Latest Posts

How to Manage Your Business’s Funds

bizpredict-2

In a world in which revenue streams are abundant, online banking is common, and market saturation is all around, managing your business’s funds is more important than ever, especially if you want your business to survive long-term. The management of your business’s funds should involve four simple pieces of documentation which include:

• A balance sheet

• A cash flow statement

• A statement of financial performance

• An analytical chart for comparing statements
These are instrumental in the management of your business’s funds, assets, liabilities and equity.

The balance sheet will give you an outline of your current and non-current assets, which are property or funds that you own that can be used to pay off your liabilities (debts). The balance sheet will also outline said debts as well as your overall owner’s equity.

The cash flow statement is a record of all cash inflows and outflows that go through the business’s accounting department. This includes business purchases, sales, currency exchanges and account deposits. This will give you a great idea on where your revenue is coming from, and where your money is being spent. Breaking these inflows and outflows to specific transactions allow for a greater understanding as well as a more well-informed decision making ability.

The statement of financial performance will give you an overall view on the revenue, expenses and profit made over the course of a particular financial year, this will show you the business’s performance, as well as where you may have gone wrong. This is extremely important when it comes time to show investors just what your business can do. If you are not in need to please investors then it is still vital to have on record for accounting purposes.

The analytical chart will be your point of comparison between all these statements. It will display all the key elements from the other financial statements as well as compare them with each other. For example, the amount of gross profit to expenses to calculate your profit can be broken down into individual business transactions throughout the financial year. This will allow you to pin-point the exact source of your most profitable revenue streams, or your most detrimental expenses.

In summation, having these four statements greatly increases your business’s ability to manage funds and are a great tool in the growth and expansion of your business. Through keeping records you will be able to make executive decisions within your business which are well-informed and financially beneficial.

How to Start a New Home Based Business

Woman working at home with laptop computer

Are you looking to start a home based business? Have you been wondering how to start a home based business? It can seem like a complicated task trying to start a home based business, especially if you are new to business. As you read this article, you will discover the steps you need to take.

Points I cover in this article about how to start a home based business: The Importance of Research Goals Create Purpose Planning a Home Based Business.

The Importance of Research

Research is something that can often be overlooked. Optimism can be our worst enemy, especially when it is unfounded. However great an idea is, it is useless if it doesn’t go through the essential steps in how to start a home based business.

This research is important to gather information which is necessary for success. For years, I would go the wrong way. I would have an idea, and try to make it work. The truth is that the proper way is to first find a market, and only then provide a solution.

Understanding the supply and demand first is the most important piece of the equation, when asking how to start a home based business. This is not always easy, but the effort will pay off. After all you will then know if the market is profitable, and how saturated it is.

Goals Create Purpose

When asking how to start a home based business, you may have goals, but often people will not spend time in this area. A home based business requires effort, and effort needs motivation. To create that motivation, you will need to have a strong – why – to why you want to be in a home based business of your own.

Spend or rather invest some time into thinking about your goals and aspirations. Where would you like your home business to head to? Why do you want to get into business?

Planning To Start a Home Based Business

Planning is an essential element to any business and this applies to work from home based businesses. Knowing what you need to do, and when is a critical topic, and one which has many books filling shelves in bookstores.

Starting a Home Based Business

Starting a home based business is not only about the planning and dreaming phase. It requires action, and starting a home based business is not always easy. If it is your first attempt at business, it can have a long learning curve. However, with effort you will become professional in no time.