The Simple Truth: Cash is still King

With US and European governments pumping billions of dollars into their respective economies it is hard not to become overwhelmed with the depth of the current financial crisis. What happened? How did it happen? What do we need to do now personally and professionally?

The above questions will be argued by Economists for years ahead and cannot be discussed in this short article. Several home truths can however be pointed out. The levels of debt held by banks, businesses and individuals have been deemed in the current market to be too high. Sources of credit have dried up. Your balance sheet, your cash reserves, your cash flows are what every investor wants to know about.

At times like this a new systems architecture project, or major ERP project may not serve your company best. How about Cashbook with its focus on cash processing automation, cash reconciliation and cash payments? Why not consider a solution to analyse better your customer’s payment history and DSO? Surely it’s time to stop lending money to your customers and get the cash into your own coffers? CFO’s, Financial Controllers, Credit Managers, Accountants, it is time to remind your businesses that cash pays the bills and not a new RFID unit for the warehouse. The statement “Cash is King” used to matter in the corporate world. The next five years will see a return to this simple truth.

Cashbook Ltd is a company with 0% debt and 0% venture capital funding. We have grown our business by hard work and thrift. We have cash and accounts receivable balances that cover 6 months worth of operational expenses. We have run our business unfashionably but in a truly fiscally conservative manner. We look forward to serving our current customers and new customers for many years into the future.

Greg Coulter
Chief Executive
Cashbook Ltd.