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Accounting Solver

June 23rd, 2008

NEW BEGINNINGS IN A CHALLENGING ECONOMY: Putting your business on the road to profitability & growth

Many start-up businesses stop at determining their beginning Equity. After putting up the initial capital for your business, you have to determine the optimum Working Capital to position your business on the road to profitability and growth.
Specially during these times of high transportation costs and constricted markets, f you do not put up enough […]

By ren -- 3 comments

June 13th, 2008

WHAT MAKES A BUSINESS WIMP

A business wimp (whether small business or large corporation) is a venture with inadequate Working Capital.
A business wimp will be forced to incur debt or inordinately prolong accounts payable so that it gets into trouble with suppliers. Not having adequate Working Capital will place the business in an unsustainable cycle of debt.
The business wimp […]

By ren -- 2 comments

May 24th, 2008

ACCOUNTING FOR THE PARETO PRINCIPLE 6: Which 20% of a Small Business is Critical

The Pareto Priniciple (also called the 80% - 20% Rule) has been applied in a variety of fields & disciplines; e.g., business management, time management, management of sales people, project management, development economics, etc. Basically, the Pareto Principle states: in any endeavor, a 20% segment can explain the status of almost anything […]

By ren -- 1 comment

May 23rd, 2008

ACCOUNTING FOR THE PARETO PRINCIPLE 5: Which 20% of a Small Business is Critical

The Pareto Priniciple (also called the 80% - 20% Rule) has been applied in a variety of fields & disciplines; e.g., business management, time management, management of sales people, project management, development economics, etc. Basically, the Pareto Principle states: in any endeavor, a 20% segment can explain the status of almost anything […]

By ren -- 0 comments

May 8th, 2008

SYNERGY BETWEEN ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE 2

In order to avoid undue pressure on your cash (as the increase in Sales pushes up your Cost of Goods), you have to make sure that your accounts receivable & accounts payable are synchronized. You have to make sure that the number of days in which you collect your accounts receivable (i.e., credit sales) […]

By ren -- 0 comments

May 7th, 2008

HOW TO GROW SALES 3: Synergy between accounts receivable & accounts payable

One of the most effective ways of stimulating sales is by injecting a credit program into your sales program (i.e., set up an accounts receivable).  If / when your credit program / accounts receivable results in a growth in Revenues as expected, your Cost of Goods will also grow in step with your Revenues.
In most […]

By ren -- 0 comments

May 6th, 2008

HOW TO GROW SALES 2: Effects on Cost of Goods Sold, Operating Expenses, Net Income, Working Capital

One of the most effective ways of stimulating sales is by injecting a credit program into your sales program (i.e., set up an accounts receivable). If / when your credit program / accounts receivable results in a growth in Revenues as expected, your Cost of Goods will also grow in step with your Revenues. […]

By ren -- 0 comments

May 5th, 2008

HOW TO GROW SALES 1: Manage your accounts receivable

One of the most effective ways of stimulating sales is by injecting a credit program into your sales program (i.e., set up an accounts receivable). However, you don’t want to have a lot of sales, but end up lacking enough cash to continue production and pay for operating expenses. Prudent thumb rules to […]

By ren -- 0 comments

May 3rd, 2008

HOW TO REDUCE WORKING CAPITAL REQUIREMENTS 3: Manage your accounts receivable

Working Capital funds the cost of the labor & materials that go into the goods you sell or the services you render (i.e., your Cost of Goods Sold or Cost of Sales) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses). In most businesses (specially where goods […]

By ren -- 0 comments

May 2nd, 2008

HOW TO REDUCE WORKING CAPITAL REQUIREMENTS 2: Manage your inventory

Working Capital funds the cost of the labor & materials that go into the goods you sell or the services you render (i.e., your Cost of Goods Sold or Cost of Sales) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses). In most businesses (specially where goods […]

By ren -- 0 comments

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