by Sherron Lumley. When a business has more money coming in than going out, that’s positive cash flow. Ideally, this is the zone in which a small business could operate forever, like a perpetual motion machine. Even though understanding cash flow seems simple, the day-to-day reality of it can cause mayhem. What to do when a customer payment is in the pipeline for next month, but employees must be paid on Friday, raw materials purchased next week, and the electricity bill taken care of by...

How small businesses can watch their bottom line more closely by Christopher Freeburn Small business owners quickly learn about the necessity, particularly in this economy, of having a well thought-out business plan, doing the right amount of market research, and keeping excellent records. Good bookkeeping and adherence to proper account forms and standards often distinguish small businesses that succeed from those that fail. Part of the importance of maintaining good financial records...

In this three-part series, we describe the primary methods a small business can use to pay its bills and examine the advantages and disadvantages of each Part II: Credit Cards By Christopher Freeburn Credit card use is rising not only among consumers, but among small business owners as well. According to the 2009 National Small Business Association (NSBA) survey, 59 percent of small business owners had used credit cards within the past 12 months to fund the ongoing operation of their...