Working Capital Management in Small Business (Part 1)

Your working capital management skill will reflect in the liquidity of your business. Before your read this article, I suggest you first read my previous article on “Preparation of Financial Statements for Your Business”. Without the knowledge of financial statements, it may be difficult to understand this article on working capital management.  With your understanding of financial statements, it will not be difficult to quickly grasp the meaning of working capital. Working Capital refers to that part of the firm’s capital, which is required for financing short-term or current assets such as cash marketable securities, debtors and inventories.  Working capital is the Continue ReadingWorking Capital Management in Small Business (Part 1)

How to Choose the Right Accounting Outsourcing Firm

The benefits of outsourcing are dependent on the person or firm you choose to handle the functions for you. If you have read my previous article entitled I mentioned in my previous articles “Accounting for Small Businesses”, you must have seen the need and benefits of outsourcing your accounting functions. If you have not read it, I recommend that you read the article first. However, I mentioned that it is not automatic that you will stand to enjoy all the benefits of accounting outsourcing. The benefits are dependent on the person or firm you choose to handle the functions for Continue ReadingHow to Choose the Right Accounting Outsourcing Firm

Outsourcing of Accounting For Small Businesses

Accounting for business transactions is a must for all businesses whether small or big. We understand that a good knowledge of accounting is needed for accounting, record keeping and the preparation of financial statements of your business. Unfortunately many entrepreneurs do not possess this skill. Few entrepreneurs with accounting skills do not have enough time to write their own books. It is possible that their businesses have not grown to the level whereby they can employ a skilled person to carry out the accounting for them. If that is the case, accounting outsourcing can adequately bridge the gap. Accounting outsourcing Continue ReadingOutsourcing of Accounting For Small Businesses

How to Adjust Price to Maximize Profit

You can adjust your price to maximize profit in your business. You should not be afraid to adjust your price to the amount that helps you maximize profit. Over time, you will have a better understanding of the price that best works for you. . The essence of your business is profit maximization. Generating sales is not equal to profitability. Whatever type of business you are doing, if you are not making profits, it is just a matter of time that the business will close down. Making profits is not difficult if you perfectly understand profit equation. What is profit equation? In accounting sense, Continue ReadingHow to Adjust Price to Maximize Profit

How to set goals for your small business in 2016

You Need To Set Goals For Your Small  Business. Happy New Year to you all! The year 2015 has gone forever but the impact will still be felt in your small business this year. It does not matter how the year 2015 was to you or your small business. We have another opportunity to do whatever we were unable to do last year. Yes, it is another year; a year of opportunities and challenges.  I hope you are not surprised to hear that the year 2016 has come with its own challenges. As an entrepreneur, the word ‘challenge’ should turn you Continue ReadingHow to set goals for your small business in 2016