7 Cash Drivers

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BackgroundWe have been having trouble with our network clients suddenly being unable to print. They get an odd error with a hex code. We determined that something in the driver was messed up and we could resolve the issue by clearing the driver cache and reinstalling the driver. This happens to random computers every so often. We're assuming this is a bug with the latest Dell 2330dn driver since that is the only model that has this problem.ProblemWhat we are looking to do is write a Powershell script that would clear the driver cache and redownload the driver.

I see a ton of scripts out there to manage queues, servers, and ports, but nothing for local driver cache management.Current WorkaroundSince we have to do this manually, I'll write out the steps so you know what we want this script to replicate. Disable print spooler. Restart machine.

Delete contents of: C:windowssystem32spooldriversw32x86. Enable print spooler and start service. Delete the network printer object and re-add network printer off of server.RequestI'm good enough with powershell to translate the above workaround into a pair of scripts. I'd like to find a more elegant solution then my current workaround.Any suggestions?

DreamstimeWhen reviewing your financial data, there are a lot of variables to take into consideration. So how do you analyze the numbers to determine the most important factors?As cash flow is crucial to business success, looking at what drives your business’s cash flow is an excellent start.

There are seven key financial drivers for cash flow. Each driver provides unique information that, when analyzed together, can help you identify areas to improve cash flow, reduce financial waste, and make smarter, strategic business decisions.Learning how to leverage this information to your advantage can improve your cash flow, which in turn improves your company’s bottom line. Let’s get into these drivers of cash flow: 1 Accounts receivable daysAccounts receivable days are the number of days (on average) that it takes a customer to pay, assuming that payment is made on credit terms. This term can be easily confused with terms offered.

The term of repayment may be 30 days, in that a customer has 30 days to pay their invoice in full. However, customers don’t always pay on time. So even though the term for repayment is 30 days, the number of accounts receivable days can be much longer. The discrepancy between when an invoice is created and when it is paid in full can severely impact a business’s cash flow.

2 Accounts payable daysAccounts payable days are the number of days (on average) that it takes to pay a vendor or supplier. For example, an office supply company may provide coffee on a monthly basis for a company. The office supply company (the vendor) may set payment terms for 30 days. This means that the company has 30 days to pay the invoice in full. Unlike accounts receivable, vendors and suppliers are usually paid out faster than the cash flows into a business, which can create a cash squeeze. If a company has to spend all of its available cash on suppliers while waiting for customer payments to come in, they can only operate at a limited level without any cash reserve in the bank. 3 Work in progress daysFor product-based organizations, the inventory days are the number of days (on average) that products sit in stock before being sold.

For a service-based organization, work in progress days are the days between which wages and materials are paid for and when the job is finished and invoiced. One way to improve cash flow here is to streamline the job management process. Optimizing workflow on a job reduces the number of work in progress days, which positively impacts cash flow. Additionally, when a job is completed early, it improves customer satisfaction – a mighty incentive for the client to pay for the job faster.This next group of drivers focuses on specific percentages that have a major impact on your business. Even slight variations in percentages can either boost your bottom line or ruin your business’s cash flow.

7 cash drivers for sale

4 Price change percentageThe price change percentage is any fluctuation in price. It can include a price increase or decrease, or a temporary discount. Thanks to the variable cost of living and inflation, you can’t sell a product or a service at the same price for years and still be profitable. There are also things that are nearly impossible to predict, such as a spike in fuel prices or an increase in food prices. Your company needs to be able to accommodate for these variations, which is why it is so important to monitor your margins. If you see your profit margins shrinking, it might be time to reevaluate your rates. 5 Revenue growth percentageLogically speaking, one way to increase cash flow is to sell more, right?

Actually, increasing sales can sometimes exacerbate your cash flow problems. Sales require money. You need to pay to produce the product and maintain it in stock while also paying for labor to sell the product.For service oriented businesses, an increase in sales means increasing the number of hours required to complete the new jobs. Remember, there is no guaranteed that you will get paid by the customer right away. You need to have enough cash in the bank to cover the costs of your labor and operating expenses.

If you’re already running low on resources, boosting sales can actually decrease your cash flow drastically. 6 Cost of goods sold (COGS) percentageThe costs of goods sold (or cost of services) is essentially all of the costs that are directly associated with producing a product or delivering a service. Reducing the costs of goods sold directly impacts your bottom line.Steps to reduce your COGS can include buying materials in bulk, negotiating with suppliers, and reducing waste. Of all of the seven cash flow drivers, cost of goods sold has the most impact. Even if you are able to reduce your COGS by just 1 percent, you will notice a significant change in your bottom line. 7 Overhead percentageOverhead is costs that occur each month and include rent, internet service, light, power, and even payroll.

Even though these expenses happen on a monthly basis, it doesn’t mean they are the same from month to month.On the flip side, a particularly successful month for your sales team means a larger-than-expected payout come commission time. In order to keep your overhead percentage in check (which improves cash flow) you need to track your budget. Monitoring your actuals versus budget for overhead keeps your overhead’s percentage stable and allows you to better budget for operating costs in the future.Cash flow works differently for every company, but one truth remains universal: you can’t manage what you can’t measure.Improving cash flow management leads to making the right decisions and gaining the right clients.A highly energetic and motivational business leader, entrepreneur and speaker, Stephen King has a passion for helping businesses and nonprofits reach their growth potential. His ability to visualize the future of small business accounting and assemble a highly qualified and motivated team has led to GrowthForce’s growing success as one of the nation’s largest cloud based bookkeeping, accounting and controller services. The storm clouds on the horizon tell the nursery owner that something is about to happen.

Something that could mean rain or wind or hail or worse. When that happens, they are going to need a defensible valuation of the stock on their property. What is that number? What if it’s challenged?An adjuster will try to offer his opinion, while the nursery owner will offer another.

Unlike crop insurance, which values a crop that will be sold in a few months, nursery stock ranges from newly planted liners to mature trees. And there are qualitative differences from nursery to nursery. Trees and shrubs are not commodity items or cookie-cutter, exact duplicates of one another. From block to block there can be great disparity.When you need to find the value of a nursery’s inventory or even the value of the whole business, choosing someone who do not understand the nursery business is not a reliable assessment for multiple reasons. When appraisers come in with tunnel vision and place a value on the inventory or enterprise, there are problems lurking that can cause heartache later.In my appraisal work I have seen every variation of attempts to place value on nursery stock. The most common is to take the selling price of the stock in the ground and do some bulk discount on the price for digging costs. This approach is flawed because it does not take into consideration other factors such as:.

What is the market like for this line of product right now?. What percentage of the crop will be lost to external damage before harvest (i.e. Deer and equipment)?. How healthy and vigorous is the crop?. Is the quality of the plants equal or better to like product in the marketplace?No matter the book pricing or the health of the marketplace in which the nursery sells, no one operates in a vacuum. Nurseries fight for the dollar.Valuing an inventory requires asking hard questions.

What is the actual value likely to be realized by this block of trees or shrubs (not potential)? That value must reflect the as-is, where-it-is-at-this-point-in-time snapshot value. A true fair market value, where if someone were to walk in and want to buy the whole of the inventory with one check, is the number we’re looking for.

Cash

Fair market values assume the seller is under no pressure to sell and is well informed of the nature of the transaction, and the buyer is under no pressure to buy and is well informed of the nature of the transaction. All at arms length. Cash flow is a big part of the value of the business, but other considerations include inventory, equipment, land and buildings. More than cash flowThe capacity to discern this number is more art than science in many ways. It requires a measured consideration of all the factors that lead up to the value that can be defended. Unfortunately, many valuations are done by companies who have a vested interest in an outcome. If an auction house does a valuation, sometimes that can lead toward creating a value that if accepted may lead to an auction.

7 Cash Flow Drivers

That is not an independent valuation. There is a potential vested interest.The value of the nursery stock is a part of what can lead to a full business valuation.

There are business valuation experts in the field, and most are certified public accountants. They have been taught well how to use a discounted cash flow multiple to arrive at a business value. If a business valuation expert is valuing a hot dog stand, that works very well. The question is, what does the business spin off in cash flow each year, and use a multiple of that. That’s accurate for hot dogs.Nurseries are very different.

The inventory is the wild card. I have seen valuations on nursery enterprises created by CPAs that ignore the huge and growing inventory. In one case, a business valuation firm put a value of $700,000 on a large nursery based on the cash flow alone. The nursery actually had more than $6 million in saleable inventory.

The value the CPA put on the firm was thrown out in court.When a true value for a nursery business is developed, there are intangible factors that must be measured to place an accurate value on the business. Cash flow is a big part of the value of the business, but other considerations include inventory, equipment, land and buildings.Besides those assets, the balance sheet must be modified by debt and other encumbrances that influence the value of the business. The inventory value then becomes part of that balance sheet. Many nurseries do not show inventory value on their balance sheet, but a court of law will.Once all the numbers to consider have been determined, there are several intangibles that affect the value assumed.

By this point, you should already have a hard number on the whole of the inventory. Is there enough inventory in the pipeline to sustain the cash flow demonstrated for the last five years and forecasted?. How deep is management? If a few of the top people in the company were to die or walk away, how does that affect the value of the business? Is there enough depth to keep it going at current levels?.

How well positioned is the nursery in the market space it occupies? What does the competitive landscape look like?

In view of that, how stable is the nursery? What does the future look like?

What are their price points and can they be maintained or increased? How does the market look at them?

What’s their reputation?. How good are the records they keep? Can they prove the assumptions that are being made to support the valuation of the business?. What are the barriers to entry from a new competitor?

This is particularly true of container nurseries. A well capitalized container grower can enter a market and quickly carve out a piece that historically belonged to the company in question. What percentage of their business is done with one customer?

I once had a company that did 90 percent of its business with one big-box store. Sales were nearly $10 million dollars. The bank called me in because the company had just lost that large customer. The discounted cash flow meant nothing. Only the inventory and facilities could be valued.

More than 10 percent with any one customer is a danger signal. Do their customers pay on time?

Is bad debt a problem? What strata of customer are they reaching? Are their supplier relationships intact? Will they be maintained in the event of a sale?. Is the location of the nursery conducive to serving the marketplace they seek to sell into?These are all factors that any banker, buyer or estate lawyer will take into consideration when making any business valuation.

7 Cash Drivers

If you are hiring someone for this type of complex valuation, make certain they can defend the valuation in front of an adversarial attorney, if it comes to that. Hurricanes Harvey and Irma, if taken together, would rank among the costliest weather-related disasters in U.S. History based on the estimated value of destroyed or damaged property and infrastructure. Moreover, the back-to-back storms in late August and early September have introduced substantial uncertainty into the economy’s near-term outlook.Previous natural disasters suggest that despite interruption of economic activity in the immediate term and hardship for those living in affected areas, the impact on the national economy—an impact that includes subsequent boosts to activity from rebuilding—tends to be modest.Whether past experience will be a good guide to the recent hurricanes will depend, among other factors, on the strength of the economy before the storms. To that end, this report examines the health of the national economy just before the hurricanes and the storms’ likely impact on the outlook.

GDP growth revised higherReal (inflation-adjusted) gross domestic product (GDP) grew at a 3.0 percent annual rate during the second quarter, a 0.4 percent upward revision of the first estimate. The increase followed weak first-quarter growth of 1.2 percent. The latest result reflected a pickup in real personal consumption spending growth and a smaller drag from inventory investment.The Institute for Supply Management (ISM) manufacturing index increased to 58.8 in August from 56.3 in July. The ISM nonmanufacturing index also rose in August, to 55.3 from 53.9 in July. Readings above 50 indicate general expansion; those below 50 indicate general contraction.

The manufacturing index is at its highest level since 2011. The nonmanufacturing index, though below recent highs, suggests moderate growth in services.

Hiring slows, unemployment near prerecession lowNonfarm payrolls increased by 156,000 in August, below the consensus forecast and less than the downwardly revised July number of 189,000. Payroll gains have averaged roughly 176,000 per month in 2017, a slower pace than during the three prior years. While hiring has slowed, it remains above the range estimated to be consistent with stable unemployment.The labor force participation rate of 62.9 percent and broad U-6 unemployment rate of 8.6 percent were unchanged in August (the U-6 rate includes discouraged workers, other marginally attached workers and those working part time for economic reasons). The headline, or U-3, unemployment rate ticked up 0.1 percent in August to 4.4 percent. The U-3 rate matched its prerecession low, in May 2007, while the U-6 rate remained about 0.7 percentage points above its prerecession low.

U-3 unemployment remains below the Congressional Budget Office’s estimate of its natural rate, roughly 4.7 percent. Inflation remains lowMeasures of core consumer price inflation trended lower in June, July and August and remain below levels consistent with the Federal Reserve’s long-run goal of 2 percent. Measured on a 12-month basis, the price index for personal consumption expenditures (PCE) excluding food and energy ticked down 0.1 percent in July to 1.4 percent. The Federal Reserve Bank of Dallas’ Trimmed Mean PCE inflation rate edged down 0.1 percent in July to 1.6 percent.

The Consumer Price Index (CPI) excluding food and energy—for which there is an additional month of data—was unchanged at 1.7 percent in June, July and August.Inflation has slowed noticeably since early 2017. Monthly rates were soft across a range of core measures from March through July. August’s one-month core CPI rate of an annualized 3 percent may represent a break with this trend. Hurricanes’ impact on the outlookNatural disasters such as Hurricanes Harvey and Irma destroy physical capital and disrupt economic activity.

They also displace some amount of production, consumption and investment that would have otherwise occurred. Some of these foregone activities are simply postponed, while others are permanently lost. The disruption effect by itself would lead to an immediate dip and subsequent partial recovery in the level of economic activity. Indeed, industrial production slipped in August.In subsequent months and quarters, the rebuilding of lost capital plus the realization of some amount of postponed consumption and investment tend to raise the level of economic activity above what otherwise would have been the case. Rebuilding is typically a very gradual process, spread out over many quarters.In terms of GDP, these patterns lead to an expectation of slower growth in the third quarter relative to the pre-disaster outlook, followed by slightly more rapid growth over the next several quarters.

A similar pattern is expected in the labor market, with slower job gains for a couple of months, followed by slightly greater increases later in the year and into 2018. Indeed, initial claims for unemployment insurance jumped by 62,000 in the week following Harvey; further increases over the next few weeks seem likely.Given Hurricane Harvey’s impact on the nation’s oil refining capacity, a temporary jump in headline inflation from higher gasoline prices is likely.

Some inflation may already have been present in August’s CPI data, but the bulk will likely show up in data for September. Whether the hurricanes will affect core measures of inflation is less clear, though prices for vehicles, shelter and energy-intensive services such as airlines represent potential channels for transitory core inflation pressures.Dolmas is a senior research economist and advisor and Russell is a research assistant in the Research Department at the Federal Reserve Bank of Dallas. 2017 momentum will help support robust 2018 growthWith U.S. Economic growth expected to hit 2.2 percent for 2017 including 2.5 percent during the second half of the year, there is ample momentum to support a 2.4 percent growth projection in 2018. Maintaining this altitude though is not guaranteed. The external environment is likely to be less supportive for U.S.

Exports in 2018 as key trading partners like the Euro Area and China could experience modest slowdowns in growth. As baby boomers retire, the U.S. Economy faces stiff demographic headwinds. Domestic consumption and investment will act as the primary growth drivers next year.Consumption remains on course for 2.7 percent growth in 2017, matching its 2016 performance. Maintaining quite the same rate of growth in 2018 will be hard.

New car sales rebounded quickly in September, following a sharp hurricane related drop in August. Auto sales have slowed during 2017 as purchases delayed during and after 2017 have become less of a factor. Retail sales have slowed from faster growth rates, while consumer confidence has fallen back a bit from elevated levels. The Conference Board anticipates that consumption will grow by 2.4 percent in 2018. One possible upside comes from the labor market. While wage growth has paused in 2017, if the economy keeps producing 175,000 jobs per month and unemployment rates remain at or below 4.4 percent, the laws of supply and demand could accelerate wage growth in 2018.The dollar’s depreciation through most of 2017 reflected strength in key trading partner economies; most notably the Euro Area and China, rather than weakness at home.

US exports rose steadily as they became more competitive. The recent appreciation of the dollar during the past month suggests that in 2018, the external environment will not be quite as supportive for the US economy as mature market growth is likely to slow somewhat from 2017 figures.

The Federal Reserve is also likely to raise rates once in December and several times in 2018, moves which will act to strengthen the dollar.Growth in 2018 will largely rest on domestic factors, particularly business confidence measures which provide guidance about future investment intentions for firms. Current signals suggest that faster capital equipment growth can continue into 2018. The Conference Board’s CEO Confidence indicator has fallen during the past two quarters, but remains well above levels suggesting economic expansion, while the ISM Purchasing Manager’s Index for manufacturing reached its highest level in September in more than a decade. Continued equity market gains suggest businesses believe profits will rise, providing additional incentive for investment, especially for the largest domestic firms.Stronger U.S. Economic performance from 2017 will carry over to 2018, with the domestic rather than external environment serving as the most important factor.

Source: The Conference Board. DREAMSTIMEContractors continue to settle back in — and then some — since the end of the Great Recession, making it another solid year for the green industry. Landscaping companies had a median revenue of $291,000, which is up from $256,000 in 2015 and $217,000 in 2014. Slightly more contractors turned a profit in 2016 (86 percent) than in 2015 (84 percent) and 2014 (78 percent).Landscape maintenance stayed the most profitable service, and it regained the top spot as the most popular service provided after losing that spot to lawn care last year.A lack of quality labor continues to be the top concern in the industry, especially for companies making more than $1 million in revenue. On a 1-10 scale (10 being a major concern), those companies ranked hiring a 7.8, compared to the average ranking from all companies, which was 6.5.Personal stress, low-ball competitors and high health insurance costs also ranked as major concerns for landscapers. Bad weather fell in the middle of the pack this year as a concern, though this survey was taken before the hurricanes in Texas and Florida.Two major issues we covered in last year’s State of the Industry were changed.

One was a cosmetic chemical ban on lawns in Montgomery County, Maryland, which was overturned in August. The other was a federal overtime rule that would have made employees making less than $47,476 annually eligible for overtime pay, doubling the current threshold of $23,660.Brian is the editor of Lawn & Landscape magazine. Lawn & Landscape’s State of the Industry Report was published in its October issue. Landscape companies with $1 million+ in revenue ranked a lack of quality labor as a 7.8 out of 10, with 10 being a major concern. DREAMSTIMEFor the most part, independent garden centers had strong, profitable years and solid 2017 spring seasons. The numbers have remained consistent since 2016 and show an industry that’s continuing to stabilize and grow.

For example, 83 percent of garden centers anticipate a profit in 2017, which is the same percentage as reported in 2016. In both 2016 and 2017, 59 percent of respondents said their spring seasons were stronger than the previous year.Though independent garden centers diversify to offset the seasonality of the business, plants remain the strongest category. Annuals, trees/shrubs, perennials and succulents/cacti represented the top four departments with the largest sales increases at garden centers this spring compared to 2016. The top three trends also involve green goods — succulents/cacti (22 percent), container gardening (19 percent) and edibles/grow your own food (15 percent.)Weather remains the top concern, with 55 percent of those surveyed saying it is their greatest challenge.

Other major concerns include high labor costs (40 percent), competition (32 percent) and high operation costs (32 percent).A decade after the Great Recession, about two-thirds of the industry reports that it has recovered, with stronger or similar sales compared to pre-recession revenues. However, some are still struggling.

23 percent indicate that while they’ve recovered, sales and customer levels are still lower than 10 years ago, and 13 percent say sales/customer levels are still significantly below the figures prior to the Great Recession.64 percent of garden centers surveyed say they have recovered from the Great Recession, and are either at or above sales levels seen before the economic crash.However, 23 percent say that while they’ve recovered, sales and customer levels are still lower than 10 years ago, and 13 percent report figures that are significantly below pre-recession levels. Editor’s note: These percentages do not include the 14 percent of the total respondents that were not yet in business when the recession began.Michelle is the editor of Garden Center magazine. Garden Center’s State of the Industry Report will be published in its November issue.