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Topics covered:
• Experts on your team
• Understanding Income Statements for Woodworking
• Making use of the Balance Sheet for Management Tool
• Practical Money Management: Costing, Estimating,
Comparisons
• Cash Flow: Different from Profit and Most Important
• The AWI Cost of Doing Business Report
• How to talk with your Accountant and your Banker about
your business
Scott Nelson began his
career as a draftsman, and then moved into positions as an
estimator and project manager with Hoppe Mfg. Co., where he
was promoted to Executive Vice President. In 1984 he
purchased the Architectural Woodwork Division of the company
and renamed it Central Plains Millwork, Inc. Scott has been
involved with AWI for 25 years, serving as Treasurer and
President at the chapter and national levels. He has been
instrumental in shaping education programs for the
organization and has delivered many instructional seminars
and workshops.
Fastest 3 hours of your business
life. This abridged, intermediate level, AWI Education
Module covers: The Experts on your Team, Understanding
Income Statements for Woodworking Companies, Making Use of
the Balance sheet as a Management Tool, Practical Money
Management (Costing, Estimating Comparisons), Cash Flow
(different from profit and very important), How to Talk with
your Accountant and Banker about your Business and the AWI
Cost of Doing Business Report. Using a case study, Scott
tell you how to calculate wood manufacturing costs using
your own numbers.
Managing your balance sheet can
help your firm utilize its capital to benefit the
operations. Remember to be diligent in using long-term debt
to finance long-term assets and short-term debt to finance
short-term assets. It is very easy to start using
cash to fund smaller long-term
assets without even realizing it. Reviewing this on an
annual basis is important to keep your cash in the company.
Paying attention to your Inventory Turns, Receivable Turns
and Payable Turns can all improve your cash flow. Purchasing
material to mirror your production schedule and monitoring
the use of existing inventory will help increase the number
of times you turn over your inventory and lower your
inventory turn number. Keeping on top of all pay request
dates and requirements can greatly affect your receivable
turn number. And finally, some projects may require special
terms from suppliers which can help share the burden of cash
requirements. Spending a little time managing our balance
sheets can ease the pressure on our day to day operations. |
