8 Ways of cutting costs in a business

8 Ways of cutting costs in a business

01.12.2016 · Enterprise finance
As a rule, managers start to explore financial problems when a company doesn’t have enough money to pay the bills and the income becomes too small. This is the most common case when economists, managers are looking for ways of income increases. There are two methods to decide the problem. The first - finding ways of revenue growth and the second – cutting costs in a business. In this article we’ll show the second way, because it is more effective than the first one.

Features of money

30.11.2016 · Enterprise finance
Cash flow that characterizes the movement of money is linked with the features of financial system of the country. The flow of the money makes features in the commodity and money relations. That's why it is important to explore money features in macro and micro environment.
9 main cash flow characteristics

9 main cash flow characteristics

29.11.2016 · Enterprise finance
1. Cash flow is the object of financial management of the company. The process of cash flow shows the movement of the company. This relationship shows both internal and external company's monetary transactions. External relations are settlements with the budget, institutions, financial market partners. The internal attributes are the relationships with the structure of the company, shareholders, employees and others.
What is cash Flow?

What is cash Flow?

28.11.2016 · Enterprise finance
Cash flow is a set of revenues and expenditures expressed in cash and cash equivalents that are generated by the company in the process of its economic activity. A concept of cash flow is used in investment analysis to calculate such indicators of investments efficiency as NPV and IRR. This indicator is also very important when preparing business plans, forecasts or budgets.
6 Global Risks That May Affect You Even If You’re Operating Nationally

6 Global Risks That May Affect You Even If You’re Operating Nationally

21.11.2016 · Enterprise finance
A main objective economic trend in the XXI century is the development of globalization in the world. This phenomenon is a characteristic feature of the entire world business system. Globalized economy reinforces old business risks and generates completely new ones. Individual national economies as well as market players that operate nationally may be strongly affected by growing global risks. Below we’ll examine shortly the most challenging perils worldwide and outline the possible ways of coping with them.
Business Risks: Understanding the Fundamentals

Business Risks: Understanding the Fundamentals

21.11.2016 · Enterprise finance
A guiding principle of any enterprise in a market economy is the desire to obtain a greatest possible profit. However, such desire is limited by the possibility of incurring losses. In other words, the concept of business risk appears when it comes to the market success of the company.
Units-of-Production Depreciation

Units-of-Production Depreciation

18.11.2016 · Enterprise finance
There are certain types of enterprises that rely on a seasonal demand in their activity. So there is no point to write off depreciation costs every month. In such case it makes more sense to write off a part of fixed assets value according to the quantity of manufactured goods. This method is called a unit-of-production depreciation.
Straight line and accelerated depreciation

Straight line and accelerated depreciation

12.11.2016 · Enterprise finance
Every company uses tangible assets for its activity. But the cost of capital assets cannot be a part of annual expenses in exactly the same year they were bought. The assets value is divided in certain parts during the assets' operational period. This process is called depreciation. Many economists define depreciation as a rational and systematic process of distributing capital costs over the period of operation. It's necessary to know that every asset has its own useful life. The company can exploit the building or equipment during the period of useful life, but there are standards of using periods for different types of assets and every company has to follow them.