechaccountingservices.com

Article Source: http://www.goarticles.com/cgi-bin/showa.cgi?C=1557417

Accounting Outsourcing Service India

Outsourcing accounting services is very famous and acceptable practice. As a business owner, you know that one of the most important aspects of running a successful business is managing your accounting records well. All successful business owners understand the significance of a proper accounting system and that’s why they ensure to employ the most efficient accounting team in their organization. Taking the help of accounting outsourcing services from firms that have a strong accounting background to support the financial issues of your firm is indeed a great thing to do.

The process of accounting outsourcing is very simple and it can save your lots of time. Here in India, there are many accounting outsourcing companies that provides accounting outsourcing services to various businesses. The size and the nature of the business do not matter to the organization from whom you would be taking the help for your accountancy department, but you must be careful while choosing a particular firm. Since there are many firms in the market, you need to be careful and selective while banking upon a particular firm. This is mainly because the nature and the kind of each business vary from the other. Therefore, it is important to hire the services of a firm who understands the nature of your business and whose people can take your business to the right place.

Outsourcing accounting services would range from accounting reconciliation, accounts receivable and payable accounting, payroll administration, inventory reconciliation, budgeting. The company would usually hire another company to do some or all of these things. By doing so, it gives the responsibility of measuring, communicating and interpreting the company's finances to another company. This has proven to be cost effective to most companies. In effect, they will be hiring fewer employees and they would not have to maintain a lot of office equipment and supplies. They also acquire the expertise the company offering the outsourcing accounting services.

However, before getting associated with any accounting outsourcing firm, you have to do a recent market research. For this purpose, you can use the medium of internet, where all leading outsourcing firms are available with their websites. These websites display each and every detail about their firm and work mechanism. Secondly, you can also refer to the good business consultancies that are actively associated with all competent and reliable vendors. This kind of research will allow you to come up with an intelligent choice, so that you can avoid all problematic issues of misuse of information or identity threat.

Hi-tech Accounting Services is a leading accounting services provider's service. Our accounting firm provides financial support across the world. If you are interested in finding more information about Accounting Services visit http://www.hitechaccountingservices.com To know more about outsourcing Accounting services you can contact us at: info@hitechbookkeepingservices.com

Resource: http://www.articlesbase.com/accounting-articles/accounting-outsourcing-service-india-617551.html

Generate More Revenue by Outsourcing Accounting Services to India

Any business organization, large or small, needs to maintain a strong cash flow in order to experience growth and success. This requires that capital as well as credit is readily available to meet the demands of expansion, research, acquisitions, staffing etc. By outsourcing their Accounting Services to India, businesses have the option of saving valuable time, money and other resources and turn their focus onto core business activities.

Outsourcing companies in India offer weekly, bi-weekly, monthly or yearly accounting and bookkeeping services that can be customized to suit the specific need of the client. A few of the services include

• Entry of transactions

• Journal Entry

• General Ledger

• Assets and Equipment Ledgers

• Expenses Ledger

• Accounts Receivables

• Accounts Payables

• Ageing Report and Summaries

• Financial Reporting and Analysis

• Bank Reconciliation

• Financial Statements Preparation

• Trial Balance

• Income Statement (Profit and Loss)

• Balance-sheet

• Cash Flow Statement

• Cash Application and Disbursement

• Tax Return Preparation

• Payroll and Ratio analysis

• Depreciation and Amortization Schedules

• Credit and Collection

• Records Management

Outsourcing companies in India use highly upgraded software applications for Accounting and Bookkeeping Services such as QuickBooks, Peachtree, Creative Solutions, Quicken, NetSuite, Master Builder, Business Works, TimberLine, Sage Line50, MAS90, Simply Accounting, MyOB, Microsoft Great Plains, Oracle Financials 11i etc., or any other application specified by the client, in order to provide quality accounting services. Software such as Ultra Tax, Lacerte, ProSeries, ATX, Drake Tax, IRIS, ProSystems, GoSysytem etc. are used for tax preparation and statements.

Clients can also opt for their accounting services to be completed either through Remote Access, Server Based Process (FTP) or through an Application Service Provider (ASP). Service providers also ensure high standards of confidentiality and security by installing secure firewalls and state-of-the-art network security devices. This is done to prevent any unauthorized release of confidential data or client information.

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