The working capital in your business is the net amount of liquid assets you have in the business, ie. those that can be converted into cash soon; certainly within the next quarter or so. To calculate your working capital, find your most recent balance sheet showing your assets, liabilities and net worth. Next, subtract your…
When you run your monthly Profit & Loss (P&L) report (you do run one, right?) do you find that both the dollar value and the profit percentage varies wildly and you start to doubt the accuracy of the report? If so, maybe it’s because you are not adjusting the figures to take account of Work…
It was sad to read in the NZ Herald today that a roading contractor wins an industry award one day and the next day is put into receivership. What’s up with that!? How could an obvious industry best practice operator get it so wrong? Also, how could the judges of the awards get it so…
At a recent finance and legal seminar I co-presented with Trina Lincoln (construction law specialist) one of the key topics of discussion and frustration by the builders present was securing the final payment on a project. Several builders recounted past issues of being strung out by owners at the end of a project, being asked…