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This eBook is not about dreams or rags to riches. What we would like to share with you is a heartfelt, very firmly held vi...
Cont ent s Chapt er 1 ............................................................................................. Page 3...
Chapt er 1 Int roduct ion Most accountants, financial and business people tend to focus on the results of a business. This...
Chapt er 2 A  100,000 reason t o read t his book  On the next page you will see a diagram showing an example of a business...
1 5    Copyr igh t CFOon Call.com .au by CAD Par t n er s Pt y Lt d  www.CFOonCall.com.au
Chapt er 3 The Seven Key Numbers - How t hey work  The numbers we re about to discuss are  Financial Drivers rather than  ...
Chapt er 4 Key Number 1  Revenue Growt h Percent age   See how to calculate this number in Chapter 11.  Business owners fo...
If the other numbers aren t well managed, revenue growth will just exacerbate cash-flow issues. If it s not a good situati...
Depending on the terms you get from suppliers you may have to pay for that stock after 30 days   which means you have 30 d...
A lot happens to cash on its journey from the sale to your bank account. If you are planning to grow your business, obviou...
Chapt er 5 Key Number 2  Price Change Percent age   This means the percentage increase or decrease of the price, at which ...
There s no reason why most other business don t do the same. And it s not necessary to announce it to the world, as you se...
Discount ing Traps You may be discounting some products or services in order to attract business for other more profitable...
Seven ways t o achieve a Price Increase and when t o do it   1. Best cust omer service  Provide the best possible customer...
Chapt er 6 Key Number 3  Cost of Goods Sol d   See how to calculate this number in Chapter 11.  Percentages tell you much ...
Many business owners focus a lot of attention on Revenue, but a small reduction in COGS  can have as much impact on Gross ...
There are generally two types of costs in business, being Direct Costs or COGS  Cost of Goods Sold  and Indirect Costs or ...
COGS are often the most sensitive of the  Key Financial Numbers in relation to both profit and cash flow results. It s pos...
Budgeting for COGS will help you monitor profitability. COGS can very easily  creep up without you realising it. These inc...
6. Exchange rat es  Lock in good exchange rates with forward cover on foreign currencies. 7. Manage your margins  Regularl...
Chapt er 7 Key Number 4  Overheads Percent age See how to calculate this number in Chapter 11.  Many business owners focus...
The point is, that it s taking up more resources to make the same amount of profit in the second scenario and undoubtedly ...
It s obvious why you would want to decrease your overheads, but it s sometimes overlooked how big an impact this can have ...
8. Use  Purchase Orders . Don t allow staff to spend money unchecked. You could save thousands of dollars by stopping spen...
Chapt er 8 Key Number 5  Account s Receivabl e Days See how to calculate this number in Chapter11.  Also called Debtor Day...
Here are nine ways t o speed up cust omer payment s  1. Creat e a t erms of business document   Ensure you have clear and ...
8. Progress Payment s  Seek progress payments or deposits, if it s a job that takes a while. 9. Get t ough  Don t write of...
Chapt er 9 Key Number 6  Days Payabl e See how to calculate this number in Chapter 11.  This is the number of days, on ave...
These are eight ways t o get t he most f rom your suppl ier credit t erms  1. Syst emise paying suppl iers  Have a routine...
Chapt er 10 Key Number 7  Days Invent ory or Work In Progress See how to calculate this number in Chapter 11.  This is the...
Here are el even  11  ways t o reduce t he number of days st ock sit s on t he shel f wait ing t o be sol d  1. St ock sys...
We ve al so compil ed t en  10  ways t o reduce t he t ime jobs are in progress cost ing you money  1. Job management syst...
10. Job management syst em  Use a job management system to keep information easy to access and provide information for imp...
Chapt er 11 How t o Cal cul at e t he 7 Key Numbers  1. Revenue Growt h Percent age This is the percentage by which revenu...
3. Overheads Percent age This is the percentage of Overheads compared to Revenue. Example   4. Account s Receivabl e Days ...
5. Account s Payabl e Days This is the average number of days, it takes you to pay your suppliers. Are you paying too soon...
7. Work In Progress Days This is the average number of days jobs are in progress prior to being invoiced. Example   1 37  ...
Chapt er 12 About t he aut hors   CFO On-Cal l Sue Hirst and Stuart Frost are a husband and wife team who in 1991 founded ...
In it s years since inception, the company has helped over 20,000 clients, set up systems, reduce cash wastage, improve ca...
All CFO On-Call people are qualified management accountants from bigger businesses, but unlike most tax accountants, they ...
Fourt h Edit ion  Intended as a guide for small businesses in Australia and New Zealand First Printed in Australia    2010...