Your most liquid asset, money, can be in various forms – physical cash, bank accounts and bank deposits. Even if the deposits have strict rules, i.e. you cannot take the money out until only after the term, it is still “money”. Although, yes, if the “term” is longer than 3 months, it’s accounted as a financial investment rather than “Cash and cash equivalents”. Continue reading
Spending money is an interesting thing – it can help against stress, but then again, it can get you into a lot of trouble. Trouble in the sense that you may find you’ve spent too much and aren’t really able to continue without taking a loan for an example.
As it happens, there’s a difference between spending and spending. Whilst one is an excess spending, i.e. on something you really don’t need, the other is for keeping your business going. Continue reading
You sure it’s excess? By definition “excess” means there’s something more than needed and when you think about it, think hard when it comes to running a business, surely you can think of something that requires money. Continue reading
It’s always a good question. Some might say that there’s never enough money and others may say that enough is when it’s enough. Both are similarly vague and not really accurate. Continue reading
So you’ve decided to deal with cash payments (well, decided or forced, doesn’t really matter), but have you considered all the risks there are? Have you mitigated them to an acceptable level for you? Continue reading
The decision whether or not to use cash payments in your business comes mostly down to need. Do you need to deal in cash? Taking into consideration all the risks there are, it’s always down to “need” and not “choice”. Continue reading
Cash is a physical asset and very attractive at that if left on sight of others. It’s liquid and virtually not traceable if stolen so as such one is very tempted to take it if given the opportunity. You might think that most people aren’t of this sort, but the truth is that as people we are weak. We are more so if the temptation is right under our nose. So if anything, try not be the one giving the chance.
What to do with cash to keep it safe? I mean to keep it physically safe from prying eyes and hands. One obvious thing to note is that cash should be taken into bank as soon as possible and practicable. It’s probably the safest place you could keep it, however what to do outside the bank? Think through very hard who are those who you’d trust with cash – that’s the first thing. Secondly plan how much is really needed at the spot. All the excess and currently not in use should always be behind closed doors either in a security box or on it’s way to the bank really. Significant amount of physical cash is something very few companies really need (i.e. pawn houses, retail shops etc.). Continue reading