Critical aspects of correct estimation of your future charges:

Will define transmitters of expenses, such as direct expenses on raw material and materials, direct and indirect expenses on a personnel, and communal payments;

Found your assumptions and suppositions in relation to expenses on financial information for last periods, as they are the best starting point for activity preeminently of your company;

Be conservative at prognostication of levels of inflation for your basic reasons of expenses with that to provide some supply at prognostication of cash flow;

Integrate the results of analysis of rejections in your prognosis model of money facilities for avoidance of their repeated appearance;

Be conservative at development of chart of arranging for payments, as delays of payments from the side of your debtors become more credible, and the timeliness of your payments, de autre part, can become in crisis time yet more critically by an important factor in a construction and maintenance of trust to you.

Exemplary spreadsheet of cash flow

(it is in a file attached to the book) Attention, this table contains MACROS

Decline of expenses and financial management

This module examines the questions of maintenance of successful activity of enterprise in a medium-term prospect. Although some here measures are similar with measures, reflected in Module 1, the modules pursue different aims. Will remind that material of Module 1 was devoted maintenance of liquidity of company in a short-term plan in the conditions of crisis.

1 Take into account expenses, and them will become less than. It is sometimes possible to cut down expenses, simply beginning them to take into account. It is noticed, for example, that when a company begins to register the outgoing intertown and international bells of the employees on a date, time and purpose, the general amount of bells goes down due to diminishing of bells on the personal files of employees.

2 Do employees the like-minded persons. Will explain to the employees the necessity of the cost cutting. Give them to understand that you value their suggestions on cost effectiveness.

3 Classify the expenses on the degree of dependence on production volumes. Most systems of account are subdivided by expenses on permanent and variable. Variable expenses (raw material, direct labour expenses etc.) directly depend on the volume of the produced products. Permanent expenses (pay-envelope of managerial staff, on assignment charges, accounts for general energy-, тепло- and water-supply etc.), as a rule, do not depend on production volumes.

Some companies also classify variable expenses depending on that, as far as easily they succeed to be corrected, when production activity changes. For example, direct expenses on materials grow or fall, almost automatically reacting on the changes of production volumes. And direct labour expenses can be corrected, only if guidance will accept the proper measures (laying off a staff, reduction of pay-envelopes, et cetera). De autre part, expenses on the lease of apartment guidance scarcely it will be succeeded to shorten in reply to falling of production volumes.

4 Classify expenses depending on that, as far as they can be corrected easily, using alternative decisions.

5 Watch not only the structure of expenses but also reasons of origin of these expenses in a company. It will help you to undertake the necessary operating directly under liquidation of reasons of undesirable growth of expenses. So, if representative charges grow, usefully expressly to understand why employees spend money company in dear restaurants: because a company extends a client base actively, and the number of the signed contracts grows, or because control after the use of representative facilities is simply hyposthenic.