For many businesses, specifically in the manufacturing and distribution industry, companies such as manufacturing and distribution, inventory represents a large, if not the largest, portion of their assets. Therefore, it is important that management understands how to effectively manage their inventory. In this article,we will learn the importance of a good inventory management system. Inventory refers to goods that are…
There are two ways that a business can account for its transactions: manually through the use of notebooks/exercise books or electronically through the use of accounting software. Each of these has its merits and demerits. However, the benefits the use of accounting software comes with is invaluable and far surpasses the manual approach. In this piece, I take you through…
Effective financial record-keeping is essential for business survival and growth. It entails planning, organizing, controlling and monitoring your financial data to achieve the ultimate business objective. Most small and medium business owners often neglect to follow through religiously, this sometimes may be due to either not having full knowledge of keeping appropriate records or having a hard time doing so.…
Continuous availability of financial resources, especially cash is key to the survival of every business, including yours. George S. Clason, in his book, “The Richest Man In Babylon” notes that money is plentiful for those who understand the simple laws that govern its acquisition. One such law is what I call the law of safe investment. As a business, you…
Doing business is never without decision making. Sometimes it becomes necessary to take one decision or another to improve results. Such decisions may bother on laying off of staff or retaining them, buying an asset or leasing, outsourcing a service or setting up an in-house unit to provide such service, to mention but a few. It is crucial to mention…
The birth and the introduction of technology has brought a new face on how accounting traditionally was processed. Where transactions were manually recorded in columnar papers and kept in a huge folders. Once computers became popular with its accompany affordable software, accounting tasks change from the traditional method into this medium, where concepts stayed the same but mechanics changed from…
For any small business that aims to grow and be successful, systematically and comprehensively recording financial transactions must be paramount. Raising and issuing out invoices, filling requisitions and payment vouchers, recording bills and filing receipts, filing tax returns and a well-run financial operation is crucial to success and can help preempt problems that may arise in the future. Typical of…
Why Profitability Is Key to Assessing Your Business Growth Every emerging organisation be it small, medium or large has certain inherent reasons for its conception. The nature and characteristics can further explain the type of business in question, as to whether or not the business is profit making, nonprofit or a charitable organisation. In this article our focus will be…
As a small business owner, you wear many hats – developing the product, handling distribution, doing sales and chasing customers for payments, closing fund raising with investors and on top of all these managing your finances and keeping your books. This can be very overwhelming and you may need to outsource certain functions to in-house staff or independent contractors out…