Inventory turnover refers to the rate at which a company sells and replaces its stock of goods during a particular period. This can be used to measure the overall efficiency of a business in which a higher turnover indicates a better performance and vice versa.
Sales forecasting is one of the most important process in a business. Whether your business is in the early stage, or in the process to develop one, it is important to have a sales forecast to better understand how your business will grow in a certain period of time.
There are at least two systems for inventory accounting, namely LIFO (last in first out) and FIFO (first in first out). These two recording systems definitely have an important role in your business, regardless of whether your capital to buy the inventories comes from bank loans or other online loans.
In order to start a successful business, besides a good business idea, we need sufficient knowledge to manage the business. A lack of analysis can result in entrepreneurs only looking at a business from the profit point of view without thinking about cash flow.
It is of course very important for business people to know and understand the mistakes that can damage your business credit score. If not, it is possible that your company will soon be out of business with huge losses. This depends very much on how much capital you spend on these business activities.
In practice, business needs financial planning as a reference for running business operations during a specified period. In the master budget, there are three main components: income and expenses, overhead and product costs, monthly, annual average and projection totals. In this particular topic, we'll be looking at closely at the income and expenses component for our business operating budget.
Every good company must have an expert in finance who can analyze financial statements carefully and effectively. Finance is delicate, so a person who holds full control of the financial statements must be responsible, and the person must work as detailed and as thoroughly as possible.
A healthy company is a company that knows whether it suffers losses or gains profits every month. If the owner does not have the skills and abilities to calculate the company’s profits and losses, then there should be a party assigned to analyze them.
Here's our guide on how SME business owners can manager their cash flow - it’ll take you through the basics - starting from defining cash flow management and other relevant key concepts, to exploring why careful cash flow management is important, as well as the common causes of cash flow challenges that small businesses face. We’ll then dive deep into five key strategies that you can easily implement for better cash flow management.