November 10, 2008
Cash flow is the lifeblood of a business, since it symbolizes the steady movement of cash in and out of a company. With a cash flow statement, you’ll be able to keep tabs on when you expect to receive revenue, or money owed you by customers, and then manage this money so it is available when you need it to pay your bills. Getting the numbers down in writing will help you to figure which months you should stockpile extra cash, perhaps by postponing that renovation project you had planned, and which months you’ll have enough revenue flowing into your checking account to reschedule it. Or you can plan to hold a special sale for the months when you believe you’ll have more money going out than coming in; the discount you provide to your customers is worth it if your cash flow is positive instead of negative. Read the rest of this entry »
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Accounting, Balance Sheets, Payroll, Sales, Tax, financial | Tagged: business, year, cash flow, cash flow statement, income statement, balance sheet, income, statement, cash, balance, sheet, assets, flow, expenses, flow statement, money, work, design, writing, health, revenue, prepared, once | 
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Posted by DodoLovesMe
October 27, 2008
Even if you hated math in high school, keeping a good financial record of every one of your business transactions—whether it’s checks received or cash receipts for highway tolls paid while traveling on business—is a basic necessity. After all, every entrepreneur wants to know how much money her business is generating both before and after expenses, to see what all of her hard work is worth. Read the rest of this entry »
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Accounting, Budgeting, Business Plans, Payroll, Sales, Tax, financial | Tagged: Accounting, bookkeeping, business, cash, enterprise, expense, expenses, finance, financial, financial record, health, method, money, month, news, people, software, sole proprietors, time, travel | 
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Posted by DodoLovesMe
February 20, 2008
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Jobs, financial | Tagged: abc, abc architectural, abc architectural services, apparent, april, architectural, architectural services, business, cash, cash flow, cash flow statement, collection of receivables, company, contracts, employees, employees will require, expenses, february and march, first, first month, flow, flow statement, month, months, position, services, statement | 
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Posted by DodoLovesMe
February 20, 2008
All business owners know what cash flow is—if not technically, then emotionally. Nevertheless, it’s worthwhile to approach this subject from the very beginning because it is key to business success. Some business school professors have even begun to impart to their students the latest thinking about cash flow: “Cash flow is more important than your mother.”
A useful way to think about cash flow is to view the business as a living organism. Cash is the nutrient that runs through its arteries and veins. The brain might be viewed as the product or service, the heart as the marketing, and the stomach as the finances, at which point it all begins to get a little messy. If you don’t have enough cash flow, though, rest assured that the living organism turns into a skeleton. , Read the rest of this entry »
No Comments » | Advertising, Business Schools, Promotion, Sales | Tagged: business, cash, cash flow, cash flow statement, company, expenses, flow, monitoring cash flow, month | Permalink
Posted by DodoLovesMe
February 20, 2008
An excellent example of assumptions underlying a business plan is provided in the People Express financial. Here we find a list of 12 assumptions that help clarify the projections that follow. Most have to do with revenues and expenses associated with flying the company’s expected three plane fleet. Thus, we learn in points 7, 8, and 9 that revenues don’t include certain items that could become important later, like excess baggage and charter fees. And we learn in points 4 and 5 how the aircraft lease and personnel costs are figured in. Read the rest of this entry »
No Comments » | Business Plans, Promotion, financial | Tagged: assumptions, basis, cash, cash flow, cash flow statement, company, flow, statement | Permalink
Posted by DodoLovesMe
February 19, 2008
The income statement is the one we all tend to focus our attention on because it provides the proverbial “bottom line”— the company’s profit or loss. It’s usually done on a quarterly basis.
As you look at the basic income statement you’ll notice that it seems a lot like the cash flow statement. You start with your revenues less commissions. From that, you subtract direct labor (drafters and architects, for instance, for an architectural firm) and materials.
The result is a subtotal that gives you your gross profit or loss. (The percentage of gross profit to revenues can be a very useful number. It’s your gross margin and can help you compare yourself with others in your industry—it tells you immediately whether your labor or other costs are way out of line.) Read the rest of this entry »
No Comments » | Balance Sheets, Business Plans | Tagged: business, company, cash flow, profit or loss, cash flow statement, assets and liabilities, income statement, gross profit, balance sheet, income, statement, profit, cash, labor, gross, balance, sheet, assets, liabilities | Permalink
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