| Summary: | All companies are required to report an annual report. Depending on their size, companies have different requirements for accounting of cash flow in the financial accounting. Cash flow statement is a summary of a company's cash flow, which are divided into different categories. It shows earned cash, but also how the cash has been added. Cash flow is something that also can be used for internal management of companies to gain control over cash flows and be able to forecast and monitor outcomes.Smaller companies generally report more limited public information since the law permits it, thus smaller companies find it more difficult to convince external funders. Cash flow is something that feels unaccustomed to many smaller companies, but also among many accounting economists. Balance sheets and income-based accounts are mainly used and required. The purpose of this paper is to examine how and why some smaller companies choose to use cash flow analysis, while others choose to abstain. In addition, any difficulties associated with the use of cash flow in smaller companies will be identified and suggestions for action are given.The theoretical framework of the thesis is formed by the literature and the article search field of the study. The empirical data is collected through a qualitative multi-case study of small companies in the wood working industry in the northern part of Sweden. The results have been linked to the theoretical framework in the thesis analysis section. The results indicate that small companies in the industry do not prioritize economic analysis. In addition, the results indicate that the industry binds large amounts of capital and that the industry is seasonal, cyclical and associated with high risks. These factors should be a good basis for establishing cash flow analysis. Validerat; 20110615 (anonymous)
|
|---|