Succeeding the financial part of a business plan may seem complex at first, but it simply calls for some logic.   Tip # 1: Build on Realistic Predictions   The financial forecast represents a quantified translation of a project; this translation must be the closest to reality. This quality will only be present in a business plan if the "raw materials" (the forecast data) used in the construction of the financial tables are fair and evaluated in the most objective way possible.   The two biggest threats....

The working capital requirement (WCR) is a very important indicator for companies. It represents the short-term financing needs of a company resulting from cash flow discrepancies (disbursements) and receipts related to operational activity.   What is the WCR? When and how to calculate it? How to finance it at the beginning of the activity? How to interpret it? How to master it? What are the ratios related to this one?What is the WCR ? By definition, the working capital requirement (WCR) represents the amount that ....

Balance Sheet This basic form gives a glimpse of the company’s assets, or what it owns, and what it owes, such as liabilities and equity. Asset An asset is anything a company owns. Cash, buildings, equipment, cars, they all count as an asset. If your company bought a car and that car contributes to running your business, then it is an asset. Liabilities Are you hiding the electric bill under your mattress, hoping it will go away? No matter where you’ve stashed it, it’s a liability: loans, bonds, other unpaid bills ....

Do you find accounting overwhelming? Would you rather just get on with your core business and ignore all the minutiae? You only need to learn ten universal terms to understand financial statements and reports, and determine profits and losses. Understanding these will help you interface with your accountant and may substantially impact your bottom line.Accounting The first thing you need to know is exactly what accounting is. Accounting consists of the methods and procedures for collecting, processing, analyzing and presenting data ab....

Even the most successful business can suffer if there are cash flow issues. You’ve made a capital investment, you’ve produced your product or delivered your service, but have you gotten paid? Do you know when you’ll get paid? Will it be in time to pay your own costs? With these simple tips, you can get better control of your cash flow, facilitating your business processes and helping ensure your success! 1. Insist on deposits or payment up front There is no shame in asking for full payment or a depo....

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