Business Financials to Make Decisions - PowerPoint PPT Presentation

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Business Financials to Make Decisions

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Businesses are made and broken on the decisions that are made. Making better business decisions begins with understanding your financial situation and policy you applying.Role of Business Financials to Make Decisions is very important because to formulating plans and policies for the future for the company.Get Business Coaching idea from us to grow your business to a new level. – PowerPoint PPT presentation

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Title: Business Financials to Make Decisions


1
Business Financials to Make Decisions
2
Dealing With Cash Shortages
-May faced due to company does not have
sufficient cash available to pay -To Overcome
this policy of Business Financials to Make
Decisions in way that company will not face this
cash shortage in future.-Missing the tax
payment can result in the company being charged
penalties and interest -Missing the loan payment
could jeopardize the companys relationship with
a lender -Prepare your company for
a cash flow shortage is to build a capital
reserve.
3
Short-Run Vision
-Always sure company has sufficient cash.-Take
advantage of opportunities for growth -May urge
the business owner to not proceed with an
acquisition opportunity -Project five to 10
years in the future. -Dream big and focus on
success. -Clarify the "what" and "who" of
a company, while a vision statement adds the
"why" and "how" as well.
4
Investment Decisions
- Purpose can be specific to a desired item,
such as purchasing a new car or second home. -
So, we have defined a purpose. What comes next?
Knowing how long we have to achieve our purpose
is the next important step in our decision
process - The other face of reward is risk. Risk
might be the most misunderstood function of
selecting investment tools. Not all risks are
created equal, nor does everyone view risk the
same way.  - Once we have defined our purpose,
determined our time frame, and assessed our risk,
it is time to choose our tools. Every financial
product in existence has its own benefits, costs
and rules of use.  - Goals, purposes and
situations can change over time. Economic
conditions, tax structures, investment climates,
and rules will change. You need to work at
monitoring your plan and make adjustments as
needed
5
Receivables and Payables Policies
-Simplify Your Accounts Payable Process -Analyze
and reduce errors such as paying incorrect
amounts, incorrectly entering check numbers used
to pay vendors, and paying too early or too
late. -Separation of duties, proper approval by
department heads, and spot checks will help
reduce the risk of fraud. -Regardless of the
terms given, you can call your vendors and
negotiate terms for your own company. -If your
company manages cash more actively, let Accounts
Payable know up front what their budget is.
They will know best what vendors can wait until
the next check run.
6
Investment Decisions
- Purpose can be specific to a desired item,
such as purchasing a new car or second home. -
So, we have defined a purpose. What comes next?
Knowing how long we have to achieve our purpose
is the next important step in our decision
process - The other face of reward is risk. Risk
might be the most misunderstood function of
selecting investment tools. Not all risks are
created equal, nor does everyone view risk the
same way.  - Once we have defined our purpose,
determined our time frame, and assessed our risk,
it is time to choose our tools. Every financial
product in existence has its own benefits, costs
and rules of use.  - Goals, purposes and
situations can change over time. Economic
conditions, tax structures, investment climates,
and rules will change. You need to work at
monitoring your plan and make adjustments as
needed also hiring the right employees for growth
of your business.
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