In the course of normal operations, it’s not unusual for CEOs or CFOs to determine that they need a cash infusion from outside the business. This cash can be obtained in one of two ways: by borrowing the money, or by selling an equity stake in the business to...
Depending on their cash flow cycle, businesses often find that there is excess cash in their checking or operating account. Savvy CEOs and CFOs should strive to manage this excess cash for maximum return while minimizing risk and maintaining adequate liquidity. There are three main objectives you should strive for when...
One of the biggest financial mistakes a company can make is to misclassify its workers. From your perspective, it might not be a big deal whether those who work for you are considered to be employees or independent contractors. But the IRS has a very different perspective—and getting worker...
In a recent article, we discussed the importance of understanding your company’s cash flow cycle and offered some tips for shortening your cycle in order to improve cash flow. This discussion, however, assumes an understanding of a basic financial concept: the difference between cash flow and profits. It can be...
In our last article, we talked briefly about how accelerating collection of accounts receivable is one of the best ways to improve your company’s cash flow. Prompt and timely collection of receivables is important in any economic environment, but especially during uncertain economic times like these. Making things even more challenging...
As they continue to face challenges in this uneven and inconsistent economic recovery, many CFOs and CEOs are placing a renewed emphasis on optimizing cash flow as a way to help improve their company’s financial situation. Improving cash flow starts with an understanding of the cash flow cycle. Following...
In today’s ever-changing financial environment, the role of the chief financial officer has become particularly vital. Working closely with the CEO, CFOs possess particularly keen insight into financial and strategic matters that permit them to play a key role in planning a company’s future growth. In fact, as a CFO, it...
In a recent article, we discussed the importance of devising a strategic plan for how you will allocate your company’s capital expenditures (or CAPEX) budget. Such a plan should detail what physical assets should be acquired and when, how they will be used, their expected ROI and/or payback period,...
In today’s economy, CFOs face a wide array of regulations that monitor everything from financial activities to clean air and water policy. The debate over the necessity of such regulations has gone on for many years (and certainly will continue into the future), with opponents claiming that excessive regulation hinders...
Capital expenditures are integral to the operations of most manufacturing companies, which must regularly upgrade physical assets or acquire new ones in order to remain competitive. These assets may include machinery and equipment, plant and property, and industrial buildings and warehouses. Investments like these, of course, can be expensive, which makes...