Category: Cash

coins, currency, investment

Cash future

  Over the years, having trained, mentored and supported entrepreneurs throughout the country, I regularly find they have an all consuming relationship with cash (or the lack of it) in their business.  Cash flow Simplistically, if the cash coming into your business is less than the cash going out, you have a problem. It doesn’t

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Catch me if you can

Con-artist The title of this post was inspired by the movie, Catch Me If You Can,  a biographical film about the life of Frank Abagnale.  He was a con artist, posing as a pilot, doctor and other roles, issuing fake checks for services. The movie follows the FBI agent chasing Frank across the country as

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savings, budget, investment

Late payment to SMME’s

Cash flow is the lifeblood of a business.  Unfortunately SMMEs in South Africa have been on the receiving end for a long time. SMMEs are left waiting payment, month after month, by government and corporates. It strangles their cashflow, reducing their ability to operate and meet their obligations. Waiting for an additional month or two,

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What is a provision for Bad Debts?

Provision for Bad Debts  100% of debtors are unlikely to pay the amount owed to the business. A % will not be collected/received Provision for Bad debts is an estimate of the debts that will not be paid in the financial year Estimate based upon historic info,  debtors analysis and trends

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What is a Bad Debt?

Bad Debt  Bad debt is amount owed to the business, that will not be collected/received Bad debt is shown under Expenses in the Income Statement Bad debt will reduce Debtors in the Balance Sheet

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What is the Debtor Schedule?

Debtor Schedule Debtor schedule usually prepared with the cash budget Debtor schedule shows R to be collected from debtors over the budgeted period Debtor schedule used for planning, budgeting and cash flow management

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What is the Debtor collection period?

Debtor Collection Period Collection Period = Debtors/Credit sales * 365 = number of days It shows the number of days from the sale until cash is received by the business The higher the number, the longer debtors are taking to pay the business

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