How to Measure Net Cashflow
Cashflow is the lifeblood of any business. If the speed you collect cash owing to you is slower than the rate you pay it out to your suppliers, you are going to find it increasingly difficult to find the money to pay your suppliers. Unless this is rectified, you stand a good chance of going […]
Critical Financials for Business Explained
Many Owners overlook the vital business health information available by an analysis of your financials It all sounds too hard so keeps getting put off till “later” But your profitability and cashflow is easily monitored for adverse trends Accounting terminology differs between countries and even between accountants. Use our accounting terminology translator for unfamiliar terms […]
Learn about Daily Sales Outstanding Metric
Summary cashflow is the life blood of a business but it is a difficult thing to grasp as an abstract idea. “Is my cashflow OK?” is difficult to answer. Effective management of Accounts Receivables is part of the answer. The Accounts Receivable Daily Sales Outstanding (DSO) ratio, and its partner, the Daily Accounts Payable Outstanding (DPO) ratio respectively […]
C2.5.2 Increase Revenue – Improve Cashflow
Be mindful of the old adage; “Revenue is vanity, Profit is sanity and Cash is king!“. There are a couple of quick boosts to your Cashflow that will help to give you Working Capital for use in tuning other parts of your business. Contents List:Surplus InventoryAccounts ReceivableAccounts Payable Surplus Inventory By the time you have […]
Business Analytics: Sample TrendBoard Results
Home Business Analytics: ScoreBoard Display Demonstration The 12Faces ScoreBoard is a business analytics tool for small and medium business. It takes your annual, quarterly and monthly accounting data and displays it in a business analytics template using a graphical format for easy interpretation. We show a few examples of our business analytics tools here for […]
Key Business Indicators: Interpreting TrendBoard
TrendBoard Trend Analysis TrendBoard is our tool for visualising trends in your performance data so you get an early warning of any problems more on the ScoreBoard trend analysis tool here Key Business Indicators 12Faces is committed to helping you achieve Sustainable Business Success.Sustainable means on-going, you need monitoring tools to check your business’s health. Dictionary of Business Finance Terms In […]
Learn Why Cash Flow Beats Profit
Cashflow refers to the flow of money through your business. It usually goes out so you can buy stock and pay expenses, like wages and rent, and comes back when you sell that stock and collect the money from the buyer. Profit is an accounting term trying to show income less expenses. It suffers from so many accounting ‘treatments’ that it is not much use for small business managers. This might sound like a “dry” topic, but mismanaging Cashflow is probably the biggest reason why both big and small businesses fail. It is something you should be aware of and learn how to use it to your advantage. Yellow Belt