“Even though earnings remained no Kane? 』

Some company’s management Mr.. This period is painful but tried hard, and would be surplus earnings forward to in mind.
Quire, were approached consulting from accounting personnel.

It should be hurting, is feeling I have no money, cheated somehow.
However, is that often the actual company.

Accountant: President! Is that this remains the capital are likely not at next month’s.
President: that it’s not going?
No I was saying and profits are out this season?!
Accountants: Yes, certainly profit is out. But there is also money becomes insufficient facts….
President: the partner bankrupt or had a special world?
Accountants: No. It is not particularly.
Of course as well as investment and not from the effect of the stock and currency markets does not.
President, is exactly what is causing it…?

“Enough surplus money is not”
Is somehow strange things, this company became like this why you you can cite causes?

Let’s verify the from the following page.

‘Benefits’ there is ‘make money’?

One said ‘profit’ and what you think more part good and see previous posts or in short “profit” thing.
If it sells the things purchased at 100 yen to 150 yen, subtract, 50 Yen will “benefit” it is.

And so not familiar with accounting people think this trend, President of the front page, I think: like you.

And think again, money increased benefit amount, it seems.
  1. The first company has 100 yen money.
    (Cash balance of 100 yen)
  2. You pay 100 yen buying from the vendor.
    （ cash balance of n/a = 0 Yen ）
  3. Sell products with the customer, get the price.
    （ cash balance of n/a = 150 yen ）
  4. So, it should be 150 yen to the company!

These 150 yen equivalent to 50 Yen joined the 100 yen had the first, in a series of transactions in addition to remain in the hand.
Certainly, that is also good then.

Saying ‘I will’…?

‘ Mo-flow ‘ and ‘cash flow’ is different!

However, the front page like that is often not the reality of it. Timing differences between the cause.

Vendor ‘income’ from “such as sales revenue” is calculated subtracting the cost of the other recording time has determined by the ruling “realization principle based on an accrual basis”, “accrual” and “principles of cost of revenue for” those “revenue” and “cost” are (also please see about the “cost”).

Some difficult words came out, easily together, said General ‘profit’ is a product which “Mono-flow ‘ based is be recorded that many.

Speaking in the example above, relationships without the deposit or withdrawal,

  • Buy 100 yen at recorded the “trade” books
    (Item to move to those of us from the vendor),
  • “Covers”sales”when handed the goods sold 150 yen merchandise to a customer
    (Products to move customers from us.)

We will calculate the ‘profits’, based on the “sales”,”trade figures,”.

In other words, is whether calculation of “profit” to money there’s nothing!
Therefore will be called ‘amount of the benefit does not represent ‘amount of money’ as it is in the company.

‘Profit’ and ‘money’ to shift greater time gap

Is that delayed payment for sales actually involve considerable risk.
That means, in reverse…?

I also take one of the sales you will see, or deliver the goods in actual business cause a-claim though, is credited for its claim next month or a few months after the story it is common.

And deposit money though when passed the product to have recorded “revenue”, corresponding to its revenue would shift after the “revenue” and “money” are not respond about that shift between the.

So, what the heck is causing the ‘gap’?

Generate timing gap ‘multiplied by preparative off’ and ‘Bill of exchange transactions”

2 Setting example ‘ Mono-flow ‘ and money also grew in the form from the ‘cash flow’ was the same time commensurate with the income. Such transactions are referred to as “cash transactions”. Problems like this, preferably all trade “cash transactions” that should not, is the reality does not go so hard.

Trading in non-cash transactions has been asked, as commerce increasing complexity and speed is going.
“multiplied by preparative”, “bills of Exchange” that “credit” and he also.

Mainly because the transactions other than “cash transactions” has been like high-end risks such as identity theft might become is currently settled in cash deal every time that Miss the long-awaited business opportunities and large sums of cash handling.
So we have now use that pay is promised at a later date, depending on the creditworthiness of the customer instead of cash, the deal. Is it called ‘Bill of exchange transactions’ and ‘multiplied by preparative off’. Flatten it if it says is “paid the price”.

‘Bill’ may benefit the business easier than cash transactions from, you better pay for payment only after,.
Said, even from those who sell, compared to cash easily can earn sales is so tend to end select ‘Bill of exchange transactions’ and ‘multiplied by preparative off’.

It is, however, it spread even money gap ‘profit’ and at the same time.
Occasionally, we recognize the money gap ‘profit’ and not, there are plenty of benefits, is might become cannot provide money to pay commensurate with their income taxes and lead to worst case situation, such as bankruptcy.

In fact, also causes…

“Profits have money” is no cause exists also.
Introduce the points to improve things like ‘having income, have no money”while still explore the cause, in the next article we will.
Enjoy it!

System more articles will be here! Still, please.
[Where are we?]

“Though it is profitable, no money” it is actually a common system.
System without money ‘profit’ is ‘ Mono-flow ‘ according to accrue.
System ‘Bill of exchange transactions’ and ‘multiplied by preparative off’ money gap is due ‘profit’.
System of Bill of exchange transactions’ and ‘multiplied by preparative off’ the company care money flow also especially
　　There is a need.
System ‘enough surplus money is not’ cause and from also seems to be…