How to Prevent Bad Debts in Business

Preventive measures against bad debts. What is “bad debts”? In a simple language, I will define bad debts as sales made to customers on credit which you are not able to collect. On the other hand, one can say that bad debts are irrecoverable debts. Bad debts as its name implies is bad for any business. It does not only distort your financial reporting, it also affects your liquidity. Let me explain this. In accounting, you prepare your financial statements using accrual concept. This implies that you recognise your revenues when sales are made. You don’t wait till the time Continue ReadingHow to Prevent Bad Debts in Business

Top Web Hosting Companies Around the World

Waiting for Black Friday and Cyber Monday 2017 Web Hosting Deals? Are you searching for web hosting companies? Are you targeting Black Friday/Cyber Monday web hosting deals? Instead of spending your valuable time searching for web hosting companies, we have dedicated this article to make a list of the popular web hosting companies so that you can choose the one that best suits you. It is no longer news that there are website hosting deals and discounts usually being offered by many web hosting companies in Cyber week, covering Black Friday and Cyber Monday. In this year Black Friday and Cyber Monday, Continue ReadingTop Web Hosting Companies Around the World

Understanding Working Capital Cycle in Small Business

Every level of working capital cycle you keep has its own implications on your business. Working capital cycle is used to illustrate the length of days it takes a business to convert its inventories into cash. If you are into manufacturing, you buy raw materials from suppliers, work on them and make it ready for customers to buy. Customers will either buy in cash or on credit. Then you collect money back from your customers. You must understand the effect of selling on credit to customers.  Generally, your aim is to minimise the length of your working capital cycle so that Continue ReadingUnderstanding Working Capital Cycle in Small Business

How to Increase Sales Without Extra Marketing Costs

You don’t need to break the bank in order to increase sales. Before I continue, I like to quickly mention that it is not enough to increase sales, each sales increase should also increase your profits. That is why small business should be very creative when it comes to marketing. As important as marketing is to every business, small businesses don’t have much funds to invest in it. This makes it difficult or impossible for them to compete with large companies. Large corporations can afford to spend thousands of dollars for the promotion of their products. But a small business that Continue ReadingHow to Increase Sales Without Extra Marketing Costs

Effects of Selling on Credit to Customers in Small Business

Pros and Cons of Selling on Credit on Working Capital. There will be a mix in your sales. Some will pay cash while some will buy on credit. Selling on credit is almost inevitable in business. Some factors will necessitate that you sell on credit. You may need to sell on credit because you want to maintain a closer relationship with the customers or as a result of the increased competition. It may even be that competitors are giving out credits. So, if others are selling on credit and you don’t, you may possibly lose customers to competitors. Before you Continue ReadingEffects of Selling on Credit to Customers in Small Business