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Empowering Businesses With Profitability Through Knowledge
IPC
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Invoice Profitability Calculator
Welcome to the IPC - Invoice Profitability Calculator
The IPC is a Desktop Product that runs in Microsoft® Excel. This IPC product reveals how any business can become wealthier with less risk of doing the same business as before. The IPC demonstrates how a "Sell the Invoices Financial Strategy" can increase their return on investment in Working Capital resulting in higher Profits for the business.
Typically, Assets in a business can be increased by 1% to 3% of Annual Invoice Revenue without any additional Liabilities.
The Invoice Profitability Calculator performs a complete Profitability Analysis for the Customers of a business. The technique usually begins by examining the very best customer of the business for analysis revealing the value of the invoice. You see an "invoice is not just a piece of paper," is a contract that can be sold at a profit. Every IPC includes links to a complete set of Training Videos that explains "How the IPC works and Why increased Assets of a business can be realized without any additional Liabilities."
Ignoring the Value of the Invoice is not a practice that should be condoned.
Once the IPC Profitability Analysis confirms the True Value of Invoices, the business is then encouraged the "Sell the Invoices" to an "Invoice Buyer." Fortunately, there are many Invoice Buyers available to purchase the invoices, many of whom are ready to process your request now.
Our goal is to explain to you how you can Improve the Cash Flow in your business, and Enhance the Balance Sheet of your business at the same time. The IPC is designed to inform you about the true value of improved Cash Flow showing you how your business can Profit and get a better Checking Book Balance, thereby, increasing the Worthiness of your Balance Sheet for your business. Successful Executives continually seek that objective.
Isn't that what managing a business is all about, i.e. increasing the Worthiness of the business?
Many business executives understand that "Cash is King" and more cash is even better, but often fail to realize how they can enhance their own bottom line profitability by Selling a few Invoices to an Invoice Buyer. The primary purpose of the IPC is to assist the business person in completely understanding how the profitability mechanism works and then motivating the business to "Test the Concepts" and prove beyond any reasonable doubts the profitability model works in a positive manner for the business. Look at the description of this IPC Calculator (the IPC Online
product below).
Invoice Profitability Calculator Product Description |

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Welcome Worksheet: This represents the first Worksheet of the IPC product. This Worksheet contains both General and Detailed Information for the entire IPC product. This particular Worksheet has a Getting Started Section, Customer and Invoice Buyer Input Section, a Profitability Analysis Reporting Section, an Internet Links Section which contains a form to Apply for Financing the Best Customer Invoices, a What to do Next Section, a Frequently Asked Questions
Section, and a Help Section that includes Training Videos and a complete Help Manual on "How to use the IPC product."
Click on the adjacent graphic to view a sample page of the Worksheet.
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Customer Input Worksheet: This represents the second Worksheet of the IPC product. This Worksheet contains a form where the user is expected to Input the Company's Financial Information and Invoice Data pertaining to a single Customer. Initially, the Customer should be the Best Customer of the business. The required data fields include the Name of the Company, the Revenue of the entire Company, the Name of their Best Customer, the Sales Revenue of their Best Customer, the Variable Cost (Cost of Goods Sold) associated with their Best Customer, the Fixed Cost (Plant, Equipment, G&A) allocated to their Best Customer, Company Growth Rate Parameters (Sales Growth Rate and Overhead Growth Rate are separate parameters) for both what the Company's Best Customer expects to grow next year and how much could they grow if they had more Working Capital, the Average Invoice Size of their Best Customer, and the Working Capital Investment Period (this represents both Pre and Post Invoice Periods).
Click on the adjacent graphic to view a sample page of the Worksheet.
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Multi-Customer Input Worksheet: This represents the fifth Worksheet of the IPC product. This is where the Company can input the same information described in the Customer Input Worksheet for multiple Customers of the business. The user can Copy any if the Individual Customers to the Customer Input Worksheet for analysis, or the user can use the Composite Average of all of the Individual Customers to the Customer Input Worksheet for analysis. With this flexibility the user can quickly ascertain which customers provide the most profitability for the business. Additionally, if a business needs to the profitability to a desired amount, the user can add Individual Customers until the target profitability had been achieved.
Click on the adjacent graphic to view a sample page of the Worksheet.
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Invoice Buyer Input Worksheet: This represents the third Worksheet of the IPC product. This Worksheet contains a form where the user is expected to Input the Invoice Buyer's Discount Data associated with purchasing the Best Customer's Invoices. The required Invoice Buyer's data fields include a choice of a Fixed or a Variable (2 tier) Discount Percentage, Invoice Advance payment Percentage, and Delays in receiving the Advance and Rebate payments. Note: The initial Discount Percentage is usually set higher initially and modified later when the actual schedule is known.
Click on the adjacent graphic to view a sample page of the Worksheet.
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Profitability Analysis Worksheet: This represents the fourth Worksheet of the IPC product. The Profitability Analysis compares two different business Strategies. Strategy 1 represents the current Working Capital financial investment strategy, and Strategy 2 represents the Sell the Invoices at Discount to finance Working Capital strategy. The pro forma Financial Statements compares the two strategies. These financial statements include a Financial Summary, Income Statement (Working Capital Investment and Standard Accounting Practice Views), Balance Sheet, and a Cash Flow Analysis. Click on the adjacent graphic to view a sample page of the Worksheet.
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 Backward Testing Forward Testing
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Invoice Testing Worksheet: This represents the sixth Worksheet of the IPC product. This is where a a user can Back Test (Backward Testing) a single Customer Invoice stream over a period of time - typically a month, or an user can Track (Forward Testing) Invoice payments as they are received from the Invoice Buyer. Back Testing of a single Customer's past Invoices can quickly provide insight for the user to realize the real value of that "Sheet of Paper" called an Invoice. The Back Testing Profitability results are summarized at the top of the Worksheet. Likewise, the user can Track Invoices as they are received from the Invoice Buyer for a single Customer. This tracking of a single Customer Invoices is only done for no more than a 3 month period, or until the user is satisfied the pro forma Profitability Analysis has been confirmed. The
running total Forward Testing Profitability results are summarized the at top of the Worksheet.
Click on the adjacent graphic to view a sample page of the Worksheet.
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Online Calculator: This represents the online edition of the IPC product. The user is expected to input the Company's Invoice Information pertaining to the Best Customer in the business. The required input data fields for the IPC product include the Sales Revenue, the Variable Cost (Cost of Goods Sold), the Fixed Cost (Plant, Equipment, G&A), the Number of Days the Accounts Receivable is outstanding, and the Percentage Amount of the associated Revenue an Invoice Buyer would Advance to the business. The results for the IPC product includes Working Capital Investment Savings, Tax Savings, First Year Allowance for Bad Debt Savings, Financing Cost, and Accounts Receivable Savings
Click on the adjacent graphic to view a sample page of the Worksheet.
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