Business Financing

Small Business Budgeting – Financial Planning

in Business Financing
Financial Planning

Learn How to Create an Expense Budget for Maximum Profitability

Step by step instructions on how to create a budget. Business budgeting is important for maximizing profits and giving the company financial direction.

The first step to creating a budget is the creation of the sales forecast. The forecast is an estimate of future sales and other types of income. Although the budget is not a prediction of the future, it uses future estimated income as a means of dispersing expenditures.

Budgeting financial expenditures allows the business to maximize profitability by controlling expenses. Keep Reading

Business Permanent Cost Reduction Strategies

in Business Financing
Business Cost Reduction

How to Cut Company Expenses over the Long Term

Companies that have had a major decline in business need to have solutions for reducing expenses that will continue to be effective over the long term.

When a business finds itself in financial difficulty, it has two options to turn around the situation, either grow revenues or reduce expenses.

Revenue growth is often outside the control of management, and the decision to spend money can be made internally.

Short term measures can work during a crisis, but if a company is losing market share permanently, if there is a prolonged recession, or if the industry is in decline, effective long term solutions are required. Keep Reading

Business Budgeting – Why and What

in Business Financing
Business Budget

Reasons & Methods for the Corporate Budget Process

Budgeting is done for a variety of reasons. Many companies will use this to set benchmarks for managers and for bonuses, but this should not be the primary purpose.

Budgets are done in order to understand the direction in which a business is going, viewing future possibilities in growth, expected costs, and in order to plan for future events, including staffing, marketing, and more. Keep Reading

What Is an Income Statement? FAQ

in Business Financing
business earning, income

Why Income Statements Are Important, and How to Use Them

Wondering what an income statement is, and how to use it to further your entrepreneurial venture?

Read this FAQ for a full explanation.

An income statement offers an overview of a specific business’ profits and losses over a set period of time, such as a year, month or quarter.

Income statements basically summarize every expense for your entrepreneurial venture, as well as every source of revenue. Keep Reading

The Importance of Good Cash Flow

in Business Financing
The Importance of Cash Flow

Proper Cash Management Is More Important Than Profit and Loss

Often a small business owner will concern themselves with their profit and loss statements first and all the other indicators about the health of a business second.

If this is the case for you then you may be making a grave mistake.

Of course you want to know if your business is making money or losing money but neither one will tell you if you are going to have the actual cash to pay the bills.

That’s where a cash flow statement comes in. Keep Reading

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