An asset ratio compares your assets to another part of your business. So, you could be comparing assets to revenue, profit, the number of employees or their salaries – whichever you wanted to measure. For example, if your assets/salaries ratio increases, you may have staff over-ordering on equipment.
Below are some suggestions for unlocking funds without affecting your operational capacity. Keep in mind that you should always seek professional guidance before making changes to your business if you are unsure of the repercussions or potential issues.
So, you have a great business idea and are convinced you can make it work, but you don’t have much capital to get your business off the ground. Juggling existing financial commitments such as a mortgage or bank loans could put a squeeze on your business plans. A growing number of entrepreneurs are using creative thinking and shrewd planning to get businesses off the ground with the smallest budgets.
How can there be a profit if the year’s ended with no cash? It’s quite common for businesses to end the year with little or no cash, only to be told by their accountant that they made a profit and must now pay tax. The reason for this is that tax is decided on the net profit the business has made, not what it has left over.
Before you go down the path of seeking capital from outside your business, identify any other ways of raising capital. For example, do you have any savings (either in...
Accounting problems can have serious consequences for your business and are definitely worth avoiding. Here we outline six ways to solve the majority of your accounting...
FULL LIST OF GUIDES
Use the Trading, profit and loss forecast template to compile a document that you can continue to use to measure your business’s health and progress.
Enter your projected monthly sales and costs to predict how profitable your business will be.
Use the cash flow forecast template to compile a document that you can continue to use to measure your business’s health and progress.
The template is split into two sections, “Sales” and “Less Payments”. Enter your sales figures into the first section and your costs into the second.
The template will automatically calculate your sales and costs figures for you, to show you the cash surplus or deficit remaining.