In Summary
THESE POINTS CANNOT BE OVER-EMPHASIZED:
Management must monitor cash and accounts receivable daily. Know what your commitments are, work the cash, and work the accounts receivable. With unpredictable interest rates and economic uncertainty, cash management will be the difference between success and failure. Cash is king, queen, prince, and all other titles of royalty. It is the blood of the business.
Cost accounting and inventory controls are absolutely necessary when appropriate to your business. You will never be in the position to know whether your business is profitable or not without accurate inventory information. This means proper counts and pricing of your inventories is essential.
Monitor your company financial statements every month. These financial statements should be compared to previously established targets and goals.
A financial forecast is a must. It must consist of a profit and loss forecast, a cash flow forecast and forecasted balance sheets. This will enable you to monitor the future financial impact of the decisions you've made. You will know in advance how much cash you will need and when you will need it. Set goals and achieve them.
As an owner-manager of a business, you must keep your finger on the pulse of all phases of the operation. Set in motion a management information system that gives you a constant flow of information regarding your company's financial position and the efficiency of operations at all levels.
Regularly monitor sales, accounts receivable, cash balances, and forecasts. You will not compile this type of information. Do not bog yourself down in details. Monitor and review the information provided by others, distribute it to subordinates and meet regularly and take corrective action when necessary.
THESE POINTS CANNOT BE OVER-EMPHASIZED:
Management must monitor cash and accounts receivable daily. Know what your commitments are, work the cash, and work the accounts receivable. With unpredictable interest rates and economic uncertainty, cash management will be the difference between success and failure. Cash is king, queen, prince, and all other titles of royalty. It is the blood of the business.
Cost accounting and inventory controls are absolutely necessary when appropriate to your business. You will never be in the position to know whether your business is profitable or not without accurate inventory information. This means proper counts and pricing of your inventories is essential.
Monitor your company financial statements every month. These financial statements should be compared to previously established targets and goals.
A financial forecast is a must. It must consist of a profit and loss forecast, a cash flow forecast and forecasted balance sheets. This will enable you to monitor the future financial impact of the decisions you've made. You will know in advance how much cash you will need and when you will need it. Set goals and achieve them.
As an owner-manager of a business, you must keep your finger on the pulse of all phases of the operation. Set in motion a management information system that gives you a constant flow of information regarding your company's financial position and the efficiency of operations at all levels.
Regularly monitor sales, accounts receivable, cash balances, and forecasts. You will not compile this type of information. Do not bog yourself down in details. Monitor and review the information provided by others, distribute it to subordinates and meet regularly and take corrective action when necessary.