CASHFLOW
Rules
Of
Your Company
1. We Follow Profit First Principle i.e. Revenue - Profit = Cost
2. Salary is always paid on time on a fixed day of month
3. Direct Salary, Rent and Interest on Loan is paid at time of payment of
Salary to staff.
4. We follow 4 Bank Account system
5. Inflow from Customer is preferred to be in Advance against proforma
Invoice, else maximum advance or against LC or PDC or reasonable
credit period as per Customer Registration form and approved
payments terms mentioned in it.
6. We make payment on a periodic basis, preferred is monthly else
fortnightly or weekly and not daily.
7. We don’t buy with Advance payment because of Strong Credibility
and reputation in financial dealing earned by our company. We buy as
per PO (Purchase Order System) with a maximum credit period (30
to 90 days) as per vendor registration form terms of payment.
8. We make risk free periodic payments like Electricity / telephones etc
through credit cards and clear credit card dues on time in a single
outflow in a month.
9. We create EPO (Expense Purchase Order) for all expenses other
than periodic and petty cash.
10. Petty Cash is maintained for all petty cash expenses as per
automation sheet.
11. We Create Account payable ageing reports from Accounting
Software on a periodic basis.
12. We make online payments to vendors after uploading payment
details on the Bank portal and verified through the maker checker
process.
13.
Delegation Authority Matrix is implemented in our Company
14.
We Never Use Short Term Money in Long Term
15.
Keep Ideal Working Capital as per Business Model
16.
ROI - Keep track of it
17. We have no Policy for Loan to Employees for Car or Home Instead we have opened employee Bank Accounts for all credit
facilities directly by Bank.
18. We have Identified Essentials, Priority and Payables in Cash Flow
Model and following Cash Flow Model.
19. Board Members withdraw money from Business through Spl.
Voucher System only with pre-intimation
20.
Never run out of Cash Balance
21.
Know your Six Months Cash Balance
22.
Don’t operate from Bank Balance instead follow Cash Flow Model
23. We take care of our Customers in every situation and are aware of
pipeline concept.
24.
We Make More Money and Spent less than that
25.
We Make sure all incomes are accounted and banked
26. Make sure no unauthorised Purchases or Expenses are made
expect PO & EPO
27.
We Pay bill upto a past date in full
28.
We Make sure to pay bill in due date to increase CREDIBILITY
29. We understand that Credit is not Just Money. It’s Confidence and
Reliability and we protect it.
30. We Create Reserves as First Cushion and Keep Excellent
CREDIT as second Cushion. We Refuse to spend Reserves and
Make more money in need hours.
31. We understand, Survival of a Company depends on solvency and
Solvency depends on making more money than it spends.
32. We Don’t say we can’t buy because we have no money but say we
don’t need this at this moment. We have a PO system and financial
approval system
33. We Make lots of money and spend less. When a tax problem
comes, we consult a Tax Expert to plan ethically.
34.
We understand Money is Important
35. We understand the real purpose of business is to add value in life
of people.