Perhaps surprisingly, there are quite a few businesses that are looking to expand. Even small businesses can find the silver lining amidst the gloom despite the fact the economy has been hit hard by the pandemic. If you are looking to expand, we at Mark Dicus & Company would like to offer worthwhile accounting advice for you to consider below.
Calculate Operating Cash Flow
Your income levels are measured in operating cash flow. This basically tells you if you have enough revenue to cover your operating expenses or in the event you are in need of additional funding. Your inventory, your salaries, your services, and your sales is the primary focus of the principle of money-in, money-out.
What is Making Working Capital?
Working capital is essential in considering the business expansion. Your liquid assets are tracked with this key performance indicator, or KPI. In turn, these assets are commonly used on short-range financial expenditures, which under this category includes receivable accounts, short term investments and obtainable cash. Check what your working capital is should you want to know the difference between your assets and liabilities at a glance.
Many business owners are curious about what your current ratio is. You can use it to find out what your company’s short-term liquidity is like based on assets and liabilities if this is the case. The marketable securities, inventory, or accounts receivable are considered to be your current assets. Information you would normally expect to see on a balance sheet, such as your liabilities take the form of debts and other financial obligations are included. Accounts payable and short-term debts are prime examples.
What is a Good Investment Return?
Both profits and losses are brought with investments. A smart ROI is critical in the event you are trying to scale your company up. On a percentage that compares the profitability or efficiency of your investments, like on relevant marketing campaigns, is how this calculation is best.
Projected Cash Flow
The basis of how cash flow forecasting is supposed to work, is the money-in and money-out. Depending on how far out you want to speculate, a projection of how much money you can expect to make or lose over the next few weeks, months, or years is the simplest way to put it. You need to factor this KPI into your preparations to avoid potential insolvency should you want your business to grow or begin to scale.
Business Consulting & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
Ultimately, when it comes the financial growth, whether you need help with the accounting, bookkeeping, or consulting, you want the professionals of Mark Dicus & Company to assist you. Our qualified professionals possess formal training and experience to help you and your business be a success. Call us today to schedule your consultation. We can discuss which services can help your business prosper. We are readily available to answer any questions you may have and address any of your concerns. At Mark Dicus & Company, we do everything possible to help you and your business.