Cash Flow

November 9, 2015

Setting Up An Inventory Control System

Inventory control systems keep costs down. Inventory is the most valuable asset in a large number of small businesses, and it can also be one of the most difficult assets to keep under control. Theft, administrative errors, physical damage and obsolescence all eat away at inventory, squeezing profit margins and damaging bottom lines. Setting up an inventory control system can help you to maximize the value of your inventory by keeping costs under control.   Step 1 Implement policies to limit the amount of people with access to your inventory, and keep a record of who has access to secure areas at specific times throughout each day. Managers often underestimate the effect of theft on their inventory costs. Consider installing […]
September 29, 2015

Why Pay Attention to Financial Statements?

The Diversity of Financial Reporting  Don’t expect financial statements to fit into a single mold. Many articles and books on financial statement analysis take a one-size-fits-all approach. The less-experienced investor is going to get lost when he or she encounters a presentation of accounts that falls outside the mainstream or so-called “typical” company. Simply remember that the diverse nature of business activities results in a diversity of financial statement presentations. This is particularly true of the balance sheet; the income and cash flow statements are less susceptible to this phenomenon. The Challenge of Understanding Financial Jargon The lack of any appreciable standardization of financial reporting terminology complicates the understanding of many financial statement account entries. This circumstance can be confusing […]
April 21, 2015

Good Cash Flow Management

For any type of business, cash on hand is critical when running an enterprise. The truth is, you don’t have to be an entrepreneur to know that cash is the lifeblood of any business. Why Cash Flow Management Is Important Maintaining a healthy flow of cash is not as easy as it sounds. This is where the expertise of your Bookkeeper Melbourne comes in. It requires a delicate balance of keeping track of money in and money out. It is also important that money comes it at the right time as you will need it to pay debts and loans, pay contractors and workers, purchase supplies, or even buy a new equipment. Cash Flow & Profit Some people confuse cash […]
March 30, 2015

Planning Ahead For Recession

Accurate historical data is important but you’ll ‘crash’ the business if you drive it by just looking in the rear view mirror. Today’s decisions will impact on your future results. If you don’t have a plan in place or prepare an annual budget you are asking for trouble when the economy turns south. It’s easy to get complacent during the good years but a budget creates a blueprint for the future that you can measure your actual performance against. Cash flow, which your bookkeeper Melbourne can prepare is usually the most common client concern, the most visible and therefore the most painful. By identifying all the activities that turn work into cash and then measuring those activities, the results can […]