FinanceTips

Top 10 Tips to Improving Margins

Assess monthly income and expenses. Compare figures with previous months and with targets set in your business plan. Is spending increasing or is income decreasing? Set new targets if necessary.
Do a full audit of expenses. Include everything from wages and overtime to supplier costs, utility bills, insurance payments, fuel expenditure etc. Highlight areas you think you can make cutbacks without having an adverse effect on your business. Be realistic - don't expect to reduce costs across the board.
Look closely at the waste your business generates. Encourage all of your staff to use your firm's resources as efficiently as possible.

Common Financial Ratios For Business

Ratio analysis is a process that incorporates a series of simple mathematical functions and applies them to financial statements or projections to determine fiscal performance and conditions of a business enterprise.

They become even more valuable when you compare those ratios over time, from one period to the next. The primary use, however, should be to compare your ratio results with those of other businesses in your industry.

Better Budgets

Budgeting is part of good management. No business can expect to succeed unless it has a plan for expenditures that is related to its revenue estimates. Companies that spend more than they earn won’t be in business long.

But businesses generally have a number of budgets operating concurrently. There are budgets for categories like stationery and marketing that are not apparently interrelated, although collectively they become part of the organization’s annual budget.

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