Friday, August 24, 2012

Need A Life Saver

WHY CASH FLOW FORECASTING
 WILL BE YOUR LIFE SAVER!     
Harvey A. Goldstein, CPA

THINK ABOUT THE AMOUNT OF MONEY a company spends on CFO’s, Controllers, bookkeepers, outside accountants, and a myriad of other advisers that will counsel you on your financial past. Yes, they will tell you your sales were up or down. Expenses to high or too low. As if you didn’t know. They’ll also counsel that you spent too much here and maybe not enough there.

Companies spend thousands of dollars analyzing what they did. The major problem with this exercise? You cannot change the past. Its not possible. It’s over. It’s too late to fix it.
How much money managent spend to find out what the company will doing?
Does anyone help management see the future?
Does management want to know what lies ahead? 
Does management want to know how long cash resource will last? 
Does management enjoy the anxiety produced from the fear of not knowing what is going to happen? 
Sleep well?
Has anyone ever provided management educated read as to the financial future of the company?

THE MOST POWERFUL TOOL IN THE WORLD … 
… is the ability to see and manage the future. The only thing you can manage is the future. Every decision you will ever make will only impact the future. We spend so much time and so many resources looking at the past, yet we live for the future. The more we know about the future the more effective we can be at managing it.” Knowing what the future holds is powerful. And it is yours for the asking.

THE MAIN PURPOSE of the forecasting process is to let management always know in advance how much cash they will need and when they will need it. In addition, the forecast will set flexible goals that are very effective in controlling expenses. Furthermore, the by-product of the information produced will make the information in financial statements significantly more meaningful and be effectively used for managing the business. How can you assess financial data if you don't know what the numbers should be? BASIC FINANCIAL FORECASTING is the tool that will provide sufficient data to navigate the future.

IF I CAN TELL YOU approximately how much cash you’ll have in the bank at the end of the month for the next 12 month…
WOULD YOU LIKE TO KNOW?

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