Calculating cash flow is one of the most important tasks of the business owner. Revenue and expenses are rarely constant in a business and cash requirements need to be planned for shortfalls, seasonal factors or one time large payments. At the end of the day, a company that cannot pay its bills is bankrupt.
Unfortunately, while many business owners concentrate solely on their revenues and expenses to manage their cash flow, it’s usually poor management of the cash conversion cycle that so often leads to a cash crunch in the business.
What is the cash conversion cycle and why should I be concerned with it?
The cash conversion cycle is simply the duration of time it takes a firm to convert its activities requiring cash back into cash returns. The cycle is composed of the three main working capital components: Accounts Receivable outstanding in days (ARO), Accounts Payable outstanding in days (APO) and Inventory in days (IOD). The Cash Conversion Cycle (CCC) is equal to the time is takes to sell inventory and collect receivables less the time it takes
In the past, if you wanted to send money electronically through a wire transfer you only had a few options available to you. You could go to your local bank to conduct the transfer, or you could use the services of a company such as Western Union. But nowadays more and more companies are set up to provide wire transfer services, especially online.
Companies such as PayPal, for example, allow almost anyone to send money worldwide through their website – and all you need is an e-mail address and a credit card. In addition, most local banks that provide online banking services now allow their patrons to send wire transfers through the Internet.
So what exactly is a wire transfer? Essentially, a wire transfer is the transfer of money from one bank account to another. The transfer is always conducted by a third party, such as a bank or a wire transfer service provider. Because the transaction is carried out electronically, the money is never physically seen or touched by the person who sends or receives the money.
Even with the advent
Whether you know it or not, you are always setting your financial priorities. Some may decide that a new stereo system is more inportant than this month’s electric bill. This may be a little off the wall but it is still setting your priorities.
Anyone wanting to better manage their money would be wise to determine what their financial priorities are and stick to them. Of course, if you see that these priorities will not put food on the table and pay your bills then you will have to rethink your priorities.
Setting your priorities is simple. You just decide what is the most important aspect of your finances and put that item on top. However, if you decide on that stereo over your electric bill, you may find yourself in the dark with no need for a stereo.
There are basic priorities that pertains to everyone. These are simply a matter of survival. Here is a list of the basics:
That was a tough one.
What does it take to ensure that our basic needs
If anyone needs more proof of the truth in these words than look no further than the American elections and the rise and rise of Donald Trump. A billionaire who has everything he could ever want or need is now promising the most outrageous policies should he be elected to the Presidency of the United States. Leaders around the world are holding their breath as they wait to see if Americans will really fall for the fact that money rules and the one who has it leads the pack.
Business and the ability to make money is now the target of the majority and some have openly expressed their feelings that Donald Trump will create jobs for them. Do they need a wakeup call? Hello! What can he do for anyone when he has threatened just about every country that deals with the United States in one way or another.
The uneducated and ignorance of people is echoed in their behaviour. The fact that they are falling for the potential leadership by someone who has never held office is extremely telling of how little they know or care. The same thing is being played out in
While money is the most important commodity for life it is also the most disastrous. To live without it is impossible in a world where essential services and the things on which life depends has a cost to it. Even water is not free and if man had his way we would pay for the air we breathe, and in many ways we already do. Pollution, environmental destruction, loss of species, and dwindling resources are a cost that none of us can afford. Our planet is dying and we are in crisis.
That is the real exchange for money and while most may not realise it the benefits derived from it are nothing but disastrous. We have yet to face the greatest disaster of all and that is the last days of life on earth.
There are no warning bells and no place to jump off the earth to escape because we are exchanging money for life. That is the way it was when it was invented and to understand that the Spirit took me back to Babylon and the start of formal religion, Islam.
The name of it then was also Zoro-Aster or Morning
For many people, gaining financial freedom is really a challenge. However, financial experts say that people should be financially independent by the time they’re 40 years old. This means they have enough money in the bank that they’re continuously growing, and that they are free from debt.
This is the ideal situation. Unfortunately, many people today struggle in their journey toward financial freedom. A trusted financial advisor claims that many people tend to have a lot of unhealthy financial practices, and one of them is emotional spending. So many people are guilty of making financial decisions based on how they’re currently feeling, which is truly a dangerous way to live.
Indeed, when people are emotional, spending loses rhyme or reason. According to a financial planner, people can work this to address personal financial management concerns. If you’re an emotional spender and you let your weakness rule over you, this is certainly not something to be proud of. So, if you wish to turn things around for your personal benefit or to avoid harming the family that relies on your ability to stay on top of your expenses, then you really must learn to stop giving money
It seems outrageous that leaders can lie their heads off during campaigns and then use one excuse after the other to avoid keeping promises once they secure their positions. It is the same in every country where democracy is practiced and yet it is against the will of the people to give in to liars and cheats. In Australia, where elections will be held on July 2nd 2016, questions are raised about donations to the two main political parties.
Evidence presented on a local television investigative program, Four Corners, shows why? It appears that big companies who donate large sums to their preferred party gain access to politicians and even the Prime Minister to influence policies that will advantage their business. While nothing is admitted along these lines the evidence is compelling.
Every election costs millions for advertising and in campaign expenses. Leaders fly all over the country as they criss-cross it many times while the press follows. They set up meetings and engage in handouts for services in seats they feel they can win while ignoring those that are firmly in the opposition’s quarters.
Their funds are mostly raised from donations so why wouldn’t
It seems like only a few years ago, when shopping online was akin to the wild, wild West — limited to use by those with true grit and an adventurous spirit. And, is it any wonder? With so few stores set up to sell their items through the Internet, who among us had the time to waste, when we could just as easily do our shopping at the “brick and mortar” equivalents. This left this new frontier mainly to those in pursuit of those items not readily found in stores at that time, the exotic: Persian rugs, rare books, and other collectibles. Years ago, if you told someone you had no qualms about shopping online, that you willingly provided your credit card information to anonymous customer service reps free floating in cyber space, most figured your credit probably wasn’t all that great to begin with.
Those very “brick and mortar” stores, which had once declared online shopping a fad, an endeavor doomed to go the way of pogo sticks and drive-in theatres, have had to bow down and acknowledge the success of industry giants like: Amazon.com and ebay. These same naysayers, which now credit their online enterprises
Bad habits can ruin any well thought out financial plans. Habits such as your morning coffee,
buying lunch at work each day, and of course smoking and drinking, can drain your bank account.
They are not as noticeable as someone backing a truck up and loading all your money in and
driving away. However, the results are the same.
A woman shared her story with me. Her bad habit was smoking cigarettes. She smoked less than a
carton a week. Along with her husband’s habit they used about two cartons a week. On occasion
the decision had to be made whether to buy food or the cigarettes. Guess which one got bought.
She made the choice to get a job outside her home, to make the food/cigarette decision go away.
Now she could have both. Work began to take more and more of her time. She enjoyed the other
stuff besides cigarettes the money would buy. A budget was never considered, she spent every
dime she made. She had STUFF!
It all came to a halt when her son began failing school. It became important to stay home and help
him with his homework. The
The Rx for Ailing Cash Flow
The current adverse financial structure of the healthcare industry has placed hospitals, medical groups, private practitioners and other providers in a perilous position. Cumbersome and bureaucratic third party billing systems with long time-to-collection waiting periods have resulted in inconsistent cash flows and limited capital for growth. Nationwide, two-thirds of physicians work in practices that are set up as small business. Payment cuts 18% over four years, together with soaring malpractice premiums and other overhead costs, have threatened to put such practices out of businesses. More than 50% of doctors have deferred plans to purchase much-needed new equipment, and 30% either have laid off staff or are planning layoffs in the near future.
What Factoring “Is Not:”
o A Loan – Factoring is the sale of your medical claims for services already delivered
o Offered By Banks – Factoring is not an asset-based loan, nor is it a debt facility similar to those offered by banks.
Why not simply pick up the phone and call a bank for a loan to get through the crisis? Many of you already tried that and have been surprised to find that
In today’s money-driven society, teens are constantly bombarded by magazines, television ads, and peer pressure which make them feel less than ideal if they do not wear the latest clothing style and drive a “cool” car. Briefly visit your local mall and you will observe multitudes of young people who shop as if credit cards have no maximum spending limit. With all this push for extravagance, is it even possible to raise your teens with money sense and save them from making serious financial mistakes?
Although I have yet to have teenagers of my own, I was blessed to be raised by parents who taught me from a young age to be a wise steward of money. Let me share some things my parents did to instill in me that money is a limited resource and must be spent with care.
1. Start Early
Just because your child is too young to have a real job, does not mean it is too early to start teaching basic financial principles. From the time we were little, we always received an “allowance” from our parents. We only received this money if we had done all of our
Once you understand what the term, “Bridging Finance” means, it’s easy to understand how it got its name. The purpose of a bridging or bridge loan is to provide short term cash for a real estate transaction until permanent financing is secured. Bridge loans are commonly used to “bridge the cash gap” when completing commercial real estate transactions.
Everyone knows it’s difficult to time the sale of one property to coincide with the purchase of another property. The slightest delay can wreak havoc on the transactions and create obstacles that are difficult to overcome. Having to pay two mortgages, whether for residential or commercial purposes, for any length of time can spell financial disaster. This is where bridging finance helps.
The goal of a bridge loan is to remove this financial obstacle so that a commercial transaction can proceed. In the majority of situations, “bridging finance” provides additional funding so a company can continue to pay the lease on its existing commercial property for as long as it remains on the market.
There is a process to go through before a bridge loan is approved. If you’ve already developed a relationship with an institution, that’s
Helping the “uninsurable” secure coverage is challenging. Clients who have health problems or have been denied coverage in the past still need life insurance. One option is guaranteed issue life insurance. Given the high risk nature of coverage, few insurers offer it. However with a little preparation and extra effort, you can find the right policy.
Life Insurance Medical Questions
High risk clients need to answer questions about their medical history so that you get the information you need to find the right coverage. Candidates for guaranteed life policies often:
– have permanent health problems
– need coverage to leave a legacy or to provide for final expenses so that their loved ones are left with no debt.
Guaranteed Issue Life
Guaranteed issue policies do not require a physical and preexisting medical conditions usually are not a factor in the application process. Often such applications require only general information, such as name, address, ID number, gender and beneficiary.
The death benefit generally pays the beneficiary full face value if death occurs after the waiting period. Policies typically specify a period of one to 3 years during which time the policyholder will
It’s amazing. The very first spam ever sent was from a couple of lawyers who offered
to help people get a Green Card if they paid the law firm a small fee. A Green Card,
for those of you that don’t know, is a proof of permanent resident alien status from
the feared Immigration and Naturalization Service and.. it’s free, if you qualify. So
you don’t need to pay anyone for anything. Even better, the document required is
pretty simple to fill out.
If it’s free and easy to fill out, why are there still lawyers selling their service to aid
in receiving a Green Card? Here’s what the Federal Trade Commission [http://www.ftc.gov/bcp/conline/pubs/alerts/lottery.htm] has
to say about Green Card scams:
If you or someone you know is trying to get a green card – the right to live in the
United States permanently – be on the lookout for unscrupulous businesses and
attorneys. They’ll claim that, for a fee, they can make it easier to enter the U. S. State
Department’s annual Diversity Visa (DV) lottery (also known as the “green card
lottery”) or increase your chances of winning the DV lottery.
Each year, the
When it comes to learning fiscal knowledge, some lessons result in better memories than others. One of the most satisfying lessons I have ever learned is that there are rules simply made to be broken.
Rules that produce benefits for everyone are not what I am talking about. These “good” rules include not cutting in line at the grocery store, at a 4-way stop the driver on the right has the right-of-way, and paying your taxes on time keeps the government operating. These are all good rules and should never be broken.
You, as a consumer, are must discern what type of rules are critical to be break. These rules are created by commercial businesses for their own benefit. The enterprise isn’t trying to help you with their regulations; they are looking out for themselves. This kind of thinking survives because we, the consumer, are intimidated when told “That’s against our rules. You can not do that.”
All consumers can benefit by learning to question the statement of “You can’t do that”. Once you learn how to do it, you might find it an enjoyable, and profitable, experience.
Rule #1: You Break It, You
Chances are your bank is a virtual place. Since the invention of the Internet you can see your balances anywhere, at any time. Most banks think globally and have acted this way by creating secure portals to manage their account holder’s information stored in their databases. This information stored usually shows account balances, previous transactions, current balances, interest paid and electronic scans of their checks. Anywhere you can get to a computer, your bank account is right in your hands, usually in real-time.
Some banks even provide a service where you can pay your bills online vis-à-vis a checking account or saving account. You can setup creditors accounts, addresses and account numbers to be printed out on each check shipped. There are even some banks that will electronically send the check directly to their account for a nominal fee. Most electronic banking can be free depending on the minimum account requirements are met. Otherwise, electronic banking can cost up to $10 per month for the convenience to send money and manage your account via the web.
In our move towards a paperless society, banks have begun to stop shipping back cleared checks to
Your business is successful, but now your ready to take it to the next level and begin accepting credit card transactions, or you have already taken this step but your feeling that your merchant account provider has high fees and your not sure what to do, or what other providers are out there?
You can save hundred’s even thousand’s of dollars per year by switching over to a new merchant. How is this so?
Just in transaction fees alone if one provider is charging you 35 cents per transaction and another Merchant account provider charges 25 cents you are already saving 10 cents per transaction.
If you process over 1000 transactions per month thats already $100 per month savings and over one year this amounts to $1,200.
Merchant Accounts can make or break your business, whether it is online, retail, phone, mail, or wireless. Every Merchant Account provider has fees that can affect your business in different ways.
We have compared the best merchant account providers currently in the business and we have detailed their fees so you know exactly how much you will be charged.
The Senate is trying to overhaul the bankruptcy laws. Credit card companies and retailers have been pushing for reform since 1997. Hopefully, the new law will come into effect by mid-March.
What have they been battling over?
They rejected an amendment that would allow older people to get a special “homestead exemption” that would allow them to keep their homes if they file bankruptcy. Currently, this is determined by each state. Six states currently have unlimited homestead exemptions. This means that rich people can file bankruptcy and keep their big houses. Doesn’t sound fair.
They also wanted to have credit card statements show how long it would take to pay off the debt by making only the minimum payment and what the interest charges would be.
One proposal would allow people to keep at least $150,000 equity in their home. The second proposal dealt with medical bills. If the medical bills exceeded 25% of their income, then they were exempted from the new test.
This new test measure income and assets to determine if debts can be discharged. Bankruptcy judges currently have to decide if debts can be discharged.
Some people say
Unlike a fixed monthly cost such as your mortgage or car payment, the amount you spend on groceries each month is somewhat flexible. While the common advice of clipping coupons and buying generic brands to save money while shopping is sound, by far the best way to truly keep your grocery shopping expenses under control is by understanding how grocery stores entice you to spend more than you really want. By fully understanding the ways grocery stores encourage you to spend, many of which you probably never even noticed before, you can combat their strategies and spend money only on the merchandise you really need.
Although a grocery store may appear to be simply a place to purchase food and other household necessities, in reality it’s a cutting edge example of “how to sell more than consumers really need.” Since you are the consumer, it’s important that you realize these sales tactics so that you walk into a grocery store to get only what you need while avoiding everything else that the grocery store wants to sell you. Here are some ways that grocery stores manipulate you into spending more than you had planned and some simple
Nobody likes to pay banking fees, but if you aren’t active in trying to reduce them, you are probably paying more in fees than you need to be. One of the most important actions to take in order to reduce the banking fees is to figure out exactly how you use your bank. Consider what your average balance will be and how low the balance may dip. Also consider the type of transactions you make and what types of services you need. Once you have a better understanding of how you utilize the bank, you are in the position to get the most out of it while avoiding fees for services you don’t need or use.
Probably the best move you can make is to try and qualify as a member of a credit union. Credit unions are not for profit organizations meaning they don’t have to worry about making a profit. The qualifying factors to join a credit union vary from institution to institution, so you will need to check with each. The good news is that there are a large number of credit unions associated with a wide variety of organizations. Qualifying for inclusion has