Bottom Line Basics

Bottom Line Basics guides you past the mechanics of accounting to an understanding of how financial management helps you meet your business goals. First, learn what numbers you need, then how to find and get those key numbers from your accountant or controller. Most financial management books tell you how to get the numbers to keep the IRS happy, but those are not the numbers you need to make operating decisions. This easy-to-follow guide briefly explains the essentials of financial accounting and goes beyond to cover:
* Management Accounting
* Credit and Collections
* Internal Controls
* Why do profitable businesses run out of cash and how can you avoid this happening to you?
* What should you do when you have a cash crunch?
* How do you wring cash out of receivables and inventory?
* How should you manage your credit accounts?
* Which project should you invest in and how do you decide between several projects?
* Should you computerize your accounting?
* How do you choose software for accounting?
* How far in advance should you plan for your business?
* How do you keep your plan up-to-date?
* How can you get current figures from your business?
* Why isn't your inventory all there?
The book concludes with a ten-step plan of attack to immediately improve your cash flow, reduce your costs, and give you a better understanding of the numbers driving your business. Includes numerous sample documents and several worksheets: sample financials, audit and review opinions, projections, chart of accounts, and cash forecasts, plus worksheets for evaluating projects, determining break-even, and checking up on internal controls. The book also contains several useful equations for determining factors like:
* Months of inventory on hand
* Net present value
* Inventory turnover ratios

Robert J. Low has more than 15 years of experience in accounting and controllership. He has served as controller for two start-up companies and consults throughout the Northeast as a contract controller and CFO, specializing in smaller companies and turnaround situations. In addition to his consulting business, he is currently involved in designing a software product for financial projections.