What does BPM have to do with business finances?
As most of you are aware of BPM or business process management is a way to evaluate your company to find out if there are any areas that need improvement. But perhaps you are wondering what it is that BPM has to do with your company's finances. Well in actuality BPM has a lot to do with your company's finances because BPM takes a look at your company as a whole and will allow you to make improvements as needed which will help to increase your profits. This helps to increase your profits because you are more productive but also because less money is being spent on wasteful processes, which helps you to save money in certain areas, which in turn leads to higher profits.
But in order to experience the full effects of BPM you are going to need to fully evaluate your company using business process management. In order to fully evaluate your company you are going to need to use all three categories of business process management. The three categories are: process design, process execution, and process monitoring.
Continue reading "What does BPM have to do with business finances?"Tips for understanding balance sheets
Here are five tips for understanding balance sheets. In a business, the main function is to bring in a profit. However, if the information that lets you know where your accounting for the company is, is inaccurate, then the company will have a hard time growing and succeeding.
So even though there is usually an accountant hired to help with the information on the money end of a business, it is important to still know some of the basic accounting functions. This will include understanding a balance sheet.
Continue reading "Tips for understanding balance sheets"What are variable or direct costs and what do they mean to your business?
Once you get involved in business finance, you cannot help but deal with both variable cost, and direct costs.Even before you start your business, when you are preparing your business plan and budget, you will have to account for both types of costs.This article will help you understand each type of cost and the difference between them.
Variable costs are costs that change based on the amount of business you are doing.The best example of variable cost comes from the manufacturing industry.If there is more demand for your product, you increase production.As you increase production, you need more raw materials to work with.These raw materials represent a cost (you have to pay for your stuff, right?) and that cost varies depending on how much of your product you are manufacturing.
What are single-entry accounts and what do they mean to your business
Most people are first introduced to single-entry accounts when they first learn to use a checkbook.The checkbook register is a classic single-entry account, where each line is either an amount of money subtracted from the account (when you write a check) or added to your account (when you make a deposit).To find out how much money is in your account, you just add up the columns and add that amount to the amount that you started with.In business, there are single-entry accounts also, and they are just that easy.However, the single-entry account is rarely used by accountants so as you might expect, there are both advantages and disadvantages or a single-entry system.
The main benefit for the single-entry system is that it is super easy to use.It actually is as easy as keeping a checkbook and if you know how to balance a checkbook, you know how to balance the books for your company.You just have to remember to write down what come into or goes out of the business coiffeurs and be sure to write down absolutely everything.You also have to remember to make sure it is written in such a way that you know the difference between the positive entries and the negative entries.On of the most common ways to distinguish between positive and negative entries is to enclose the negative entries in parentheses.In a very simple business with few transactions, this might be ideal.