Managing Business Cash Flow

02 September, 2009

Every business owner has heard the saying that “Cash is King”. This statement will always hold true because no company can survive without cash, as it is needed to meet the operating expenses (i.e. payroll, rent, insurance, utilities) and investments (Inventory, Buildings, Equipment) of every business.

Cash flow is the measure of inflows and outflows of cash in a business. Cash flow should be managed in order to prepare for and/or prevent cash flow shortages, in addition to identifying and taking advantage of opportunities. 

Business owners sometimes place more value on profitability as opposed to cash flow, which normally leads to many problems, because a company can post profits and still go out of business because of a lack of liquidity to meet their financial obligations.    (more…)

Reaping the Harvest During Your Retirement

20 July, 2009

Did you know that “over 61% of Americans think they won’t have enough money to live comfortably in retirement and that 80% of Americans expect to have to work part-time in their retirement” [1] just to cover basic expenses? Given this scenario, retirement doesn’t look like the ideal image of spending the day with the grandchildren or leisurely vacationing in Hawaii that we all envision as the “dream retirement”.  In fact it sounds rather depressing that we may never fully reap the harvest of our hard work if we fail to plan for our financial futures. (more…)