What Happened to My Cash?
As Companies go through a journey in terms of their growth, Financial Information gathered by these Companies also go through a Journey. There are 2 types of accounting in Finance,
1. Cash Accounting
2. Accrual Accounting
In general, smaller companies prefer the first option as Cash more or less drives everything within the Company. But as Companies start growing, Cash Accounting will not be completely acceptable – even from GAAP standpoint. Accrual Accounting is generally the more preferred option as it ensures that there is a trend to everything right from Revenue to Expenses. But the issue of moving to Accrual Accounting is, you will need a comprehensive ERP to ensure Cash Flow is more accurate including proper end to end Bank Reconciliation.
And Companies still struggle today to get a simple end to end cash flow shown below in an automated fashion, even with a strong ERP. At QuarkCube, we strongly believe Cash Management is fundamental to running an effective and efficient business. Cash Flow automation is the hardest and if that is done, rest of the automations in Finance will automatically follow. We not only provide the breakup of CashFlow (Operating, Investing & Financing), we also provide the necessary lineage for proper decision making
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