[...] CASH IS KING! Cash availability is the lifeblood of the organization. With it, assuming there is proper management and economical, efficient, and effective operations, the company can grow and prosper-without it the organization perishes. Like the absence of water to anything living, the absence of cash to the business means death-slow, torturous, physically painful, and mentally agonizing. Business owners, managers, shareholders, and many others have become enamored with sales and revenue increases, reported profits, earnings per share, price-earnings ratios, cost reductions, and related concepts that focus on the market capitalization of the business and its related stock price per share. Such sales and revenue increases calculated on accrual-based accounting principles may be unrealistic when it comes to real sales to quality customers that can be collected in a timely fashion that ensure a real profit to the business. While these new yardsticks may be significant and even elegant scorekeeping measures for determining how well the enterprise is doing financially, they have minimal significance for the business without cash-unable to meet payroll, pay vendors, or-horror of horrors-make requisite tax payments. Profit is a periodic measure, calculated monthly, quarterly, and annually. Cash, however, is a daily concern. The eager search of the daily mail for incoming checks is not just greed or lust-it is often a survival issue. This book concentrates on cash management, the lifeblood of any business enterprise. The purpose of these materials is to help readers understand how to manage, plan, and analyze cash flow for their organizations [...]
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