How to Interpret Cash Flow Statements

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To interpret cash flow statements, look at how money is being spent in a business based on the income and expenses listed in the document. Find out how cash flow statements are generally easy to read with information from a business professor in this free video on small business.

Part of the Video Series: How to Open a Small Business
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Video Transcript

Hi, my name is John Niemira, I wanted to talk to you today about interpreting a cash flow statement. Cash flow statement can be used for personal or for business. Most cash flow statements are for business purposes. Cash flow statements talks about your income and your expenses. How much are you taking in for the services or products that you are selling or providing for your customer, and then how much are you spending or what are your expenses on either supplies, on your business, your rent, your leases, that sort of thing. What are the expenses, what is the income. The two will be set out in to a statement that's usually fairly easy to read, two columns, both breaking it down in to a monthly basis, usually can be an annual in a budget form or it could be over several years in a budget format. If you need anymore information on this subject or any other subject in the business field, my email address is jniemira@gmail.com.

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