Cash Flow is Cash Know

Regardless of revenue, gross profit, profitability, taxes and capital expenditures, if you are generating cash flow, the rest of those measures and Key Performance Indicators (KPI’s) should all show positive results. Track your cash flow in a forward projection by week and understand where the cash comes and goes. At the end of the day, it is a simple measure of success, but when combined with KPI’s it can show where the leaks are.

For example, are the Average Days of Sales in Accounts Receivable longer than the Average Days in Payables? Does the payroll and loan payment cycle match the billing cycles? How much working capital (Current Assets in excess of Current Liabilities) does the business require? Find the benchmarks of the industry in the 2013 ACPA Financial Benchmark Study sponsored by SCHWING America, Inc.

13 left in ‘13

With only thirteen weeks remaining in 2013, now is the time to plan for the tax impact of a better year’s financial result. Consult your tax advisor now and find out from your Regional Manager what SCHWING products will be available, so you can get what you need to purchase and put into service by the required December 31 tax deadline. The 50% bonus depreciation deduction will expire this year.