Do you realize that your business’s financial statements are a valuable management tool for decision making? You may be thinking, “Well, I just get them done because the bank needs them for my loan file,” or, “I think I have a copy in a drawer somewhere.” But if you take the time to understand your financial statements, you’ll be surprised to find that they can give you information on the condition of your company and allow you to make better business decisions. (more…)
Posts Tagged ‘cash flow’
Do you know the current balance of your business checking account? If you don’t, keep reading. Cash flow is the key to business survival. A healthy business generates money for the operations of the business. (more…)
Cash flow management is a struggle for many small businesses. Unlike revenue, cash flow isn’t easy to quantify or pin down. It’s up and down and moves around. But, most small businesses that fail do so because of a lack of cash flow… not revenue or profits. (more…)
All businesses need cash to operate. Without it, you can’t repay expenses let along find new ways to grow your business. But where can you go to find that needed cash? There are only three options: an investor, a bank or within your business. (more…)
A CFO, or chief financial officer, is the financial head of an organization. Usually reporting directly to the CEO, or chief executive officer, a CFO is responsible for keeping an organization financially healthy.
CFOs work in businesses, not-for-profit organizations and even some government entities. They are responsible for the finances, but what all does that entail? A CFO has four “COAR” areas of responsibility:
The Economic Recovery has hit the Construction Industry.
While every industry has suffered during the Great Recession, the construction trade has been particularly hard hit. As tight government budgets were hampering major infrastructure projects, the foreclosure crisis was impacting new home construction – talk about a double whammy!
But, there’s good news for the construction industry: home prices and construction are beginning to turn around! (more…)
There’s no such thing as a free lunch… but a little planning ahead can make it a lot cheaper.
Let’s say you go out for lunch, on average, twice a week. At $8 per meal, you’ll spend more than $800 in one year on those lunches. And if you add in a weekly dinner out ($20), you’ll spend upwards $1,800 per year in restaurants. These little indulgences – fast food here, a sit down dinner there – add up and wreak havoc on your checkbook – and possibly your credit. (more…)
Contrary to popular opinion, profits are not the pulse of business. You can’t spend profits. Most companies go out of business because they lack quality cash flow — not because they lack profits or assets. (more…)
Although they’re not required for a closely-held business, financial statements can provide a crucial roadmap that helps management determine the financial health of the business and the steps to improve the return on investment for the owners – not to mention the fact that several entities outside your business may also request them.
There are four basic financial statements: balance sheet, income statement, cash flow statement and statement of shareholders equity. Do you know the difference? (more…)