Direct vs Indirect Cash Flow Statements
However, it can lead companies astray when predicting cash flows years ahead. Indirect forecasting provides a reliable foundation https://accounting-services.net/5-4-direct-versus-indirect-method/ for long-term planning. Its strength lies in forecasting cash flows over extended periods, allowing for better decision-making. Larger, more complex firms, on the other hand, may find it too inefficient to devote the necessary resources to […]