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Two Key Cash Flow Reports for Small Businesses

Synopsis by Gemini


A recent interview from The Hartford highlights the importance of two specific cash flow reports for small business owners: cash disbursements by vendor and cash receipts by customer.


The author, Gene Marks, argues that these reports provide a clearer picture of your business's financial health than traditional reports like the general ledger.


Here's a breakdown of the two reports:

  • Cash Disbursements by Vendor: This report shows how much money you've spent with each vendor over a specific period (recommended: six months). Sorting it from highest to lowest allows you to identify areas of high spending and investigate if the spending aligns with your expectations.

  • Cash Receipts by Customer: This report shows how much revenue each customer has generated over a specific period. Sorting it from highest to lowest reveals your best customers and allows you to tailor your approach accordingly. Ideally, the report should also include a comparison to the previous year to identify trends in customer revenue.


By reviewing these reports regularly, small business owners can gain valuable insights into their spending habits, customer base, and overall financial health.


If you have questions about your cash flow and reports, feel free to contact SEWN for your no-cost, no-obligation chat.

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