Ken Uchikura Newsletter Vol. 358 Thumbnail
The Numbers That Truly Matter to Me
Most businesses evaluate their performance based on information from the accounting department.
That probably doesn’t sound strange to most people.
However, I believe that information like the balance sheet and income statements the accounting department provides have little practical value for a business owner.
This is because past numbers don’t drive your business; current and future cash movement does.
What truly matters is:
- How much cash do you have on hand right now?
- How much do you plan to spend in the near future?
- And how much income is already secured?
This is the reality of immediate cash flow.
As a business owner, can you accurately grasp your company's funds?
Do you know exactly how much cash is available, and how much you can use without jeopardizing your operations?
If not, how can you properly steer your company?
I may be putting some extra work on our accounting team, but I receive a separate cash report every week, in addition to regular financial statements.
This report tells me how much cash the company currently holds and how much of it we can actually use.
While accounting reports record the past, a cash report reflects the present reality of the business.
This is my management style.
Even a profitable company can go bankrupt if it runs out of cash—what’s known as a "Profitless Bankruptcy" (In Japan: Kuroji Tōsan).
But if you always stay aware of your cash flow, a situation like that will never happen.
Management is not about generating profit; it's about keeping the company in existence.
To do that, the single most important rule is to never run out of cash.
As the saying goes, cash is king.
If you’ve started your own business, I encourage you to take a close look at your company’s cash position.
Does it match what your accounting documents say?
Perhaps the numbers you truly need to be looking at are somewhere completely different.
Kenichi Uchikura
President / CEO
Pacific Software Publishing, Inc.
ken.uchikura＠pspinc.com
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ABOUT PSPINC
PSPINC (Pacific Software Publishing, Inc.) is a technology company based in Bellevue, Washington, USA. Founded in 1987, PSPINC provides web hosting, email hosting, and other internet-related services to businesses and individuals worldwide.
In addition to its hosting services, PSPINC also offers website design and development, domain registration, and online marketing services. The company has data centers located in the United States and Japan, and it offers multilingual support to its customers.
PSPINC has a strong focus on customer service, and it has received numerous awards and accolades for its quality of service over the years. The company is committed to staying up-to-date with the latest technology and industry trends in order to provide the best possible solutions for its customers.
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