Coping With Inventory Uncertainties: The probabilistic model of inventory control
Inventory control is exceedingly difficult if you go into it blind, with no tips and tricks and no supporting software. However, with the right knowledge and methods in place, it can be something you can manage and control with few problems. Part of the art of inventory control lies in the ability to adapt to […] ... Read More
May 24, 2019 business costs, inventory control, inventory management software, overstock, stock control, stock level, understockImprove Your Financial Health with Better Inventory Control
There is a positive correlation between the quality of a company’s inventory control and its financial performance. Many financial ratios incorporate inventory values to measure aspects of a business’ financial health. For example: Inventory turnover ratio helps a business to plan and to more accurately forecast the cash necessary to reinvest i ... Read More
February 5, 2019 business costs, inventory accounting, inventory control, inventory costThe Weighted Average Cost Method of Inventory Valuation
The weighted average cost method in accounting is one of three approaches of valuing your businesses inventory stock and determines the average cost of all inventory items based on the individual costs and the quantity of each item held in stock. Businesses use the weighted average to determine the amount that goes into the inventory […] ... Read More
December 17, 2018 accounting, average landed cost, business costs, inventory accounting, inventory cost, inventory stock, inventory valuationShould Your Business Be Using the Weighted Average Cost Method?
The weighted average cost method is an accounting method that businesses use to value inventory. This method of valuing inventory involves proportional treatment of both the cost of goods sold (COGS) and the inventory item in stock at the time of valuation. This means that both are treated the same when it comes to determining […] ... Read More
December 14, 2018 average landed cost, business costs, inventory control, inventory management, inventory valuationHow Does the Weighted Average Method Work?
There are a variety of ways to measure the value of your inventory. If you’re a business owner, you might look at different tactics to see what work best for you. This may include the last-in-first-out method, the first-in-first-out method or the weighted average method. Unleashed Software uses the weighted cost method. There are pluses [… ... Read More
December 11, 2018 business costs, inventory cost, inventory stock5 Essential Business Costs Not to Skimp On
If you are a startup owner or entrepreneur, it is no secret that you may be working within a tight budget. The ability to make pennies stretch is an important survival skill. However, some of the most common money-saving strategies could end up being more detrimental to your business in the long run. What may […] ... Read More
April 3, 2018 business costs, business success, cost controlFour Hidden Costs that are Easy to Neglect
Kicking goals in business is almost always more expensive than you think. Even with the best planning, there’s always going to be a hidden cost that you forgot to capture on your planning spreadsheet. Thinking of every hidden cost is nigh on impossible, and that’s okay – what’s important is that you consider the big […] ... Read More
March 26, 2018 business costs, online inventory managementYour Debtor Days are Numbered
Debtor days refer to the number of days customers are given to settle their accounts, and the choice on the length of this period is entirely up to each individual business. Before making such a choice however, it is essential to understand in full how this period affects your business and your own ability to […] ... Read More
March 23, 2018 business costs, business growthShaving Your Costs While Maintaining Quality
Cost of Goods Sold (COGS) is the cost associated with the manufacture of your inventory stock, which incorporates both the raw materials cost and the labour costs. For the business to profit, the cost of production needs to decrease as the sale price increases. However, reducing production cost cannot come at the expense of quality. […] ... Read More
March 10, 2018 business costs, cost control, cost efficiency, lean business5 Ways to Reduce Debtor Days
Debtor days measures how quickly cash is being collected from debtors. The longer it takes for a business to collect, the greater the number of debtor days. Or, in other words, when a customer makes a purchase from you, they will have a set amount of time to pay you. All businesses have debtor days, […] ... Read More
March 10, 2018 business costsCut Costs Without Cutting Corners
It is a well-known fact that start-up businesses usually tend to struggle with managing their finances, especially in the beginning. As an SME owner, it can be tempting to take shortcuts when cutting costs to free up your finances for other priorities. While it is often necessary to reduce expenditure as a start-up business, you […] ... Read More
March 9, 2018 business costs, cost control, small business, SMETips for a Strong Balance Sheet
Businesses with strong balance sheets are more likely to survive economic downturns and be ready to thrive when the going gets good again. The basic assumption is that a strong balance sheet entails simply having more assets than liabilities. However, business owners should be aware that a strong balance sheet goes beyond this; the best […] ... Read More
March 8, 2018 business costs, cost of business, inventory managementPlummeting Costs and Rising Profits: The Picture for SMEs
Cost-cutting in business goes hand in hand with saving money and turning a higher profit. However, it does not need to be something backhanded or feared as the term might imply. In reality, cost-cutting in business does not need to be all that dissimilar to what would be done in a home. Let us explore […] ... Read More
March 8, 2018 business costs, cost reduction, small business, SMEFive Effective Ways to Reduce Cost of Goods Sold
Cost of goods sold, also known as COGS, is one of the most important elements of your business to understand. COGS can be defined as: “The direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the […] ... Read More
March 7, 2018 business costs, cost efficiency, cost of goods soldFour Tips to Improve Your Business’ Balance Sheet
For many businesses, the income statement is the be all and end all. But if your business is geared for financial performance, it’s important that your business’ balance sheet is also healthy. Here are four helpful hints to tame your business’ balance sheet using inventory control. What is the balance sheet? Your business’ balance sheet [&h ... Read More
March 6, 2018 business costs, inventory control, small business, SMECutting Costs on Your Cost of Goods
No matter what good a company is producing, the cost of the materials needed to produce that product directly impact profits. Cost of goods sold, otherwise known as COGS, is simply the costs of the products produced and sold, or purchased and sold again by a company. The cost of goods can include the cost […] ... Read More
February 26, 2018 business costs, cost of goods sold, cost reduction, ordering costsCan You Cut These Business Costs for your SME?
Simple ways to identify which business costs to cut can be done just by looking around. Is your company ordering fresh flowers from a florist regularly? This is a cost you can simply eliminate, for example by providing a beautiful pot plant. What is the situation at break times? Is your company offering fresh coffee […] ... Read More
February 20, 2018 business costs, cost control, cost of businessHow Small Businesses Can Cut Costs
Small businesses often struggle to manage the costs of running a small business, often operating on a minuscule budget. However, there are in fact many small but effective changes that managers can make to cut operating costs dramatically. From managing utility bills to rethinking freebies offered in the lunch room, this articles summarises a few [ ... Read More
February 13, 2018 business costs, cost reduction, small business, SMEStrategically Cut Costs for Your Start-Up
Being an entrepreneur or starting your own small business can be a risky endeavour. The feelings of stability and security often felt when working for an established company, evaporate. Big budgets disappear and all of a sudden you are trying to start a business on a shoestring budget. However, in pursuit of dreams, it is […] ... Read More
February 8, 2018 business costs, cost control, small business, SMECutting the Fat: Streamlining Your SME
It seems 12 hour days, sleepless nights and no holidays are a rite of passage for a small business owner, however why should this despicable life be the status quo? It does not have to be, and with clever strategies to streamline the business, you can enjoy some beauty sleep again. Let us consider what […] ... Read More
February 3, 2018 business costs, cost control, cost efficiency, small business, SMEUncovering the Hidden Costs of Small Businesses
Setting out to start your own business is ambitious and exciting. With ideas and dreams fuelling motivation, it’s easy to get enthusiastic about your new found freedom. After all, there is so much potential a new endeavour can bring. In order for a small business to develop and prosper, it needs to have strong financial […] ... Read More
January 29, 2018 business challenges, business costs, inventory stock, small business, SME, SMEsHow To Reduce Costs For A Small Business
Reducing the costs in your Small to Medium Enterprise (SME) is a way to fast track business process improvement. Implementing the right cost reduction strategies and techniques can result in immediate savings and can affect long term profitability. It’s crucial to understand that reductions in costs can come in various ways. Evaluate your profit ... Read More
December 5, 2017 business costs, SMEs