Cash Flow – The Matrix

Monthly financial statements without a cash flow statement are not as effective. The standard cash flow statement will show the increases and decreases in cash of key metrics but only on a monthly snapshot basis.

Cash flow rolling historical and future projections can be a critically important tools for growth, seasonal or shrinking companies. Many companies have died in their growth because they did not track cash flow or the needed cash flow resources.

Valuation – Performance Metric (1:51:50)

Year-to-Date (YTD) financial statements are almost useless until the 4th quarter. Almost all financial software programs have YTD as their standard. A much more effective tool is a 12 month rolling history which can also be used to create a 12 month budget monitor.

Let that sink in. With a 12 month rolling metric any change in slope is significant because a current month replaces a past year month. Any change represents a change in the month’s activity rather than waiting for YTD to get to the 4th quarter.

Here are some other ways to increase the value of your company. I help companies develop the necessary matrix that gets them turned around and cash flow back on track.

Gerry, General Manager, Rhode Island HIGHLY recommends Dale Richards for his 3 day optimization analysis, training and implementation. Dale Richards’ lead three days of training of 10 leaders of Shannon Motors, Rhode Island. The team was engaged all three days and could not wait to come in each day. Tools were given with metrics were given and the team was trained on how to use them. Dale completed proprietary financial and operational analysis for Shannon that pinpointed areas of improvement. Then he trained the managers to implement the Productivity Pyramid TM, Why do Customers Buy, 80/20 Customer “Gold Program”®​, Rifle vs. Shotgun Marketing®​ and Coaching.