18 Terrace Review — Wednesday, J anuary 27, 1988 Business Beat’ Cash management takes foresight ‘“‘My business is profitable, but I can’t on time.’’ . “My profit and loss statement for the year looks good, but sometimes I have lots of cash and other times not a cent.” How many times have you heard this refrain? Or worse still, how many times have you said it to yourself? Don’t despair! From time to time even the most successful owner-managers find themselves strapped for cash. But good cash management techniques can help you avoid being caught in this troublesome pinch again. What Is Cash Management? When we talk about cash, we are referring to the money a business has on hand to be able to pay bills when they come due and cover any unexpected expenses that might arise. Cash management determines, as accurately as possible, what the cash balance should be. Cash management can be divided into two activities: regular controls and the cash flow forecast. Regular Cash Controls Each day your business handles a great deal of cash. At each point ensure you or your employees practice effective cash control. At the cash register make sure bills and register tapes are balanced on a regular basis. Cheques, including those which you may want to approve personally before they are honored, should be deposited with your bank as soon as possible. At the petty cash box ensure the designated reserve is always there either in cash or vouchers. Pay particular attention to withdrawals and employee advances. When dealing with you bank account always reconcile your record and the bank’s record of deposits and withdrawals. Also en- sure that your reconciliation provides for cheques written but which have not yet reached your bank. Once you have taken these basic steps and established ap- propriate internal control systems you should then turn your atten- tion to a cash flow forecast. - Forecasting Your Needs by Phil Hart! Manager, Terrace Federal Business Development Bank A well-prepared cash flow forecast will help you determine what. J your future'cash needs will be, when they will occur, arid where you will get the money to meet them. It is a straightforward document that illustrates the actual flow of cash into and out of your business for a period of time, usually six to twelve months. Prepared on a monthly basis, it is not cast in stone and should be revised as necessary to reflect changing circumstances. A cash flow shows all anticipated revenues: sales, payments on receivables; proceeds from loans; sale of assets; or any other tran- saction that will increase the amount of money in your business. Similarly, all transactions that reduce the level of cash should also be shown on your forecast: salaries; operating expenses; loan payments; asset purchases; inventory or raw material purchases. Seeing The Unforeseen The cash flow forecast is designed to give you carly warning signals that your business will not have sufficient cash on hand to meet its obligations at certain times of the year. It will also indicate periods of cash surplus. This warning will allow you to make the necessary arrangements with your banker for the required support or enable you to put your surplus cash to more effective use. Clearly cash is one of the most vital assets in your business. If you plan carefully you can make the most of this important resource. -New protection guidelines set B.C. Environment always find enough money to pay my bills . The provincial and federal governments have announced new guidelines to promote better forests and fisheries resource management on B.C.’s west coast. And according to Forests Minister Dave Parker, ‘‘These guidelines will be an important tool to help us obtain the best benefits from our two most valuable renewable resources.”’ Tom Siddon, Minister of . Fisheries and Oceans, explained that the agreement was necessary because ‘‘Thousands of hectares of forest, logged on . the British Columbia coast every year, have potential impact on streams that support millions of commercial and sport fish.’’ According to a joint press release, the guidelines define four types of streams, each associated with specific fish habitat and forest management objectives. and Parks Minister Bruce Strachan says the guidelines will enable forest managers and biologists to concentrate habitat protection efforts where they are most needed, The release stated that the guidelines were developed joint- ly by the two levels of govern- ment and, based on more than 15 years of research on the north coast, are intended to provide a common basis for improving the performance and effectiveness of fish habitat protection and coastal logging operations. Parker said, ‘‘Both the forest industry and the agencies responsible for the fisheries fully _ endorse the new system, and we are confident this approach will help protect fish habitat while maintaining timber harvesting Theatre Alive close to initial goal TERRACE — The Theatre Alive Society, dedicated to the technical improvement of equip- ment in School District 88’s REM Lee Theatre, is now near- ing its first goal: the completion of stage one upgrades. by Philip Musselman Through projects like the recently announced Battle of the Bands Concert, scheduled for Feb, 19 and 20 at 7 p.m. at the REM Lee Theatre, the group has been raising money to scrape together their half of the amount needed to complete the enhance- ment. started when the School District acquired a new light board.. The completion involves the purchase of a new dimmer system, The dimmer system represents the society’s first major goal. The current equipment has been integrated with the new light board, but a new improved system would enhance the visual quality of a lot of presentations. According to Tom Walker, a founding member and director of the Terrace Theatre Alive Society, the new dimmer system — will cost in the neighborhood of $35,000; part of which will be provided through a grant system if the group can come up with their half of the funding. Since the group’s introduction three years ago,’ $15,000 has been raised. The Battle of the Bands is :hoped to be the final show which will provide the re- mainder of the money needed to get the grant. Theatre Alive has about eight active members and several occasional members as well. Membership fees are $5 per. year. The REM Lee is the property of School District 88 and therefore a good half of the members of the society are in- volved -in education. After the® acquisition of the dimmer system the society will work on enhancing other equipment to provide the theatre with advanc- ed technical capabilities. The priority at the moment is the im- provement of visual and audio ‘equipment. Any new projects re- quire the endorsement of the membership, Since its introduction three ~ years ago, the Theatre’ Alive Society has sponsored and co- sponsored several successful shows including the recent Heaven’s to Betsy presentation in cooperation with the Terrace Little Theatre and the Terrace Community Band. Future shows will be decided by the society’s membership. Anyone interested in entering the Battle of the Bands contest or joining the Theatre Alive Society can call Tom Walker at 635-2101, delivered every week. For just $24 you don’t have to miss a single issue! - Subscribe A full year: $24.00 Two years: $45.00 now! Come Into aur office, or send a cheque or money order, to: Terrace Review 4535 Grelg Ave., Terrace, B.C. 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