You may have heard about assets before but don’t know what they really mean or why they’re important. In this article, we’ll explain exactly what an asset is and how to identify them.
Opportunity cost is an important concept in decision-making. It refers to the trade-offs that a person or a business faces when choosing between two or more alternatives. The opportunity cost of an action is the value of the next best alternative foregone, or missed out on when that action is taken.
Is your business penny wise and pound foolish? Sometimes making penny wise decisions with your business can lead to being pound foolish in the long run. You may be able to save a little money in the short term, but if it means sacrificing essential functions or investments in your company, you could be doing more harm than good.
Receivable management is a critical process for small businesses, as it helps to ensure that cash flow is maintained and that late payments are avoided. Unfortunately, many small businesses fail to effectively manage their receivables, which can lead to financial trouble.
It won’t be incorrect to state that some trivial and unnecessary expenses get ignored during business reviews. The impact of saving such expenses is so miniscule that the management does not bother reviewing them. However, I recommend you question every single line item. What seems trivial may have a very significant impact.