In the case of the childcare center, the tutorial advised that once one has clearly mapped out a cash budget which compares expected cash inflows and outflows,
one can begin to make meaningful incremental and longterm changes in
spending and pricing. As the childcare center director, I would be in a
unique position of insight to administrate a consideration of all the
utilities, employees, facilities, marketing and petty expenses which
constitute our overall budget. This would also allow me to detect places
where expenses can be reduced or where more is needed.
By combining this with a projection of future cash needs, I would be
in a position to assess the true nature of our overall cash flow situation.
This would allow me to make management decisions according to a lucid and
empirical understanding of what is feasible and what is not.

3. Critically analyze how the cash flow tutorial and record keeping
forms that you completed can benefit a center director.
The tutorials on cash flow and record keeping were useful in their
provision of a practical...

To this extent, perhaps the most compelling point to emerge is the notion that it is important to make
projections regarding not just cash on the books, but actual cash flow. As
the tutorial at Bank of America denotes, a cash crunch can be created when
an organization fails to project the difference between these theoretical
and realistic parameters. (VA, 2) Another message of crucial importance
which is offered by the tutorials is their shared resolution that one
should never attempt simply to book opportunities for revenue. One must be
prepared to project and meet the actual costs of execution.

Works Cited

FSO Technologies. (2008). Recordkeeping and Cash Flow: Effective
Techniques. GoFSO. Online at http://www.gofso.com/Premium/BS/fg/fg-
Records.html#E

Virtual Advisor. (2008). Managing Your Cash Flow. Bank of America.
Online at http://www.va-
interactive.com/bankofamerica/resourcecenter/workshops/cashflow/cashflow.htm
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