How To Calculate Operating Cash Flowed

Ever wondered why calculating operating cash flow (OCF) is critical for business owners?—It constitutes the key indicator of a business's financial health. 

Cash is a vital component for the operations of a business, just as blood flow is essential for the functioning of the human body. Therefore, keeping a close eye on cash flow is crucial for maintaining a company's financial health. As a small business owner or self-employed individual, you must manage the flow of money coming in and out of your business. So, understanding cash flow in business, how a cash flow statement works and utilizing it to make informed decisions can help ensure the longevity and success of your business.