Cash flow sources for businesses
Cash flow refers to the available cash from an investment activity after receiving all revenues & after payment of all debts. Having sufficient cash on hand help ensure that employee, creditors, and others can be paid on time.
If a business or person doesn’t have ample cash to support its operations fully, it’s said to be in debt or insolvent and a likely candidate for bankruptcy-(if the insolvency continues). The financial statement of a firm’s cash flows is used by financial analysts to measure the firm’s business performance.
Organizations with sufficient cash flow have the ability to invest the money back into the company to generate more profit and cash. Cash flow sources for businesses include
#Cash flow from disposing of off assets-This will make any lender nervous. If your business has decided to take this approach, you need to find out if your assets are no longer required in their current business model, If they’re important to operation activities, what basis is the business leasing the asset , do they contemplate to continue this way or do they simply expect to replace or restore the equipment?
#Cash flow from borrowing funds from someone else-Find out what the business’s overall plan is & when you are supposed to repay the loan. Borrowing long term to solve short-term operating losses is not prudent.
#Cash flow from owner-capital contribution-If the business is short of operating cash flow to service their debts_this might be the source of cash flow you as a borrower would like to see, “coming to the table” to save your business.
#Cash flow from running down cash balances-If the business had excess liquidity-(this is okay when it comes to short-term financing). The reason to have an excellent liquidity is -to have a backup plan just in case of a downturn. You should check to confirm how longer your business can operate this way without creating a cash shortage.
#Issuing of debt & the repayment of debt when debt is given; the business receive cash that requires to be paid at a later date.
#Free cash flow-Free cash flow is that cash that the management can utilize at its discretion. The importance of this cash flow shouldn’t be underestimated. Free cash flow can be used to repurchase debt, retire debt, expand current offerings, pay an additional dividend or create new products.
#Issue of shares-cash is received & ownership is diluted once an organization issue stock. Raising funds by issuing shares isn’t a bad sign, as-long-as the company is growing at an acceptable rate.
The process of getting a qualified accountant might not only be tiresome but also extremely hard to accomplish. This is primarily because the personnel with necessary accounting skills run to corporate institutions and government organizations to secure long term jobs. Nevertheless, if you want to start a private business, all is not lost. A few things would help you understand where to find a good accountant.
The Accountants licensing board:
In their offices, you would be able to get the names and the contacts of accountancy professionals who have been licensed and are in the job market legally. These are professionals who have different educational levels ranging from chartered accountants, certified general accountants and certified management accountants. They are the crème Del a crème in this field because they will provide the very fine details of financial statements and reports of accounting processes.
Look for references from your clients and fellow businessmen:
Your fellow business men and friendly companies have their preferred accounting personnel who they dearly trust and give them jobs in their companies. In this case, the source is reputable and the degree of trustworthy is relatively high because you have a guarantee of the referee. They will also do their tasks diligently because they would not want to risk their reputation and friendship with those who referred them to you.
Visit online business blogs:
Many accountants have newsletters and online blogs where they keep updating their information daily and keep the current profile updated. You will find all the information regarding these personnel and you will be able to find them so easily over the internet.
Attending corporate and business workshops and trainings:
It is generally in the public domain that the attendance of such workshops would be of great importance as it allows greater interaction with a variety of people; many of whom will be professionals in the business world. You will be able to meet experts such as different executives of the company, human resources managers and accountants. It is therefore advisable to take home accountants’ business cards and contact them later.
And finally, use of media to advertise the vacancy of an accountant in your firm is an imperative method especially in this 21st century. Publishing the advertisement in the dailies and airing over the televisions and radios will be vital in helping you get the best accounting personnel. This is the most convenient and easiest way to solve the question of where to find a good accountant!
Business In USA
What is a business
A business is an economic activity that relates to the continuous and regular production of goods and distributed services for the satisfaction of human wants.
What start a business
If you are an entrepreneur, there are a million reasons to start your own business, in any part of the world, including the Unites States. However, it might be too risky, as you may go for debts or lose sleep, and face the hurdles of many uncertainties. The good news happens when you succeed, as you finally reap big.
This piece of content outline the bureaucratic and legal hurdles the entrepreneurs face in their pursuit of how to start a business in the US of America. There are a number of procedures that are involved, ranging from time and cost and legal documentation.
The United States CBA office
The Office of the Commercial and Business Affairs (CBA) assumes a significant part in arranging exchange and speculation matters to bolster U.S. firms working together abroad. Its primary goal is to draw in U.S. government assets to aid and advance U.S. business intrigues abroad, and to guarantee that private sector business concerns are ultimately incorporated into U.S. foreign and monetary policy.
There are quite various factors and issues to consider, and you have to be sorted out. Your particular business endeavor relies on upon a number of lawful and duty contemplations and verifying you have proficient to fill out the obliged paperwork. However even with the paper mountain you may need to write in foreign business in the USA is invited.
Steps that ought to be followed when starting a business in USA
Starting a business involves planning, making key financial decisions and completing a series of legal activities. Below outlines the ten steps to be followed by any individual willing to start a business in the United States
Step 1: Write a Business Plan
Write a comprehensive business plan that will define your inputs, outputs, business plan, sales and the expected profit margins.
Step 2: Get Business Assistance and Training
Step 3: Choose your Business Location and, In this case, your business location is the US
Step 4: Finance Your Business
Step 5: Determine all the Legal Structure that will define Your Business
determine if it is a sole proprietorship limited company or any other structure
Step 6: Register your Business Name with the state government.
Step 7: Get the required taxation pin number
Step 8. Obtain the business permits
Step 9. Take the necessary steps in identifying and recruiting your employees.
A foreign business can enter the US showcase by offering goods or services to non-related US purchasers. A case is online foreign money purchasing. Once your business has created, you can go ahead to designate US-based agent or wholesaler.
This can be done easily in a number of ways. While building up your foreign business, it will be imperative to create validity when it go to your registered business credit rating in the USA.
International trade logistics can be extensively termed as the trade of goods and services between two nations or across two international boundaries.