Stale Cash Flow Forecasts and Overdue Invoices: A Recipe for Disaster

Having a strong positive cash flow is the goal of every business. Knowing that you’ve got the resources available to run your business and handle any unexpected expenses helps business owners sleep at night. The question is, how do you maintain that flow once you’ve got it established? There are two scenarios that can lead […]

Stable Cash Flow is Key to Business Growth

Any business owner will tell you that cash flow is important for a healthy business. Positive cash flow allows you to pay your employees’ wages, get business supplies and maintain your business so you can continually attract new–and retain old–customers. But cash flow is important beyond simply maintaining the status quo. A positive cash flow […]

Cash Flow Planning is a Company’s Secret Weapon Against Disruptors

The business world is no longer occupied with mere startups. Instead, we live in the age of disruptors – small, agile organizations with big ideas that are changing the world and the market that they are part of with new ideas and rapid adaptation to customer demand. Larger companies don’t always have the ability, or […]

Cash Flow Statements, Assumptions and Elections: Be Prepared for Surprises

The U.S presidential election day is now behind us and the results of local, state and national referendums and offices is now decided. The uncertainty of our initial assumptions is gone. Forecasting anything is a challenge. Surprises happen. Our assumptions may not come out the way we expect and we need to be prepared for […]

Beyond ROI: Scalability & Cash Flow Projections

Cash flow projections are crucial, particularly when you’re trying to scale your business. Cash concerns are a part of nearly every business. We all like to know where our bank balance stands and where it’ll be in the coming months if few changes are made. If you buy a new car for your daughter with […]

Planning, Budgeting, & Forecasting: Why Tradition May be Dangerous – Part 2

Be open minded and explore opportunities for change In the first part of this blog article we looked at the traditional approach to planning and budgeting and recognized a number of flaws, regardless of how sophisticated some of the modeling capabilities of several of the leading solutions were. This raises a fundamental question: Is having […]

Balance Sheet Forecasting Demystified

A new and sensible approach to creating a forecasted balance sheet Have you ever wondered why forecasting of the corporate balance sheet is something we seldom see or hear about? Or why many finance managers and professionals dismiss it as an unnecessary activity with no real benefit to the company? The answer, according to my […]

Cash Flow Forecasting Best Practices

Earlier this year I participated in a discussion on the Proformative.com site, titled: Cash Flow Forecasting Best Practices. A Proformative member asked a question which is very common in many finance organizations: What are the best practices when it comes to developing a cash flow forecast model? The person indicated that it was for a large […]

The Benefits of an All-Encompassing Budget

Why using inadequate tools and approximating the balance of forecasted Balance Sheet accounts is a bad approach for budgeting I recently had a discussion with a colleague who is a partner in a local management consulting firm about organizations’ attitude toward the planning and budgeting process and the benefits they reap from these activities.  I […]

The Dreaded Statement of Cash Flows

How you can automatically generate an actual Statement of Cash Flows regardless of what ERP software you use Those who have experienced the manual preparation of a Statement of Cash Flows using beginning and period end Balance Sheets plus a periodic Income Statement know that this can be a chore and can cause a little […]