Cash includes petty cash, till box cash, cash in bank accounts, and the checks pending for deposit. For the small business owner, cash is critical to successful operation of the business. It is the blood in the business that allows it to breath and continue operations. It is important for the owner to understand cash management.
Cash disbursements is the process of remitting payment to vendors, suppliers and third party contractual obligations. Better managed offices pay bills in regular cycles including weekly and monthly obligations. Preparation, reconciliation and actual […]
So far with the daily activities section I have covered payroll, sales/receivables, purchases/payables and now I’m shifting to the cash accounts. This is the first of a set of five lessons addressing how cash […]
Cash is the lifeblood of every business. Without cash a business operation can come to a standstill. Cash is one component of working capital, a term referring to current assets (Gross Working Capital) less payables and accrued […]
The bank reconciliation is a daily accounting function for every small business. In order to fully appreciate its value, the small business owner needs to understand the fundamentals of how bank reconciliations are performed. In […]
Every business owner needs to know the difference between insolvency and bankruptcy. Often these two terms are misunderstood and improperly used in conversation. You need to know their correct meaning because both are used in […]
In financing a small business, there are a multitude of tools available. One way to finance inventory is by using the 30 day pay program with your vendors. Another tool is seasonal payment program and […]
All businesses should have internal controls to deter fraud, detect theft, and preserve assets. Of all the assets, cash is the easiest to misappropriate. Effective internal controls for cash prevent the proverbial hand in the […]