Analysis of cash flows within the framework of strategic management of the organization

The main type of financial resources of the company is cash. However, traditional profit indicators, unfortunately, do not provide an adequate assessment of the company's performance for a number of reasons. To evaluate the effectiveness of the main business processes (sales, investments, production), you should use the information about the company's cash flows contained in the "Consolidated cash flow statement" in addition to analyzing the financial statements. Using two approaches - accounting and analytical, will allow you to create a realistic picture of the company's financial condition, which serves as a basis for making strategic decisions in the future. It is worth noting that the analysis of cash flows should be built using a balanced accounting system - an information system, the purpose of which is to collect, process, store, accumulate, transmit data on cash flows and the processes of their attraction, use and placement in the context of financial activities, contractors, internal processes, and personnel activities. The feasibility of using this system in the analysis of cash flows is due to the fact that any company is aimed at generating cash and growth and a clear understanding of the dynamics of the company's activities for the subsequent attraction of investors.