Managing Cash Flow: An Operational Focus

The fixation on flashy industries like telecommunications, information technology, and financial services in the go-go nineties went hand-in-hand with a fixation on flashy valuation standards. The popular accounting measures gradually proved to be as much smoke and mirrors as they were real dollars and cents. In Managing Cash Flow, Rob Reider and Peter Heyler return to the bedrock of business, shuning paper profits and numbers to concentrate on the vital functions that actually produce cash and keep organizations afloat.

The guide attempts to maintain companies in the most economical, efficient, and effective manner possible. profit is as much a product of the accountant’s imagination as it is real money, given the legitimate room for interpretation. Cash is tangible and absolute. It pays vendors and complies with tax requirements. Managing Cash Flow: An Operational Focus helps readers understand. Cash receipts and cash disbursements can be affected by a number of factors. The cash flow of the company is impacted by operations-organizational planning, sales, operating costs, non-value-added activities. Investing excess cash and borrowing to cover cash shortfalls are effective principles. The cash flow of the organization can be managed with practical planning techniques.

The authors identify a number of common business functions, including sales, customer order backlog, accounts receivable, inventory, property, plant, and equipment, employment, and management and administration, that distract from the essential cash-flow function. The book shows how to keep the functions streamlined and focused on the ultimate goal.

In questioning which businesses a company should and should not be in, the authors apply a cash-flow criterion to the sum total of a company’s operations, eliminating excess and concentrating on what’s most important. Good old-fashioned money is their bottom line. Managing Cash Flow: An Operational Focus is an indispensable resource for CFOs, controllers, and cash managers.

You can get Rob Reider, Peter B. Heyler at nextskillup.com.