Time and again, accountants and consultants specializing in SMEs say that they do not pay enough attention to the cash flow of such companies. It is a measure of how much money you really have in business.
It's tough. :
Small Business, Small Business Idea, Small Business Start, Small Business Software
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<p> Time and again, accountants and professional consultants <a href="http://www.microsoft.com/india/smallbusiness/"> SMEs </a> such companies have enough cash flow I say I did not pay attention. It is a measure of how much money you really have in business. </ p>
<b> Beware of big contracts </ b>
<p> "Small entrepreneurs get caught up in big orders to get them in trouble," says Ronald * Roy, who heads the university's business administration department. "They want a big deal, but they don't get enough money on it's front end and they're waiting to get paid for themselves They might show a profit on accrual basis Not, but not from a cash flow point of view "</ p>
<p> Judith-Daysei calls a cash flow statement, "possibly whether your business is a target on or off" As an example she examined a statement of cash flow by a non-profit group officer Describe how you were not. </ p>
<p> "These are based on the money they thought they were hiring people, spending money on membership campaigns, and looking at the statements of profit and loss (P & L)" Basically, it is not the money you have in the bank, but the payment to come, as it did not recognize that it is an accrual statement. "</ P>
<p> Non-profits have recognized the difficulty only when the organization looks back on the check. The employee had to be fired and the belt was tightened. "I can see it even if it ends without being able to do it, the cash-flow statement says," Dacey. "The cash flow statement shows that you can actually work with cash that has actually come in here." </ P>
<p> The cash flow statement starts below the profit and loss statement. Several adjustments are made to that number. The details are a bit complicated, but it is a good accounting program that does P & L; the balance sheet also calculates this sentence for you. </ P>
<b> Track the Big Ten </ b>
<p> If you have established a way to track cash flow, you can go to organize and track 10 for your business This is a big list but not panic H: As with the income statement, use software programs to automate many of the following
<p> * <b> your assets </ b> </ p>
<p> Keeping track of your equipment, furniture, real estate and other possessions should be easy. However, to have a true idea of the value of your business, you also need to track the change in value of these assets. Several <a href="http://www.microsoft.com/india/smallbusiness/howtoguides.mspx"> small businesses </a> themselves are located on parts of the land that are more valuable than the business itself You Similarly, you also want to track the decline value of assets such as computer and office furniture. </ p>
• <b> Debt </ b>
<p> Facing it, this is easy-debt is what you owe. But what you owe is less obvious than the bill from the landlord. Salary tax is a responsibility that depends on the size of your salary. Loans are a clear responsibility, but in order to repay them you want to be able to track the amount of payments that are applied to the principal and interest. </ p>
• <b> What does it take to create what sells? </ b>
<p> This is relatively easy if you have purchased the finished item for resale. It's tricky if you need to calculate all factors, such as labor going into product manufacturing. </ p>
• <b> What is your costing to sell what you sell? </ b>
<p> All categories of advertising, marketing, labor, storage, catch overhead-it was sold as well as your cost to create it </ p>
* <b> What is your gross profit margin? </ b>
<p> This is calculated by dividing gross sales into gross profit. Your gross profit margin will tend to be consistent or increasing. </ p>
<p> You can reduce the price or cost by adjusting to the need to head up on the rate of decrease in the truck. In the worst case your gross profit and price gains disappear altogether. I went up because every time I sold the money that I lost the researcher from that point in time. Stop it </ p>
• <b> What is the ratio of assets to your debt? </ b>
<p> This ratio will let the company that has enough information let you actually hold it-it will lend you. This can be a bad sign with rising rates. It can happen as part of a large expansion, but it can also show that it is on your head. </ p>
* <b> What is the value of your accounts receivable? </ b>
<p> This is the money you owe. If accounts receivable is increasing, you can get a warning that the people you sell are starting to stumble. </ p>
* <b> What is your average collection time of accounts receivable? </ b>
<p> This is probably cash-poor </ p> because it shows how many days you are acting as a "bunker" for people who owe money.
* <b> What is your payable? </ b>
<p> The flip side of the receivables. The increase in your payables can simply reflect the larger amount of global purchases. There is no increase in planning and operating internal alarms and our financial strength will decline. </ p>
* <b> What is happening with your inventory. </ b>
<p> Even in this just-in-time business world, building an important inventory can be a good thing, even if you have the opportunity. </ p>
<p> If you have relatively low prices for items that you sell or use for production, you can make sense by putting some of your money in stock. </ p>
<p> It will increase or slow down in the business of whether or not there is a stock of capable trucks. It also shows how much money is tied to this unproductive asset. </ p>
<p> Knowing your cash flow and what you need is necessary for your business. It is difficult to understand with things. It is for professionals who fear that they do not know. </ p>
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