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Black Ink Cashflow Secrets Your Accountant Never Shared By Tom Shay
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Black Ink Cashflow Secrets Your Accountant Never Shared By Tom Shay

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Tom Shay's presentation on how to accurately predict the cash position of a business for a 12 month time period. www.profitsplus.org

Tom Shay's presentation on how to accurately predict the cash position of a business for a 12 month time period. www.profitsplus.org

Published in: Business, Economy & Finance

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Transcript

  • 1. Tom Shay, CSP Certified Speaking Professional
  • 2. Business Success Rate
    • Start 100 businesses today,
    • Only five will still be in business in five years.
    • Only two will still be in business in ten years.
    • Of those that fail, 54% have a profitable income statement.
    www.profitsplus.org
  • 3. In our time today,
    • We are not:
      • Eliminating your accountant.
      • Learning a new way of accounting.
    • We are:
      • Developing a great management tool.
      • Planning for a great future.
    www.profitsplus.org
  • 4. www.profitsplus.org
  • 5. www.profitsplus.org
  • 6. Background material:
    • Profit & Loss Statement:
      • Also known as Income Statement
      • What you did in the last 30 days
      • Sales at top, expenses at bottom
      • Does not include principal payments
    www.profitsplus.org
  • 7. www.profitsplus.org
  • 8. Balance Sheet:
    • What you own, and what you owe
    • Changes monthly as you post a profit or loss, sell or buy assets
    www.profitsplus.org
  • 9. www.profitsplus.org
  • 10. Background material: www.profitsplus.org
    • Cash basis accounting means all income and expenses affect the P&L statement in the month in which they actually occur.
    • Accrual accounting means sizeable incomes and expenses are divided to affect the P&L statement over several months.
  • 11. www.profitsplus.org
  • 12. Cash basis example
    • Bi weekly pay –
      • 10 months with 2 payrolls
      • 2 months with 3 payrolls
    • If payroll is $6,000 bi-weekly,
      • 10 months report $12,000 and
      • 2 months report $18,000
    www.profitsplus.org
  • 13. Accrual basis example
    • Instead of 10 months at $12,000 and 2 months at $18,000
    • Now each month reports $13,000 in payroll
    www.profitsplus.org
  • 14. What could you accrue?
    • Payroll
    • Payroll taxes
    • Rent overage
    • Insurance
    www.profitsplus.org
    • Property taxes
    • Outside services
    • Income taxes
    • Office & store supplies
  • 15. www.profitsplus.org
  • 16. Cashflow is:
    • The tracking of all of the changes to the financial position of your business, updated with each new financial statement.
    www.profitsplus.org
  • 17. Cashflow is:
    • Beginning cash
    • Profit or loss
    • Changes in receivables
    • Changes in payables
    • Changes in equipment
    • Changes in inventory
    • Ending cash
    www.profitsplus.org
  • 18. www.profitsplus.org
  • 19. www.profitsplus.org
  • 20. www.profitsplus.org
  • 21. www.profitsplus.org Column B: C & P
  • 22. www.profitsplus.org Column B: P/C
  • 23. www.profitsplus.org
  • 24. What can this info do?
    • What if you could increase your margin by 3/10%?
    www.profitsplus.org
  • 25. www.profitsplus.org Original Margin
  • 26. www.profitsplus.org With Increased Margin
  • 27. What can this info do?
    • What if you were able to eliminate $100 in expenses each month?
    www.profitsplus.org
  • 28. www.profitsplus.org Dollars or Days – Profit
  • 29. www.profitsplus.org Accrual method
  • 30. Accrual basis cash flow
    • The P&L Statement – page 11
    • The cashflow chart – page 12
    • Accounts receivable – page 13 Purchases and dating Inventory
    www.profitsplus.org
  • 31. www.profitsplus.org
  • 32. www.profitsplus.org
  • 33. www.profitsplus.org
  • 34. www.profitsplus.org
  • 35. How does this make money?
    • Project sales
    • Anticipate expenses
    • Plan for maintenance
    • Design your accounts receivable
    • Know how much to order
    www.profitsplus.org
  • 36. How does this make money?
    • Know if you need to unload inventory
    • Plan for trade shows
    • Utilize dating orders
    • Foresee cash shortages
    • Run your business, not let it run you!
    www.profitsplus.org
  • 37. To fully utilize EZ Cashflow
    • Complete your financials ASAP
    • Update each month
    • Look at all ending cash balances
    • Try “what if” scenarios
    • Call with questions
    www.profitsplus.org
  • 38. The road to success is not doing one thing 100 percent better, but doing 100 things one percent better. www.profitsplus.org
  • 39. Final Note www.profitsplus.org
    • This presentation will be specialized to your industry and your attendees’ specific needs.
    • For more information about having Tom present for you, contact us at (727)464-2182 or visit our website: www.profitsplus.org

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