by Sharon Keisha on February 26, 2010
According to economists and financial planners, there are several ways to improve cash flow in order to save more money and buy only the things that really matter to you. Here are eight tips to implement this system:
- Keep track of how you spend your money.
Keeping a detailed description of where your money goes, you can get an adjustment of their finances and improve your cash flow. You can get personal finance software available to help you make all these calculations, and make comparisons from year to year.
- Refinance your mortgage.
If you are paying above average interest on your mortgage, refinance your loan may mean reducing a significant amount of their monthly cash. Or better yet, see if the bank is willing to modify their mortgage agreement with interests that fit today’s market-without paying refinancing costs.
- Reassess your relationship with the Bank as a result of bank mergers in recent years, many consumers do not know what kind of services they are paying, or who are paying. Carefully review your needs with respect to the activities he has with his bank, and then go to other banks to offer and know that there are options in the competition. The key to reducing the cost of banking is to find a bank that charges as little as possible for the services you use most often.
- Reduce your insurance costs.
There are companies that reward with reduced rates to owners of cars that never collided. Then there are those who, for the cost of insurance, including additional services, such as cranes or minor cracks repaired. Find out which companies provide this service in your country and stop paying for expensive insurance and with few facilities that only have a good marketing.
- Take a look at your real estate taxes.
In many countries, real estate values have leveled off or have declined. If your tax burden is above the resale value of your home, consider addressing the City to handle the compensation for the difference.
- Reduce your debt with credit card.
It makes little sense to pay the typical interest credit cards, the order of 40 or 50 percent annually when there are other options. If your debt with the credit card is having a negative effect on your cash flow, consider getting a personal loan in the same or another bank to refinance at an acceptable rate on money owed, and definitely restrict the use of your credit card.
- Automate your banking.
Today, many banks charge a fee for doing operations on “window”. If you handle completely with ATMs, not only will save this amount, but also save valuable time lost in queues, which undoubtedly will also mean an economic gain. Restrict operations in “window” when you have to make deposits of large sums of cash as the deposit slip will serve more in the case of any trouble.
- Change old habits.
Think what you will spend your money first. Bring lunch to work instead of buying … borrow books in the library instead of buying new ones … make phone calls at times when rates are lower. The small but regular changes, such as those identified above will help you improve your cash flow and make great strides toward a more secure financial life.
by Sharon Keisha on February 24, 2010
Taking into account that the cash flow allows:
- Deciding the best mechanism for short-term investment where there is excess cash.
- Take necessary measures to define the source of funding when there is a shortage of cash, and manage resources to be the owner, or possibly initiate the necessary procedures to obtain loans to cover these missing and allow the operation of the company .
- When and in what quantity purchased loans are payable in advance.
- When making major outlays of money to keep operating the company.
- In terms may be available to pay additional benefits to employees such as the Christmas bonus, vacation, profit sharing and so on.
- With much cash may be available for personal business without affecting the normal operation of the company.
Some of the major decisions that affect cash flow are:
- Promptly invoicing
- Create incentives for upfront payments
- Avoid the outset to delinquent customers
- Reduce inventory
- Consider Consolidating Your Loans
- Increasing Credit Limit for Customers
- Minimizing billing problems
- To improve the possibility of recovery
- Methods and Tools Collection
Cash Flow can be calculated for any span of time: daily, weekly, monthly, yearly … that need.
One must take into account that in times of high inflation or fluctuations in exchange rates, we must anticipate the rates, and affecting the corresponding period. As they arise, will the actual turning.
This not only applies to inflation or the exchange rate itself, but to see everything that is replicated by them (eg, salary increase, imports, goods oligopoly, etc.)..
by Sharon Keisha on February 22, 2010
The Financial Budget and Cash Flow is one of the most important operational tools in our company or enterprise. His performance can influence the course of economic and financial action of the company.
When we evaluate the business is as important to consider how much we earn, as well as they can lose.
develop a cash flow this must be analyzed from the economic standpoint, and from the financial standpoint. We analyze it to see if I can carry the business forward and that is what I do.
We note that the economic equation refers to accounting profit of the business (positive or negative), regardless of when collecting or expenditures of funds, while the financial equation is directly related to the time of receipt or payment of transactions.
For these reasons, we can see that a business can be viable economically, but a financial deficit which, if not solved in time, will lead to failure.
To develop a cash flow and cash flow, should be listed in advance deemed all cash receipts and disbursements for the period of preparation of the flow, so it should follow the following steps:
- Set the period that seeks to cover.
- Make a list of likely income and specified period of outlays. In this case, after recording the values of each cost center values are added together and you get the total. It lists the obligations that involve cash outlay, adding the value of each payment to get the total.
- Once we have obtained the total revenues and expenditures, these are subtracted to obtain the result. If the result is positive, it means that revenues are greater than outflows and therefore there is a surplus, indicating that the company operates favorably. Otherwise, the employer must consider measures to cover or anticipate missing periods in which the results are negative, reflecting this information in a game called balance at end of period.
- If you want to work the cash flow in more detail, we can use a cumulative balance is the sum of the balance achieved during the period plus the balance of the previous period.
