simplebooklet thumbnail

of 0
11 St eps t o  Business Numbers Made Easy  These numbers are often a bit of a mystery to business owners. When you re busy...
1. Break-even Point An often overlooked but vital number in business. It s the amount of sales you need to make to cover y...
if you can t make an acceptable gross profit, you are not likely to make a net profit i.e. profit after running expenses. ...
factor it into your contracts with customers or use increased costs as a reason for regular small increases.  Most reasona...
4. Running Expenses These are the expenses incurred in the day-to-day running of your business e.g. rent, admin wages, mar...
5. Budget This is simply a document that sets out your future plan for sales, costs and running expenses, so you can see h...
All of the above is a great start to ending up with a profit in your business. Profit is great, and what is also vital to ...
6. Cust omer Payment s If you give customers time or terms to pay, this can have a big impact on your cash flow. Whilst th...
7. Suppl ier Payment s The time it takes you to pay your suppliers is another opportunity for managing cash, so it spends ...
Progress payments and deposits are a must if a job is going to take a while  that way your customer is helping to pay for ...
9. Taxes and Loans We may not like having to pay tax, but unfortunately it s a fact of life. If you want to run a sustaina...
Some people put the tax into a separate bank account until it s due to be paid. This can be good, but if you manage it rig...
If you ve got a good and accurately set up accounting system that will help, as well as giving them comfort you ve got you...
11. Cash Fl ow Forecast As can be seen the cash management in a business can be quite complicated, with money coming and g...
Summary  This information is not designed to be a technically accurate lesson in accounting, rather to highlight what are ...