Hey Readers! I’ve been comin across some crazy stuff the past few days from a few different blogs around the web which I just had to share with you. Check em out below…
Viewpoint Construction Software Completes Round of Funding from …
Updata Partners is a growth stage venture capital and private equity firm investing in software and technology-driven business services Read More…
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This post was written by admin on May 3, 2010
How about these right… I think you’ll find the following nuggets of wisdom particularly insightful. Leave your comments below. Check out the second one in particular…
Report: Google to open app store for business software …
Google may open as early as March an online store to sell third-party software that complements its Google Apps collaboration and communication Read More…
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This post was written by admin on April 22, 2010
How about these right… I think you’ll find the following nuggets of wisdom particularly insightful. Leave your comments below. Check out the second one in particular…
CommVault Simpana 8 Software Garners Gold in the Storage Magazine …
OCEANPORT, N.J.–(BUSINESS WIRE)– CommVault (NASDAQ: CVLT): News Facts. Tweet This: @CommVault #Simpana 8 wins gold in Read More…
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This post was written by admin on April 14, 2010
Hey Readers! I’ve been comin across some crazy stuff the past few days from a few different blogs around the web which I just had to share with you. Check em out below…
CORRECTING and REPLACING New Enterprise Software Makes Advertisers …
SAN DIEGO–(BUSINESS WIRE)– The name of the new solution should read: Mobile Site Optimizer (sted Mobile Content Optimizer). … Read More…
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This post was written by admin on April 12, 2010
As a small business owner, you don’t necessarily need a software package for payroll. If you are willing to spend hours on performing mundane and boring tasks and doing endless calculations that is. Calculations, moreover, that need to be perfectly accurate, if you wish to avoid endless hassles with employees and the government alike.
So what can you do to make life Read More…
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This post was written by admin on April 9, 2010
One of the biggest challenges small firms face nowadays is the problem of managing time for clients and billing them accordingly. For this, they may have to depend on their clients for information. However, there are many real time small business time and billing software available online to help small firms take advantage and enhance productivity, while indirectly Read More…
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This post was written by admin on April 7, 2010
For every business to be successful, one of the important things one needs to do is to reduce unnecessary waste, be it time or manpower. Business software are now being used extensively where repeated data entry and data manipulation needs to be done. This has proved to be useful and efficient and its use is getting popular with each passing day.
An all round software Read More…
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This post was written by admin on March 22, 2010
Voip As An Economic Option For Small Business Phone Service
Any business, whatever is the size of the business needs good quality phone service at affordable rates. The small business phone service plays an important role on how the business is run daily. With the advancement in technology now-a-days VoIP has become one of the options that you can’t ignore Read More…
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This post was written by admin on March 17, 2010
Sales turnover and net profits may follow a rollercoaster pattern familiar to most business but when the cash flow dries up the game is over. Urgent attention to the management of working capital can provide every business with the cash resources to exploit its potential
Most businesses will experience periods of lower sales and times when losses may be incurred as expenses exceed sales income. The situation is recoverable by producing higher sales and reducing costs and expenses. A business that runs out of cash resources is dead in the water.
Debtors and sales income management
The objective is to obtain payment from customers as fast as possible improving cash flow and minimising the risk of bad debts and not being paid at all.
Payment terms offered to customers should be clearly stated and fixed as standard accounting figures according to the amount of funding the business is prepared to offer its clients. Because that is exactly what credit terms to customers is, free cash funding in exchange for eventual sales income.
Consideration should be given to using a cash discount system to encourage sales invoices to be paid faster. In some businesses it would be appropriate to obtain up front deposits and scheduled payments. Review this practise to obtain a greater proportion of payments faster to improve liquidity.
New customers should be subjected to a strict credit check. All new customers where credit check details are not available should be invoiced by the accounting function on a pro forma basis. Any businesses who fail to meet the highest credit score required should remain on a pro forma invoice basis.
The credit control function needs consideration from the first step of issuing customers with a sales invoice, producing customer statements of the debt owed and a set procedure of credit control letters and telephone follow ups that actually achieve the end result of getting the cash in. An essential process in the credit control procedure would be to ensure the accountant or bookkeeper always issues sales invoices and customer statements promptly.
Incorporate into the terms of trade a set of rules to invoke interest payments for late payment and late payment debt recovery costs. In the UK the Late Payment of Commercial Debts (Interest) Act 1998 sets out the statutory rights of business to claim interest and costs.
Consider the possibility of factoring sales invoices due from debtors either by selling the sales invoices to a third party or raising cash on the value of those invoices pending payment. Factoring has the disadvantage of often not being cheap but does have the advantage of generating a regular stream of cash.
Bad debts have a double impact on any business and all possible steps should be taken to reduce the risk. A bad debt not only uses valuable resources in chasing the debt with the negative impact on cash flow and liquidity but also is a straight loss to the net profit and a strong indicator that the accounting function is failing the business.
Creditors and expenditure management
The objective is to extend the time allowed for payment of expenses the business incurs.
Consider the frequency of all payments made to suppliers. Small business have alternative payment terms available for the payment of taxes. In the UK value added tax can be paid quarterly or monthly, vat cash accounting can ease the tax liability due in critical periods and paye payments can be paid quarterly rather than monthly for smaller businesses.
Every opportunity should be considered to improve liquidity and that would include the frequency which employee salaries and wages are paid. A sensitive area since it involves the most important people to the business success but adopting a payment period to coincide with the receipt of cash from customers may in some circumstances balance liquidity.
General creditors are a major area to be addressed in terms of both the amount of credit received from suppliers and the time required to pay those creditor accounts. Larger orders on extended payments terms creates a risk area should the goods not be used but can greatly assist cash flow as the business is effectively borrowing free cash from its suppliers.
Stock levels are crucial to financial management of the creditor total. High stock levels use valuable working capital which is offset in part by the level of creditors. Higher levels of stock financed by free credit from creditors lowers the cash flow requirements on the other parts of the business.
About The Author
Terry Cartwright designs UK Accounting Software at http://www.diyaccounting.co.uk/ on excel spreadsheets providing complete Bookkeeping solutions http://www.diyaccounting.co.uk/smallbusinessaccounting.htm for small to medium sized businesses
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This post was written by admin on March 9, 2010
Project Management Consultant
Inabia Software & Consulting Inc. provides Project Management services for all leading business ventures .We assure efficiency by conceptualizing and initiating pragmatic business ideas that gives constant quality-based deliverables to meet every customer needs. At Inabia, we reach our goal by consulting and maintaining a full- Read More…
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This post was written by admin on March 3, 2010
