Читать книгу Financial Accounting For Dummies - Maire Loughran - Страница 69
Managing Cash
ОглавлениеHave you ever been waiting in line behind someone in line at the ATM who is repeatedly running through the cycle of inserting the card, punching on the keypad, and having the machine spit the card back out? In my family, we call the process of progressively asking for less and less money until the customer finally gets to the amount the bank will let them withdraw from their account Bank24 Bingo. Not knowing how much money is in the checking account a person uses to pay their rent, buy food, or put gas in their car is a classic example of less than stellar personal cash management.
Wacky economic events that pop up out of nowhere aside, the most prevalent reason why businesses fail within the first few years is poor cash management. For you jokesters out there — yes, you do need to have sufficient cash to begin with to have something to manage!
In this part of the chapter, you learn how to keep a handle on your company’s sales, accounts receivable, and purchases, which is where the cash budget comes into play. I also discuss how to do a bank reconciliation and how to convert accrual numbers to cash (see Chapter 11).