Small and medium-sized businesses rely on a steady, consistent stream of incoming cash – customers paying for goods and services with cash, checks, and credit cards. Many retail and service businesses have multiple people conducting cash transactions throughout the day. Creating a cash policy and cash procedure for important cash handling processes like cash drawer management, end of day closing, or cash in deposits, can be vital to protecting the life blood of your business. (more…)

We have been told repeatedly that there are two things at the heart of the current financial crises. The sub-prime home lending fiasco (with the bad loans then bundled into investment securities) and the credit default swaps that had organizations falling like dominoes once bad mortgage loans started taking some institutions down. (more…)

In recent articles we have discussed several aspects of business finance.  Topics so far have included internal controls, capital planning, and managing working capital. While almost every business pays attention to financial performance, studies show that small and medium sized businesses in particular frequently do not engage in thorough financial planning - if at all.  (more…)

Question of the month: Is using a process approach useful in improving the financial performance of a company?

The articles in February revolved around financial issues such as financial controls, working capital, return on investment and cash flows.

Discussions of improving processes are too commonly relegated to the production floor. Is it any less important for your office processes to function effectively and efficiently? (more…)

In the past few weeks we have been covering important elements of finance processes, including internal control systems as prescribed by Sarbanes-Oxley, and the importance of capital planning to ensure key high level financial facets such cost of capital and return on assets have established goals and are being measured. (more…)

Last week we explained how profit is used to drive growth, which is one aspect to your cash needs. But what are you going to do with the excess cash from your business? Your options include purchase assets, spend it on various expenses, hold it in an investment account, pay down debt, or give it back to the shareholders. (more…)

Capital is one of the most critical components that fuels your organization. Without it, organizations can’t grow, but how do you know how much you really need? Having too much or too little can both be detrimental to your organization. You don’t have to be a finance expert to understand how cash works within your organization, but it might help. (more…)