Real-time Cashflow Management is a financial management system that combines historical financial statements with daily, weekly, monthly forecasts to produce a dynamic financial management system. I call it the Real-time Cashflow Management System (RCMS), and its two primary purposes are to: 1) help you financially manage your business based on real-time financial information, and 2) make business decisions based on their impact to the financial plan.
Some business owners manage their finances out of a check book. Could you drive your car if all you could see is the gas gauge? What if you want to add a new line of business or buy a new equipment; will you be able to make a decision if you only know how much cash is in the bank?
Many businesses look at historical financial statements to understand where they are, the equivalent of looking through the rearview mirror. Further analyzing the past is essential to understanding and forecasting future financial performance. The key to getting the future financial results that you want is implementing a cashflow management system that will help you drive your business financially. So are you currently managing your finances based on the rearview mirror or are you looking at the future through the windshield?
When you learn and implement RCMS, you will find that you can change your financial results before they happen! You will be able to make business and financial decisions based on seeing the future financial impact of those decisions - on profits, on cashflow, on your bank loan covenants. This new look at the CFO role and financial management concepts will help you Drive Your Business to Financial Success!
How fast are you Driving Your Business?Are you traveling at a safe speed? Are you lugging the engine? Any warning lights on? The RCMS process will help you see the answers to these questions on your financial dashboard. In addition to the two primary purposes discussed above, the RCMS will also help you accomplish the following:
Develop a financial model for your company that will help you analyze the business trends, financial ratios, variables and constraints of your business.
Focus on sales and cost drivers to better understand the factors that drive profit and cashflow success.
Analyze the financial success of a start-up business before you invest.
Determine if the business can afford a new product line with its existing finances.
Decide what impact a new piece of equipment has on profitability and cashflow.
Communicate the financial impact of business decisions to your banker and investors.
Use the RCMS reports to analyze and pursue new financing structures.
Look at the financial impact of business mergers and acquisitions.
Essentially look at the financial impact of any "what if" scenario.
Understand and Implement RCMS: Buy your copy today!
How can I implement RCMS for my business?
Learn how the book "Drive Your Business to Financial Success" can teach you the financial management concepts and specific steps to implement RCMS in your business (click on the book cover to the left for more information). First, you as the business owner will learn and understand how RCMS works, how to implement RCMS, then finally how to manage the RCMS. Your accounting staff, with strong Excel® skills, can then develop the RCMS model based on instructions in the book, and your management of the process.
Don't have the internal financial expertise? Take the book to your CPA and request a quote to implement the RCMS for your business. Most CPAs are well versed in how to implement and manage forecasting and financial reporting systems. By reading the book first, you will understand the concepts and process, be able to effectively communicate your request to the CPA, then manage the outcome.
Still lack the financial expertise to implement RCMS? Call or email me and request a free consultation and quote to implement this valuable system in your business. My focus on business modeling and expertise in many industries allows me to quickly evaluate your business variables and constraints based on your history, then help you create forecasts and manage your future financial performance.
Finally, the RCMS Excel® template is available for sale. It has been tailored for all industries, and it will accelerate your implementation process. Whether your staff, CPA or I implement the RCMS, purchasing the RCMS template will jump start the process and save you $$$. Call or email today for a quote
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