RPP – Cash Is King

Rand Partners Podcast – Cash is King

Key Information:

• The 3 main bank accounts
  • Operating Expense
    • Day-to-Day Income and Expenses come through here
    • Determine baseline that stays in the account
  • Capital Account
    • Nonrecurring upgrades or capital replacements
    • Example: Creating a dog park, Replace Roof
    • Should raise that on the front but need to include amount set aside for the reserves
  • Draw Account
    • Excess cash above the baseline to the investors
  • Don’t get hung up on accounting reports
  • Cash Flow is the most important piece of information
    • Review the Bank Statement
      • Cash Inflows
      • Less Net Monthly Expenses
        • Cash Outflows
        • Remove Prior Month Draw
        • Remove Prior Month Capital Expense
      • Ending Cash Balance
        • Excess cash above the baseline is the draw for the investors

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