Explain the importance of cash management to the success of the small business.

Management by Geoffrey
  • Understand the importance of preparing a financial plan.
  • Describe how to prepare financial statements and use them to manage the small business
  • Create projected financial statements.
  • Understand the basic financial statements through ratio analysis.
  • Explain how to interpret financial ratios
  • Conduct a break-even analysis for a small company.
  • Explain the importance of cash management to the success of the small business.
  • Differentiate between cash and profits.
  • Understand the five steps in creating a cash budget and use them to build a cash budget.
  • Describe fundamental principles involved in managing the “Big Three” of cash management: accounts receivable, accounts payable, and inventory.
  • Explain how bootstrapping can help a small business avoid a cash crunch.