Managing Your Business' Cash Flow

Written by Monte Zwang


You wouldn’t drive a car without a gas gauge or speedometer, and if you’re driving on an empty tank, you won’t get very far. Then why would you make financial decisions withoutrepparttar proper tools? Businesses must master controllingrepparttar 103651 flow of cash. Cash flow planning helps eliminate uncertainty, identify obstacles and move forward armed with information. With information you can make plans and changes to improve your business.

Why a Cash Flow Statement? Many business owners believe their financial statements will give them allrepparttar 103652 information they need. Financial statements are an historical tool that shows you where your business has been. A Cash Flow isrepparttar 103653 fancy name for a working budget that tells you how much cash your business actually has. Working in sync with your balance sheet your cash flow should be an easy-to-read tool that allows you to monitor sales, costs, profitability, collections and cash. It allows you to plan for future cash needs for growth, while identifying operational issues requiring immediate action.

Successful cash flow planning does not require a degree in accounting. What you need is real-time understanding of whererepparttar 103654 cash is originating, where it is going, and how much is left over (just like you do at home). Businesses need to operate with a cash flow model that looks ahead one year, month by month, and is updated with actual results every week.

Create a Worksheet The formula for successful cash flow management is deceptively simple. Money in. Money out. Money left over. If there isn’t any money left over, then you need to do something differently.

Start with Sales. Sales is work performed that is documented by cash register receipts, guest checks or invoices. Projectrepparttar 103655 amount of sales you anticipate month-by-month starting withrepparttar 103656 current month. Sales should fluctuate when you considerrepparttar 103657 seasonality of your business. Breakrepparttar 103658 sales into categories and be conservative.

Project your collections month by month. Collections arerepparttar 103659 money you put intorepparttar 103660 bank inrepparttar 103661 form of cash, checks or charge card vouchers. If Sales do not equal Collections, you either have accounts receivable or a cash control problem.

Review your expenses. Define your expenses into two major areas: Cost of Sales (expenses that fluctuate with sales such as product costs) and Overhead Expenses (expenses that do not fluctuate with sales). Definerepparttar 103662 cost percentages for your major sales categories. Forecast all other Overhead Expenses (rent, utilities, insurance, licenses, etc.). Project all expenses out inrepparttar 103663 month they will be paid.

Why Employee Satisfaction Surveys and Employee Exit Surveys make good sense

Written by Martin Day


In a competitive world withrepparttar need for businesses to be more streamlined and productive a company can often find itself with a workforce working under pressure resulting in low moral and high staff turnover. The benefits of a company having a highly motivated workforce can be considerable andrepparttar 103650 two goals of having a workforce that is both motivated and productive should not be regarded as being mutually exclusive to one another.

Left unattended employers runrepparttar 103651 risk of alienating their employees, events can cause employee frustrations to boil over resulting in employers finding themselves onrepparttar 103652 back foot, faced with a problem that cannot be ignored.

Ideally employers would take time to understandrepparttar 103653 needs of their employees and learn from their experiences of working onrepparttar 103654 front line, but employers are often themselves tied up day to day fighting their own fires.

By automating much ofrepparttar 103655 intelligence gathering process and providingrepparttar 103656 findings in a format that can be readily analysed online surveys provide employers with an efficient, effective and low cost method to help achieve a pleasant working environment, where staff satisfaction and productivity is high.

Dissatisfied & Unproductive

The are many reasons why employees may be dissatisfied with their job and more often than not staff frustration is channelled into a demand for higher salaries and less hours. Employers who tackle these issues head on, making it all about salary and hours, will often find themselves dealing withrepparttar 103657 symptoms and notrepparttar 103658 root cause.

It’s not about Money

The following are common barriers to achieving productivity, none of which are likely to be resolved by increasing salaries or reducing hours:-

• Inadequate training • Out of touch management • Out of date working methods • Lack of proper tools and equipment

Many studies have shown that salaries are rarelyrepparttar 103659 number one priority of employees and providing an employer is paying market rate they would be fundamentally wrong to think that paying higher salaries isrepparttar 103660 answer to all employee problems.

Takerepparttar 103661 case of a single mother who is juggling a full time job withrepparttar 103662 need to look after two children. Out of frustration she may demand more money so that she feels that she is able to cope where a better solution, for both her andrepparttar 103663 company, may be more flexible working hours.

It is About Communication

It is important for any company to encourage communication. Company's that make communication between personnel and management difficult, or takerepparttar 103664 view that if personnel have a problem they will say something, can often delude themselves into thinking their workforce is content when it is not. It only takes one small problem and one disgruntled employee to feel aggrieved for an entire workforce to develop a destructive ‘them and us’ attitude.

Improving Communication

One to one meetings between employer and employee would be ideal but in practice only practical for very small businesses.

Regular meetings between management and worker representatives are good in theory but they often become talking shops and can begin to loose their edge asrepparttar 103665 participants become familiar with one another andrepparttar 103666 forum runsrepparttar 103667 risk of being hijacked byrepparttar 103668 more extrovert personalities.

Suggestion boxes are useful but can be viewed as token efforts by management as they wait for personnel to highlight a problem.

Newsletters can be a positive step, but their purpose is generally to inform and not discuss issues.

Keepingrepparttar 103669 Initiative

An employee satisfaction survey run on a regular basis is able to ask each employee specific questions and represents a pro-active management initiative whererepparttar 103670 whole workforce can be consulted on various issues. Surveys are able to provide a level playing field betweenrepparttar 103671 quieter and more vocal employees.

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