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Institute of Management Consultants USA

Institute of Management Consultants USA. April 18, 2012. Cash Flow - The Life Blood of Your Business. Introduction Al Schaap, Partner B2B CFO® Controller, Treasurer, CFO for 35 years Consulting CFO since 2004 Couple of Quotes Not having cash is a bad thing… A Schaap

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Institute of Management Consultants USA

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  1. Institute of Management Consultants USA April 18, 2012

  2. Cash Flow - The Life Blood of Your Business • Introduction • Al Schaap, Partner B2B CFO® • Controller, Treasurer, CFO for 35 years • Consulting CFO since 2004 • Couple of Quotes • Not having cash is a bad thing… A Schaap • Cash is not just nice to have, it is KING in the business world … paraphrased from Vince Lombardi

  3. Cash Flow - The Life Blood of Your Business • The Boring Part • Statement of Cash Flow • Question: • How many of you know it exists, most of my clients did not • How many of you know how to read it, again most of my clients did not • Very shortly they did it the most important financial statement you will have.

  4. Cash Flow - The Life Blood of Your Business • It will tell you where your cash came from • It will tell you where your cash went • A tool to make decisions • Schaap’s 4 Rules for spending money • Will the company make more revenue • Will the company decrease expenses • Will the company improve cash flow • The IRS told me I had to… my clients know that requires my approval

  5. Cash Flow - The Life Blood of Your Business

  6. Cash Flow - The Life Blood of Your Business

  7. Cash Flow - The Life Blood of Your Business

  8. Cash Flow - The Life Blood of Your Business

  9. Cash Flow - The Life Blood of Your Business • The Boring Part is over • Major areas to focus on • Accounts Receivable • Inventory • Schaap’s 4 Reasons to spend money

  10. Cash Flow - The Life Blood of Your Business Time Line Analysis Feb 1 Mar 1 Jan 1 May 1 Apr 1 July 1 June 1 Sell Inventory Receive Inventory Collect Cash Pay inventory Create Receivables Payroll, rent Payroll, rent Payroll, rent Payroll, rent Payroll, rent Payroll, rent

  11. Cash Flow - The Life Blood of Your Business Time Line Analysis 2 Feb 1 Mar 1 Jan 1 May 1 Apr 1 July 1 June 1 Sell Inventory Receive Inventory Collect Cash Pay inventory Create Receivables Payroll, rent Payroll, rent Payroll, rent Payroll, rent Payroll, rent Payroll, rent

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