Log In
Working Capital 401: Cash Conversion Cycle (CCC) business strategy cash conversion cycle cash flow financial analysis management profitability working capital

We've covered working capital a few times in the past...

But today we're covering probably the all-time most useful ratio when it comes to managing working capital... the Cash Conversi...

Continue Reading...
Every Small Business Needs a Financial Operating System business strategy cash flow financial analysis financial systems operational efficiency process tools and concepts

Installing a Financial Operating System

We're big fans (and users) of Gino Wickman's EOS (Entrepreneurial Operating System), which outlines a useful framework for business management. I'd highly recommend if you're in need of a basic structure for meetings, people management, and setting a company ...

Continue Reading...
How to Keep Cash Flowing cash flow

1) The indirect method of cash reporting

The indirect method of reporting cash flow is what you'll see most often. It's the standard format across QuickBooks, other financial software, and for publicly-traded companies.

How it works

There are 3 sections of cash flow

  • Operating cash = profit + d...
Continue Reading...
Working Capital 301: Optimization Strategies cash flow working capital

How to Optimize Working Capital

This is part 3 in a mini-series on working capital (check out part 1 here and part 2 here).

Let's recap the basics so far:

  • What is working capital? Receivables (A/R) plus inventory minus payables (A/P). Don't forget to include credit cards.
  • Why is it important?...
Continue Reading...