Church Economic Cash Flow

Understanding cash flow secret

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10 Financial Yardsticks For Your Small Business

GENERAL LEDGER: Once upon a time, accounting systems were kept in a book that listed the increases and decreases in all the accounts of the company. That book was called the general ledger. Today, you probably have a computerized accounting system. Still, the general ledger is a collection of all Balance Sheet and Income Statement accounts.all the assets, liabilities and equity. It is the report that shows ALL the activity in the company. Often this listing is called a detail trial balance on the report menu of your accounting program. The detail trial balance is my favorite report when I am trying to find a mistake, or make sure that we have entered information in the right accounts.

How do you stop being a lone wolf? Tap into your current family and friends experiences, expertise’s, or networks. Take out a piece of paper and make a table with 4 columns.

For example, the cash flow examples is simply a detailed “budget”. You take your monthly sales assumptions and add any other incoming “cash” (loan dollars for example) and subtract your expenses. Carry over any extra (or loss) to the next month until you have populated the statement for 12 months. Voila! Another section completed.

Flipping houses isn’t an easy job. The process of managing the rehab itself will require excellent organization & people skills. It is also very important that you learn how to estimate repair costs as quickly as possible.

Plan trades with business discipline. Most plans cover Entries, Exits, Stops and Profit Targets. Still, no one enters a business with a few bullet points. Your trading plan must address the very defining reason of “Why trade?” What is your motivation (each day, month and quarter)? E.g. build up the children’s education fund, pay for household expenses or self-directed retirement? How robust do you want your home business to be? It’s reflected in the construction of your portfolio and trade plan.

The “plus” side of your Net Worth is found in things of real value to the marketplace; things like your 401-k and IRA accounts, certificates of deposit (CDs), cash in the bank, equity in your home, cars you own, collectibles you could sell, and debts other people owe you.

Corporations operate in much the same manner. First, like a paycheck, they generate cash from operating the business. This is called Operating Cash flow (OCF). From this, they subtract their Capital Expenditures. Capital expenditures are expenses for capital equipment and other physical property, like real estate. What’s left over is their free cash flow.

Earnings growth signifies that the company is making more that enough to offset its costs. Established companies should show consistent results, but young companies often display strong revenue growth with little or no earnings. Witness the myriad of Internet companies with lots of sales and no profits.

Free Cash Flow: A Simple Indicator Of A Company’s Health

Intel Corp. (INTC). The world largest microprocessor company ran multiple plants around the world with significant investment dollars. Therefore, it is worth knowing how long it took to depreciate its assets. For fiscal year 2005, Intel incurred depreciation cost of $ 4.59 Billion while depreciable long term assets stood at $ 21.49 Billion. This implies that Intel will account all of its long term assets within ( $ 21.49 Billion / $ 4.59 Billion ) 4.68 years, a better ratio than the rest of the companies so far.

Earthlink Inc. (ELNK). This internet provider is second to AOL in terms of dial-up subscribers. For fiscal year 2005, it incurred a $ 47.1 Million of depreciation cost. Meanwhile, total depreciable long-term asset stood at $ 190 Million, giving Earthlink 4.03 years to fully depreciate its long term asset.

Establish clear payment terms and expectations with your customers and have a formal receivable collection process in place. Consider discounts for prepayment or require a deposit for large purchases.

Ditch the software crutches. Software is not a substitute for critical thinking. Break down the logic in the software (how, what and why). Black box software cultivates an addiction for repeatedly mindless subscriptions. Break the habit, trust your logic to reason – you have profitable trades that you thought through yourself. As you “outsource” the administrative tasks associated with trading (e.g. record keeping of trades), do not outsource your brain.

However, if you’re like most people and don’t have the time to read through a mountain of books, magazines and web-sites (or have the inclination to do so), then this article is for you. It will list out the main “rules of thumb” for financial planning.

For example, the cash flow examples is simply a detailed “budget”. You take your monthly sales assumptions and add any other incoming “cash” (loan dollars for example) and subtract your expenses. Carry over any extra (or loss) to the next month until you have populated the statement for 12 months. Voila! Another section completed.

Corporations operate in much the same manner. First, like a paycheck, they generate cash from operating the business. This is called Operating Cash flow (OCF). From this, they subtract their Capital Expenditures. Capital expenditures are expenses for capital equipment and other physical property, like real estate. What’s left over is their free cash flow.

Consider non-cash intensive payment options. Have you ever tried bartering? Make sure you are using business credit cards that award travel points to minimize cash expenditures on future business trips.

3 Steps To Get You Started On The Stock Market

Advertising, marketing, labour, storage and the catch-all category of overhead — it’s useful to know how much it costs you to get a product sold as well as what it costs you to create it.

Limit the fundamentals – the Paper Poker Game. The psyche of investors behind Supply and Demand is expressed in price, beyond fundamentals alone. Investors sold off fundamentally sound stocks, after the unfortunate 9-11 incident and it was repeated with the financial pandemic of 2008, going into 2009. Benjamin F. King: Market and Industry Factors; Journal of Business, January 1966: ” Of a stock’s move . 20% is peculiar to the one stock.” A fundamental Analyst fusses with paper (Balance Sheet, Income Statement & Cash flow Statement), only to explain 20% of price behavior. As valid as all the FA work is, would you gamble against the house armed with only 20% of the odds with paperwork done by Analysts?

Your expenses could not support any business, much less a high growth business. Have a good understanding of what your expenses will be. Recognize that if you hire people, you don’t just have to pay salaries, but taxes, health insurance and other benefits, workman’s comp, and each of these people will need some square footage, a desk, a chair, a computer, a telephone, an internet hook up, etc. You will need to hire lawyers, accountants, and possibly other professionals. You will need to market your product in some way.

First of all, you need three basic account reports for your business. They are the cash flow examples, profit and loss report and balance sheet. The use of the balance sheet is to show you the worth of your business, your liabilities and your assets in the company for the whole year. You need profit and loss account to keep updated with how much you earn and how much you have spent. Basically, a report that has high profit and low loss is a sign of a growing business. However, if vice versa, you might be having troubles with your business.

A cash flow analysis can also show you cycles in your business. This can be a valuable forecast of business expenditures like marketing costs to support a big sale. If the sale is a success then you will see cash come into the business and you can form a plan to use it for continued growth. By tracking and trending the business cash flow by month, it will make it easier for you to plan your business next year.

Apply for and get a credit report and credit score. This will help you get a clear picture of your financial health. Be sure to get a report annually and learn how to analyze a credit report.

Establish a relationship with a bank that offers small business loans. Open a company checking account, after a few months see if the bank will offer overdraft protection.

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