Thursday, 17 August 2017

Four Tips For Managing Accounts Payable And Receivable


Accounts receivable and accounts payable are the two main factors that affect your business cash flows. Managing both is an important skill that needs to be mastered for an effective financial stability. It also helps boost the overall performance of the company and avoid cash problems. Properly tracking accounts receivable and payable involve the creation of invoice on time, delivering the receipts, tracking the shipping orders and maintaining financial transactions. Here are a few tips that will help you in managing accounts payable and receivable in an effective and efficient manner.

1. Organize Your Transactions

Be organized and send out invoices immediately after the transaction has been completed. For a regular delivery of goods or when goods are taken on credit, send the invoices when they are due. It may be difficult to remember all the transactions for which payments are expected in future. Hence, make sure you keep a proper record system and organize all your transactions. See to it that your accountant effectively organizes all your transactions as your books contain valuable information and prevent you from forgetting or making incorrect invoices.

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Tuesday, 8 August 2017

How To Improve Your Working Capital



Working capital is the capital used by a business for its day-to-day operations. The formula for working capital is current assets minus current liabilities. This capital has a direct impact on the cash flow as well as on the finances of a company. Being able to effectively manage the working capital can ensure that it meets the business obligations as well as avoids bankruptcy. Hence, follow these ways on how to provide working capital efficiency and manage it as per your business requirements.

Reduce Expenses

Review your fixed and variable costs to determine if there are areas to reduce your expenses. For instance, office supplies, equipment, and technology represent expenses that could be reduced by negotiating with the new suppliers. Thus, by reducing these expenses, you will have more cash available to you for your daily operations.

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Tuesday, 1 August 2017

Why You Need To Prepare A Cost Sheet For Your Business


A report of all the costs associated with the production, administrative, financing, selling and distribution of a product is called as cost sheet. Preparation of a cost sheet is done to calculate the margin or profit of a product. Also, it is used as a basis while setting the price of similar products in the future. Cost sheet should be prepared by every business before it starts with the operations. The importance of cost sheet is explained as follows.

Determining Selling Price

Cost sheet helps in fixing the selling price of a product or service. It is essential to prepare a cost sheet for determining the individual costs which lead to determining the cost of the product or service. Once you know your total cost, add the margin or the profit percentage to the total cost in order to arrive at the selling price.

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