Effectively Managing Your Business Cash Flow

According to Wikipedia (http://en.wikipedia.org/wiki/Cash_flow), cash flow is: “the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, limited period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company’s value and situation. Cash flow can be used, for example, for calculating parameters. It discloses cash movements over the period:

  • to determine a project’s rate of return or value. The time of cash flows into and out of projects are used as inputs in financial models such as internal rate of return and net present value.
  • to determine problems with a business’s liquidity. Being profitable does not necessarily mean being liquid. A company can fail because of a shortage of cash even while profitable.
  • as an alternative measure of a business’s profits when it is believed that accrual accounting concepts do not represent economic realities. For instance, a company may be notionally profitable but generating little operational cash (as may be the case for a company that barters its products rather than selling for cash). In such a case, the company may be deriving additional operating cash by issuing shares or raising additional debt finance.
  • cash flow can be used to evaluate the ‘quality’ of income generated by accrual accounting. When net income is composed of large non-cash items it is considered low quality.
  • to evaluate the risks within a financial product, e.g., matching cash requirements, evaluating default risk, re-investment requirements, etc.”

Improve The Quality of Your Business Cash Flow

All small to midsize businesses must have enough money to not only meet obligations but also remain completely operational. For a growing company to run smoothly, its leaders must be able to instantly have a complete picture of the movement of the cash flow within the entire enterprise. In order for executives to confidently make decisions on future business profitability, growth, and innovation, they must be able to easily evaluate the quality of the movement of cash and non-cash items. With SAP’s enterprise resource planning for growing businesses, SAP Business One, you can manage your cash flow better.

SAP Business One for Better Business Cash Flow and Analytics

As SAP Business One is an all-in-one business management solution of integrated accounting, finance, customer service, sales, manufacturing, inventory and warehouse management, you can track your business cash flow through out your entire organization. In addition, the system can be set configured to alert  you to pending payments and produces aging reports that analyze outstanding receivables and liabilities. As the software is designed to make your business life easy, you can create budgets in any currency. You can also easily define allocation rules, track expenses, and send alerts to the appropriate executives when budgets go over. The system of alerts built in to SAP Business One makes it simple to track the customers with past due accounts. You can not only automate receivables, the system can be set up to auto-generate: reminders based on payment delay and amount, invoicing, and cash reconciliation processes. With all of the cash flow functionality and visibility available to you, SAP Business One can even help you dramatically shorten the order to cash cycles of your business.

Small or Midsize Manufacturers and Distributors: Track and Control Your Business Cash Flow Easily With SAP Business One

If you’d like to easily track and control your business cash flow and are planning to implement a new ERP system, SAP Business One is worth your consideration. If you’re a highly competitive business owner, we’d like to hear your ideas concerning how you envision re-engineering your operations with cutting-edge software and technology. We’re excited to discuss how your small or medium enterprise (SME) can not only run better but also continually out-perform your competitors, locally, nationally, and/or internationally.

SAP Business One Consulting | SAP Gold Business Partner-Reseller | Providing SAP Business One Software, Tech Support and Related Services to Small and Midsize Manufacturers and Wholesale Distributors

Based in Tampa, FL, Cornerstone Consulting, Inc. is a business consulting and information technology (IT) company. Not only is Cornerstone an award-winning value added reseller (VAR) of  SAP Business One, an extremely efficient and integrated business (accounting, customer and sales management (CRM), inventory tracking-control-management, warehouse management, materials requirement planning (MRP), light manufacturing, accurate real-time analytical reports, and more) software systems, our highly-skilled team specializes in cutting-edge solutions and tech support for:

  • SAP Business One Enterprise Resource Planning (ERP) Application
  • Electronic and Mobile Commerce
  • Enterprise Mobility
  • Bar codes and Scanning
  • Business Intelligence (BI)
  • Business Analytics
  • Internet
  • Databases (SAP HANA)
  • Cloud Computing
  • Custom Programming
  • Web Development

Leave a Reply