Cloud Computing and Australian Manufacturing

With the advent of cloud computing Australia is fast becoming a competitive nation. With a wealth of knowledge CubedBiz and its Accountants can help streamline your processes and contribute to a healthy bottom line. Quality is where we see all businesses turning their attention as this will drive growth and recognition of your product.

Interestingly, with the advent of lean manufacturing taking manufacturing by storm this has created a minimum benchmark for business across the globe. To compete in price is no longer all that is necessary and a level of quality must be established in order to generate and maintain contracts.

There is a very clear decline in manufacturing within Australia though there are still pockets of manufacturers around whom seem to be coping at the moment. I’m sure still feeling the pressures of Asia a hop skip away from Australia. As pressures start to raise businesses will be faced with buy vs manufacture decisions. These will not only be based on financial information but also very importantly quality which hinges upon the brands reputation and credibility.

  • Cloud Computing
    From Stones to Clouds

If a cheaper product does not meet the quality benchmarks there is often no choice but to forfeit that particular channel and investigate others or work out a manufacturing solution. Lean manufacturing is a pivotal force by which an organisation could potentially reverse this gap presented with a viable high quality product that would still be profitable and competitive in the Australian manufacturing sector.

Access to Engineering CAD and 3D modelling cloud based software are changing the way concepts are brought about and affordability now certainly makes it accessible to micro to larger businesses alike. No longer are these screens tied down by chunky machines needed to process and power these applications. One could be seen at a café with a tablet designing a bionic arm or their next 3D printing project.

CubedBiz can assist and facilitate this conversion over to quality systems. Backed by meaningful accounting data, the correct interpretation and implementation of these readings can very quickly give your business the competitive advantage that is needed to stand out from the crowd.

The world as we know it is shifting and it only makes sense to brace ourselves and click in for the ride.

What is the Significance of Cash Flows?

As owners and managers we deal with cash flow day in day out! Though do you find that you get caught up in the day to day operational activities within your business and neglect the ins and outs until it can’t be held off any longer? Sales, marketing, working in the business and a quick glance at the bank balance to make sure its not in the red.. sound familiar?We are all guilty of this and its really easy to do so. Below we take you through a technical account of cash flow.

So what is cash flow? It is simply a stream of cash inflows and cash outflows, which changes the cash account, during a specific course of a business. Cash inflows means increase money or revenues and cash outflows are the expenses of a business.

 

Cash Flows Statement

The statement of cash flows categorizes cash inflows and cash outflows into operating, investing and financing activities.

Significance of Cash Flows Statement

Taking into consideration the importance of the cash, it is not unanticipated that the statement of the cash flows has become one of the most important financial statements. The statement of cash flows gives managers, analysts, commercial lenders and investment bankers from beginning to end explanation of the changes that happened in the firm’s cash balances.
Owner-managers may use the statement of cash flows to provide evidence the cash creation by operations, and investing and financing policy.  The parties like banks (creditors), investors (owner’s or Shareholders) may use it to decide such effects the firm’s capability to increase dividends and its capacity to give debt with cash from operations. They also make a comparison of cash from financing to cash from operations activities.

Cash Flows Statement Elements

The cash flow statement start from the operating activities, followed by investing activities and then financing activities.
Cash Flows from Operating Activities:

It excludes all transactions relating to investing and financing cash transactions. The cash inflows from the operating activities include the sale of goods or services and bank interest loans. The outflows include the payment for inventory, employee’s salaries payment, and any interest expense.

Cash Flows from Investing Activities:

It is the cash inflow from the sale of, machinery, plant, and property.  The cash outflow occurred due to the purchase of property, equipment, plants and machinery.

 Cash Flows from Financing Activities:

The financing activities have relation with liabilities and owner investment in the business. The cash inflow is from the short term and long term borrowings. The cash outflow is due to the return of borrowed amount.

 

The cash flows statement has some changes in financing, investing and operating activities for the larger more corporate companies. The above information is just for the use of small and medium businesses.