Page 87 - MICROHUB Handbook - ENGLISH
P. 87
3. Cash Flow statement: A cash flow
statement shows how much money comes
in and goes out of your company's
operations over a given time period, usually
a month or a quarter. It enables you to
ensure that there is enough money in the
company to run it successfully on a daily
basis and to take action before issues arise.
4. Break Even analysis: The number of units you must sell or the
amount of income you must generate are determined using a breakeven
analysis. It's common for small businesses to experience losses in their
early years of operation.
On the other hand, if a company fails to
break even over a longer period of time, it
may not be financially sustainable. By
calculating the breakeven point, you may
assess a possible business expansion or
new project and determine if your pricing
is too high or your expenses are too low.
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