Kathy~ Svetina’s Post

Everyone loves a discount – and many businesses use discounts to boost sales, attract customers, and clear out inventory quickly… But do you know some of the financial dangers discounting can cause your business? Here are just three examples: Profit Margins 💸: Discounts directly reduce the selling price of products or services, which can significantly erode profit margins. If the increase in sales volume doesn’t offset the lower selling price, the company’s overall profitability may suffer. Perceived Value 💸: Frequent discounts can lead to a decrease in the perceived value of products or services. Customers may start to question the quality of the products or services, or they may get used to buying only when there’s a discount. Cash Flow Issues 💸: Offering discounts means less cash coming into the business. This can lead to cash flow issues, especially for small businesses or those operating on tight budgets. It can affect the ability to meet financial obligations such as payroll, rent, and other operational expenses. Remember, while discounts can be an effective tool for driving sales, it’s important to consider these potential risks and use discounting strategically. For support with your business accounts, get in touch today: https://lnkd.in/eRrsTcBZ #Crisp #CrispAccountancy #Accounting #Accountancy #Tax #TaxSaving #Discounts #Discouting #FinancialTips #BusinessSupport

Are you pricing your goods and services correctly? Understanding your gross profit margins can help you set the right rates for your organization. 1. Understand Your Costs: Break down all your overhead costs including salaries, benefits, and equipment. This will help you undertstand how much cashflow is needed to cover these expenses, and achieve your desired margin. 2. Benchmark Prices: Use your gross profit margin to evaluate how your pricing compares to your specific industry. Ensure your rates are competitive and profitable. 3. Make Adjustments as Needed: If your gross profit margin is lower than desired, consider areas where you can lower costs and adjust your prices. Make sure your prices reflect the value of your services and cover all your costs. 4. Monitor and Adapt: Regularly track your gross profit margin to identify trends and make proactive adjustments to your pricing strategy. This can help you stay profitable and competitive. 4. Monitor and Adapt: Regularly track your gross profit margin to identify trends and make proactive adjustments to your pricing strategy. This helps you stay profitable and competitive. Knowing your gross profit margin is essential to developing a pricing strategy for your goods and services.  #affable #financialfitness #strategy

The holiday season can be a busy time for a business. Here are a few key steps to ensure you’re financially prepared: 1️⃣ Budget smart by reviewing past spending to create a realistic budget for the season. 2️⃣ Manage cash flow by offering early payment discounts and aligning supplier terms with revenue. 3️⃣ Plan for demand to ensure you have enough inventory and staff to meet the rush. 4️⃣ Build an emergency fund to prepare for unexpected costs, such as returns and last-minute expenses. 5️⃣ For short-term cash flow issues, consider invoice financing or cash flow loans to cover gaps before debtors pay. Plan ahead to make the most of the season and avoid financial stress. #HolidayBusiness #FinancialPlanning #CashFlow

𝐇𝐨𝐰 𝐜𝐚𝐧 𝐈 𝐢𝐦𝐩𝐫𝐨𝐯𝐞 𝐦𝐲 𝐜𝐚𝐬𝐡 𝐟𝐥𝐨𝐰? Here are some additional suggestions to improve your cash flow: 𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗿𝗲𝗰𝗲𝗶𝘃𝗮𝗯𝗹𝗲 𝗺𝗼𝗿𝗲 𝗾𝘂𝗶𝗰𝗸𝗹𝘆 Send out invoices promptly and follow up with customers to ensure timely payment. Consider implementing a payment schedule or offering discounts for early payment. 𝗣𝗮𝘆𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗯𝗶𝗹𝗹𝘀 𝗼𝗻 𝘁𝗶𝗺𝗲 Make timely payments to your suppliers and vendors to avoid late fees and penalties. Set up automatic payments or schedule reminders to ensure you never miss a payment. 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗻𝗴 𝗯𝗲𝘁𝘁𝗲𝗿 𝘁𝗲𝗿𝗺𝘀 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿𝘀 Reach out to your suppliers and negotiate better payment terms, such as extended payment periods or discounts for bulk orders. Be prepared to negotiate and have a clear understanding of your business's financial needs. 𝗧𝗿𝗮𝗰𝗸𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗹𝗲𝘃𝗲𝗹𝘀 𝗰𝗹𝗼𝘀𝗲𝗹𝘆 Keep track of your inventory levels and adjust your production and ordering schedules accordingly. Avoid overstocking, which can lead to unnecessary expenses and tie up too much capital in inventory. By implementing these strategies, you can improve your cash flow and achieve financial stability for your business. For more information, reach out to ABFL to help your business succeed with expert financial guidance and support. #CashFlowTips #BusinessFinance #FinancialManagement #SmallBusinessSuccess

Timing is everything in cash flow. 💸 ⏰ Are your payment cycles aligned with your expenses? If you’re waiting too long to receive payments, you could be scrambling to pay suppliers. Plan ahead and build a buffer to keep things smooth. Learn more about balancing payment cycles and actionable tips in our new blog. Link below 👇 https://lnkd.in/d9W2Yxsb

It is wise to seek expert guidance to optimise your cash flow. Contact Asset Based Finance and Leasing Ltd to implement effective management!

The 19 reasons hidden profit leaks are stealing 6 to 7 figures of your profit: Reason # 11: The Incumbent Vendor Has Been In Place For More Than Three Years This may just be a result of Reason 10. Either way, all the issues there are the same. The most important issue is the paragraph about the vendor implementing profit escalators. Although I previously mentioned this, it’s worth repeating because of its cost to your company. Every industry has many places to hide costs, and over time, vendors will typically implement profit escalators (not usually in an area that’s closely reviewed by their customers) to enhance their margins. Things constantly change in any industry (just think about yours). If your current vendor has been in place for more than three years, you’ll be surprised what you’ll find during a thorough review of the industry and the vendors supporting it. For more information: Call the 24-hour recorded message: 800.991.3552 The Profit Leak Assessment: Discover the probability profit leaks are hiding in your operating budget. Take the online Profit Leak Assessment at: https://lnkd.in/gCK5rN74 It’s free, takes about 3 minutes, and your scores are provided instantly. After completing the assessment, you're eligible for a free score review as well as receiving tips on how to supercharge your cost reduction process. On a performance basis, BottomLine Advantage eliminates hidden profit leaks that are stealing 6 to 7 figures of profit from companies with $75+ million of annual revenue. There are NO upfront costs, and two guarantees ensure savings commitments are delivered with financial penalties to us if they’re not met or exceeded. Questions? Send an email to [email protected]

Cash Flow Challenges at Fiscal Year-End Fiscal year-end can be a tricky time for cash flow, especially if your business is juggling expenses and income. Here are some tips to stay on top: Monitor Receivables: Follow up on unpaid invoices to boost your cash reserves. Delay Major Purchases: Consider postponing significant expenses until the new fiscal year. Review Payment Terms: Negotiate with vendors for better payment terms to ease cash flow pressure. We’re here to help your business stay financially healthy: www.korecc.com #CashFlow #SmallBusiness #FiscalYearEnd

Accounting Equations : 1. Gross Profit = Sales - Cost of Good Sold 2. Gross Profit Margin= (Gross Profit /sales) *100 3. Operating Profit= Gross Profit- operating expenses 4. Operating Profit Margin=(operating profit/sales)*100 5. Net Profit=Operating profit - tax and interest 6. Net Profit Margin=( Net profit/sales)*100 7. Return on investment(ROI) = (Gain/Cost)*100 8. Return on equity= (Net profit/shareholder equity) *100 9. Asset Turnover = sales/Total asset 10. COGS = opening stock + Net purchasing stock + Direct expenses -closing stock 11. Revenue = sales + Other income 12. EBITDA Margin =( EBITDA/Sales)*100.

What is Operating profit margin This ratio shows the profitability of each unit of the company's operational activities. Operating profit margin is a stronger measure to evaluate the company's profitability and sales because non-operating items and financial expenses and taxes are not included in the calculation of operating profit. What is Gross profit margin It is obtained from the division of gross profit into sales. A gross profit margin of 20% means that the company earns 20% of its sales after deducting production costs.