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At Beacon Consulting Associates, we assist business owners and management to improve their working capital management techniques. Working capital represents an additional investment in the business over that required to purchase fixed assets, i.e. plant and equipment. The need for working capital arises from the timing difference between the payment for expenses, i.e. the payment of wages and the purchase of material or inventory, and the receipt of payment from customers for goods or services delivered. Working capital management can be likened to managing the time frame for Peter's money to pay Paul for Patrick's expenses. In most small businesses, working capital is provided by owner’s equity, often in the form of a loan to the business, supplemented by a working capital loan from a bank or finance company, or, possibly, from a factor. The cost of working capital can be high especially if it is provided by a finance company or factor but, more importantly, insufficient working capital can impede growth. Beacon Consulting Associates can assist a business to manage that timing to reduce the need for working capital and stretch existing working capital. The result can be lower costs or the ability to take on more customer receivables and inventory to grow the business. Our consultants can customize procedures and recommend steps to reduce your working capital needs. Effective working capital management requires a well developed cash management system. (see Cash Management) Working Capital Management is essential for:
Beacon Consulting Associates has assisted many clients to improve working capital management, including manufacturing companies, computer consulting firms, internet/e-commerce ventures, communications companies, and many others. Our first consultation is at no charge. If we are selected to assist you to improve your working capital management techniques, we begin with a planning meeting at which we determine the unique issues and requirements of your business. We then prepare a realistic time plan to develop procedures, train in-house personnel and implement the new methods and procedures. We work to your budget. Frequently, we can hold the costs within a budget by having client personnel assist with analyses and other related data gathering. We charge by the hour. Our hourly rates are reasonable and we are flexible in tailoring the engagement to meet your cash limitations. We will provide references upon request. Since our founding in 1986, Beacon Consulting Associates has dedicated itself to serving the small-to-medium size business community by providing a broad range of consulting, financial and accounting services……Working Capital Management is only one of them |
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