What is “control” bank reconciliation and why is it not enough to do it accounting-wise?
It’s not just about balancing amounts, it’s about identifying recurring charges, commissions, duplicates and patterns, that’s where small leaks appear that add up to a lot over the year.
Why is it advisable to calculate margin by channel, not just globally?
Because one channel may be profitable while another destroys cash flow (returns, commissions, logistics), without separating by channel, the average deceives you.
What does margin quality say, beyond the percentage?
If your margin depends on one-off “extras”, emergencies or non-repeatable work, your margin is fragile, seek recurring margin
How to know if an early payment discount is worth it?
Convert the discount into an annualized cost, if they ask you for 2 percent to collect 60 days earlier, it may be equivalent to a high rate
Why does the APR matter more than the nominal rate?
Because the APR includes fees and payment frequency, and allows you to compare two different offers with a real measure of cost.
What is the maturity schedule and what does it prevent?
It is a payment calendar by week or month (debt, taxes, rent). Avoid the “trap month” when everything is due at once
Why separate “operating cash” from “reserve cash”?
Because day-to-day cash flow should not be mixed with the cushion. If you separate accounts or sub-accounts, you reduce the risk of eating into your reserve…
What is the cost of serving, and what decision unlocks it?
It is what it costs to serve a customer, including deliveries, incidents, returns, and internal hours. When you calculate it, you discover customers…
Why is it important to measure customer concentration?
If 20 or 30 percent of your sales depend on 1 or 2 clients, a payment delay or a loss could break your cash flow
What is the safety margin and why does it protect you?
It is the distance between your actual sales and your break-even point. The greater it is, the more your company
