Managing Your Business’ Cash Flow

1. Managing Your Business’ Cash Flow San Juanita Alanis March 11, 2010 EDTC 3332

2. Needs Assessment: • The company has no cash flow procedures to determine what the company’s monthly cash requirements are. • One needs to be developed in order to have a short term plan regarding the planning and control of payments. • Identifying a breakeven point for the company as it is currently operating and provide a procedure for computing the breakeven at different revenue levels. • This will allow the company a measurement of profit that can be used to evaluate alternative courses of action.

3. Needs Assessment: • Develop a procedure for the calculation of the overhead for the company. • This will provide the essential cost components for the accurate formulation of the budget, pricing, and costing. • Develop a Procedure to determine the Labor Burden for each employee. • This will provide the company with accurate labor cost for budgeting, pricing, and costing.

4. Needs Assessment: • Develop a tracking system that will compare actual versus estimated. • This will allow the company to track the jobs so that the projected profit can be achieved. • Develop a system for the allocation of overhead for each job. • This will ensure that all overhead costs are properly distributed and absorbed.

5. Instructional Goal: The company employees will learn how to manage cash flow more efficiently and accurately. This will allow them to have better control over the finances and to determine the company’s profit.

6. Performance Objectives: By using Microsoft Excel, the company employees will learn to use a spreadsheet in order to document the profit or expenses of the company.

7. Assessment of Learning Outcomes: The company employees will be given a web based assessment. The assessment will include questions of the information that was presented to them. The questions that are answered incorrectly will be reviewed and discussed.

8. Learner Characteristics: • This training is intended for all management & employees • In order to successfully complete this training, all employees must know how to turn on a computer & program. • The age group will range from 26 – 50 years of age. The employees are lacking all knowledge of cash flow.

9. Learning Context: • The training will take place in the company’s meeting room. Computers will be set up in order for the employees to practice after the training is given. • The instructor will go through all the training while the employees are given the opportunity to participate on the computers. This will allow them a hands on opportunity.

10. Instructional Strategies: Introduction: The obvious problem currently affecting the company is cash flow. It is crucial for the employees to have knowledge of what may be going on. This will provide a way of knowing and finding the company’s losses and profit. Through this training, the company will be able to know the company’s overhead expenses, job expenses, and miscellaneous expenses. This will allow a way of knowing the actual profit after each job has been completed.

11. Instructional Strategies Presentation of Information: A spreadsheet has been developed for the Company Expenses and another for the Jobs that are being bid on.

12. Spreadsheet: “Company Overhead Expenses” The “Company Overhead Expenses” spreadsheet is based on the monthly projection. There is a tab for monthly overhead expenses (MOE), monthly office payroll (MOP), and the third tab is for the total company expenses (SUMMARY). • Monthly Overhead Expenses – Light, water, office supplies, office maintenance, etc. This is subject to change. • Monthly Office Payroll – Everyone working in the office. • Summary – Total based on a monthly basis.

13. Example:

14. Spreadsheet: “Job Bidding” The “Job Bidding Sheet” spreadsheet will be used on jobs that are going to be bid on. The spreadsheet consists of the materials, labor, and the summary. • Materials – The materials being used on jobs. • Labor – Employees working at the job site. • Summary – Total for materials and labor. Here you will also find the overhead monthly expenses based on a total of 8 jobs per month. *Name on tab on spreadsheet. Can be changed when you divide the total monthly expenses by the projected jobs.

15. This is an example I found on the Internet:

16. Instructional Strategies Summary: Remember, any information may be changed by selecting it and then entering new information. The changes will take place and you will see them at the bottom of each tab where total appears and at the summary page. • Click • Enter New Information • Changes have been made and new totals automatically appear.

17. Instructional Strategies Assessment: An assessment will be given. The assessment will consist of multiple choice and true and false questions. There will be 15 minutes to complete test. At the end of the assessment we will grade it. We will review any incorrect answers at the end of the grading.

18. Instructional Resources: The employees will need: • Pencil (assessment) • Pen • Paper (note taking) • A positive attitude • Internet Access Computers will be provided. The spreadsheet will have a shortcut on the desktop menu.

19. Training Module Blueprint:

20. Training Module Blue Print

21. Formative Evaluation: The formative evaluation will be conducted through interviews, open-ended questionnaires, the topics that were covered, and questions that will provide feedback about the on going improvements.

22. Summary After the training the design plan will help improve the company’s cash flow. Through this training, the company will know the company’s overhead expenses, job expenses, and miscellaneous expenses. This will allow the company to keep track of all the profit it makes after completing a job.