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Financial analysis for microenterprises
Many microentrepreneurs lack basic numeracy skills and are also too poor to afford professional financial and accounting assistance. This article describes the simplest procedures to keep track of the business cash flow, including the 'two-box' system and the use of representative iconsin cash-flow statements. It also analyses the circumstances in which these procedures are sufficient for a reliable business assessment, and when a higher level of accounting understanding is necessary for the business manager to avoid being misled.
Many microentrepreneurs lack basic numeracy skills and are also too poor to afford professional financial and accounting assistance. This article describes the simplest procedures to keep track of the business cash flow, including the 'two-box' system and the use of representative icons
in cash-flow statements. It also analyses the circumstances in which these procedures are sufficient for a reliable business assessment, and when a higher level of accounting understanding is necessary for the business manager to avoid being misled.
in cash-flow statements. It also analyses the circumstances in which these procedures are sufficient for a reliable business assessment, and when a higher level of accounting understanding is necessary for the business manager to avoid being misled.
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