by Adnan Akhand, VP of accounting and compliance, BX3
When Hollywood tries to give its take on Wall Street, generally cash flow statements aren’t front and center of the plot lines. Coming from my perspective as a certified public accountant, the film and television industry is really missing an opportunity here. No matter how tight the script, there are few better methods to tell the actual story of a business than cash flow statements.
As their name would suggest, cash flow statements help businesses understand where money is going in and where it’s going out. While balance sheets and income statements might get better name recognition among the non-accountants among us — that includes some of you on venture capital boards out there — they don’t provide a holistic picture of how cash is being used within an organization. Whether you’re an entrepreneur who wants to put your best foot forward or an investor wanting to get the real lowdown on runway burn, here’s why cash flow statements are a real way to get your finger on the pulse of what’s happening in a business.
Learn more about cash flow statements on our column on ValueWalk.