Meeting the Accountant

We met with the company accountant this afternoon. He said “the company cannot afford to pay any expenses that are not directly related to generating revenue”, and, “for anyone to get money the company must prosper”. The accountant thought my figures looked right and most of Dad’s drawings would go against his loan account. That …

Succession Wars

I allocated Dad’s drawings to a capital account. For the non-accountants that means classifying his costs as paying for something of value (like inventory) or as a loan (which can be called in). Once sorted and simplified, the number comes out to a $306K economic benefit over the last 12 months. This morning he screamed …

Expense Audits

I think I’ve mentioned my company’s cash-flow crunch. At a meeting this week, another business owner quoted her mentor “if you haven’t had cashflow problems you haven’t been in business”. I’ll draw solace from that. Instead of throwing 100% of my efforts into fixing this problem, I have to divert attention to dealing with retired …

Cashflow mayhem

MYOB sucks! Alternatively, my MYOB skills are severely challenged ;). The company is coming out of its traditional New Year’s cashflow crunch. Our sales in January and February normally represent about 6% of annual sales. As a result I’ve been monitoring our cashflow more closely than normal. Making payroll and paying suppliers is a good …