Automation of Accounts Payable

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 […]

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How often do you re-forecast the budget?

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 […]

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Net Operating Cash Flow

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, […]

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Cash Flow Best Results

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 […]

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Purchase Orders are more than Sales Orders to your Vendor

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 […]

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Watch Cash Flow

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 […]

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Cash Flow Statement vs Statement of Cash Flows?

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 […]

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Budget Budget who made the Budget

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 […]

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Do you suffer from these Cash Flow problems?

A recent article I read on Cash Flow Problems…. Highlighted these eight issues.  Which issues do you suffer from? Lacking cash reserves. Expensive borrowing. Decreasing sales or profit margins. Outstanding receivables. Uncontrolled business growth. Too much inventory. Seasonal changes in demand. Inaccurate forecasting or bookkeeping practices. All these issues can be fix, the problem is […]

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