Up Your Cash FLow

distributed by

SunBurst Technology, Inc.

Why is Planning Important?

What is the primary responsibility
of the financial manager of your business?


TO ENSURE SUFFICIENT CASH RESOURCES
TO MEET YOUR FINANCIAL OBLIGATIONS.


In other words, TO STAY IN BUSINESS!


Planning is also crucial in determining the efficiency of operations and to see what areas of the business need adjusting.


Planning works in two ways:

up arrow FIRST--By planning the consequences of the anticipated financial activity of a business, the owner/manager can avoid cash crunches by better preparing for future cash needs. Or avoid crunches altogether by adjusting important areas of the business that may hurt future cash flow or profitability.
up arrow SECOND--Planning helps provide meaning to normally stagnant financial statements. Comparing how a business actually does against a plan is the only way to produce financial statements that are meaningful to the management. The plan is your guuide to financial stability and profitability.
up arrow Variances against the plan indentify areas that could be hurting cash flow and profit. The ability to identify problem areas enables the manager to focus energy on the areas that need adjusting. Up Your Cash Flowtrademark enables you to run monthly reports that compare how you want to do against how you actually did.
up arrow These reports provide management direction as to what areas of the business need action. You will be able to continuously improve the financial operation of your business.

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