Importance of Accounting Information
This clip explains that accurate record keeping is essential to the health and prosperity of any small business. Once the financial objectives of the business have been established, the accounting system allows the entrepreneur to evaluate the perfo...
Credit
This clip argues that, since a company's ability to collect its accounts receivable has a direct impact on its cash flow, it's important to establish clear guidelines for payment before extending credit to customers. The clip also looks at establish...
Inventory Planning
This clip looks at ways to plan inventory levels so that there's not too much or too little inventory on hand at any given time. The ideal balance provides enough to satisfy customers, but not so much that there's an undo financial strain on the org...
Who Utilizes Financial Information?
This clip notes that, while the business owner obviously has a vested interest in keeping track of the company's finances, there are other parties who may also need to know about the firm's financial condition. Examples include banks, vendors, suppl...
Capital Budgeting
This clip focuses on capital budgeting, which is the process by which the long-term investment of available capital funds is planned.
Hiring A Financial Professional
The clip looks at the unfortunate tendency of many entrepreneurs to do all financial record keeping themselves, or to assign the task to an office worker or family member on a part-time basis.
Managing Cash Flow
This clip talks about the importance of managing cash flow, noting that the cash requirements of any company are constantly changing and that sales mean nothing without the ability to collect cash.