Minimize the Effects of a Recession on Your Business

• CHAPTER 1 - The Current State of the Economy
  • Learning Objectives
  • Introduction
  • Historical Recessions
  • Lessons for Companies
  • The Gross Domestic Product
  • Unemployment
  • The Personal Savings Rate
  • Housing and the Subprime Crisis
  • Need to Follow Economic Developments
  • Business Cycle Stages
    • Recession Stage
    • Trough Stage
    • Expansion/Recovery Stage
    • Peak Stage
  • Warning Signs of Difficult Times
  • Review Questions
  • Answers to Review Questions
• CHAPTER 2 - Planning
  • Learning Objectives
  • Introduction
  • Online Research
  • Drivers of Profitability
    • Product Pricing
    • Production Costs
    • Suppliers
    • Company Culture
    • Policies and Procedures
  • Profitability Techniques
  • Macro Tools
  • Policy and Procedure
  • Ratio Tools
  • Benchmarking
  • Increasing Revenue
  • Decreasing Expenses
  • Timeframes
  • Review Questions
  • Answers to Review Questions
• CHAPTER 3 - Planning Tools
  • Learning Objectives
  • Macro Tools for Profitability
    • Water Park Illustration
  • Dreams
  • Dream Examples
  • Vision
  • Business Plan
    • Business Plan Pitfalls
    • Business Plan Template
    • Business Plan Outline
  • Strategic Plan
  • Mission
  • Goals
  • Building the Right Team
  • Risk Management
    • Succession Planning
    • Contingency and Disaster Planning
    • Traditional Insurance and Risk Management
  • Review Questions
  • Answers to Review Questions
  • Appendix A: Questions for Preparing a Business Plan .
    • Statement of Purpose
    • The Business
  • Appendix B: Profitability Tools
    • Macro Tools
    • Increasing Revenue (or Improving the Revenue Cycle)
    • Decreasing Expenses
    • Ratio Tools
    • Benchmarking
    • Policy and Procedure
    • Other
• CHAPTER 4 - How to Prevent the Business From Having a Financial Heart Attack
  • Learning Objectives
  • Introduction
  • Why Businesses Fail
  • Characteristics of a Successful Business
  • Business in Trouble: Cash and Profitability
  • Tools for Cash and Profitability
    • Days Cash on Hand
    • Altman Z-Score
  • Turnaround Process Steps
    • Step 1 - Raise Cash
    • Step 2 - Raise Prices
    • Step 3 - Discontinue Unprofitable Products and Product Lines
    • Step 4 - Reduce Expenses
  • Cost Reduction Strategies
    • Cost Reduction Categories
    • Essentials of a Cost Reduction Program
  • Review Questions
  • Answers to Review Questions
• CHAPTER 5 - Working Capital Management - Part 1
  • Learning Objectives
  • Introduction
  • Components of Working Capital
  • Factors That Affect Working Capital Analysis
  • Changes in Net Worth
  • Changes in Long-Term Debt
  • Changes in Noncurrent Assets
  • Analysis of Working Capital Composition
  • Working Capital Best Practices
  • Cash Management Best Practices
    • Area-Concentration Banking
    • Consolidating Bank Accounts
    • Controlled Disbursements
    • Electronic Funds Transfer
    • Lockbox Collections
    • Online Access to Bank Account Information
    • Positive Pay System
    • Proliferate Petty-Cash Boxes
    • Use of an Investment Policy
    • Zero Balance Accounts
  • Accounts Receivable Best Practices
  • Adding Carrier Route Codes to Billing Addresses
  • Automatically Checking Errors During Invoice Data Entry
  • Computerizing the Shipping Log
  • Having the Delivery Person Create and Deliver the Invoice
  • Early Billing of Recurring Invoices
  • Eliminating Month-End Statements
  • Issuing Electronic Invoices through the Internet
  • Issuing Single Summarized Invoices Each Period
  • Offering Customers Secure Internet Payment Options
  • Printing Separate Invoices for Each Line Item
  • Reducing Number of Parts in Multi-Part Invoices
  • Replacing Intercompany Invoicing with Operating Transactions
  • Transmitting Transactions via Electronic Data Interchange (EDI)
    • Using Automated Bank Account Deductions
    • Accounts Receivable Collections Best Practices
    • Electronic Bankruptcy Notification and Portfolio Monitoring
    • Automatic Fax of Overdue Invoices
    • Automatic Issuance of Dunning Letters
    • Collection Call Database
    • Customer Order Exception Tracking
    • Grant Percentage Discounts for Early Payment
    • Immediate Review of Unapplied Cash
    • Lockbox Collections
    • Outsource Collections
    • Pre-Approved Customer Credit
    • Pricing Structure Simplification
    • Write Off Small Balances with No Approval
    • Inventory Best Practices
    • Auditing All Inventory Transactions
    • Eliminating the Physical Count Process
    • Eliminating the Receiving Function
    • Eliminating the Warehouse
    • Locking Down the Warehouse Area
    • Modifying the Bills of Material Based on Actual Scrap Levels
    • defined. Moving Inventory to Floor Stock
    • Reviewing Inventory Returned to the Warehouse
    • Streamlining the Physical Count Process
    • Tracking Inventory Accuracy
    • Auditing Bills of Material
    • Eliminating High-Leverage Overhead Allocation Bases
    • Eliminating Labor Variance Reporting
    • Following a Schedule of Inventory Obsolescence Reviews
    • Implementing Activity-Based Costing
    • Implementing Target Costing
    • Reviewing Cost Trends
    • Reviewing Material Scrap Levels
    • Revising Traditional Cost Accounting Reports
    • Review Questions
    • Answers to Review Questions
• CHAPTER 6 - Working Capital Management - Part 2
  • Learning Objectives
  • Accounts Payable Best Practices
    • Auditing Expense Reports
    • Automating Expense Reporting
    • Automating Payments for Repetitive Invoicing
    • Automating Three-Way Matching
    • Centralizing the Accounts Payable Function
    • Creating Direct Purchase Interfaces to Suppliers
    • Digitizing Accounts Payable Documents
    • Eliminating Manual Checks
    • Having Vendor/Suppliers Include Their Numbers on Invoices
    • defined. Issuing a Standard Account Code List to Reduce the Number of Accounts Used
    • Making All Expense Reimbursements to Employees through the Payroll System
    • Outsourcing the Accounts Payable Function
    • Reducing Required Approvals
    • Requesting That Suppliers Enter All Invoices through a Website
    • Shrinking the Supplier Base
    • Substituting Petty Cash for Checks
    • Substituting Wire Transfers for Checks
    • Using Blanket Purchase Orders
    • Using Procurement Cards
    • Using a Signature Stamp
    • In General
  • Tools to Understand and Manage Working Capital
    • Current Ratio
    • Quick Ratio
    • Calculation of Working Capital
    • Days Cash on Hand
    • Days Sales Outstanding
    • Days in Accounts Payable
    • Accounts Payable Turnover
    • Inventory Turnover
    • Ratio Analysis by Industry Code
  • Review Questions
  • Answers to Review Questions
• CHAPTER 7 - Communicating the Financial Situation to Employees and Others. Learning Objectives
  • Introduction
  • Communicating with Employees
  • Understanding the Company's Vision in Relation to the Job Performed
  • Participating in Training and in Implementing Quality Programs
  • Acting in a Way That Demonstrates Ownership (Real or Culturally)
  • Participating in Reward and Incentive Programs That Drive Appropriate Behavior
  • Receiving Empowerment from Senior Management
  • Communicating with Vendors and Suppliers
  • Communicating with Customers
  • Communicating with the Company's Team of Professionals
  • Communications in General
  • Review Questions
  • Answers to Review Questions
• CHAPTER 8 - Applying Lean Accounting in a Recessionary Environment
  • Learning Objectives
  • Introduction
    • Benefits
    • In General
  • Background
  • Principles of Lean
    • Value
    • Value Stream
    • Flow
    • Pull
    • Perfection
    • Waste - The Root of Lean
  • Overproduction
    • Inventory
    • Defects
    • Extra Processing
    • Waiting Time
    • Underused Employees
    • Motion
    • Transportation
    • Waste in the Accounting Function
  • Concepts of Lean
  • The Five Ss
    • Sort
    • Set in Order
    • Shine
    • Standardize
    • Sustain
    • Benefits
    • Kaizen
    • Kanban
  • Application of Lean to Accounting Departments
    • In General
    • Lean Data Collection - Eliminating Operational Transactions
    • Lean Performance Measurement
    • Cell Performance Measurements
    • Value Stream Performance Measurements
    • Product Costing
  • Review Questions
  • Answers to Review Questions
• CHAPTER 9 - Financing
  • Learning Objectives
  • Introduction
  • Major Financing Sources for Smaller Companies
    • Bank - Traditional Line of Credit
    • Asset-Based Lending
    • Factors
    • Venture Capital Groups
  • 5 Cs of Credit Worthiness
  • Understanding the Company's Line of Credit
  • Financial Relationship Tips
  • Suggestions on Negotiating Financing
  • Course Takeaway Comments
• Review Questions
• Answers to Review Questions
• Glossary
• Index
• Exam

182010