Generating cash from normal operating activities is critical to the health of your business. It indicates that you have healthy sales revenues. The measure also says that you are able to collect you client invoices and pay your supplier bills. Cashflow from operations is one of three areas that cash can be generated within your business. This distinction can be found in your Statement of Cashflows within Jazoodle. Check cashflow from operating activities with Jazoodle now.

Definition used:

Jazoodle derives your Statement Of Cashflows from your Balance Sheet, and your profit and Loss Statement. It is built from

Profit Changes

Changes in Accounts Receivables

Accounts Payables Changes

Changes in Stock

Prepayments Changes

Changes in Short term debt levels

Cashflow from operations should equal the amount of cash you have at hand

Cashflow from operations can be improved by a number of things, including:

• Sales revenues.
• Cost of goods (direct costs)
• Overheads or expenses
• Other non operating income or expenses
• Your client receivables policies
• Supplier payment policies
• Short term credit policies