The Virtual CFO

The Cash Flow Statement

The cash flow statement reports your company’s cash receipts and payments during a certain period of time. This financial statement tells you where your company’s cash came from, what the cash was used for, and the change in your company’s cash balance.

There are three main sections of a cash flow statement:

1. Cash Flows from Operating Activities – cash inflows and outflows associated with your company’s operations (i.e., the revenues and expenses reported on the income statement).
2. Cash Flows from Investing Activities – cash activities from loans, investments, and property, plant, and equipment.
3. Cash Flows from Financing Activities – reports changes in cash position related to the owners’ equity.

Over the next few blog posts, I’ll discuss each of the three parts of the cash flow statement.

What The Virtual CFO is Thankful For

I am very thankful for my clients. In the last year, CPA for Small Business, LLC has experienced tremendous growth. I am very honored that you give me the opportunity to serve your accounting and financial management needs.

I'm thankful for the number of prospects I have met with in the last year. Even if you didn't choose me to be your CPA, I hope that I have been able to help you and your business with the discussions we've had.

I am very thankful for my wife Linda, who has been my number one fan and supporter the last three and a half years as I've built CPA for Small Business, LLC. Linda also offers excellent third party observations about my company, which is why I call her my external board of directors.

I am thankful for my daughter a Hannah, who is able to entertain herself while I work and meet with clients. It's cool to have such a good kid as a daughter.

Like you, I have my share of frustrations running and building an entrepreneurial company. But my blessings far outweigh the problems I have.

And finally, I am grateful that you, the readers of The Virtual CFO Blog. Without you, this blog wouldn't exist. Thanks!

Thank You to All the Veterans Who Served

I would like to thank all the veterans for their service to our country. We are able to live free in the United States of America because of your sacrifice.

Last year, the sacrifice veterans make really hit home with me. In late October 2008, I received an email from a prospect who was in Afghanistan with the 101 Airborne. He contacted me for business plan and financial advice for a business venture he was planning when he was honorably discharged in early 2009. We exchanged a few emails and then arranged a teleconference in mid-November. When the teleconference time came, the prospect didn’t call.

The next day, I was standing in line with my daughter for Thanksgiving lunch at her school when my cell phone rang. It was this prospect. He apologized for not calling the day before. He went on to tell me that there was an “incident” at the base he was stationed at in Afghanistan and that all communications, including internet and cell phones, were cut off during the incident. There was no way for him to communicate with me during the incident.

This situation let me see first-hand that our soldiers are in harm’s way. I understand that their sacrifice is the reason I can have the life I do with my family.

So I would like to thank my client Nick, and every other veteran, for their service to our country. I really do appreciate it.