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Cash Management report

Cash Management report

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Published by: aim_amit on Jan 26, 2011
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Credibility with vendors, bankers, and other creditors is built slowly, but can be

destroyed quickly if your company falls behind on payments. Know how to

break the bad news to preserve your business's relationships.

Hot Tip: Prepare for a Cash Crisis

How do you prep for a cash crisis? Wayne Karpoff, president of Myrias Software

Corp., knew cash would be a problem late last year. His 15-employee, $1.5-million

company dropped selling its products and became a full-time service business. So he

Rukmini Devi of Institute Of Advanced Studies


built a contingency fund into his annual budget -- an amount equal to three months'

worth of payroll. He got the idea when his bank suggested he set up a contingency fund

to safeguard his mortgage payments in the event he found himself out of work. He

dipped into the fund three times last year to float the company during project and

payment delays.

Source: Ilan Mochari, Inc magazine, March 2000

Forecasting, Projections and Budgets

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