All businesses need an inflow of revenue to survive. The question is how well you are living within your means. The management of cash flow is critical and the following are some the elements you can use to understand what is happening. Not all of these will apply to your business and the list is not exhaustive, just representative of different approachs that your software/platform should support.

Topics: Sales Growth Rate = (Current Net Sales - Previous Net Sales / Previous Net Sales) X 100 Operating Cash Flow = Net Income + Non-Cash Expenditures + Change in Working Capital Working Capital = Current Assets / Current Liabilities Forecast Variance = Diffence Between Forecast & Actual Sales Day Outstanding = (Average AR / Total Credit Sales) X Total Sales Days Payable Outstanding = (Accounts Payable / COGS) X Days in Accounting Period Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable Accounts Payable Turnover Ratio = Total Purchases on Credit / ((Begining AP + Closing AP) X 2) Current Ratio = Current Assets / Current Liabilities Cash Flow from Operations = Net Income + Non-Cash Items + Changes in Working Capital