How is Net Income different from Cash Flow?

Net Income is what is left after operating expenses are subtracted from gross income and is shown on an income statement.  Cash Flow basically takes the net income and subtracts uses and adds sources to that net income.   Uses include increasing assets or reducing liabilities, while additions to cash flow come from decreasing assets or increasing liabilities.

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I started my own business, now what?

First of all, continue to listen to your trusted advisors, and possibly increase your team of advisors.   The biblical proverb states “Without counsel, plans go wrong, but with many advisers they succeed.”  It applied then and always will.  Don’t forget to listen to your customers also, as their input will help you work with your advisors.

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How do I finance my company’s growth?

How do I finance my company’s growth?

The financing of buildings, equipment, inventory and other tangible assets is typically easiest as the asset can be sold if needed to recover a portion of the cost of the asset (collateral). Identifying the life of the asset and related financing is also easier. Calculating other related costs such as maintenance, repairs, real estate taxes, insurance, installation, training and other categories is necessary.

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