Archive / 3.3 Cash Movements

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One very important ratio to follow

Guess what’s a very important ratio to follow in your everyday business? It’s not so much a ratio, but a number. It is equally important however and ensures you will not run out of funds to manage your business. It’s your planned net cash flow. Obviously it should be positive, right? Well, if it is […]

When is negative working capital okay?

Negative working capital is a mathematical result when comparing current assets with current liabilities and the latter exceeds the first in number. That is you’ve got more liabilities than you’ve got assets to cover those liabilities in the next coming 12 months. When thinking about it, negative is never a good thing. At least that’s […]

Are your bank payments authorized?

Ever since you’re taking yourself an accountant or you’re outsourcing accountancy alongside with bank payments, you have to ensure that the cash outflow is authorized. All payments done should be authorized obviously by none other than you, the manager or owner of the company. Generally speaking, already in medium sized companies, if there’s an accountant […]