Recent Articles

Vigilance in Monitoring Cash

The process of taking ownership of the cash situation in your small business. This entails a good internal control system with accounting, communicating with customers and vendors, and matching cash resources to the appropriate expenditures.

Effective Internal Controls for Cash

03/18/2013

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 cookie jar.   So [...]

What is Accrual Accounting?

02/11/2013

Accrual accounting is the preferred method of accounting for all business operations.  Any publicly traded company must comply with the principles of accrual accounting.  Small business operations can choose between cash and accrual accounting for [...]

Construction Draw Schedule

01/22/2013

A construction draw schedule is a financial tool used by contractors in identifying percentage of completion points in the project for the bank to advance proceeds to the contractor. The construction draw schedule is instrumental in keeping the [...]

Cash Flow – A Basic Definition

01/16/2013

Cash flow is the ability of a business to turn its product or service into cash.  It is generally measured in dollars or in dollars against a time period.  The simplest example I can think of is a child selling lemonade.  The child purchases the [...]

Liquidity – What Does This Mean?

01/12/2013

In business, liquidity is defined as the period of time it takes to turn assets into cash.  It takes 20 minutes to turn the balance in the checking account into cash.  You head on down to the bank and present a check.  You get cash.  But most [...]

Cash Counts

12/07/2012

“How are you going to pay for this?” I asked? My client responded, “I still have checks” which meant he didn’t have any cash. He had the ability to write a check but no cash to back it up. I can’t stress enough how important cash is in [...]

Cash is King – The Value of Cash Flow

11/19/2012

For any small business operation, getting cash into the bank account is critical to survival.  Without cash, the probability of success dissipates quickly.  So how do you get cash into the bank account?  There are several sources of cash: they [...]