Finance for Non-Financial Managers and Small Business Owners

By Lawrence W. Tuller | Go to book overview

Introduction

CASH IS THE CORNERSTONE of any business, large or small. Without cash, payrolls can’t be met, materials can’t be purchased, rent and utilities can’t be paid, and dividends can’t be distributed. It is unfortunate that current business practices cloud this truism, leading unsuspecting business owners and managers to disregard the criticality of managing in such a way as to ensure cash flows adequate to meet their company’s operating needs.

For example, current accounting practices permit companies to show a profit on their financial statements even though they don’t have enough cash to meet one week’s bills. Governments levy taxes without regard to whether companies have the cash to pay them. Currently acceptable business valuation practices calculate the worth of a company on the basis of future earning potential, regardless of the company’s ability to pay this month’s rent. And banks frequently lend money against overvalued business assets without verifying that the borrower has the wherewithal to repay the loan on schedule.

There is nothing very complicated about cash management. In the simplest terms, cash management is a set of procedures aimed at maximizing the amount of cash available at any given time. Record keeping is one tool of cash management. Predicting future cash needs is another. Analyzing where our cash comes from and where it goes is a fundamental cash management procedure. So is analysis of the interaction between accounting reports and cash flows.

We all practice cash management in our daily lives when we keep track of checks we write and deposits we make. Only in this way can we be certain that we have enough cash in our checking accounts to cover tomorrow’s checks. The same principle applies to

-xi-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Finance for Non-Financial Managers and Small Business Owners
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 306

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.