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Date Created: 12/18/15
Cash flow management Why is cash flow statement? Many business owners believe and give all the information required for financial statements. Is your business in the financial statements is the history tool. Cash flow is cash really is to your business, how much of fancy work instructions in the budget name. Monitor synchronization operation cash flow sales, profitability, cost, balance sheet and other collections and cash, easy- to-read tool to have. While identifies operational issues requiring action for immediate cash needs for the future and plan growth. Successful cash flow plan is don't need degrees in accounting. Is go where cash and need real understanding under the left how much (just like you at home). Companies look and every month, year future, actual results updated every week, to work with cash flow model. Create a worksheet. Successful cash flow management formulas is deceptively simple. With the money. To make money. Money is left. If you do not have any money left over, you need to do something different. Start selling. Sales is the work performed and checked the guests in cash register receipts or invoices. Project sales months and predicted the start of the month. Considering the season of your business sales need to change. Classified sales categories, conservative in May. Projects collection each month. Put into collection banks in the form of cash, check or credit card slips and money. Sales collection without equal, accounts receivable or cash control problems. Make sure your expenses. Define your costs in two key areas: cost of sales （ variable costs, such as cost of sales products ）, overhead expenses (net sales variation is no cost). Main sales categories, define the percentage of the cost. Expects all other overhead expenses (rent, utilities, insurance, licensing, etc). Projects, paid all the expenses. Estimate your salary. Current and employees expected to lists and classifies as they cost sales labor and overhead work. Some sales personnel expenses likely to project target labor cost percentage. Estimate the payroll cost per employee (working hours, average pay rate), over the next 12 months. Evaluate your profitability. You can see the business profitability and feasibility and value of monthly sales and expense forecast. Minus the cost of sales (including the salary cost of sales) total cost of sales, equivalent to the total overhead costs （ including overhead salaries) negative monthly cash reserves. This is your profitability. Any money left? Repayment of this debt individually evaluate your profitability. Take many forms, including the debt notes, loans, credit cards, leasing, credit card line. Lenders loan intended to improve corporate debt cash flow is want to build, but look at the particular way and hope the business balance sheet. So what's next? Framed this budget, to cover the debt load without the loss of cash you can determine enough income to profit and loss breakeven sales and generate sales. And cash flow targets now are revealed, to implement the strategy. Fix the problem that caused cash flow problems. Map to your cash flow there at the beginning of the control. Cash flow planning financial stability brings business proactive budget, monitoring and adjustment. Priorities and options you will understand what today is. You expect your cash needs, and allows the control of your business. Using the cash flow of your business money and, for future road map.