Variances will indicate areas where there are opportunities to improve operating results. For example, investigating a low inventory turnover may reveal opportunities to reduce inventory levels through changes in purchasing procedures or centralizing warehouses. Comparing current ratios against your own companies historical results may help monitor your company s performance. The cash forecast is an essential part of the monthly budget. There are many techniques to improve cash flow which may be appropriate for your company, depending on your industry.
Cash management is a vital part of every business.
Through a thorough review of the specific needs and characteristics of your business, a solid and manageable plan can be designed to maximize the use of your resources and provide additional cash and profits to your business. A certified public accountant has the training, resource material and experience necessary to help you prepare comparative ratios and design the proper cash management program for your size and company. Simply insert your own values between the double-quotes.