We all know the importance of cash in businesses. It costs a lot to run and grow a business, especially when it’s brand new. You don’t want your business to temporarily shut down due to cash flow issues. You can’t afford to do that because it can mess up your track record of delivering on promises, hurt your reputation and ability to retain employees, and put undue strain on your relationships due to the stress of not meeting obligations. Learn why you should double your cash liquidity buffer as a business. What is a cash liquidity buffer? A cash liquidity buffer is a fund of liquid assets you keep on hand to help you meet your short-term obligations. Cash liquidity buffers are typically used by businesses to protect against unexpected…
Knowledge is power, but if you don’t know what you’re spending and where your money is going, you run the risk of being penniless. The same is true for your organisation. If you don’t know your expenses and how much cash you generate and where it is spent, then something needs to change. Today we’ll focus on the importance of a financial policy in your organisation. We’ll cover why you can’t afford not to have one and how it will benefit your organisation. What Are Financial Policies and Procedures? Financial policies are rules, regulations, and guidelines for how an organization will handle its financial affairs. These rules can be broad, overarching statements of principle that apply to all aspects of the business. For example, one financial policy might be that…
An independent business review IBR is an analysis of a company’s financial and operating position conducted by a professional who is independent of management. The purpose of an independent business review is to provide insights on the financial health of the business through a critical review of the main organisational performance drivers. An IBR is mostly used for determination of whether to establish a credit facility, or to inform the strategies for overcoming uncertainty and doubt about the company’s financial situation. IBRs may be conducted by various entities, including accounting firms, banks, private equity firms, and even rating agencies. The IBR process usually involves reviewing historical financial statements, review of forecasted performance and current and expected business operating environment as well as conducting interviews with key personnel within the company.…
The year 1662 is largely agreeable as the period that the last Mauritius Island bird Raphus cucullatus popularly known as the dodo was seen alive. The dodo is endemic to Mauritius and had not until 1598 experienced contact with the outside world; years of isolation had not prepared it for erratic and deeply unnerving behaviour of human beings and their monkey and dog pets. Not a lot is known about the dodo except that adults towered one-metre-high, weighting roughly ten kilos, flightless, a member of the pigeon family, laying one egg at a time, built its nest on the ground was portly and the meat was bland. We also know that it was a naively trusting bird, its said that if you wanted to enumerate the birds in a vicinity, all you…
