Mike Milan
Free Cash Flow to Equity (FCFE) is a powerful metric that shows how much cash a business can distribute to its equity holders after covering operating expenses, taxes, reinvestment, and debt obligations. For accountants, bookkeepers, fractional CFOs, and business owners, FCFE is an essential tool for valuation, dividend decision-making, and understanding the actual cash-generating capacity of…
Net cash flow is one of the simplest-sounding, yet most powerful numbers a business can track. It measures how much cash actually moves into and out of a company over a period of time, and it’s the single best indicator of whether a business can pay bills, invest in growth, and survive downturns. This article…
Small businesses often view accountants as compliance-focused professionals, bookkeepers who close the month, file taxes, and keep the numbers tidy. In reality, the most valuable accountants become strategic partners who guide growth planning, improve cash flow, and raise business value. This article explains how accountants can step into that advisory role, the core skills required,…
Operating cash flow (OCF) reveals whether a business generates enough cash from its core operations to sustain itself, pay debts, and invest for growth. For accountants, bookkeepers, and advisors, mastering OCF calculation is fundamental, not only for accurate financial reporting, but also for delivering advisory insights that create real client value. This guide explains what…
Cash flow statements are one of the most practical tools for understanding how money actually moves through a business. While the indirect method is more commonly taught and used, largely because it’s easier to prepare from accrual-based accounting records, the direct method offers an immediacy and clarity that can change conversations with clients, improve decision-making,…
Cash flow statements are among the most powerful tools for helping business owners understand how cash moves through their company. This article presents a clear sample cash flow statement, explains each section in practical terms, and offers guidance for advisors who are teaching clients how to interpret and act on the results. It also highlights resources…
Understanding cash flow is essential for running and advising small- and mid-sized businesses. The cash flow statement provides a clear picture of how cash moves through a company, where it comes from, how it’s spent, and how much is available for operations, investing, and financing. This guide explains how to prepare a cash flow statement using…
Understanding the difference between cash flow and revenue is essential for anyone running or advising a small or mid-sized business. Revenue tells a story about sales performance; cash flow tells a story about the business’s ability to pay bills, invest, and survive. Confusing the two can lead to poor decisions, such as overborrowing, missed payroll,…
Understanding the Basics: What Are Income Statements and Profit and Loss Statements? In the world of accounting and finance, the terms “Income Statement” and “Profit and Loss Statement” are often used interchangeably. But is there truly a difference between the two? At their core, both documents serve the same fundamental purpose: to provide a summary…
Understanding Gross Profit: The Foundation of Financial Success Gross profit is a critical metric for any business, representing the difference between revenue and the cost of goods sold (COGS). It serves as a key indicator of how efficiently a company produces and sells its products or services. Accurately calculating gross profit using real client data not…
