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"The IPC told me which invoices to sell to get the cash I needed."
"The IPC proved to me that all of my personal investment in Working Capital could be eliminated in my practice. It took only 4 months."

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How do Business Executives make Financial Decisions?
Answer to this question always impact the bottom line Earnings.

1. How do Business Executives manage their businesses?

1.1. Managing any business efficiently is a challenge for an executive, especially, when changes in financing the Working Capital requirements are being considered. Most executives manage their business financially the same way they did last month, i.e.

  • Most of the time they look at the Checkbook Balance, and about once a month they look at the Money Market Balance, Aging Reports, and the Income Statement. Less often they look at the Balance Sheet and the Inventory Status.

  • After which, they attempt to make decisions and judgments; most often they continue the current financial strategy to fund the Working Capital requirements of the business.

  • Rarely, do they initiate any financial changes on their own accord, unless they are "shocked" by what they saw on their financials.

1.2. This is the way most business owners manage their businesses. The keyword here is "shocked." And nowhere, in their monthly routine do managers look at the impact on the bottom line Earnings to help them to make business decisions, because they do not have Financially Engineered tools to give them the answers they need to make the best decisions possible.

2. Executives need our Financially Engineered Tools.

2.1. It is obvious that executives would like to be able to make financial decisions by looking at the Earnings impact on their decisions before they become "shocked" by what they see on their financials. This is exactly what the Invoice Profitability Calculator (IPC) was designed to do and does by comparing two Working Capital financing strategies, i.e.

  • Executives are assisted in making strategic Financial Decisions that are based on answers provided by a consistent Financial Engineering IPC tool. The IPC Tool views each potential Decision, and determines the precise impact the Decision would have on the annual Earnings of the business.

  • The bottom line Earnings are measured by executing a daily Cash Flow Analysis for each financial strategy that could potentially fund the Working Capital requirements of the business.

  • The Cash Flow Analysis uses the short-term look at the Aging Report and generates a long-term vision on what the Earnings would be in twelve months. The Variable Cost and Fixed Operating Expenses fractions used in the analysis are extracted from the Income Statement.

  • Financial managers are continually making financial adjustments each and every month. They always look for changes by monitoring the checking account, debt service, income, and accounts receivable all at the same time to plan and implement their financial adjustments. Executives can make better financial decisions when they use the Invoice Profitability Calculator to know the impact on the bottom line Earnings as well.

2.2. It is clear the IPC could be used by any small or a medium sized businesses to monitor and manage the most important contributors to the Earnings of the business just like all of the Fortune 500 businesses do.

2.3. Most executives are totally unaware that additional Earnings can be extracted from their current investment in Working Capital of their business. What that means is, the business can continue, "over investing" their own money in Working Capital or begin extracting additional Earnings out of every Sales Dollar.

2.4. When it is all said and done, the choice of which direction a business should proceed boils down to wanting the additional Earnings or not. If the answer is, "Go after a better bottom line," then the business should license the IPC product and measure the impact on their past and/or pending decisions as it pertains to choosing the best financial strategy to fund the Working Capital requirements of the business.



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