6.4Toolbox
The essentials in 30 seconds
- Secure: a short checklist (result vs cash, cost, break-even, WCR, taxes, investment, assumptions, budget) prevents most blind decisions.
- Reach for: ready benchmarks (balance sheet, double-entry, VAT, WC − WCR, break-even, EBITDA, employer cost, taxable result) for decision moments.
- Rule: one checklist ticked every time beats a long method ignored — adapt to your context and your country.
Rachid thread — 1 year on: the benchmarks at hand
One year on, both checklists below are posted at Rachid's: the pre-decision one on his desk, the benchmarks one near his dashboard. “What saved me, he says in substance, was not knowing the formulas, it was ticking them every time — especially on rush days.”
Adapt wordings to your context and your country, keep the structure: it is what prevents omissions and costly decisions.
Ready-to-use benchmarks
A good checklist makes a task fast and without omissions; good benchmarks accelerate the decision. Adapt them to your context and your country.
Before a financial decision
- Have I distinguished result (profit) and cash?
- Do I know the real cost involved (full? variable)?
- Have I calculated the break-even point / the margin?
- Have I anticipated the impact on cash and WCR?
- Have I taken taxes and deadlines into account?
- For an investment: NPV/IRR, payback, ROI cross-checked?
- Are my assumptions prudent and tested (scenarios)?
- Have I compared to the budget / the plan?
Benchmarks & reflexes to reach for
- Balance sheet = wealth (assets/liabilities); Income = performance (income − expenses)
- Double-entry: every flow has a debit AND a credit (balance)
- VAT: collected − deductible = to remit (it passes through, neither income nor expense)
- Cash = Working capital − WCR; WCR = inventories + receivables − supplier payables
- Break-even = fixed costs / contribution margin on variable costs
- EBITDA = pure operating profitability (before depreciation and financing)
- Employer cost = gross + employer contributions (≠ net)
- Tax on profits: base = taxable result (≠ accounting)
Ready-to-say script — picking your benchmark in 30 seconds (30 s)
“Routine decision: I separate result from cash, I check cost and break-even. Investment: I add NPV/IRR, payback, crossed ROI. Hire: I think in employer cost. I've picked, I cost, I check with the checklist.”
Copy-paste template — decision tracking before signing (1 line per point)
DECISION: ...
RESULT vs CASH (WCR, cash plan): ...
COST involved (full / variable) + MARGIN + BREAK-EVEN: ...
TAXES and deadlines anticipated on ...: OK / to fund
INVESTMENT (NPV/IRR, payback, ROI): ...
Assumptions TESTED (scenarios) on ...: OK / to redo
Variance vs BUDGET: OK on ...Small business / tight budget
Checklists on one page posted on the wall: the essentials (cash, cost, break-even, deadlines) are enough.
Algeria SME
Include local tax and social deadlines in the tracking: what to pay, when, with which funded cash.
Remote / hybrid
Add a written sign-off line to the tracking: at a distance, a shared costed decision avoids misunderstandings.
Cross-cultural
State the applicable tax and social rules in writing: what seems obvious is not obvious to everyone.
48h challenge — apply tomorrow
Take 1 decision in progress, run the checklist above and tick where it stands. Fix the missing line before signing.
- I have ticked the checklist on a real decision.
- I can reach for a benchmark (break-even, WCR, NPV/IRR, employer cost) at the right moment.
- I did the 48h challenge or scheduled its date.
Before hiring, what must Rachid check first according to the benchmarks?
Tip: keep these benchmarks near your dashboards and your cash plan; always check the tax and social rules of your country.