Working Capital is a common measure of the health of your business operations. Knowing how to manage working capital is a crucial aspect of financial procedures. Working capital refers to the funds required to operate your firm on a daily, weekly, and monthly basis. It is the money used to pay your suppliers for materials, as well as the money needed to pay for the items and services (such as inventory and payroll) that you have utilized while waiting for your customers to pay you. Continue reading Working Capital? | Definition
A business credit score is an indicator of your overall business financial health. It lets lenders and suppliers know you can pay your debts, and is a useful tool for cementing a reliable reputation. But it is your credit policy that protects your business cash. Why is a business credit score important? Continue reading Why is a Business Credit Score Important?
Purchasing Procedures provide vendor selection and purchasing controls that assist in managing cash flow and providing quality inputs to the company. To make intelligent purchases, you must get the right quality and quantity of materials from the best vendors, at the best price, and at the right time. What are the basic purchasing procedures for the procurement process? Continue reading What are Basic Purchasing Process Procedures?
One important topic on finance processes is knowing how to manage working capital. Working capital is the money it takes to run your business on a daily, weekly, and monthly basis. It is the money used to pay your suppliers for materials and the money needed to pay for the goods and services (i.e. inventory and payroll) you have used while you wait for your customers to pay you. Continue reading How to Manage Working Capital
Accounts payable is the event that pays for the liability incurred by the purchasing process, which is for supplier purchases or inventory required by manufacturing to meet customer demand. Sales generates the demand that created the accounts receivables, which is turned into cash. How do you write accounts payable procedure manual to support the purchasing policies and procedures manual, to disburse the cash? Continue reading How to Write an Accounts Payable Procedures Manual