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7 issues keeping me up Cash Flow: Most companies have this issue. Sales forecasts are getting more difficult, inflation is increasing expenses and people are paying slower… Employees: This great resignation experiment looks like for many to have gone awry. Recently the resignations have changed from voluntary to involuntary. Regardless of how many jobs are […]
Read More »The other day a salesperson with one of the new expense programs that come with those virtual expense cards called. These programs seem to be all the rage, as in the last two years many new and some old companies entered this marketspace. I’m being told by salespeople and after reviewing numerous websites that there […]
Read More »Budget vs Forecast – there’s a difference…. Most people use these terms interchangeably, however, there is a subtle difference. Every business should, each year prior to the start of the new fiscal year, create a budget. Once approved, this budget is set in stone. It doesn’t change, and is not updated, it is what it […]
Read More »Interesting Concept An article from HBR (that’s the Harvard Business Review) about Net Operating Cash Flow (NOCF). This is the excess cash flow that can be used to service debt. The author makes it very clear that a business wins or loses on Cash Flow, not Net Income or EBITDA. Profits don’t pay the bills, […]
Read More »The tale of the 3-legged Stool and Cash Flow Cash flow is the life blood of your business. How many times have you heard “We’re profitable, but we have no cash?” You Can’t Spend Profits So every business needs to do three functions to optimize their Cash Flow model and therefore have the […]
Read More »Purchase Orders Purchase Orders serve multiple functions in your company. Yes, they are your request for merchandise or services from your vendor. Yes, they set quantity and price expectations or contractual amounts. Yes, they show when you want delivery and the FOB and Terms you agree to pay with in. Wait a second. You will […]
Read More »Quoth the Banker, “Watch Cash Flow” Once upon a midnight dreary as I pondered weak and weary Over many a quaint and curious volume of accounting lore, Seeking gimmicks (without scruple) to squeeze through some new tax loophole, Suddenly I heard a knock upon my door, Only this, and nothing more. Then I felt a […]
Read More »Why do I need to do a Cash Flow Statement when I have a Statement of Cash Flows? This is a common question we at SBA * Consulting often gets. This is also one of the greatest misunderstandings of what accounting is and isn’t. What is the role of the CPA at a public […]
Read More »We’ve written about this before, but it bears repeating Popular thinking Most people in business when they think of the budget/forecast (there is a difference, but most people use the term interchangeably, so we won’t get technical) they think CFO or Controller as the responsible party. Most people would be wrong! While the CFO has […]
Read More »Budgets/Forecasts While there is a difference, for the typical owner, it is an interchangeable term. So, we’ll stick with that concept. Do you budget? Do you budget for 1-month, 3-months, 12-months or longer? If you don’t, why? A budget is a forecast (like that, used both terms in a span of 3 words) of what […]
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