The Importance of Cash Management For Small Business

February 22, 2024
Stacks of pennies

Cash Management is a critical activity for companies of all sizes, but I want to talk about the importance of cash management for small business. Assuring that a company has sufficient funds when and where they are needed, is a constant challenge for financial managers. When a company has sufficient cash to finance its business…

Five Tips To Improve Your Company’s Financial Performance

February 21, 2024
Piggy Bank

Improve Your Company’s Financial Performance  – Your Company’s Financial Pains Investor and billionaire Warren Buffet once said, “Only when the tide goes out do you discover who’s been swimming naked.” I think it’s suffice to say that the tide has gone out in our financial world and it’s easy to see who’s been left out…

Working Capital Problems

February 21, 2024
Pile of cash

Working Capital Problems – Does Your Business Have Them? Does your business have working capital problems? Let’s take a look at what working capital involves. Basically, working capital falls into four main areas. These are: Cash Accounts Receivable Inventories Accounts Payable Most companies would say “yes, they have a problem in one of these areas.”…

Key Operating Indicators

February 21, 2024

How does a company monitor and measure its financial goals and performance? Generally the answer to this question is through its financial statements. However, monthly financial statements are not enough once your business becomes large in size. There is too much going on within the business that impacts cash and will need to be tracked…

The 3 Pillars Of Financial Management

February 21, 2024

3 Pillars of Financial Management – Introduction Well managed companies employ many tools to optimize financial performance, some of which can be very sophisticated. However, most of these fall within the basic “blocking and tackling” of financial management. Invariably, entities that under perform or experience fraud or some other impropriety will have failed in at…

Business Investment Analysis – Are You Making Wise Choices?

February 21, 2024
Monopoly Board

Business Investment Analysis – Preface It is a sales axiom that people buy things based on emotion and seek out facts to justify their decision. I wish I could say that the axiom were true ONLY for personal decisions, but my experience has shown that it is frequently true in the business realm as well. Perhaps…

Net Working Capital – The Lifeblood of Any Business

February 21, 2024
$100 Bill

Net Working Capital – Introduction Working capital (also known as net working capital) is a financial metric which represents the amount of day-by-day operating liquidity available to a business. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. It is calculated as current assets minus current…

Financial Ratio Analysis For Dummies

February 21, 2024
Crash Dummy

Ratio analysis.  Sounds like a fascinating topic.  Something I really need to spend my time on.  Right…. Most business owners react the same way.  And no wonder.  Ratio analysis can be dry as dust, impenetrable, complex and confusing.  But it’s also a really good way to perform an “Executive Physical” on your company.  If you…

When Employees Are Stealing Time Theft In A Service Environment

February 21, 2024
Burglar Cracking a Safe

Theft – Introduction A quick perusal of statistics coming out of this recession has been the rise in employee theft. From petty cash misappropriations to stock shrinkage, employee time theft is on the rise. A study published by the Chubb Group of Insurance Cos. found that executives at 60 percent of the companies surveyed expect employees may…

Accounts Receivable Management

February 21, 2024
$100 Bill

Accounts Receivable Management – Definition Just as a physician would not prescribe a patient’s treatment without first diagnosing the condition, companies should not propose changes in the company’s credit policies and procedures without thoroughly evaluating the present situation.  There should be a thorough evaluation.  Although an organization may intuitively suspect problems exist, the danger is…