Many companies and individuals spend time creating and monitoring a budget. You know how it goes--if you’re a company, you look at your sales, and if you’re a person, you look at your pay stubs. Then you look at your bills. You think about how you want to save money. You wish you could save more, so you decide you’ll tighten your belt. The result? You come up with a budget that could only be … [Read more...]
Understanding and Utilizing Cash Flow
I often hear clients speaking of cash flow, typically when they do not have enough liquid funds coming through or when they are happy because their clients are paying very well. I seldom hear them talk about the reciprocal effects of cash flow for their business and hence for their household as related to their balance sheet.We are in terrific economic times right now. Banks are lending, … [Read more...]
Your Balance Sheet…Telling the Real Story of your Company’s Health
Robert Kiyosaki, writer of Rich Dad Poor Dad, often comments on the importance of balance sheets as a business management tool. Just like a yearly checkup at the doctor’s, your company’s balance sheets help you determine whether you’re in prime financial health or if you have “financial cancer.” Most individuals understand their profit & loss/income statement very well, but many people … [Read more...]