Are you paying too much for your earnings?
When it comes to running a business do you know how to calculate your earnings? Are you paying too much for your investments? Many times investors do not properly understand the earnings ratio and they end up paying a very high amount. The earnings ratio is basically applied through the stock exchange. When a business is listed in the stock exchange it is required to provide a per-share earnings. This will show investors what the profit is for the business and it allows you to see what type of earnings you will receive from your investment.
Financial mindsets that can damage your company
Do you know how to financially run your small business? Since almost half of all small businesses will fail in the first 5 years of operation, learning how to manage your small business finances is a key component you need to have in order to become successful.Why are so many businesses failing? There are a number of reasons why a small business may fail such as having insufficient capital, lack of financial control, poor planning, and bad management structure.
Cutting business costs, improving business finances
Business owners of every size are now finding that they must take control and manage their business expenses, in these challenging economic times. Managing expenses has increasingly become a priority, for the long term survival of any business. For profitability it is crucial that you must be able to keep costs down. Just like consumers who are trying to decide what to live without, businesses must cut unneeded or low priority, items from their budget. Financial experts advise however, that before managers simply run rampant through their budgets with a red pen they must be clear on where they can cut costs, without damaging the business. It is important to understand that you must cut with precision. This is because if you do not cut enough it will not help and cutting to deeply could bring on the end of your business.
What to do with a business finance loan
When you apply for business finance loans, you need to read through the application and make sure there are no restrictions or limitations on how you can use the money. Some of the loans out there state the funds can only be used for renovation or for the purchase of new equipment. However most of the business finance loan options will allow you to use the money for anything as long as it's going to help the business in some way. If you want to figure out to get a business loan and then figure out what to do with it, here are some tips that may help:
Finance tips for your new business
If you have a new business venture on the horizon, one thing you may struggle with is finding the money to jump start your organization. Finding $100,000 or more to get your new business started is going to be a challenge but its one you can accomplish with the right type of information and the right lender. Here are some finance tips for new business owners:
Different financing options for your small business
Every small business will need financing in one way or another. Financing allows you to purchase the right type of equipment you need to get your business up and running. The problem many small businesses have been running into lately is finding out that lenders are not offering money anymore. Small businesses are inheritably risky to lenders because they have a huge failure rate in the first 2 years. Until you can prove that your business is going to sustain the ups and downs of the economy, you may not be able to convince them to offer you funding.
Calculating business needs
Starting a small business is a lot of fun and very stressful. Acquiring the funding for your business can be a struggle and running the books of your business can be an even greater struggle. If you are trying to acquire funding for your business, you must start by calculating your business needs. Here are the tips you need to follow in order to calculate your business needs.
Business finance and a cash reserve
One of the important aspects of business finance is for a business to have a cash reserve. This article discusses more about what a business cash reserve is, why a business should have one, and how a business owner can go about creating their business cash reserve.
Tracking business finance
Managing the finances of your business is just as important as any other aspect, and many would argue that it is the most important factor for the success of the business.You have to be able to keep track of your expenses and all of the money flowing in and out of the business to make sure it can last over the years and continue to bring you satisfaction and success.Here are some tips for tracking business finance for your business.
The relationship between business finance and business growth
Good financial management and business growth are things that many small businesses hope for and they sometimes treat them as independent variables, but they are really part of the same equation that will result in success for the business.The relationship between good business finance management and business growth is notable and here is some more information about how they are related.
Managing business cash flow
Cash flow is incredibly important to any and every business and a business simply cannot survive if there isn't enough cash flowing in and out of it.Many people and business owners believe that cash flow is something that just happens, but there are things that can be done to ensure good cash flow in your business that will help you stay stable and maintain the levels you want.
Increase profits through good finance management
Having profits in a business is essential to longevity and also to having a good income through the business.There are many ways that small business owners seek to increase profits.Much of their time is spent trying to think of ways to cut costs or to increase sales so they can make more money, but they often overlook the fact that managing finances more effectively can also lead to increased profits.
Writing checks, safeguards
Most people think that writing checks is safer than using a credit or debit card, but the fact is that problems can occur when you write checks. When you are writing checks the best thing that you can do to help safeguard your personal information is to learn some safeguards for writing checks. Here are some tips that you can follow for safer check writing.
Tracking money, your first step to financial health
The first step toward financial health and well being is knowing where your money is going, and whether or not you are staying within your income. Tracking your money is a critical part of budgeting well, of getting out of debt, or finding money for investing, and all other aspects of financial health. So how do you track your money effectively? There are a number of methods, some of which are more appealing to than others. The following are some of the basics:
Take control of debt
Debt is a big deal, but credit card debt is a bigger deal. These days, credit card companies are reducing limits, and changing terms without any notice or preamble. They are trying to control their risk, so if they are worried about your risk amount, they may cut you off, reduce your limit, etc. This can be a pain in the butt, but it can also be a blessing in disguise, as it can be a wake-up call for you to get your debt under control. The following are some tips for taking control of your debt:
Steering clear of financial scams
Financial scams can be very devastating for people who fall for them because they can lose all of their savings. No matter how much money you lose in a financial scam it still hurts. The best thing that you can do is to learn how to steer clear of financial scams so that you do not become a victim.
Get out of debt now
Getting out of debt is a process; it cannot happen right away. But making the plan to get out of debt and acting on that plan can and should happen right now. This article discusses tips to help a person make and stick with their plan to get them out of debt now.
Fiscal fitness
We all know what it takes to be physically fit, but what about fiscally fit? Being smart about your money, and financially healthy takes practice, and a regimen just like physical fitness. The following are some tips for improving your fiscal fitness:
Cleaning up finances
Are your finances a mess? Do you find yourself barely scraping by each month? Do you make a decent income, but feel like you really have nothing to show for it? Do you ever find yourself wondering where your money is going? If you answered yes to any of these questions, then it is time to clean up your finances. Here's how:
Cash management
Most people have some amount of cash on hand. This cash is more easily accessible for everyday transactions such as getting lunch during the work day or getting a morning coffee. Some people don't feel that they have to think much about the use of this cash either because it is quickly used or a person does not realize its importance. But the proper management of cash is an essential part of healthy personal finances.
Reducing overhead costs for manufacturing businesses
In manufacturing, you are going to have overhead costs, the more overhead costs you have the less profit you will be making. In manufacturing, your overhead costs are going to include both fixed and variable costs. What you are going to want to do is find a way to lower your overhead costs, which will be done by looking at your fixed and variable costs, to see where you can cut costs so you can increase your profits. When decreasing your manufacturing costs you need to make sure that what you are doing is not going to harm the product you are manufacturing. You need to find a way to reduce your overhead costs without cutting back on how much product you are manufacturing.
Increasing your residual cash flow
One way for your business to make money is to increase your residual cash flow. Increasing your residual cash flow might even be able to double your businesses money, and without money, your business is not going to survive. In order for your business to grow you are going to need to increase how much money your business is making each month, otherwise your business will remain the same day in and day out.
Residual cash flow is a type of cash flow that your business has, the thing with residual cash flow is that the amount of money you are receiving each month stays the same. With the amount of money, you are receiving each month staying the same, it is very easy to predict and manage your business's residual cash flow. A perfect example of a residual cash flow would be a magazine subscription, if your business publishes a magazine and sells subscriptions to it, each month the money is going to stay the same, unless you increase how many subscriptions are available. Residual cash flow is monthly payments that your business is receiving that will not stop until a later date in the future.
Continue reading "Increasing your residual cash flow"How to create a cash flow forecast
One of the best ways to manage your business's finances is to create a cash flow forecast. The reason for this is that a cash flow forecast is going to show you where your business's money is going and how much money your business is earning. Cash flow forecasts are also going to be needed if you plan to get finance for your business.
Here are the steps you will need to take to create a cash flow forecast.
Continue reading "How to create a cash flow forecast"Cash management tips
Cash is the lifeblood of your business. Without proper cash flow procedures, you can easily bankrupt your company. Cash is one of the most vulnerable aspects of your company. Effective cash management must incorporate accuracy, completeness, authorization, existence, and proper disclosure and reporting procedures within the organization. Having a control over your cash will help management plan, forecast, and project outcomes for the future.
Here are a few cash management tips to follow:
Continue reading "Cash management tips"Treat money well to attract more
When you run a business and are involved in finances, it is very important that you constantly are taking care of your money.Taking care of your money is really the only way to make sure that your business can really survive!Taking care of your money also ensures that you will be able to make a profit and be able to survive yourself!Plus, if you treat money well, then you will be better able to attract and accumulate more money!Here are some tips on treating money well to attract more:
Using your frequent flyer miles to decrease spending
It's no secret that if you're a frequent flyer, there are ways that you can use those frequent flyer miles to decrease your spending costs.Every mile that you travel on a plane is equal to one frequent flyer mile.And many of today's programs offer much more than just a free airline trip, and you don't even have to go anywhere.
Frequent flyer programs are rewards that airlines offer to keep your business.The concept behind it is that in return for your loyalty and continued business, airlines will grant you flyer miles so that you keep coming back.The more you fly with them, the more miles you accrue.
Continue reading "Using your frequent flyer miles to decrease spending"The mathematical formula for making money
When it comes to making money there are many mathematical formulas or different variables to consider.It all depends on what kind of "money making" you want to get yourself into.The first thing that comes to mind with making money is the word investment.And with investment comes many a formula, or ways for making money from investing your money into stocks or mutual bonds compared to a simple savings account.Or investing money into owning your own business.They all have a different ROR or rate of return and all have a different formula for making money.Let's take a look at what you can do to make more money.
Should my business take payments online?
Nowadays, more and more people are skipping the shopping malls and opting to shop online instead. Online sales jumped over 20% from last year alone, and this wasn't just in the consumer industry either - more businesses are opting to purchase products and services online rather than wait in long phone queues and then recite information repeatedly to the operator.
How to understand balance sheets
In every business the main goal is to bring in more money; higher profits.But if you don't have a way to keep track of the money then what good does the money do for you.No budget reports, no financial statements, no nothing.This is where balance sheets come into play.A balance sheet is a report of the resources or assets that a business has.It gives you a view of what the business owns and also what is owned to other outside sources.It is also sometimes referred to as a profit and loss account.Know how to understand one will help you make better financial decisions.Here are some tips on how to understand balance sheets so you can keep your business out of the red.
Treasury and cash management tips
Treasury and cash management are extremely important strategies to have within your company.Without them your financial information can be hindered and can cost employees and the company valuable time and money.Manual processes can slow the process of treasury and cash management down.This article will talk more about treasury and cash management tips and some possible solutions.
Using Paypal for business finance transactions
There are so many businesses out there these days. There are home businesses, big businesses, and even businesses on the internet. No matter what type of business you are looking at getting into you will need to make sure that you know how you are going to collect your earnings. These days a lot of people are using credit cards more then anything else. Because of this you might have to look into getting involved with a credit card company. One company that a lot of people are starting to use is Paypal. Here are some information on using Paypal for business finance transactions and why people are choosing to go through paypal.
How to create a business checking account
There are a lot of things you have to think about when you are starting a new business. One thing that you have to take into consideration is how you are going to do your finances. A lot of businesses find it useful to have a business checking account. The reason businesses decide to do this is so that they can keep their personal expenses separate then their business expenses. It also helps to keep track of certain write offs for taxes at the end of the year. If you have a business and want a business checking account here are some tips on how to create a business checking account.
How to ensure that your business uses petty cash appropriately
Most businesses and organizations have a petty cash fund.Setting up the petty cash fund is not a particularly difficult procedure to undertake.However, it is more difficult to ensure that petty cash is used appropriately by yourself and other people in your business or organization.
Petty cash funds are an important part of a business' finance plan.Petty cash funds can be used when something needs to be purchased, and can't be bought through normal purchasing methods such as using your purchasing card or a purchase order.Petty cash funds can be a convenient way to buy the things that you need.However, petty cash funds also provide a great opportunity for abuse of the petty cash fund's ease of use.
It is important to regulate the use of your petty cash fund to ensure that it is not used inappropriately.Here are 5 tips to help you ensure that your petty cash is used in the way that it is intended.
Continue reading "How to ensure that your business uses petty cash appropriately"How to keep track of your business funds.
Ensuring that business funds are used appropriately is a cause for concern for any business owner or manager of a business.There are a number of different precautions that you can take, however, to ensure the proper and correct use of your business funds, and to protect against any abuses.
Whenever you own or manage any part of a business, one of the things that you have to be most careful about is the use of business funds.It is easy to abuse business fund without even realizing that one is doing so; using business funds to go to lunch, for example, or paying for things that should not be covered by business funds when on a business trip, like tickets to a show or a tour of an art museum.
Of course, there are the more glaring abuses of business funds.These include pretty obvious fraud, like funneling large amounts of money into personal accounts or using business funds as bribes or for personal use, like upgrading homes or helping with the kids' college education.Fortunately, there are a number of measures that you can put into place to ensure that business funds are not abused.
Continue reading "How to keep track of your business funds."How to be more loan worthy as a business
Do you want to be more loan worthy as a business?Here are some things that you can do to become more loan worthy and to find a competitive loan for your business.
1.Prepare your application.
Putting together a fantastic loan proposal that will demonstrate to investors and lenders that your business is worth the risk of their investment and that you will be able to pay back your loan.A good written loan proposal can also help you get better and more competitive rates and terms.
So here are the components and the necessary inclusions for your written loan proposal.This is where you are going to make your first and your only impression, so you should make it as good an impression as you can.
Continue reading "How to be more loan worthy as a business"A look at the Paydex index
What is a paydex score? As a business a paydex score is one of the most important things to know. A paydex score is equlivant to your personal FICO score or personal credit score. A paydex score can make the difference when acquiring loans for the company. If you do not manage your paydex score, it can cost your business.
The Paydex index is called the "Dunn and Bradstreet Paydex" score. It is a number of how your company pays its bills over the course of the last year and is reported to the Dunn and Bradstreet by various vendors. The Dunn and Bradstreet Paydex score is rated on a scale of 1 to 100, the higher the number, the better payment performance your company has.
Continue reading "A look at the Paydex index"Tips for balancing the checkbook
One of the most important financial things you should be doing each month is balancing your checkbook. While it may seem like a chore, doing so can save you a lot of hassle and even money in the long run.
Balancing your checkbook has a number of advantages, including verifying that your records match your bank's; after all, even banks make mistakes every now and again. Failing to balance your checkbook or posting a transaction can give you an inaccurate idea of how much money you actually do have in your account, which could lead to overdrafts and bounced checks and the heavy fines that go along with them.
The following are some tips for balancing your checkbook:
Make sure you record each transaction. This includes withdrawals from ATMs, automatic withdrawals via auto bill pay, and purchases made with your bank card. If you do not have your checkbook with you, make sure you save the receipt and record it immediately when you get home.
Continue reading "Tips for balancing the checkbook"Business finance organization tips
When it comes to operating a business, there are many financial things you will need to keep track of. This includes payroll, expenses, taxes, and many other expenses. Organizing and keeping track of your business finances is one of the most important things you can do for your business, for a number of reasons.
Keeping your finances organized helps you to make an accurate budget, helps you to know where your money is going, allows you to cut down on unnecessary expenses, and help you to pinpoint problems if there is a discrepancy on your statement. In addition, you will need to keep track of your finances for tax purposes as well when it comes time to file or if you get audited.
Continue reading "Business finance organization tips"Tips for reducing costs in the form of payroll deductions
Every business has expenses and costs that are a necessary part of business.The trick is simply to not let your expenses and costs overpower your income.There are many tips to achieving this goal, including reducing overhead, office costs and even reducing payroll.Here are some tips for reducing costs in the form of payroll deductions.
First, let's talk about what a payroll deduction plan actually is.A Payroll Deduction plan or a Payroll Deduction Roth Plan is a convenient way for employees to make regular, affordable contributions to their own IRA (Individual Retirement Arrangement) or Roth IRA through payroll deductions.The main differences between these two options are that Roth IRAs are not tax-deductible, but there are fewer restrictions and requirements on withdrawals.In both types of IRA accounts, transactions that occur on the account (like capital gains, dividends and interest) do not incur any tax liability.These types of plans can be a great service to both you and your employees.And even better is that it requires no contribution or expense by the employer.
Using investors to fund your business
Raising capital to fund your business can be very overwhelming. If you can develop a few important business plans and can show positive net return to your potential investors, they may be very interested in funding your business.
First, you probably need to come up with a business plan, which sometimes is called a business proposal. You must present a short but detailed business plan including information about your education credentials, experience and training in the area of business that you are considering. You need to use convincing arguments to gain the investor's trust in you and in your ability to make your business prosper which will also benefit your investors. Use all the positive references and qualities that you posses along with your impeccable personal credit history to reinforce the decision making of your investor to trust in your business idea. If you have records of an excellent payment history, this could be very helpful in establishing a perception of strong stability with regard to your financial obligations.
Setting up a checks and balances system for your accounting department
There are many types of accounting systems on the market. Which one you use really depends on what you want to accomplish in your accounting department as well as your comfort level in doing it yourself using a variety of available computer software that you can easily find online or in your local office store. If you are the type of person who doesn't like working with numbers or simply doesn't seem to find the time to balance your checks, then you may consider hiring someone skilled and affordable to perform all your accounting tasks.
Not so long ago, many bookkeepers used manual systems to record their entries. There are still some manual types of accounting systems in use and are still effective. They are called on-write systems and it is basically a big book of checks with a carbon strip on the back and with column pages where you can record your entry such as your bank deposits and all your other important transactions to help balance your check book. The best part about using this type of accounting system is that you are not required to know bookkeeping to record your check and balance entries and this book has everything to keep you financially organized.
Continue reading "Setting up a checks and balances system for your accounting department"Making sure your investor monies are being used legally
Some small businesses just have difficulty raising money or getting funds from traditional financial institutions such as banks. In this case, they usually bring in family members, friends, colleagues or venture capital investors to help them out in launching their business opportunity.
If you think that you are one of those businesses and need funding from non-traditional financial institutions such as close family members or financial investors, then just remember that these investors want something in return for their contributions. Those investors will have no problem investing in your idea if they have a good feeling about you.
Of course you need to present your investors a plan showing them the potential profits from your business. But they also care whom they are doing business with. They want to invest in someone they with whom they feel comfortable, and more importantly, who is honest, trustworthy, ethical and competent. They want to be convinced that their hard earned money is being used honestly and legally.
What are floating charges and what do they mean to your business
An important thing to understand before reading this article is that floating charges are a product of the British financial institutions.It is a system that offers unsecured charge on the assets of a company and allows unrestricted use of those same assets.While you can secure your business assets in the Common Wealth countries such as England, New Zeeland, Canada, and Whales, you will be hard pressed to get an American financial institution to offer you a floating charge.In fact, they might laugh if you ask.If you are reading this article in the United States and you aren't interested in securing your investments abroad, it probably won't mean anything at all to your business.However, if you are interested in foreign business finance or foreign securities, read on.
The term "floating charges" is a little misleading at least in the way that we think of "charge" in the United States.While the floating charges do indeed float, they are not really what we think of as charges.In the United States, floating charges would be more appropriately named "floating security interests".They are securities or insurances that cover all of the assets of a company.As the value of the assets changes through fluctuations in the market, appreciation, depreciation, buying or selling, or anything else, so does the value of the floating charge.Whatever the value of the "fixed assets" of the company, the amount of protection or insurance matches that amount.
How to set up business bank accounts, credit cards, etc.
It is very important for you as business owner to choose a bank that will fulfill all of your needs.Consider what kind of relationship you want with your bank.Look at all the benefits and facilities the banks offer.When you choose a bank that works for you, you can start opening accounts, and setting up business credit cards, and anything else your business will need.Lets look at ways to help you choose a bank and how to set up your accounts.
1) Look at all the options when choosing a bank to bring you business to.You do not have to use the same bank that you do your personal banking with.The bank you use for your personal accounts might not be a good choice for your business accounts.Compare several banks before making a decision. Compare the costs and charges of every bank that you are considering.
Continue reading "How to set up business bank accounts, credit cards, etc."Should you pay for your employees to have schooling in business finance?
There are always risks when investing effort, time and money into someone other than yourself. However, there are actually many benefits for an employer to want to help pay for their employees schooling.A few of these reasons are:
1. A good employer knows that education is the key to success.Having someone who is more knowledgeable about the work they do, will only help to expand and improve your company.The more you invest in someone, the more likely they are to invest in your company.They will feel supported and motivated to do a good job for the employer.
Continue reading "Should you pay for your employees to have schooling in business finance?"5 Tips to Ensure That Petty Cash Is Used Approporiately
Most businesses and organizations have a petty cash fund.Setting up the petty cash fund is not a particularly difficult procedure to undertake.However, it is more difficult to ensure that petty cash is used appropriately by yourself and other people in your business or organization.
Petty cash funds are an important part of a business' finance plan.Petty cash funds can be used when something needs to be purchased, and can't be bought through normal purchasing methods such as using your purchasing card or a purchase order.Petty cash funds can be a convenient way to buy the things that you need.However, petty cash funds also provide a great opportunity for abuse of the petty cash fund's ease of use.
Mixing business and personal finance
Although most people know you should never mix your personal accounts with your business accounts, it seems to happen quite often. People seem to think that just because their business has earned the money, from all the hard work they have put in, it is okay to take out money to make up the difference in a purchase as long as they put the money back. But this is not true; there are many reasons why you should not mix your personal and business finances.
When you first start up a business it can be rather hard to separate your personal and business accounts because you are trying to get up and running. If you are using your own money to start the business you should take the money you have saved to start your business and immediately open up a business checking account so that you can keep track of your business expenses. If you have business credit cards you should also keep those separate from your personal credit cards. By keeping your accounts separate you are protecting both your personal and business interests.
Continue reading "Mixing business and personal finance"Reasons to use Timesheet Software
Time sheet software is a great way to speed up and make the time sheet recording process more accurate and reliable. There are plenty of reasons to use timesheet software, and the specifics will be different for each company. However, the following are some general reasons to use timesheet software:
1. Accuracy: The cost of salaries, per hour workers, and billable hours really adds up fast for a small business, and you want to make sure you are getting your money's worth. For example, your salary employee, who is suppose to work 40 hours per week 9-5 Monday through Friday with an hour lunch break may actually be working 36 hours when you get right down to it. Say Monday they are 5 minutes late, take an hour ten at lunch, as they get back at the hour, but then have to use the bathroom, fill their water bottle, and call their wife. Then they cut out about 10 minutes early. Now that is normal, and does not seem like much time, but it adds up to 25 minutes, which 5 days a week is over 2 hours of work that they are being paid for and not doing. So, timesheet software is a great way to accurately determine how much work is actually being done.
Continue reading "Reasons to use Timesheet Software"