SlideShare une entreprise Scribd logo

Aqa bus2-improvingcashflow

•Télécharger en tant que PPT, PDF•
•
P
Peter Sammons
Formation
1  sur  40
Improving Cash Flow
Key issues for this topic ,[object Object],[object Object],[object Object]
A Reminder from Unit 1 Cash inflows Cash outflows Cash sales Payments to suppliers Receipts from trade debtors Wages and salaries Sale of fixed assets Payments for fixed assets Interest on bank balances Tax on profits Grants Interest on loans & overdrafts Loans from bank Dividends paid to shareholders Share capital invested Repayment of loans
Why Businesses Need Cash Finance is needed for… Business Set-up Day-to-day trading (working capital) Growth
A Typical Cash Flow Cycle Stocks ordered from supplier Production turns stocks into products Products sold to customers Customers pay for their purchases Stocks held until a customer is found Outflow - cash paid to suppliers & employees Inflow – cash paid by customers
The cash flow operating cycle ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is cash flow problem? When a business does not have enough cash to be able to pay its liabilities
Main Causes of Cash Flow Problems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Profit = most important source of cash ,[object Object],[object Object],[object Object]
Over-investment in capacity ,[object Object],[object Object],[object Object]
Too much stock? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Allowing Customers Too Much Credit ,[object Object],[object Object],[object Object],[object Object],[object Object]
Overtrading (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Overtrading (2) Cause Business expands its order book at a faster rate than access to working capital will sustain Symptoms Higher trade debtor figure Cash running out Withholding payments to suppliers Actions Reduce business activity – slow growth down Introduce new share capital to ease the strain Improve the management of working capital
Unexpected changes ,[object Object],[object Object],[object Object],[object Object],[object Object]
Seasonal demand ,[object Object],[object Object],[object Object]
Handling Cash Flow Problems
How to Handle Cash Flow Problems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Importance of Good Cash Flow Forecasts ,[object Object],[object Object],[object Object],[object Object],[object Object]
Managing Working Capital Stocks Debtors Creditors Focus on
Improving working capital Debtors Amounts owed by customers Creditors Amounts owed to suppliers Stocks Cash tied up in stocks
What is working capital? ,[object Object],[object Object]
Why working capital is important ,[object Object],[object Object],[object Object],[object Object]
Working capital needed depends on ,[object Object],[object Object],[object Object],[object Object],[object Object]
A lack of working capital means… ,[object Object],[object Object],[object Object],[object Object],[object Object]
Dealing with working capital shortages ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Managing debtors better ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Debt factoring ,[object Object],[object Object],[object Object],[object Object],[object Object]
What is credit control? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Trade creditors ,[object Object],[object Object],[object Object],[object Object],[object Object]
Managing Stocks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cash management ,[object Object],[object Object],[object Object],[object Object],[object Object]
Improving the cash position ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Should selling prices be discounted? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bank overdraft v Bank loan ,[object Object],[object Object],[object Object]
Bank overdraft v Bank loan Bank Overdraft Bank Loan Advantages Relatively easy to arrange Greater certainty of funding, provided terms of loan complied with Flexible – use as cash flow requires Lower interest rate than a bank overdraft Interest – only paid on the amount borrowed under the facility Appropriate method of financing fixed assets Not secured on assets of business Disadvantages Can be withdrawn at short notice Requires security (collateral) Interest charge varies with changes in interest rate Interest paid on full amount outstanding Higher interest rate than a bank loan Harder to arrange
Sale of assets ,[object Object],[object Object],[object Object]
Sale and Leaseback ,[object Object],[object Object],[object Object],[object Object]
Test Your Understanding http://www.tutor2u.net/business/quiz/improvingcashflow/quiz.html
Improving Cash Flow

Recommandé

Improving cashflow
Improving cashflowImproving cashflow
Improving cashflowgemdeane1
 
Cash Management Strategies During Economic Turmoil Aicpa
Cash Management Strategies During Economic Turmoil AicpaCash Management Strategies During Economic Turmoil Aicpa
Cash Management Strategies During Economic Turmoil Aicpaguest8f464d
 
Improving Cash Flow
Improving Cash FlowImproving Cash Flow
Improving Cash Flowtutor2u
 
AQA AS Business Unit 2 Cash Flow Management
AQA AS Business Unit 2 Cash Flow ManagementAQA AS Business Unit 2 Cash Flow Management
AQA AS Business Unit 2 Cash Flow Managementtutor2u
 
Topic 1 nature elements of working capital
Topic 1 nature elements of working capitalTopic 1 nature elements of working capital
Topic 1 nature elements of working capitalRAJKAMAL282
 
Working capital management
Working capital managementWorking capital management
Working capital managementpriyanka setty
 
Topic 4 tools techniques of managing of payables
Topic 4 tools techniques of managing of payablesTopic 4 tools techniques of managing of payables
Topic 4 tools techniques of managing of payablesRAJKAMAL282
 
Topic 2 tools techniques of managing of inventories
Topic 2 tools techniques of managing of inventoriesTopic 2 tools techniques of managing of inventories
Topic 2 tools techniques of managing of inventoriesRAJKAMAL282
 

Recommandé

Improving cashflow
Improving cashflowImproving cashflow
Improving cashflowgemdeane1
 
Cash Management Strategies During Economic Turmoil Aicpa
Cash Management Strategies During Economic Turmoil AicpaCash Management Strategies During Economic Turmoil Aicpa
Cash Management Strategies During Economic Turmoil Aicpaguest8f464d
 
Improving Cash Flow
Improving Cash FlowImproving Cash Flow
Improving Cash Flowtutor2u
 
AQA AS Business Unit 2 Cash Flow Management
AQA AS Business Unit 2 Cash Flow ManagementAQA AS Business Unit 2 Cash Flow Management
AQA AS Business Unit 2 Cash Flow Managementtutor2u
 
Topic 1 nature elements of working capital
Topic 1 nature elements of working capitalTopic 1 nature elements of working capital
Topic 1 nature elements of working capitalRAJKAMAL282
 
Working capital management
Working capital managementWorking capital management
Working capital managementpriyanka setty
 
Topic 4 tools techniques of managing of payables
Topic 4 tools techniques of managing of payablesTopic 4 tools techniques of managing of payables
Topic 4 tools techniques of managing of payablesRAJKAMAL282
 
Topic 2 tools techniques of managing of inventories
Topic 2 tools techniques of managing of inventoriesTopic 2 tools techniques of managing of inventories
Topic 2 tools techniques of managing of inventoriesRAJKAMAL282
 
1 current assement management
1 current assement management1 current assement management
1 current assement managementDr.R. SELVAM
 
Topic 6 working capital cycle
Topic 6 working capital cycleTopic 6 working capital cycle
Topic 6 working capital cycleRAJKAMAL282
 
Topic 3 tools techniques of managing of receivables
Topic 3 tools techniques of managing of receivablesTopic 3 tools techniques of managing of receivables
Topic 3 tools techniques of managing of receivablesRAJKAMAL282
 
Topic 5 tools techniques of managing of cash
Topic 5 tools techniques of managing of cashTopic 5 tools techniques of managing of cash
Topic 5 tools techniques of managing of cashRAJKAMAL282
 
Cash management
Cash managementCash management
Cash managementSrinivas Methuku
 
Terms of sale decisions
Terms of sale decisionsTerms of sale decisions
Terms of sale decisionsFatima Khan
 
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...DINOLEONANDRI
 
Short term financial planning
Short term financial planningShort term financial planning
Short term financial planningBilal Ahmed Bhatti
 
Managing cash flows
Managing cash flowsManaging cash flows
Managing cash flowsFatima Khan
 
Cash is King
Cash is KingCash is King
Cash is KingMike Simpson FCCA
 
Cash and marketable securities management
Cash and marketable securities managementCash and marketable securities management
Cash and marketable securities managementMohammed Jasir PV
 
Working capital managememt
Working capital managememtWorking capital managememt
Working capital managememtJeay Issac
 
Meeting 4 - Cash management (Financial Management)
Meeting 4 - Cash management (Financial Management)Meeting 4 - Cash management (Financial Management)
Meeting 4 - Cash management (Financial Management)Albina Gaisina
 
Accounts receivable and inventory management
Accounts receivable and inventory managementAccounts receivable and inventory management
Accounts receivable and inventory managementluburtusi
 
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chain
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chainVIRIMAYI CHINYAMA -Managing cash capital fianancing supply chain
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chainVirimayi Chinyama
 
Cash forecasting
Cash forecastingCash forecasting
Cash forecastingFatima Khan
 
Finance AS Business full shebang
Finance AS Business full shebangFinance AS Business full shebang
Finance AS Business full shebangPatrick Rubix
 
Cash flow management
Cash flow managementCash flow management
Cash flow managementSGI Consultants
 
Cash and marketable securities management
Cash and marketable securities managementCash and marketable securities management
Cash and marketable securities managementNikhil Soares
 
Cash flow forecasting
Cash flow forecastingCash flow forecasting
Cash flow forecastingmrvhill
 
Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...
Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...
Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...Gradytl
 
Essential Elements of Global Compliance Programs
Essential Elements of Global Compliance ProgramsEssential Elements of Global Compliance Programs
Essential Elements of Global Compliance ProgramsEthisphere
 

Contenu connexe

Tendances

1 current assement management
1 current assement management1 current assement management
1 current assement managementDr.R. SELVAM
 
Topic 6 working capital cycle
Topic 6 working capital cycleTopic 6 working capital cycle
Topic 6 working capital cycleRAJKAMAL282
 
Topic 3 tools techniques of managing of receivables
Topic 3 tools techniques of managing of receivablesTopic 3 tools techniques of managing of receivables
Topic 3 tools techniques of managing of receivablesRAJKAMAL282
 
Topic 5 tools techniques of managing of cash
Topic 5 tools techniques of managing of cashTopic 5 tools techniques of managing of cash
Topic 5 tools techniques of managing of cashRAJKAMAL282
 
Terms of sale decisions
Terms of sale decisionsTerms of sale decisions
Terms of sale decisionsFatima Khan
 
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...DINOLEONANDRI
 
Managing cash flows
Managing cash flowsManaging cash flows
Managing cash flowsFatima Khan
 
Cash and marketable securities management
Cash and marketable securities managementCash and marketable securities management
Cash and marketable securities managementMohammed Jasir PV
 
Working capital managememt
Working capital managememtWorking capital managememt
Working capital managememtJeay Issac
 
Meeting 4 - Cash management (Financial Management)
Meeting 4 - Cash management (Financial Management)Meeting 4 - Cash management (Financial Management)
Meeting 4 - Cash management (Financial Management)Albina Gaisina
 
Accounts receivable and inventory management
Accounts receivable and inventory managementAccounts receivable and inventory management
Accounts receivable and inventory managementluburtusi
 
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chain
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chainVIRIMAYI CHINYAMA -Managing cash capital fianancing supply chain
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chainVirimayi Chinyama
 
Cash forecasting
Cash forecastingCash forecasting
Cash forecastingFatima Khan
 
Finance AS Business full shebang
Finance AS Business full shebangFinance AS Business full shebang
Finance AS Business full shebangPatrick Rubix
 
Cash and marketable securities management
Cash and marketable securities managementCash and marketable securities management
Cash and marketable securities managementNikhil Soares
 
Cash flow forecasting
Cash flow forecastingCash flow forecasting
Cash flow forecastingmrvhill
 

Tendances (20)

1 current assement management
1 current assement management1 current assement management
1 current assement management
 
Topic 6 working capital cycle
Topic 6 working capital cycleTopic 6 working capital cycle
Topic 6 working capital cycle
 
Topic 3 tools techniques of managing of receivables
Topic 3 tools techniques of managing of receivablesTopic 3 tools techniques of managing of receivables
Topic 3 tools techniques of managing of receivables
 
Topic 5 tools techniques of managing of cash
Topic 5 tools techniques of managing of cashTopic 5 tools techniques of managing of cash
Topic 5 tools techniques of managing of cash
 
Cash management
Cash managementCash management
Cash management
 
Terms of sale decisions
Terms of sale decisionsTerms of sale decisions
Terms of sale decisions
 
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...
 
Short term financial planning
Short term financial planningShort term financial planning
Short term financial planning
 
Managing cash flows
Managing cash flowsManaging cash flows
Managing cash flows
 
Cash is King
Cash is KingCash is King
Cash is King
 
Cash and marketable securities management
Cash and marketable securities managementCash and marketable securities management
Cash and marketable securities management
 
Working capital managememt
Working capital managememtWorking capital managememt
Working capital managememt
 
Meeting 4 - Cash management (Financial Management)
Meeting 4 - Cash management (Financial Management)Meeting 4 - Cash management (Financial Management)
Meeting 4 - Cash management (Financial Management)
 
Accounts receivable and inventory management
Accounts receivable and inventory managementAccounts receivable and inventory management
Accounts receivable and inventory management
 
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chain
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chainVIRIMAYI CHINYAMA -Managing cash capital fianancing supply chain
VIRIMAYI CHINYAMA -Managing cash capital fianancing supply chain
 
Cash forecasting
Cash forecastingCash forecasting
Cash forecasting
 
Finance AS Business full shebang
Finance AS Business full shebangFinance AS Business full shebang
Finance AS Business full shebang
 
Cash flow management
Cash flow managementCash flow management
Cash flow management
 
Cash and marketable securities management
Cash and marketable securities managementCash and marketable securities management
Cash and marketable securities management
 
Cash flow forecasting
Cash flow forecastingCash flow forecasting
Cash flow forecasting
 

En vedette

Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...
Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...
Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...Gradytl
 
Essential Elements of Global Compliance Programs
Essential Elements of Global Compliance ProgramsEssential Elements of Global Compliance Programs
Essential Elements of Global Compliance ProgramsEthisphere
 
Take steps to increase HR Compliance and stay Competitive
Take steps to increase HR Compliance and stay CompetitiveTake steps to increase HR Compliance and stay Competitive
Take steps to increase HR Compliance and stay CompetitiveVerde Ventures Pvt. Ltd.
 
HR Business Partner: Roles and Responsibilities
HR Business Partner: Roles and ResponsibilitiesHR Business Partner: Roles and Responsibilities
HR Business Partner: Roles and ResponsibilitiesCreativeHRM
 
David Ulrich's HR Model
David Ulrich's HR ModelDavid Ulrich's HR Model
David Ulrich's HR ModelCreativeHRM
 

En vedette (6)

Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...
Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...
Whitepaper: How to Avoid 15 Common Pitfalls that Undermine Workplace Investig...
 
Essential Elements of Global Compliance Programs
Essential Elements of Global Compliance ProgramsEssential Elements of Global Compliance Programs
Essential Elements of Global Compliance Programs
 
The Airbus 380
The Airbus 380The Airbus 380
The Airbus 380
 
Take steps to increase HR Compliance and stay Competitive
Take steps to increase HR Compliance and stay CompetitiveTake steps to increase HR Compliance and stay Competitive
Take steps to increase HR Compliance and stay Competitive
 
HR Business Partner: Roles and Responsibilities
HR Business Partner: Roles and ResponsibilitiesHR Business Partner: Roles and Responsibilities
HR Business Partner: Roles and Responsibilities
 
David Ulrich's HR Model
David Ulrich's HR ModelDavid Ulrich's HR Model
David Ulrich's HR Model
 

Similaire à Aqa bus2-improvingcashflow

Working Capital Management And Cash Flow Analysis 06.07
Working Capital Management And Cash Flow Analysis 06.07Working Capital Management And Cash Flow Analysis 06.07
Working Capital Management And Cash Flow Analysis 06.07Ketoki
 
Finance - Improving Cash Flow
Finance - Improving Cash FlowFinance - Improving Cash Flow
Finance - Improving Cash Flowtutor2u
 
Business Cash flows Zimsec
Business Cash flows ZimsecBusiness Cash flows Zimsec
Business Cash flows Zimsecalproelearning
 
Chapter 3 working capital management 3
Chapter 3 working capital management 3Chapter 3 working capital management 3
Chapter 3 working capital management 3SamsonJohn14
 
Corality - Cash flow management for critical decision making
Corality - Cash flow management for critical decision makingCorality - Cash flow management for critical decision making
Corality - Cash flow management for critical decision makingcorality
 
Chapter 7 Powerpoint 97
Chapter 7 Powerpoint 97Chapter 7 Powerpoint 97
Chapter 7 Powerpoint 97herbison
 
Cf Working Capital 9
Cf Working Capital 9Cf Working Capital 9
Cf Working Capital 9rajeevgupta
 
Different Sources of financing Businesses.ppt
Different Sources of financing Businesses.pptDifferent Sources of financing Businesses.ppt
Different Sources of financing Businesses.pptAnshika865276
 
working capital management FM2CHAPTER 2 (3).ppt
working capital management FM2CHAPTER 2 (3).pptworking capital management FM2CHAPTER 2 (3).ppt
working capital management FM2CHAPTER 2 (3).ppttekalign24
 
Topic 6 Curren Asset Management
Topic 6 Curren Asset ManagementTopic 6 Curren Asset Management
Topic 6 Curren Asset Managementshengvn
 
Chapter 15 The Management Of Working Capital
Chapter 15 The Management Of Working CapitalChapter 15 The Management Of Working Capital
Chapter 15 The Management Of Working CapitalAlamgir Alwani
 
Cash flow forecasting & working capital
Cash flow forecasting & working capitalCash flow forecasting & working capital
Cash flow forecasting & working capitalbharvesh
 
Financial resources for new ventures
Financial resources for new venturesFinancial resources for new ventures
Financial resources for new venturesnanuandpankoo
 
Financial management by neelam akram
Financial management by neelam akramFinancial management by neelam akram
Financial management by neelam akrammianmohsinmumtazshb
 
Final working capital important
Final working capital importantFinal working capital important
Final working capital importantAnkit Naik
 

Similaire à Aqa bus2-improvingcashflow (20)

Icab lectures chapter 9, Business and Finance, ICAB
Icab lectures chapter 9, Business and Finance, ICABIcab lectures chapter 9, Business and Finance, ICAB
Icab lectures chapter 9, Business and Finance, ICAB
 
Working Capital Management And Cash Flow Analysis 06.07
Working Capital Management And Cash Flow Analysis 06.07Working Capital Management And Cash Flow Analysis 06.07
Working Capital Management And Cash Flow Analysis 06.07
 
Finance - Improving Cash Flow
Finance - Improving Cash FlowFinance - Improving Cash Flow
Finance - Improving Cash Flow
 
Business Cash flows Zimsec
Business Cash flows ZimsecBusiness Cash flows Zimsec
Business Cash flows Zimsec
 
Working Capital Mgt
Working Capital MgtWorking Capital Mgt
Working Capital Mgt
 
Chapter 3 working capital management 3
Chapter 3 working capital management 3Chapter 3 working capital management 3
Chapter 3 working capital management 3
 
Corality - Cash flow management for critical decision making
Corality - Cash flow management for critical decision makingCorality - Cash flow management for critical decision making
Corality - Cash flow management for critical decision making
 
Chapter 7 Powerpoint 97
Chapter 7 Powerpoint 97Chapter 7 Powerpoint 97
Chapter 7 Powerpoint 97
 
Sanjay kothari
Sanjay kothariSanjay kothari
Sanjay kothari
 
Cf Working Capital 9
Cf Working Capital 9Cf Working Capital 9
Cf Working Capital 9
 
Different Sources of financing Businesses.ppt
Different Sources of financing Businesses.pptDifferent Sources of financing Businesses.ppt
Different Sources of financing Businesses.ppt
 
working capital management FM2CHAPTER 2 (3).ppt
working capital management FM2CHAPTER 2 (3).pptworking capital management FM2CHAPTER 2 (3).ppt
working capital management FM2CHAPTER 2 (3).ppt
 
Topic 6 Curren Asset Management
Topic 6 Curren Asset ManagementTopic 6 Curren Asset Management
Topic 6 Curren Asset Management
 
Chapter 15 The Management Of Working Capital
Chapter 15 The Management Of Working CapitalChapter 15 The Management Of Working Capital
Chapter 15 The Management Of Working Capital
 
Cash flow forecasting & working capital
Cash flow forecasting & working capitalCash flow forecasting & working capital
Cash flow forecasting & working capital
 
Chapter 23.pptx
Chapter 23.pptxChapter 23.pptx
Chapter 23.pptx
 
Financial resources for new ventures
Financial resources for new venturesFinancial resources for new ventures
Financial resources for new ventures
 
Financial management by neelam akram
Financial management by neelam akramFinancial management by neelam akram
Financial management by neelam akram
 
Working Capital Management
Working Capital ManagementWorking Capital Management
Working Capital Management
 
Final working capital important
Final working capital importantFinal working capital important
Final working capital important
 

Plus de Peter Sammons

Planning and implementation issues
Planning and implementation issuesPlanning and implementation issues
Planning and implementation issuesPeter Sammons
 
Aqa bus2-effectivemarketing
Aqa bus2-effectivemarketingAqa bus2-effectivemarketing
Aqa bus2-effectivemarketingPeter Sammons
 
Aqa bus2-usingbudgets
Aqa bus2-usingbudgetsAqa bus2-usingbudgets
Aqa bus2-usingbudgetsPeter Sammons
 
Aqa bus2-peopleworkforceeffectiveness
Aqa bus2-peopleworkforceeffectivenessAqa bus2-peopleworkforceeffectiveness
Aqa bus2-peopleworkforceeffectivenessPeter Sammons
 
Aqa bus2-peopletraining
Aqa bus2-peopletrainingAqa bus2-peopletraining
Aqa bus2-peopletrainingPeter Sammons
 
Aqa bus2-peoplerecruitmentselection
Aqa bus2-peoplerecruitmentselectionAqa bus2-peoplerecruitmentselection
Aqa bus2-peoplerecruitmentselectionPeter Sammons
 
Aqa bus2-peopleorgstructure
Aqa bus2-peopleorgstructureAqa bus2-peopleorgstructure
Aqa bus2-peopleorgstructurePeter Sammons
 
Aqa bus2-peoplemotivation
Aqa bus2-peoplemotivationAqa bus2-peoplemotivation
Aqa bus2-peoplemotivationPeter Sammons
 
Aqa bus2-operationstechnology
Aqa bus2-operationstechnologyAqa bus2-operationstechnology
Aqa bus2-operationstechnologyPeter Sammons
 
Aqa bus2-measuringimprovingprofit
Aqa bus2-measuringimprovingprofitAqa bus2-measuringimprovingprofit
Aqa bus2-measuringimprovingprofitPeter Sammons
 
Aqa bus2-operationsdecisions
Aqa bus2-operationsdecisionsAqa bus2-operationsdecisions
Aqa bus2-operationsdecisionsPeter Sammons
 
Aqa bus2-marketingpromotion
Aqa bus2-marketingpromotionAqa bus2-marketingpromotion
Aqa bus2-marketingpromotionPeter Sammons
 
Aqa bus2-marketingplace
Aqa bus2-marketingplaceAqa bus2-marketingplace
Aqa bus2-marketingplacePeter Sammons
 
Aqa bus2-marketingmixintro
Aqa bus2-marketingmixintroAqa bus2-marketingmixintro
Aqa bus2-marketingmixintroPeter Sammons
 
Aqa bus2-marketingcompetitiveness
Aqa bus2-marketingcompetitivenessAqa bus2-marketingcompetitiveness
Aqa bus2-marketingcompetitivenessPeter Sammons
 
Aqa bus2-managingquality
Aqa bus2-managingqualityAqa bus2-managingquality
Aqa bus2-managingqualityPeter Sammons
 
Aqa bus2-effectivemarketing
Aqa bus2-effectivemarketingAqa bus2-effectivemarketing
Aqa bus2-effectivemarketingPeter Sammons
 

Plus de Peter Sammons (20)

Planning and implementation issues
Planning and implementation issuesPlanning and implementation issues
Planning and implementation issues
 
How to write a CV
How to write a CVHow to write a CV
How to write a CV
 
Ratios
RatiosRatios
Ratios
 
Promotion
PromotionPromotion
Promotion
 
Aqa bus2-effectivemarketing
Aqa bus2-effectivemarketingAqa bus2-effectivemarketing
Aqa bus2-effectivemarketing
 
Aqa bus2-usingbudgets
Aqa bus2-usingbudgetsAqa bus2-usingbudgets
Aqa bus2-usingbudgets
 
Aqa bus2-peopleworkforceeffectiveness
Aqa bus2-peopleworkforceeffectivenessAqa bus2-peopleworkforceeffectiveness
Aqa bus2-peopleworkforceeffectiveness
 
Aqa bus2-peopletraining
Aqa bus2-peopletrainingAqa bus2-peopletraining
Aqa bus2-peopletraining
 
Aqa bus2-peoplerecruitmentselection
Aqa bus2-peoplerecruitmentselectionAqa bus2-peoplerecruitmentselection
Aqa bus2-peoplerecruitmentselection
 
Aqa bus2-peopleorgstructure
Aqa bus2-peopleorgstructureAqa bus2-peopleorgstructure
Aqa bus2-peopleorgstructure
 
Aqa bus2-peoplemotivation
Aqa bus2-peoplemotivationAqa bus2-peoplemotivation
Aqa bus2-peoplemotivation
 
Aqa bus2-operationstechnology
Aqa bus2-operationstechnologyAqa bus2-operationstechnology
Aqa bus2-operationstechnology
 
Aqa bus2-measuringimprovingprofit
Aqa bus2-measuringimprovingprofitAqa bus2-measuringimprovingprofit
Aqa bus2-measuringimprovingprofit
 
Aqa bus2-operationsdecisions
Aqa bus2-operationsdecisionsAqa bus2-operationsdecisions
Aqa bus2-operationsdecisions
 
Aqa bus2-marketingpromotion
Aqa bus2-marketingpromotionAqa bus2-marketingpromotion
Aqa bus2-marketingpromotion
 
Aqa bus2-marketingplace
Aqa bus2-marketingplaceAqa bus2-marketingplace
Aqa bus2-marketingplace
 
Aqa bus2-marketingmixintro
Aqa bus2-marketingmixintroAqa bus2-marketingmixintro
Aqa bus2-marketingmixintro
 
Aqa bus2-marketingcompetitiveness
Aqa bus2-marketingcompetitivenessAqa bus2-marketingcompetitiveness
Aqa bus2-marketingcompetitiveness
 
Aqa bus2-managingquality
Aqa bus2-managingqualityAqa bus2-managingquality
Aqa bus2-managingquality
 
Aqa bus2-effectivemarketing
Aqa bus2-effectivemarketingAqa bus2-effectivemarketing
Aqa bus2-effectivemarketing
 

Dernier

INTRODUCTION TO CATHOLIC CHRISTOLOGY.pptx
INTRODUCTION TO CATHOLIC CHRISTOLOGY.pptxINTRODUCTION TO CATHOLIC CHRISTOLOGY.pptx
INTRODUCTION TO CATHOLIC CHRISTOLOGY.pptxHumphrey A Beña
 
Proudly South Africa powerpoint Thorisha.pptx
Proudly South Africa powerpoint Thorisha.pptxProudly South Africa powerpoint Thorisha.pptx
Proudly South Africa powerpoint Thorisha.pptxthorishapillay1
 
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...Nguyen Thanh Tu Collection
 
Earth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatEarth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatYousafMalik24
 
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdfAMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdfphamnguyenenglishnb
 
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdfInclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdfTechSoup
 
ANG SEKTOR NG agrikultura.pptx QUARTER 4
ANG SEKTOR NG agrikultura.pptx QUARTER 4ANG SEKTOR NG agrikultura.pptx QUARTER 4
ANG SEKTOR NG agrikultura.pptx QUARTER 4MiaBumagat1
 
FILIPINO PSYCHology sikolohiyang pilipino
FILIPINO PSYCHology sikolohiyang pilipinoFILIPINO PSYCHology sikolohiyang pilipino
FILIPINO PSYCHology sikolohiyang pilipinojohnmickonozaleda
 
Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxAshokKarra1
 
Choosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for ParentsChoosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for Parentsnavabharathschool99
 
Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Celine George
 
What is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPWhat is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPCeline George
 
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxiammrhaywood
 
ACC 2024 Chronicles. Cardiology. Exam.pdf
ACC 2024 Chronicles. Cardiology. Exam.pdfACC 2024 Chronicles. Cardiology. Exam.pdf
ACC 2024 Chronicles. Cardiology. Exam.pdfSpandanaRallapalli
 
USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...
USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...
USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...Postal Advocate Inc.
 
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptxAUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptxiammrhaywood
 
Science 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxScience 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxMaryGraceBautista27
 
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...JhezDiaz1
 

Dernier (20)

INTRODUCTION TO CATHOLIC CHRISTOLOGY.pptx
INTRODUCTION TO CATHOLIC CHRISTOLOGY.pptxINTRODUCTION TO CATHOLIC CHRISTOLOGY.pptx
INTRODUCTION TO CATHOLIC CHRISTOLOGY.pptx
 
FINALS_OF_LEFT_ON_C'N_EL_DORADO_2024.pptx
FINALS_OF_LEFT_ON_C'N_EL_DORADO_2024.pptxFINALS_OF_LEFT_ON_C'N_EL_DORADO_2024.pptx
FINALS_OF_LEFT_ON_C'N_EL_DORADO_2024.pptx
 
Proudly South Africa powerpoint Thorisha.pptx
Proudly South Africa powerpoint Thorisha.pptxProudly South Africa powerpoint Thorisha.pptx
Proudly South Africa powerpoint Thorisha.pptx
 
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
 
Earth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatEarth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice great
 
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdfAMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
 
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdfInclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
 
ANG SEKTOR NG agrikultura.pptx QUARTER 4
ANG SEKTOR NG agrikultura.pptx QUARTER 4ANG SEKTOR NG agrikultura.pptx QUARTER 4
ANG SEKTOR NG agrikultura.pptx QUARTER 4
 
FILIPINO PSYCHology sikolohiyang pilipino
FILIPINO PSYCHology sikolohiyang pilipinoFILIPINO PSYCHology sikolohiyang pilipino
FILIPINO PSYCHology sikolohiyang pilipino
 
Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptx
 
Choosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for ParentsChoosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for Parents
 
YOUVE_GOT_EMAIL_PRELIMS_EL_DORADO_2024.pptx
YOUVE_GOT_EMAIL_PRELIMS_EL_DORADO_2024.pptxYOUVE_GOT_EMAIL_PRELIMS_EL_DORADO_2024.pptx
YOUVE_GOT_EMAIL_PRELIMS_EL_DORADO_2024.pptx
 
Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17
 
What is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPWhat is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERP
 
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
 
ACC 2024 Chronicles. Cardiology. Exam.pdf
ACC 2024 Chronicles. Cardiology. Exam.pdfACC 2024 Chronicles. Cardiology. Exam.pdf
ACC 2024 Chronicles. Cardiology. Exam.pdf
 
USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...
USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...
USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...
 
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptxAUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
 
Science 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxScience 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptx
 
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
 

Aqa bus2-improvingcashflow

  • 2.
  • 3. A Reminder from Unit 1 Cash inflows Cash outflows Cash sales Payments to suppliers Receipts from trade debtors Wages and salaries Sale of fixed assets Payments for fixed assets Interest on bank balances Tax on profits Grants Interest on loans & overdrafts Loans from bank Dividends paid to shareholders Share capital invested Repayment of loans
  • 4. Why Businesses Need Cash Finance is needed for… Business Set-up Day-to-day trading (working capital) Growth
  • 5. A Typical Cash Flow Cycle Stocks ordered from supplier Production turns stocks into products Products sold to customers Customers pay for their purchases Stocks held until a customer is found Outflow - cash paid to suppliers & employees Inflow – cash paid by customers
  • 6.
  • 7. What is cash flow problem? When a business does not have enough cash to be able to pay its liabilities
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Overtrading (2) Cause Business expands its order book at a faster rate than access to working capital will sustain Symptoms Higher trade debtor figure Cash running out Withholding payments to suppliers Actions Reduce business activity – slow growth down Introduce new share capital to ease the strain Improve the management of working capital
  • 15.
  • 16.
  • 17. Handling Cash Flow Problems
  • 18.
  • 19.
  • 20. Managing Working Capital Stocks Debtors Creditors Focus on
  • 21. Improving working capital Debtors Amounts owed by customers Creditors Amounts owed to suppliers Stocks Cash tied up in stocks
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36. Bank overdraft v Bank loan Bank Overdraft Bank Loan Advantages Relatively easy to arrange Greater certainty of funding, provided terms of loan complied with Flexible – use as cash flow requires Lower interest rate than a bank overdraft Interest – only paid on the amount borrowed under the facility Appropriate method of financing fixed assets Not secured on assets of business Disadvantages Can be withdrawn at short notice Requires security (collateral) Interest charge varies with changes in interest rate Interest paid on full amount outstanding Higher interest rate than a bank loan Harder to arrange
  • 37.
  • 38.
  • 39. Test Your Understanding http://www.tutor2u.net/business/quiz/improvingcashflow/quiz.html