In your initial post, identify the strategies and approaches organizations use to conduct a cash-flow analysis to determine cash position and liquidity. Explain why cash flow is important.
Support your post with sources and cite them according to current APA guidelines. Be sure to critically evaluate the concepts and related literature. Address any pro and con arguments.
Read the posts of your peers and respond to at least one. Provide additional reasons cash flow is important or suggest another approach or perspective on conducting a cash-flow analysis. As you did in your initial post, use your research to support your claims and be sure to cite your sources according to APA guidelines.
This activity will help you achieve the following learning components:
Describe best practices for managing funds in a nonprofit organization.
Identify internal controls commonly used by nonprofit organizations to manage funds.
In your Budgeting and Financial Management for Nonprofit Organizations textbook, read the following:
Chapter 3, “Liquidity and Managing Cash Flow,” pages 51–68.
Chapter 4, “Costs and Cost Analysis,” pages 69–87.
Use the Internet to read the following:
Merrill Lynch. (2000). How to read a financial report [PDF]. Retrieved from http://e145.stanford.edu/upload/Merrill_Lynch.pdf
You may find the following ebooks of interest as you explore the content in this unit. These readings are optional and are not required. Use the Capella University Library to access them.
Francois, E. J. P. (2014). Financial sustainability for nonprofit organizations. New York, NY: Springer Publishing Company.
McLaughlin, T. A. (2016). Streetsmart financial basics for nonprofit managers. New York, NY: John Wiley