Cash Flow Management Part 3

file2761263244943The final item relating to cash flow management is the relationship that you have with your banker. Why is this applicable to cash flow management? [Read more…]

Cash Flow Management Part 2

file2461263253373The second component in the management of cash flow is Accounts Payable. [Read more…]

Cash Flow Management Part 1


How do I improve my bottom line?

OLYMPUS DIGITAL CAMERAHow do I improve my bottom line is a frequent question that I am asked and one that every business owner loses sleep over. When I am asked this question I purposely avoid answering it right away until I ask the business owner how they would do it. [Read more…]

Net Profit, Inc. Interim Accounting Services


What happens when your controller leaves your company?  We were hired to manage this interim crisis while our client was seeking a new controller.

We spent 6 weeks with the client, where we:

  1. Assisted in the recruitment of a new controller.
  2. Obtained the full co-operation of the resigning accountant to the extent that her work was documented and up to date.
  3. Ensured the smooth handover of duties and responsibilities to the new accountant.
  4. Provided support to ensure that the day-to-day functions of the accounting department were kept current.
  5. Managed the accounts receivable collections of the company.
  6. Managed the accounts payable duties  and acted for the client as its liaison with their outside accounting firm, banking loan officer, and legal advisors.

Net Profit, Inc. has experienced financial professionals who are able to assist you in an emergency situation. We are experienced, knowledgeable, and will provide the leadership needed to manage any business crisis.

Contact us for experienced crisis assistance at or visit our website at [Read more…]

Define A Winning Culture

Companies that are struggling usually have an ill-defined culture or no defined culture at all. At the heart of a company’s culture are the core values that a company embraces. These core values define the principles that the company believes in. They define what the company and its management team are about. The company should communicate to its employees what they are and the company’s commitment to them.  [Read more…]

How to manage a business crisis.

IMG_1230I don’t know about you, but in my business career I have been in the middle of several crisis situations. I can look at that fact two ways, either I have the worst luck or I have been fortunate enough to learn to navigate my way through many crisis situations. [Read more…]

Business Owners 2014 Survey/Net Profit, Inc.

IMG_1086 The survey says:

  • 1 out of 5 business owners don’t know how their sales growth or net profit compares to competitors
  • 35% of business owners don’t believe their marketing effectively supports their sales efforts
  • 35% of business owners have no plan for how to exit their business

The statements above were derived from a survey taken by small business owners in 2014. They are not surprising facts, but more importantly is the question, how do they fix the survey outcomes?

If you are a business owner and any or all of the statements apply to you and/or your business, contact us today and we will solve, answer and implement the solutions to the above statements or any other questions or concerns that you may have.

Net Profit, Inc. is a full service management/strategic consulting firm. We don’t just solve problems, we implement solutions to make managing your business more enjoyable.

Our initial one-hour consultation is free of charge, so what do you have to lose? Contact us at, or 330-620-2761.


Helping Companies Achieve Outstanding Results



When companies struggle with poor operational performance, it’s reflected in their financial performance:  stagnant or declining revenue and cash, as well as EBITDA and operating income that fail to meet expectations.  But addressing the problem is rarely easy.  It requires a combination of the knowledge of what to do, sufficient resources to get it done as well as the determination to ensure steady, sustained results are achieved.  When companies fall short in one or all areas, turn to Net Profit, Inc. for help.

We consider the entire product lifecycle and its supporting processes when addressing poor operational performance—from the time product developers are responding to market demand to when the end product ultimately reaches customers.  In doing so, we apply our operational expertise and resources to help companies substantially improve four key areas:

  • Operational Strategy:  We work with our client teams to develop a detailed operational strategy that defines the specific operational capabilities required for a company to effectively execute its business strategy.
  • Innovation and New Product Development:  We help develop solid business cases for where clients should invest their innovation resources, as well as build the processes needed to support pipeline and product portfolio management.
  • Supply Chain Excellence:  We identify specific opportunities and help clients implement changes across their supply chain organization.  We strengthen capabilities to enhance competitive advantage and improve overall operational efficiency.
  • Lean Consulting:  We apply Lean Manufacturing and Six Sigma principles to create a more efficient operation that yields sustained improvement in cost and quality.

Addressing the complex issues that can erode operational performance is one of the biggest—and most important—challenges companies face today.  Net Profit, Inc. can be a valuable partner in optimizing the contributions a company’s operations make to the top and bottom lines.

To get started on achieving outstanding results, contact us today. We will improve your operational performance.

Managing Cash Flow Part 1

Cash Flow graphic-representation-of-supportand the management of it are the keys to running a successful business. Not understanding what the definition of cash flow will lead to many sleepless nights.

Cash flow is not the same thing as gross profit or net profit. However, many business owners often mistake cash flow for these two terms. There are several components which go into managing and understanding cash flow.

They are:

  • Cash on hand in the business operating account.
  • Accounts Receivable.
  • Accounts Payable, both trade and operating.
  • Purchase orders to be placed.
  • Purchase orders placed but yet to be received, awaiting for receipt and an accounts payable invoice.
  • Purchase orders placed and received, awaiting for an accounts payable invoice.

The first three items above are or should be available on individual reports, while the last three are or should be available through a purchasing system.

When I have either run a company or consulted with one, I have always had these reports with me. They are not voluminous reports and are easy to navigate and calculate the key numbers needed to put together a cash flow forecast.

There are a couple of other components needed, payroll and the associated withholding taxes and  benefits. Plus any items not entered through the Accounts Payable module should you have any of these items.

Once you have a system for managing the above items in place, it is fairly easy to manage and pull the information that you need to accomplish you goal of managing cash flow.

I used this process and system to manage several companies, a non-profit being one of those, where cash flow is non-existent or uncertain at best. This system enabled me to monitor and plan who needed to be paid and when we should expect money to come in to cover expenditures. Reading or simply looking at the above, may seem complicated, but I am a simple person and I have used this information successfully for years. It is simply getting in the habit of using it and then it will become second nature.

By using this process, it will enable you to prioritize who is getting paid and what amount you are paying them.

There should be a system and procedure in place for managing accounts receivable. Once an account moves to another aging column, your ability to collect this amount decreases. Additionally, considerable time will be involved, which is a hidden expense, in collecting overdue amounts. If customers are not paying in a timely basis, communicate on a regular basis with each of them and prepare a call sheet for each account to memorialize each conversation. If it is appropriate, set them up on a payment schedule to enable you to collect some money at regular intervals. Remember, constant communication is imperative.

In the next post, I will review accounts payable and the techniques involved in managing this component of cash flow.

For more information, please contact us at 330-620-2761 or visit our website at