Cash Flow: It’s Dynamic, Not Static

From the time a cash flow report is produced until it is reviewed, it is inaccurate.  It may be accurate enough for decision making when it is produced but it ages quickly.  Each business day (or hour) changes the numbers on the report and consequently your cash flow position.  Effective management of cash flow will […]

Financial Reporting: What is Your Message?

Accounting reports record the financial performance (Profit/Loss) and standing (Balance Sheet) of the company. They provide information to those interested in the financial score of the company and are used, if designed properly, to serve the interests of various audiences. In order to effectively address the questions of each audience you need to understand their […]

Cash Flow Modeling: An Early Warning System to Manage Business Financial Health

The day-in day-out duties of running a business can give you a false sense of confidence that you have a good handle on the financial challenges that lie ahead for your business.  One of the most significant omissions that owners and founders make is not committing to a regular process that forecasts or models the […]

5 Principles to Managing Cash Flow Successfully

Managing cash flow is a simple concept – but hard to do it successfully in practice. Why? Business is dynamic and balancing the timing of unpredictable revenue against the predictable consumption of cash by fixed expenses coupled with unpredictable variable expenses can create a cash flow crisis. An easy solution is to just borrow more […]

The Best Read: Reading Your Financials!

For many people the most boring aspect of running a business is reading their financials. For some it is so onerous they try to avoid the experience every month and only want to know the bottom number – profit or loss! However, your P/L, Balance Sheet and Cash Flow statements are the cardiogram of your […]