This series is primarily concerned with the question "What is money?" It’s necessary that we at least have a general historical perspective of humanity’s relationship with money. We weren't always using rands and dollars. Money, just like technology, language and life itself, evolves. This blog looks at the traits of sound money, the birth of inflation, what happened in 1971 and where we go from here.
Money is a technology. It has evolved over millennia to facilitate exchanges of value between people, and to store that value over long periods of time to be used as and when the holder of that money sees fit. We’ve seen various iterations and manifestations of money over the years: shells, precious stones, glass beads, gold, and, most recently, government-issued “fiat” currency.
The Melting Ice Cube Series will attempt to explore the intricacies of the phenomenon of the loss of purchasing power of fiat currency during the first quarter of 2021, at a time when awareness of these larger global economic forces is more essential than ever before. Let's start our journey of inquiry together.
Key Performance Indicators do just what they say on the box; they indicate how well your business is performing in key areas. If we liken a business to a vehicle, KPIs are the dashboard. They can answer questions such as: How fast are we going? How much fuel is in the tank? Should we change gears? Just as you would check your car’s dashboard while you drive, so you should also keep an eye on your KPIs as a business.
It is common for one to go straight to the balance sheet to see what the bank balance was at month end, however, it does not necessarily tell you how it came in or went out during the month. Cash is the heartbeat of a business. A business requires cash to be able to pay its suppliers, vendors and employees, to be able to invest back into your own business so that you can grow. The cash flow statement is the final article in our management report series.
The balance sheet forms part of the management report pack that Creative CFO produces. Often, the balance sheet can be quite challenging to understand, so we have made it our mission to make it visually understandable. Every business owner wants to know that their balance sheet is looking good. But what exactly does this mean? Read part 3 of our 4 part series on management reports to find out.
The profit and loss statement (or P&L in accounting jargon) is arguably the central management statement for most SMEs, recording the majority of operational activities over any period of time, usually monthly. Ranging from the total revenue received to all the expenses incurred by the business over the period, the P&L is a treasure trove of information for any business owner. In part 2 of our 4 part series on management reports, we delve deeper into the profit and loss statement to find out why it is, undoubtedly, an essential statement for any business owner.
Management reports play a crucial role in weaving together the results of daily process, performance and reporting across all pillars of business. They present the big picture and provide the clarity that business owners need in an increasingly dynamic world. In this article, which is part 1 of a 4 part series, we introduce you to management reports and highlight the value that it adds to your business.