Everyone talks about cash and how much cash matters. “Cash is King” … “Cash is Everything” … We’ve all heard this before. Over the last 18 months, because of the pandemic, cash collection has been at an even greater premium as businesses have struggled to pay and collect. Numerous articles […]
Cash flow analysis, forecasting, and management are essential to operating a successful company. Internal cash flow, or cash flow from operations, is one of the most important financial factors in a business. It is critical for business owners to understand cash flow, and how it differs from net income so […]
As a result of the Coronavirus Aid, Relief & Economic Security (CARES) Act, the Federal Reserve has created the Main Street Lending Program to provide a total of $600 billion in financing for small and medium-sized businesses.
You may have a budget and may be fortunate enough to be tracking to budget, but in the current economy with mandated shutdowns and unpredictable revenue, you must also have a cash forecast. A cash forecast can help you quickly adjust your operations to avoid running out of cash. Most […]
The news agencies have been quick to point out the effect of the Coronavirus on people and stock markets throughout the world. Just now, we are starting to hear about the proactive actions that some large businesses are taking to survive the Coronavirus – Disney is closing, airlines are scaling […]
Most small business owners follow a proven path of success by managing everything in their business. Specifically, they manage sales, marketing, business operations, human resources, and oversee the accounting and finance departments. Why? To keep costs down and maintain control over the business. Eventually, the business employs 15 to 30 […]
What do owners typically think their business is worth? Most privately held business owner’s view their business value as a multiple of cash flow, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) or multiple of Benefit to Owner. Business owners typically hear multiples in the range of 3 to 7 […]
Cash flow is of significant importance to the health of any business. There is a saying: “revenue is vanity, cash flow is sanity, but cash is king.” Cash is the lifeblood on an organization, and while it may seem impressive to have significant inflows of revenue from sales, the most important focus […]