Your business’ cash flow statement is one of the most important financial documents you utilize as a business owner. Cash flow statements report the cash generated (income) and used (expenses) during a given time period, and categorizes those expenses as operating expenses, investing activities, and financing activities. Because it is a true indicator of a business’ cash inflow and outflow, your cash flow statement provides the best gauge of whether your business is financially healthy or headed for trouble. Either way, knowing is much better than not knowing, and with a timely cash flow statement in hand, a business owner can make the decisions required to course correct when necessary.
“Financial reports are the GPS for your business. The successful business owners I have dealt with are ones who stay on top of their numbers”, says Florida Business Broker. “A strong business owner is going to have financial goals for the year, some parameters for expenses, and be conducting regular reviews of their cash flow statement. How can you know how your business is doing unless you have timely financial information that you actually look at?!”
Set annual financial goals;
Stay on top of business cash flow with timely reports;
React quickly to financial changes; and
Understand the difference between cash flow and taxable income.
From a business broker’s point of view, a business’ cash flow statement plays a critical role in business valuation. It’s a warning sign when a business owner is asked for the financial information, and their response is to hand over three years of tax returns in unopened envelopes from their accountant, and they’ve never asked to receive interim cash flow statements that they review. This scenario is an example of a business that is running the owner, not an owner running their business. When your business is running you, all you can do is hope for the best and react. When you are running your business, you can plan. In order to have planned responses to financial changes – to be able to recalculate, reposition, track your margins, and know your expenses are not out of hand – you must get timely financial reports and review them carefully.
Not every business owner understands the importance of staying on track and having clear financial goals. Having all your bills paid up and a balance in your bank account is not staying on top of your business’ financial health. An owner who knows their numbers is always more successful than the owner who is just going through the motions, reacting when needed. That owner is not really in charge. It’s like riding a toboggan down a hill and hoping you don’t run into a rock, versus getting in a car and steering yourself where you want to go and around the rocks!
A successful business owner can say at any given time, “I have a goal of increasing my business 10% a year in both gross revenue and cash flow, here are my monthly reports of where we are, and here are the adjustments I have made to keep us on track to meet our goals.”
Set measurable annual goals.
Having clear, annual goals are the foundation of business success. Before the start of a new year, it makes sense to look at last year to see how your business has been doing. Look at areas that need improvement, what expenses can be reduced. Maybe the business is growing and will need the added expense of additional staff or new equipment. A goal might be paying yourself more (“I want to make a six-figure income”), so what do you need to do to get there? What do you want to do revenue-wise, what do you want to do income-wise, is expansion desired? Are there major investments in the business necessary? You can’t pick numbers out of the air, so you need timely financial reports to show you where your money went over the last year.
Throughout the year, preferably monthly but certainly quarterly, carefully review the financials via the cash flow statement, and compare them to the goals that are set and make course corrections as necessary. This makes things so much easier – you may not be on target, but you will eliminate more costly expenses from burying your head in the sand!
Monthly financial reports save time and money.
People get overwhelmed with financial management, leaving everything to someone else because they don’t like dealing with it, or perhaps they don’t really understand it so it’s human nature to avoid these things. However, if we break it down, business financials are a lot simpler than they may look at the outset. A simple spreadsheet detailing income and expenses can go a long way to organizing money in and money going out, and software programs like QuickBooks are affordable and handy because you just need to plug your numbers in and the reports auto-generate for you at the touch of a button.
Having the information delivered to you by some mechanism on a month to month basis, gives you what you need to know as a business owner, and will keep the business on track and alert the need to make changes before things get worse. When you know up to the minute (or as timely as you post information) how your business is doing, compared to your goals, you can figure out where you are doing well or going in the wrong direction. When revenue and expenses can be monitored easily, and you know what your budget is and where it stands currently, the power is in your hands and you are running your business proactively. Perhaps you need to raise your prices, look for better supplier agreements, or maybe there is money to purchase new equipment now and start making money with it in this fiscal year. Cash flow statements show you in detail the performance of your business so you can run it effectively.
Tax returns are misleading.
Tax returns have a totally different purpose in the financial picture of a business. Tax returns don’t tell you what the business is actually doing on a weekly/monthly basis, nor do they provide an accurate picture of a business’ performance. The level of financial detail doesn’t show the impact of individual expenses, or how they relate to the budget. Because we are always looking for ways to reduce our taxable income in a business, adjustments such as depreciation, non-cash paper transactions, and perks and benefits to owners are used to reduce taxable income and consequently the tax burden. As you can see, these adjustments skew the picture of actual cash flow.
Cash flow for your business is not income.
There is a distinct difference between income and cash flow. Income (taxable income) has been adjusted to reflect the benefits and compensation to owner, depreciation, interest expenses, perks in lieu of compensation, and non-recurring expenses. Debt service impacts the cash flow statement in two different ways: the interest shows as an expense, but the principle repayment amount is not considered an actual expense on a financial statement; however, it is considered when evaluating the actual cash flow requirements for the business when considering profitability and value. Cash flow is determined after all these adjustments have been made, hence showing the real performance and cash flow requirements of the business. Clearly understanding the difference between income and cash flow is of great benefit to owners and financial management, another reason that a tax return is not the best report to use.
When a business broker is determining the value of a business, it is critical to be using accurate cash flow rather than looking only at the tax returns or business income. The only way to really know how a business is performing and what it is worth, is to use an accurate cash flow statement where those adjustments have not been made to the bottom line. That is how we compare your business accurately to other businesses as well, a key component in determining valuation.
The only way to figure out what’s what is to stop and get your numbers in front of you. It’s the only way to gain some control over the future of the business. You either react and become a victim of the numbers, or with preparation and planning you minimize financial surprises. Which sounds better?
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There are millions of homeowners that are not aware of what mold actually is. Mold is a type of fungus. It is normally displayed in an array of colors such as blue, black and greens. Normally mold grows in areas where there is a high abundance of moisture that cannot be controlled.
Mold can grow on almost anything including wood, food, plants, walls, and ceilings. Mold reproduces by releasing a large population of spores. The spores can withstand extreme temperatures and are very enduring.
Dealing with mold can be tough because when breathed in or direct contact with it can cause health complications. This is why there are masks and remediation kits designed to deal with mold problems and reduce the threat of health complications.
Studies have shown that even people who are healthy can become affected by mold. One of the most common problems with mold exposure is allergic reactions. Other problems have been linked to the following:
Respiratory system failure
Remediation is the clean up and the elimination of mold. Mold is toxic and should be removed whenever it is observed no matter if it is in the home, outside of the home, or in a business. There are professional mold removal specialists that can help.
Mold is developed in areas where there is moisture present. The most common areas for mold are the bathroom, basement, and kitchen as these are areas that deal with water. Mold has been known to grow within 24-48 hours of the moisture buildup.
There are many different types of mold found in homes. In fact, there are more than 100 different kinds of mold. Some of the most common types of mold found in homes are:
If there is confusion about the type of mold growing in the home, there are mold inspections that can be done by professionals. Inspectors know what to look for and where. There are plenty of reasons to be concerned about the type of mold that’s growing in the home. These and many others are benefits of a mold inspection:
Eliminates smell of mold in home
Rids walls and ceiling of bacteria
Peace of mind
Detects leakage problems
A mold inspection comes in two stages; the first one is the collection of samples. The second one is to determine the species of mold. This will give the experts an idea about the toxicity level of the mold and how to effectively remove it.
Remediation is done on a professional level. Mold needs to be removed through special equipment. Most people think that using chemicals on it will eliminate it, but bleach and other cleaners will not kill off the mold or prevent it from growing.
Mold removal can be done in the areas where it is seen and also in nearby areas. Mold grows very fast therefore spreading quickly. Once mold spores have gotten into the air, they are normally spreads throughout from the HVAC system.
When mold has developed inside of the ductwork to a HVAC system, there is professional ductwork cleaning services available to take on all sorts of mold colonies. Professionals are highly recommended at this level of remediation.
Mold remediation experts usually take advantage of state of the art equipment using high velocity air scrubbers. This helps to remove the mold out of the air. Also, special heap vacuums are used to catch small and large spores.
Black mold is the deadliest form of mold there is. It is unhealthy for all age groups to be exposed to. In some cases, there are groups of people that are more sensitive to black mold as these groups of people have weaker immune systems:
Mold should never be handled by someone that does not have experience around it. Direct contact with it can result in dry, red, irritated skin. It may feel like a burning sensation and medical attention may be needed.
Over half of the homes in the United States have mold problems. Inspections along with remediation specialists should be taken advantage of in these situations. Mold remediation can prevent health problems and creates a healthier living environment for all to enjoy.
Inspecting homes in the late 80s, mold was of no concern other than what might be growing on that two-week-old dish of leftovers in the refrigerator. In recent years, the media and lawyers have elevated mold to the status of the plague. There’s been an explosion of home inspectors who hold themselves forth as mold experts. A quick Google search for “home inspectors and mold sampling” returns an astounding 124,000 results. For many home inspectors, mold is gold.
As a home inspector, I’m sorely tempted by the money involved in mold sampling. Many inspectors are adding hundreds of dollars to their fees by offering mold inspection services. Whipped into a frenzy by the irresponsible media and liability-fearing real estate community, some clients even insist on it. But I have a problem. I like to do what’s right. The more I investigate the typical modus operandi of home inspectors offering mold sampling, the more I’m convinced it’s the wrong thing to do. In this article, I’ll share some of my research on the subject and my thinking.
I’m not going to get into the health effects of mold. I’m not a doctor. I’m certainly not qualified to make such determinations. The notion of home inspectors advising clients on health issues is so ridiculous as to be bizarre. I will agree that conditions conducive to the growth of mold are not conducive to good health. In its 2009 report i on mold and dampness in buildings, the World Health Organization says:
“Sufficient epidemiological evidence is available from studies conducted in different countries and under different climatic conditions to show that the occupants of damp or moldy buildings, both houses and public buildings, are at increased risk of respiratory symptoms, respiratory infections and exacerbation of asthma. Some evidence suggests increased risks of allergic rhinitis and asthma. Although few intervention studies were available, their results show that remediation of dampness can reduce adverse health outcomes.
There is clinical evidence that exposure to mould and other dampness-related microbial agents increases the risks of rare conditions, such as hypersensitivity pneumonitis, allergic alveolitis, chronic rhinosinusitis and allergic fungal sinusitis.”
This, of course, is not earth-shattering news to home inspectors who have been on the front lines of the battle against moisture for decades. It is, however, a complex subject. Literature suggests that it’s not just fungi alone that might cause health effects in damp buildings, but other substances such as bacterial endotoxins, protozoa and dust mites. The WHO goes on to say ii:
Damp indoor environments may also contain bacteria, bacterial endotoxins and other microorganisms, such as amoeba, but less information is available about these agents and further research is required. Damp building materials may increase their chemical degradation, resulting in more emissions of volatile organic compounds, including formaldehyde, further deterioration of building materials and structural integrity and subsequent use (and misuse) of potentially hazardous chemicals such as pesticides. Although it is plausible that the exposures listed above are the main causal factors of the health effects associated with damp buildings, this has not been proven.
I’m not opposed to home inspectors performing mold inspections. We all know that mold is a symptom of a moisture problem. Home inspectors know how buildings work, and, more importantly, where and how they are likely to not work. I can’t think of any other discipline that knows more about the factors needed to determine the source and cause of abnormal moisture in buildings than home inspectors. This is something we all do on a daily basis. I am, however, opposed to home inspectors who sell meaningless mold sampling to their clients. It’s my opinion that routine sampling for mold is nothing more than a quick way to separate fools from their money.
Let’s look at these questions: Is routine mold sampling justified? If so, why and when and how? If it’s not, what are the consequences?
The typical “mold inspection” involves looking for signs of moisture and visible mold, perhaps using a moisture meter or IR camera to search for signs of concealed moisture, then sampling air for mold spores or perhaps taking a carpet dust sample. Two outcomes are possible: Either we saw or smelled mold or we didn’t.
If we observed mold, there’s no need to sample. We know mold is present, and we know we need to advise clients to get rid of it and stop the source of moisture that allows it to grow iii. At this point, testing is moot. Many mold inspectors quote CDC and NY Dept. of Health documents in their reports, then blithely ignore the recommendations in those same documents.
The CDC says iv:
Generally, it is not necessary to identify the species of mold growing in a residence, and CDC does not recommend routine sampling for molds. Current evidence indicates that allergies are the type of diseases most often associated with molds. Since the susceptibility of individuals can vary greatly either because of the amount or type of mold, sampling and culturing are not reliable in determining your health risk. If you are susceptible to mold and mold is seen or smelled, there is a potential health risk; therefore, no matter what type of mold is present, you should arrange for its removal. Furthermore, reliable sampling for mold can be expensive, and standards for judging what is and what is not an acceptable or tolerable quantity of mold have not been established.
Standards for judging what is an acceptable, tolerable or normal quantity of mold have not been established. If you do decide to pay for environmental sampling for molds, before the work starts, you should ask the consultants who will do the work to establish criteria for interpreting the test results. They should tell you in advance what they will do or what recommendations they will make based on the sampling results. The results of samples taken in your unique situation cannot be interpreted without physical inspection of the contaminated area or without considering the building’s characteristics and the factors that led to the present condition.
The EPA has this to say about sampling v:
Is sampling for mold needed? In most cases, if visible mold growth is present, sampling is unnecessary. In specific instances, such as cases where litigation is involved, the source(s) of the mold contamination is unclear, or health concerns are a problem, you may consider sampling as part of your site evaluation.
If it is not possible to sample properly, with a sufficient number of samples to answer the question(s) posed, it would be preferable not to sample. Inadequate sample plans may generate misleading, confusing, and useless results.
Keep in mind that air sampling for mold provides information only for the moment in time in which the sampling occurred, much like a snapshot. Air sampling will reveal, when properly done, what was in the air at the moment when the sample was taken. For someone without experience, sampling results will be difficult to interpret. Experience in interpretation of results is essential.
The ASTM standard E2418-06, Standard Guide for Readily Observable Mold and Conditions Conducive to Mold in Commercial Buildings: Baseline Survey Process says much the same:
1.3.1 Sampling for mold growth is a non-scope consideration under this guide. As noted by EPA 402-K-01-001, sampling cannot be used to assess whether a commercial building complies with federal standards, since no EPA or other federal standards or Threshold Limit Values (TLVs) have been established for mold spores. And, sampling would only produce results reflecting a specific moment in time in the best case and could produce inaccurate or misleading results in the worst case.
If the mold inspector didn’t observe visible mold, he feels compelled to prove it somehow, perhaps to justify the fee he’s charging for the mold inspection by producing an official scientific-looking document from a laboratory. So, he’ll take an air sample (or two) indoors and an outdoor air sample and compare those to prove that there are fewer mold spores floating around in the indoor air than outdoors, and therefore there can’t be a mold problem in the house. This is the point where we enter the realm of science fiction. Random air sampling will tell us nothing meaningful about the level of mold spores in the air unless we engage in expensive sampling over a period of time. Even then, interpretation of the results is difficult.
The CDC Mold Work Group report vi states it this way:
Sampling for mold is not part of a routine building assessment. In most cases appropriate decisions concerning remediation and need for personal protection equipment (PPE) can be made solely on the basis of visual inspection.
Other than in a controlled, limited, research setting, sampling for biological agents in the environment cannot be meaningfully interpreted and would not significantly affect relevant decisions regarding remediation, reoccupancy, handling or disposal of waste and debris, worker protection or safety, or public health.
We can’t state that a certain level of mold spores in the air is “safe” or “won’t cause health effects” because there are no established normal or safe levels. Even extensive testing isn’t much help because there’s no way to measure how much exposure people had in the past.
Many so-called experts use the number 500 spores/cubic meter (S/M3) as an acceptable level in a dry building, but others disagree. In that same dry house in a dry climate, testing will exceed 1000 S/M3 10 percent of the timevii. A single sample in the same house may exceed 3000 S/M3. The typical mold inspector ignores the science that tells us that there are very large variations in sampling results over time and location within even a single room. Samples taken in different locations in the room will exhibit the same large variations. Simply waving a piece of paper over an active colony of mold may change the results of an air sample by a factor of 100viii.
Looking at Figure 1, the uninformed mold inspector might form an entirely different conclusion at 4:30 p.m. vs. samples taken at 9:00 a.m. Also, all of this ignores the inherent variations in sampling due to particle size.
The same spatial (location) and temporal (time) variations apply to samples taken outdoors. The Wisconsin Dept. of Health has this to say about outdoor levels ix:
Outdoor counts will vary greatly and may in turn cause similar variation in indoor levels. Because of this variability, it can be difficult to differentiate true difference between outdoor and indoor samples without taking a large number of samples. Soil and plant materials are major sources of airborne mold. Studies indicate that outdoor fungal levels vary greatly by region, season, weather conditions, and air movement. According to data published by the American Academy of Asthma, Allergy and Immunology outdoor mold counts for major U.S. cities regularly exceed 10,000 spores per cubic meter of air during much of the year.
Gosh, maybe we should advise our clients not to go outdoors.
The World Health Organization has this to say about sampling x:
Problems in measuring indoor exposure Exposure to microorganisms in the indoor environment is most frequently assessed by counting culturable spores in settled dust or the air, but this approach has serious drawbacks (see section 2.4.2). Perhaps the most important problem, which has rarely been acknowledged in the literature, is that air sampling for more than 15 minutes is often not possible, since air concentrations usually vary a great deal over time. The few studies in which repeated measurements were made of fungi in air or in settled dust showed considerable temporal variation in concentrations, even over short periods (Hunter et al., 1988; Verhoeff et al., 1994b). The variation in the concentrations of isolated genera was even more substantial (Verhoeff et al., 1994b; Chew et al., 2001).
It has been suggested that in order to achieve a ratio of 3–4 for within- and between-house variation in concentration, which appears to be realistic for culturable indoor fungi (Verhoeff et al., 1994b), 27–36 samples should be taken per house. This is necessary for reliable estimates of the average concentration in an epidemiological study with less than 10% bias in the relationship between a health end-point and the exposure (Heederik, Attfield, 2000; Heederik et al.,2003).
Some justify sampling by stating that there may be concealed mold in the walls that isn’t visible. The reality is that hidden mold in a wall cavity has very little, if any effect, on the number of spores in the building. There’s just not enough air movement from the wall to the building to allow this to happen. If there was enough air movement, outdoor air would have to be entering the wall cavity to replace the air there, and then would be entering the house. In some cases, sampling may be useful. If your client has been told they need to have a very expensive remediation, sampling may be useful to verify that it’s really necessary, but to have any meaning, such sampling probably would have to go beyond a onetime air sample.
The EPA xi says this:
Sampling for mold should be conducted by professionals with specific experience in designing mold sampling protocols, sampling methods, and interpretation of results. Sample analysis should follow analytical methods recommended by the American Industrial Hygiene Association (AIHA), the American Conference of Governmental Industrial Hygienists (ACGIH), or other professional guidelines.
Sampling is useful, but only when we know there is a significant problem, and it has to be performed for a reason and in a manner that’s meaningful. Random air sampling is not a mold-screening tool.
Sampling may be useful to prove that something is actually mold when someone, such as a seller of a building, disputes the fact. A simple tape or bulk sample is sufficient.
Sampling is useful to prove that mold is a harmless species, such as molds commonly found on lumber such as the Ceratocystis/Ophistoma group xii.
In cases of illness, sampling may be helpful in identifying allergenic molds or when ordered by a doctor. Such sampling should be performed by qualified professionals, not a home inspector who took a two-day class.
Sampling also may be useful to verify that large remediation projects were completed successfully and did not contaminate other areas. In almost all other cases, experts and authoritative sources agree that sampling is not needed and is a waste of money.
It’s ludicrous for a home inspector to think that he can take a sample, send it to a lab, and let the lab interpret the results without bearing any responsibility. The inspector is promising something that is not being delivered – a reliable, technically accurate assessment of the building for the presence or absence of problematic mold.
In summary, we can conclude that in almost every case, routine sampling performed by home inspectors or so-called certified mold inspectors is completely worthless. The unscientific results lack accuracy, validity, and are not reproducible.
Here’s how one expert sums it up xiii:
Most “certified mould inspectors” believe they are collecting a sample to assess moulds in an house. However, the “mould inspector” usually fails to meet the stated objectives in that the inspector fails to evaluate the building’s fungal loading within any known degree of confidence, and usually relies on an unscientific and unfounded comparison of indoor to outdoor spore concentrations.
On the other hand, experienced home inspectors are fully qualified to inspect buildings for mold and moisture problems without any phony certification or training, which usually includes a lot of how to sell needless sampling.
I imagine that many inspectors feel that if the client insists on a mold test, they should sell them one. What’s the harm?
If you are willing to sell your client something that you know is at best useless, and at worst, dangerously misleading, what effect does this have on your credibility as a home inspector?
If you are forced to defend your results, how would you go about it? Suppose a real estate transaction falls through because of your mold test and the seller decides to sue? Would you be on firm ground, or standing in a swamp, slowly sinking into the muck?
The other point we all should consider, is what effect does this have on the profession as a whole? Do we want to be viewed as professionals who offer legitimate, credible services, or as salesmen who are willing to compromise the truth to pursue a buck?
Lastly, I’ll leave you to ponder the dictionary definition of fraud:
An act of deception carried out for the purpose of unfair, undeserved, and/or unlawful gain, especially financial gain.
If you were recently involved in a serious Florida auto accident, you may well find yourself in a great deal of pain. There are a number of ways that you can seek treatment for the pain and suffering you are experiencing. While conventional methods of treatment may help in some cases, there may be other methods that will help you just as much if not more. One of the most exciting and productive new ways to heal your injuries and relieve your pain is to seek out the care of a licensed D.O.
Osteopathic Care Can Help You in the Wake of an Auto Accident
It’s no fun being in an auto accident. Even if you survive the crash, the results of your injuries may leave you in a great deal of pain. Many doctors will prescribe you a long and complex line of medications, usually of the painkiller variety. These may work for a while. However, there are serious side effects associated with the use – and potential abuse – of painkillers. The last thing you need to do is develop a debilitating addiction to these drugs on top of your already existing injuries.
It may be that your doctor will prescribe you a certain amount of pain killing drugs as part of your initial series of treatments. However, you should also be aware that you may be able to supplement – and gradually replace – the use of such drugs with a carefully orchestrated regimen of physical therapy and osteopathic treatment.
It’s a Great Idea to Seek Out Osteopathic Manipulation After a Fender Bender
A fender bender can result in injuries that range all across the scale, from whiplash to a broken neck to serious spinal damage. Whatever the extent of your own injuries may be, it’s never a bad idea to refer them to a professionally licensed osteopath.
You may just be surprised at how well the course of your treatment will proceed once you put yourself in the hands of a trained and experienced auto injury doctor. The main goal is, of course, to conquer the pain you are feeling on a day to day basis so that you can regain your health, happiness, and independence.
You Can Rely on the Services of a Osteopathic Physician to Heal Your Back Pain
Chronic back pain is one of the worst legacies that you can be left with after a fender bender. The purpose of a great many cases of osteopathic therapy is to help patients conquer their recurring back pain. In such a situation, the goal will be to help get you moving again so that you will regain your full range of independent motion.
It is crucial to achieve this victory before scar tissue develops over the affected area that will inhibit your movement and make it painful, if not impossible, for you to regain your full quality of life. This is why it is essential for you to seek out the aid of a osteopathic doctor as soon as possible.