Category: Cash

Why Paying Taxes is Good

It’s the time of year when everyone is worried about how much they will owe the IRS. No one wants to pay taxes. As a entrepreneur or business owner, you want to keep as much money as possible.  You may have told your CPA or tax adviser to make sure you pay as little tax… Read more »

Increasing Profitability

Do you ever feel like your company is throwing cash out the window?  We are not talking pennies, but dollars.  As business owners we are constantly focused on keeping our costs under control for salaries, advertising, marketing, and other operating expenses, but when is the last time you looked at your gross margin?   Gross margin… Read more »

How Much Inventory Do I Need?

Inventory is one of the biggest investments you will make in your business.  Your inventory turnover ratio tracks the number of times or cycles new inventory hits your shelves each year.  In addition, it measures the liquidity of your product and your ability to effectively manage your stock.  You can calculate your turnover ratio as… Read more »

How Can I Get Paid Faster – Part One

What is Accounts Receivable Turnover? – As a business owner, you know that cash is the life blood of your business. Accounts receivable turnover is the measurement of how quickly you are paid by your customers. Now you might be thinking, “How do I get paid faster?” Or “How do I improve my accounts receivables… Read more »

Managing Cash Flow Complexities – Part 5: Cash vs EBITDA

At a recent risk management seminar, one of the participants spoke about how their controller received an email from the CEO of their company asking him to wire transfer some funds for that day.  What the controller didn’t know is that someone had hacked into the company’s email system, and had been monitoring the style and timing of the… Read more »

Managing Cash Flow Complexities – Part 4: Transition Planning

Transition Planning. In high school, my brother and I would go down to the ASU campus late at night to play racquetball at the three-wall outdoor courts (these courts have been gone for years).  We played from 10pm until about 2 or 3am in the morning, mainly to escape the summer’s heat… and also because… Read more »

Managing Cash Flow Complexities – Part 3: Establishing Priorities

Establishing priorities is critical to just about every facet of our lives.  I have a good friend who gained a lot of wealth by speculating in commodities futures.  Over many years he built up a lot of cash flow, but then in a short series of bad trades he lost just about everything in his life, including… Read more »