Cashflow

Category: Cashflow

The Dreaded “F” Word

See Also: What is Factoring Receivables Accounting for Factored Receivables Journal Entries for Factored Receivables Can Factoring Be Better Than a Bank Loan? History of Factoring How Factoring Can Make or Save Money Factoring is Not for My Company The What, When, and Where About Factoring Working Capital Factoring: The Dreaded “F” Word The dreaded

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Strategy for Managing Cash

Does your company have a strategy for managing cash?  Many companies have established procedures for purchasing materials, collecting customer payments, and paying vendors. But often people either do not communicate these procedures or simply don’t follow them consistently. Even when everyone is aware of and follows the established protocol, your system may be flawed. Before we show an example, you need to know how to manage cash flow.  Know How to Manage

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Daily Cash Flow Forecast

See Also: Cash Flow Statement Steps to Track Money In and Out of a Company How to Create Cash Flow Projections Thirteen Week Cash Flow Report Daily Cash Flow Forecast Use the Daily Cash  Flow Report to report on the daily cash balance and to help manage cash on a weekly basis. This tool is especially useful

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Why You Need to Have a 13-Week Cash Flow Report

Have you ever been in a cash flow crisis? You aren’t able to make payroll. You can’t pay your vendors. There is simply not enough cash. BUT sales are rocketing. So in theory, there should be enough cash… Wrong. I say this during every Office Hours I host for our SCFO Lab members… “You need to

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Overhead Expense Reduction

See Also: Predetermined Overhead Rate Activity Based Costing vs Traditional Costing Activity Based Cost Allocation Standard Cost Overhead Expense Reduction As a general precursor to Overhead expense reduction, Group Purchasing Organizations, Co-ops and Consortiums always lead to lower prices because they aggregate spends and create buying power. This may be true for smaller spends but

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Mining the Balance Sheet for Working Capital

Mining the Balance Sheet for Working Capital Let’s face it… There has been significant liquidity in the marketplace over the past couple of years. Debt and equity capital has been relatively easy to find and commercial banks have been very willing participants as capital providers; however, many of the commercial banks have admitted that this robust marketplace

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Is Your Business Bankable?

Businesses call us for many reasons but here are two very common reasons why we get called… They are growing and want to strengthen the financial function. OR They are in financial distress and can’t find a way out. Why does a business need to be bankable? What does being bankable mean? In this blog,

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Accelerated Method of Depreciation

See Also: Depreciation Straight Line Depreciation Amortization Fixed Assets – NonCurrent Assets Balance Sheet Projections Accelerated Method of Depreciation Definition An accelerated method of depreciation definition is any depreciation method that expenses the cost of a tangible asset over its useful life at a rate faster than the straight-line method of depreciation. Furthermore, these methods

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Problems When Experiencing Business Growth

Growth is great for companies, right? Not always. There are so many problems when experiencing business growth that can occur if the leadership is not careful. Besides the uncertainty of how long this growth period will last and how big the company will grow, companies loose focus on some basic key factors. This can include

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Free Cash Flow Definition

See also: Discounted Cash Flow Analysis Valuation Methods Free Cash Flow Analysis Free Cash Flow Definition The business is like a human body, the body needs blood, the business needs cash. Investor look at Free Cash Flow to make their decision for investment. Interestingly, it’s not a number you can come up easily. First, let’s look

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Why Use a 13-Week Cash Flow Report as a Management Tool?

Why use a 13-Week Cash Flow Report as a management tool? Cash is king! This applies to any and all companies. No matter the size or industry, cash and cash flow are critical to any operation. Yes, some companies have access to lines of credit and other forms of financing, but that is debt that

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Cash Basis vs Accrual Basis Accounting

Believe it or not, we deal with this issue of whether to use cash basis vs accrual basis accounting all the time. Many companies start from scratch with one person doing the accounting from home or a small office. Over time, their needs grow. It’s normal to see changes within the organization, especially when companies

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