My cash flow handbook is live! What I missed? | Bojan Radojicic posted on the topic | LinkedIn (2024)

What is the minimum level of sales or units needed to cover all costs to be on "zero"?We use a break-even analysis to follow this.💡 𝗪𝗵𝘆 𝗜𝘁'𝘀 𝗖𝗿𝘂𝗰𝗶𝗮𝗹: This analysis helps in making informed decisions about pricing, cost control, and budgeting. It's about finding the perfect balance!🔍 𝗗𝗶𝗴𝗴𝗶𝗻𝗴 𝗗𝗲𝗲𝗽𝗲𝗿: It's not just about reaching zero; it's a roadmap for profit. Understanding your break-even point guides strategic planning and investment decisions.📊 𝗗𝘆𝗻𝗮𝗺𝗶𝗰 𝗧𝗼𝗼𝗹: Market changes? No problem. Regularly revisiting your break-even analysis adapts your strategy to new realities, keeping your business agile and forward-focused.𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝗸𝗲𝘆 𝗳𝗼𝗿𝗺𝘂𝗹𝗮𝘀 𝗶𝗻 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗯𝗿𝗲𝗮𝗸𝗲𝘃𝗲𝗻 𝗽𝗼𝗶𝗻𝘁:→ Contribution profit = Revenue – Variable costs → Contribution margin =Contribution profit/ RevenueX 100→ Breakeven point =Contribution margin / Fixed costs______________________📌 This analysis on only one part of 11th lesson of second module of my Corporate Finance Masterclass. Check the others here: 👉 https://lnkd.in/dZwwg6Wj✔ 𝟲𝗵+ of Video Materials (35 Lessons in 5 Modules)✔ 𝟱𝟬+ Finance Models in Excel✔ 𝟯𝟯𝟬+ Pages of Instructions in PDF✔ 𝟯𝟬+ Bonus Materials✔ 𝟭𝟬+ Languages subtitle

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What is the minimum level of sales or units needed to cover all costs to be on "zero"?We use a break-even analysis to follow this.💡 𝗪𝗵𝘆 𝗜𝘁'𝘀 𝗖𝗿𝘂𝗰𝗶𝗮𝗹: This analysis helps in making informed decisions about pricing, cost control, and budgeting. It's about finding the perfect balance!🔍 𝗗𝗶𝗴𝗴𝗶𝗻𝗴 𝗗𝗲𝗲𝗽𝗲𝗿: It's not just about reaching zero; it's a roadmap for profit. Understanding your break-even point guides strategic planning and investment decisions.📊 𝗗𝘆𝗻𝗮𝗺𝗶𝗰 𝗧𝗼𝗼𝗹: Market changes? No problem. Regularly revisiting your break-even analysis adapts your strategy to new realities, keeping your business agile and forward-focused.𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝗸𝗲𝘆 𝗳𝗼𝗿𝗺𝘂𝗹𝗮𝘀 𝗶𝗻 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵𝗶𝗻𝗴 𝗯𝗿𝗲𝗮𝗸𝗲𝘃𝗲𝗻 𝗽𝗼𝗶𝗻𝘁:→ Contribution profit = Revenue – Variable costs → Contribution margin =Contribution profit/ RevenueX 100→ Breakeven point =Contribution margin / Fixed costs

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How do you manage uncertainty in cash flow budgeting?➣ Use What-if analysis➣ Create different scenarios➣ Model the impact of those scenarios on the business's cash flow➣ Evaluate various options and make informed decisions about resource allocation✨ Creating and modeling scenarios helps you spot risks and opportunities, allowing you to plan accordingly. ✨To use what-if analysis effectively, you should: → Know your cash flow drivers.→ Use realistic assumptions.→ Be comprehensive andconsider all of the potential impacts on your cash flow→ Update your model regularly.→ Build a cash reserve and contingency plan.→ Use tools and techniques to improve your cash flow projections.✨Happy budgeting!✨#Fractioncfo #accountingandaccountant #budgeting #finance

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How valuable would it be to your business to see an actual monthly cashflow forecast? If you're watching your competitors accelerate at an unprecedented rate, you'll also realise that static planning with manual spreadsheets just doesn't cut it anymore. That outdated approach creates risk and eats up otherwise productive time. Rescuing your budgeting, planning, and forecasting from slow and painful manual processes is what companies are prioritising more every year.To stay in the game and keep up with your competitors, you need to be able to analyse real-time financial, sales, and operational data while continuously applying what you learn to improve your planning. Imagine having more time and more knowledge to make real-time decisions?bit.ly/partners_planful #Futureoffinance #Financialforecasting #planful #cashflow

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" The Cash Flow Cheat SheetBecause Cash is King.🎯𝐇𝐞𝐥𝐩 𝐦𝐞 𝐬𝐩𝐫𝐞𝐚𝐝 𝐭𝐡𝐞 𝐤𝐧𝐨𝐰𝐥𝐞𝐝𝐠𝐞 𝐰𝐢𝐭𝐡 𝐭𝐡𝐢𝐬 𝐅𝐫𝐞𝐞 𝐂𝐡𝐞𝐚𝐭 𝐒𝐡𝐞𝐞𝐭: 𝐥𝐢𝐤𝐞, 𝐬𝐡𝐚𝐫𝐞 𝐚𝐧𝐝 𝐜𝐨𝐦𝐦𝐞𝐧𝐭!𝐖𝐚𝐧𝐭 𝐭𝐡𝐞 𝐅𝐫𝐞𝐞 𝐏𝐃𝐅?👉 𝐋𝐢𝐤𝐞 𝐚𝐧𝐝 𝐜𝐨𝐦𝐦𝐞𝐧𝐭 𝐭𝐨 𝐠𝐞𝐭 𝐭𝐡𝐞 𝐝𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐥𝐢𝐧𝐤.Cash Flow intelligence is critical for business success.♦️ It helps you identify potential cash shortfalls.♦️ It helps you take proactive measures to address them.♦️ It helps you strategically manage cash flow to support long-term goals.♦️ It helps you avoid insolvency and financial distress.👉 𝐇𝐞𝐫𝐞 𝐢𝐬 𝐰𝐡𝐚𝐭 𝐓𝐡𝐞 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐂𝐡𝐞𝐚𝐭 𝐒𝐡𝐞𝐞𝐭 𝐢𝐧𝐜𝐥𝐮𝐝𝐞𝐬:🎯 The 5 Types of Cash Flows compared, with their components🎯 The Direct vs. Indirect Cash Flow comparison🎯 10 critical Cash Flow Ratios from which to choose your KPIs🎯 The Cash Conversion Cycle Diagram + Formula🎯 The 3 Main Cash Flow Drivers and 30 Subdrivers🎯 The difference between EBITDA and (Operating) Cash Flow🎯 The 5 Steps to Manage your Cash Flow🎯 The Cash Inflows and Outflows🎯 The relevant and incremental Cash Flows in Capital Budgeting🎯 The 16 Cash Flow Mistakes to Avoid🎯 The Cash Flow Story Waterfall🎯 The 15 Benefits of Effective Cash Flow ManagementUse this Cheat Sheet to improve your cash flow knowledge.And help others to the same.👉👉👉𝐇𝐞𝐥𝐩 𝐦𝐞 𝐬𝐩𝐫𝐞𝐚𝐝 𝐦𝐲 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐂𝐡𝐞𝐚𝐭 𝐒𝐡𝐞𝐞𝐭: 𝐋𝐢𝐤𝐞, 𝐒𝐡𝐚𝐫𝐞 𝐚𝐧𝐝 𝐂𝐨𝐦𝐦𝐞𝐧𝐭! " --Source : https://lnkd.in/dM7FMRsu

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🚀 Unlock the Secrets of Cash Flow Control with Our Free Report! 📈Cash flow is the lifeblood of every business, and it's time to master it! As a #businessowner, you understand the importance of having a strong grip on your financials. That's why we're excited to share our latest report with you:🔑 "Mastering Cash Flow Control: Secrets from a CFO Every Business Owner Needs to Know!" 🔑In this comprehensive report, we dive deep into the essential strategies and tactics that are critical for achieving mastery over your business's cash flow.It's not just about balancing the books; it's about ensuring your business has the liquidity it needs to seize opportunities and weather any storms that come your way.💡 What's inside:Cash Flow Forecasting Streamlining Accounts ReceivableEfficient Accounts Payable ManagementInventory Optimisation StrategiesContingency Planning: Safeguarding Cash FlowReady to improve your cash flow management skills? Click the link below to download your free report now:📥 https://lnkd.in/gcp_bFrV 📥#businessowners #outsourcedcfo #cashflowmanagement

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Great summary of cash flow.

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Cash is NOT Enough.Cash Flow is the Difference Maker!P.S. EBITDA is not Cash, just in case you thought it was. That’s yet another story!A good read from Oana Labbes. Take a look at her “Cash Flow Cheat Sheet”. Cash Strategies are critical in todays ever changing environment of Volatility, Uncertainty, Complexity, and Ambiguity. Now add the Speed of Change in our world today, and Cash Flow (short and long term) becomes a key part of Survival itself. Remember, “Wisdom is the Proper Application of Data and Knowledge”.Be Cash Wise. It Matters!#ThoughtThinkers4You

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Here are some Financial KPIs ⬇️Cash Flow is Key❗️Focusing on Cash Flow should be a priority for all companies, especially for the ones in a growth phase. Controlling it very carefully will allow you to avoid some common mistakes mentioned below, prepare an accurate forecast and anticipate to stay ahead of what is next.Recommended to read it!

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