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Re:Is your company saving cash? (1 viewing) (1) Guest

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TOPIC: Re:Is your company saving cash?
#2112
Re:Is your company saving cash? 4 Years ago Karma: 0  
Here is our "Top 10" list for Creating additional cash reserves http://abusiness-consulting.com/content/expense-reductions

Once you discover what your company is special at the next step is creating cash flow. Capitalize on it. Capitalizing on your expertise will create a revenue stream for you, reward your efforts and manufacture some business confidence.

1. Never Run Out of Cash. Running out of cash is the definition of failure in business. Make the commitment to do what it takes so it doesn't happen to you.

2. Cash Is King. It's important to recognize that the basics of cash flow are what keep your business alive. Manage it with the care and attention it deserves. It's very unforgiving if you don't. Remember, cash is king, because no cash means no business.

3. Know the Cash Balance Now. What is your cash balance right now? It's absolutely critical that you know exactly what your cash balance is. Even the most experienced person will fail if they are making business decisions using inaccurate or incomplete cash balances. This is fundamental to cash flow procedures. That's the reason why business failures are not limited to amateurs or people new to the business world.

4. Do Today's Work Today. The key to keeping an accurate cash balance in your accounting system is to do today's work today. When you do this, you will have the numbers you need - when you need them.

5. Do the Work or Get Someone Else. Here is a simple rule to follow to make sure you have an accurate cash balance on your books. You do the work or have someone else do it.

6. Don't Manage From the Bank Balance. The bank balance and the cash balance are two different forms of cash. Rarely will the two ever be the same. Don't make the mistake of confusing them.

It's futile and frustrating to attempt to manage your cash flow using the bank balance. It's a prescription for failure. You reconcile your bank balance. You don't manage from it.

7. Know Your Six Months Cash Balance. What do you expect your cash balance to be six months from now? This one question will transform the way you manage your business.

This question really gets to the heart of whether you are managing your business or whether your business is managing you.

8. Cash Flow Problems Don't Just Happen. You would be amazed at the number of small businesses that fail because the owner did not see a cash flow problem in time to do something about it. The key is to always be able to answer the question - what do I expect my cash balance to be six months from now?

9. Have Cash Flow Projections. Cash flow projections are the key to making wise and profitable business decisions. They give you the answer to the all-important question from Rule # 7. It's impossible to run your business properly without them.

10. Take Care of Customers. Eliminate your cash flow worries so you are free to do what you do best-taking care of clients and making more money. Use these cash flow 101 rules to free yourself from cash flow worries. That way you can focus all your time and talents where you can make the most difference in your business.
 
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#2115
Re:Is your company saving cash? 4 Years ago Karma: 2  
The thing is, having cash flow is also related to knowing whether you're profitable. By that I mean, I see a lot of small businesses that have a handle on revenues but no idea what they're netting. It sounds simple, but many businesses don't pay enough attention to it.
 
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#2297
Re:Is your company saving cash? 3 Years, 7 Months ago Karma: 2  
I was just looking over this forum discussion and realized with a shock that we started this topic a year ago. Since that time there hasn't been much of a change in company treatment of cash. They're still sitting on it. What do you think can entice companies to stop hoarding?
 
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#2332
Re:Is your company saving cash? 3 Years, 5 Months ago Karma: 2  
I wanted to call everyone's attention to a post Denise Bedell just wrote about hoarding cash.
http://www.cfozone.com/index.php?option=com_myblog&Itemid=626&show=Managing-the-perils-of-hoarding-excess-cash.html

It discusses the potential downsides and diluting effects of sitting on too much cash for too long.
 
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#2335
Re:Is your company saving cash? 3 Years, 5 Months ago Karma: -1  
Thanks Anne. I thought it was interesting to take a look at the downside of cash hoarding, or at least the risks inherent in holding onto excess cash without putting safeguards in place to ensure that money isn't wasted as a result.

The academics upon whose research the piece was based highlight the importance of good governance and corporate controls around use of excess cash. What are forum members doing in relation to this?
 
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#2342
Re:Is your company saving cash? 3 Years, 4 Months ago Karma: 2  
Just read a story in which some company heads, like IBM's, were saying they're holding onto cash because of uncertainty about regulations. Personally, I don't believe it. I think it's part of move to undercut legitimate efforts to regulate companies after the recent debacle, which came about largely thanks to lax regulation.

You know, fact is we need regulations. The burden may be too heavy on small businesses, but we need regulations.
 
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