Wow, what a statement for an annual meeting. If you are a shareholder and have no idea what went on in a company during the past year, it would be hard to ratify some event that has already taken place. In order to keep up with the company that you are a shareholder, but do not have every access to, here are 5 ways to help you stay in contact.
1. Ask for quarterly reports in a letter, preferrably certified, return receipt. That way you can at least see the revenue, expenses and how the balance sheet has changed and how cash flow has been handled.
2. Request in writing copies of any resolutions as they are written and signed off by the directors of the company.
3. Request that you be copied on all emails, or correspondence relating to legal matters of the company, in which as a shareholder would affect the value of those shares.
4. If there are any loan documents that you signed as guarantee, make sure you send a letter to the bank requesting that all copies of correspondence be sent to your home address. This way you can keep informed of how the loan is being handled. Also - request from the company any Shareholder loans to the company, and a copy of the terms be sent to your home.
5. Request in writing that all major events - purchases, acquisitions, contracts be copied and mailed to your home address, so you can keep up with how it is being applied to the overall health of the company.
In this way, you can have a better understanding of what is happening to your investment, if you are not a daily participant.
If you have any other ways to keep a handle on your investments, please comment.
Showing posts with label cash flow. Show all posts
Showing posts with label cash flow. Show all posts
Thursday, March 12, 2009
Tuesday, February 24, 2009
Daily Cash Flow Report - Cash is King
In order to keep up with your cash, you will want a daily cash flow report. This is part 5 of 6 in the cash flow methods article. Cash balances are the most important item on your balance sheet. Your company needs cash to pay its obligations, payroll, suppliers, loans, taxes, etc. As you sell your product or services, the money that you receive from your customers needs to pay off your expenses. The balance that is left over is your idle cash to invest as stated in part 4.
Daily management decisions are affected by the company’s ability to receive payments from its customers. Short term and long term planning is essential, and descriptions of planning is in part 2. Reporting daily cash balances can assist you in making sure you have a clear plan for collecting and spending the cash you receive.
If you are planning in advance, you will not be swayed by the squeaky wheel. If you are not planning, you will be overwhelmed by suppliers, and banks calling for money. They will also be requesting a schedule on how you will pay the balance down. You do not want to get into this predicament.
By receiving a daily cash flow report from your bookkeeper, or accounting department, you will be able to predict with better accuracy how you will be paying your bills. Wouldn’t it be better for you to call your suppliers, before they call you when it could be too late to make a deal and get raw materials?
Daily management decisions are affected by the company’s ability to receive payments from its customers. Short term and long term planning is essential, and descriptions of planning is in part 2. Reporting daily cash balances can assist you in making sure you have a clear plan for collecting and spending the cash you receive.
If you are planning in advance, you will not be swayed by the squeaky wheel. If you are not planning, you will be overwhelmed by suppliers, and banks calling for money. They will also be requesting a schedule on how you will pay the balance down. You do not want to get into this predicament.
By receiving a daily cash flow report from your bookkeeper, or accounting department, you will be able to predict with better accuracy how you will be paying your bills. Wouldn’t it be better for you to call your suppliers, before they call you when it could be too late to make a deal and get raw materials?
Friday, February 20, 2009
Cash Flow Forecasting - Cash is King
This is part 3 of our 6 steps to Cash Flow Methods.
Cash flow forecasting is the art of actually putting down on paper, or in a spreadsheet, what you think you are going to get in this day, week, month, quarter, or year, and what you will pay out of those funds. It is a difficult task if you have not done it before. It takes some time to review what you have spent, and what you think you will spend. Spending is secondary to what you are going to get in.
Do you know what your sales will be this month? Do you know if you have any large bills coming due? Do you need more or updated equipment to run your business? Is it getting time for Spring cleaning?
Without an adequate Cash Flow Forecast, you could find yourself with overdrafts, deficiencies, late payments and problems with your vendors. If you have taken out any loans to run your business, you will need to add them to your forecast so you can make the scheduled payments and keep your credit intact.
You need to be thinking short term and long term regarding your finances. The short term keeps you abreast of what is happening now, but the long term can show you where you will need to either get more sales, or move payments around. You are being proactive when examining this kind of detail.
When do you have time to do a Cash Flow Forecast? Once you get one in a spreadsheet, you can do a weekly cash flow listing and then put in the actual figures that occurred. This will help you see if you are running into a problem, before the problem hits.
RCM does cash flow forecasting for you. We can get you set up, so you can just enter in figures that you feel are correct. Then as the weeks go by, you will get a clearer picture of your business needs. Sign up for our free report, and we will send you a weekly tip sheet to keep you clear about what you need.
A Penny Saved is Power.
Cash flow forecasting is the art of actually putting down on paper, or in a spreadsheet, what you think you are going to get in this day, week, month, quarter, or year, and what you will pay out of those funds. It is a difficult task if you have not done it before. It takes some time to review what you have spent, and what you think you will spend. Spending is secondary to what you are going to get in.
Do you know what your sales will be this month? Do you know if you have any large bills coming due? Do you need more or updated equipment to run your business? Is it getting time for Spring cleaning?
Without an adequate Cash Flow Forecast, you could find yourself with overdrafts, deficiencies, late payments and problems with your vendors. If you have taken out any loans to run your business, you will need to add them to your forecast so you can make the scheduled payments and keep your credit intact.
You need to be thinking short term and long term regarding your finances. The short term keeps you abreast of what is happening now, but the long term can show you where you will need to either get more sales, or move payments around. You are being proactive when examining this kind of detail.
When do you have time to do a Cash Flow Forecast? Once you get one in a spreadsheet, you can do a weekly cash flow listing and then put in the actual figures that occurred. This will help you see if you are running into a problem, before the problem hits.
RCM does cash flow forecasting for you. We can get you set up, so you can just enter in figures that you feel are correct. Then as the weeks go by, you will get a clearer picture of your business needs. Sign up for our free report, and we will send you a weekly tip sheet to keep you clear about what you need.
A Penny Saved is Power.
Wednesday, February 18, 2009
Cash Flow Efficiences - Cash is King
Cash flow efficiences is a big word for measuring a company's liquidity. Cash is King in todays economy, so finding ways to be efficient with each dollar is on the top priority of business owners' minds. If you are a small to mid-size company, as the owner you are the cash manager. You are concerned about when the dollars are coming in, and how they will be spent.
6 different medthods to help you keep on top of your cash flow will be discussed over the next 5 days. Today we will concentrate on getting your customers to pay you on time or up front. Cash management involves making sure the products that you are sending out are getting paid for by your customer. Some customers who are not being watched, can rack up a pretty high receivable before you try to collect the money. They have reasons - they have policies, but in a small business, you can not wait for 90 days to get paid, if you are having to pay your suppliers in 30. You need to be sure there is a direct connection between the sales payment and the supplies payment.
Review your customers open balances, and see how much did it cost you to deliver the finished goods. Can you take the funds from another customer to pay the vendors, until that customer can pay you? Do you know how much it is costing your business by not collecting the money within your terms? Can you afford to drop some customers that do not pay regularly? Do you have someone calling those customers frequently to be sure you are on the getting paid list? Does that customer have cash flow problems of their own?
Concentrating on your customer base and who is paying you, is your first priority of the six steps. Find vendors that may deliver the same materials for less cost, or different payment terms that fit in with your customer base. Do you accept credit cards? Can you offer a cash discount for early payment? Can you give an even bigger discount if they paid by cash, not check or credit card?
Analyzing your cash flow system is what RCM does on a day to day basis. We evaluate your customers and their payment habits to help you form a better relationship between your customer and your supplier.
Sign up for the Cash is King, Build Your Kingdom report and receive weekly tips regarding how your business can survive in this economy.
6 different medthods to help you keep on top of your cash flow will be discussed over the next 5 days. Today we will concentrate on getting your customers to pay you on time or up front. Cash management involves making sure the products that you are sending out are getting paid for by your customer. Some customers who are not being watched, can rack up a pretty high receivable before you try to collect the money. They have reasons - they have policies, but in a small business, you can not wait for 90 days to get paid, if you are having to pay your suppliers in 30. You need to be sure there is a direct connection between the sales payment and the supplies payment.
Review your customers open balances, and see how much did it cost you to deliver the finished goods. Can you take the funds from another customer to pay the vendors, until that customer can pay you? Do you know how much it is costing your business by not collecting the money within your terms? Can you afford to drop some customers that do not pay regularly? Do you have someone calling those customers frequently to be sure you are on the getting paid list? Does that customer have cash flow problems of their own?
Concentrating on your customer base and who is paying you, is your first priority of the six steps. Find vendors that may deliver the same materials for less cost, or different payment terms that fit in with your customer base. Do you accept credit cards? Can you offer a cash discount for early payment? Can you give an even bigger discount if they paid by cash, not check or credit card?
Analyzing your cash flow system is what RCM does on a day to day basis. We evaluate your customers and their payment habits to help you form a better relationship between your customer and your supplier.
Sign up for the Cash is King, Build Your Kingdom report and receive weekly tips regarding how your business can survive in this economy.
Thursday, February 5, 2009
Identifying your Principal Strengths
What is your Company's principal strength? Have you ever done a S.W.O.T. analysis on your Company? S.W.O.T. stands for Strengths, Weaknesses, Opportunities and Threats. You may have done this for your business plan, which you may or may not have looked at lately. The S.W.O.T. analysis changes with Industry and Personal changes.
The strengths reflect what your Company can do with the product sales, branding, competition, cash flow, best practices, accountability systems, etc.
These core principal strengths will assist you in leveraging your strengths against your weaknesses. Your focus can be directed in promoting those strengths to cusotmers, creating a niche market that you can capitalize on.
Take time to review your Company's S.W.O.T. characteristics and concentrate on your strengths and opportunities while making a plan to remove weaknesses and threats.
The strengths reflect what your Company can do with the product sales, branding, competition, cash flow, best practices, accountability systems, etc.
These core principal strengths will assist you in leveraging your strengths against your weaknesses. Your focus can be directed in promoting those strengths to cusotmers, creating a niche market that you can capitalize on.
Take time to review your Company's S.W.O.T. characteristics and concentrate on your strengths and opportunities while making a plan to remove weaknesses and threats.
Tuesday, February 3, 2009
Keeper of the Jewels
A business owners mindset of "Keeper of the Jewels" may inspire them to view their company as a diamond in the rough, and find ways to polish their cash flow techniques to make their company shine.
How owners and CEO's view their company in their industry can filter to their workforce. The image that the owners' present to their customers needs to be upbeat and believable. They need to project that there are solutions and they are presenting those solutions to their customers.
Owners who have a "Keeper of the Jewels" mindset will search for ways to build a strong plan for their core business. They will plan for the downside, having contingency plans to get them through the tough times.
Owners who forecast their cash flow can see ahead of time if they need to barter for some work done, or subcontract the work out instead of paying payroll and payroll taxes. The Keeper of the Jewels mindset will help you think out of the box for your company.
How owners and CEO's view their company in their industry can filter to their workforce. The image that the owners' present to their customers needs to be upbeat and believable. They need to project that there are solutions and they are presenting those solutions to their customers.
Owners who have a "Keeper of the Jewels" mindset will search for ways to build a strong plan for their core business. They will plan for the downside, having contingency plans to get them through the tough times.
Owners who forecast their cash flow can see ahead of time if they need to barter for some work done, or subcontract the work out instead of paying payroll and payroll taxes. The Keeper of the Jewels mindset will help you think out of the box for your company.
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