Balance Sheets
Posted by SkillMaker in Mar, 2018
Balance Sheets A balance sheet is a financial statement used to show the value of a business at a particular point in time. It is a financial document that helps business managers (and shareholders, if applicable) to assess the business’s financial strengths and weaknesses. The balance sheet reveals this evaluation by detailing the business’s […]
Category: BSBSMB402
Post Tagged with small business finance Financial reports
Posted by SkillMaker in Mar, 2018
Financial reports Financial reports are the documents that a business creates to formally record its financial activities. Maintaining the same standard format for these financial reports allows for proper time-series analysis of the data presented. This, in turn, enables a ready analysis of a business’s financial history, helping decision-makers to keep track of the business’s […]
Category: BSBSMB402
Post Tagged with small business finance Profit margin versus mark-up
Posted by SkillMaker in Mar, 2018
Profit margin versus mark-up Most people are familiar with the concept of mark-up but are generally unaware of gross profit margin. Mark-up is the percentage added to a cost price to establish a selling price. For example, adding a 100% mark-up to an item costing $5 gives a selling price of $10 (i.e. $5 x […]
Category: BSBSMB402
Post Tagged with small business finance Financial decision-making for small businesses
Posted by SkillMaker in Mar, 2018
Financial decision-making for small businesses Financial decision-making for small businesses involves making decisions that will shape the financial fortunes of the business and maximise returns for the business owner(s) (who may include shareholders). Decisions revolve around two key considerations: how and when to borrow money and how and when to spend it. Financial decision-making is […]
Category: BSBSMB402
Post Tagged with small business finance Financial Plan for a small business
Posted by SkillMaker in Jan, 2017
What is a Financial plan? A financial plan for a small business is a document that evaluates how well the business is financially achieving its strategic goals, now and into the future. In other words, it assesses how profitably the business is currently operating (or not) and whether or not this situation is likely to […]
Category: BSBSMB402
Post Tagged with business objectives, cashflow, financial plan, marketing plan, operational plan, strategic goals Unit costs in business
Posted by SkillMaker in Dec, 2016
What are Unit costs? The unit cost is the average total cost of making, storing and selling one unit of a product. It is a consideration when a business makes large numbers of the same product. The unit cost of a product takes into account fixed costs as well as variable costs. Fixed costs are […]
Category: BSBSMB402
Post Tagged with breakeven point, fixed costs, pricing, production, profit, small business finance, SMB, unit costs, variable costs Pricing Strategies
Posted by SkillMaker in Dec, 2016
What are Pricing strategies? Pricing strategies are the techniques that businesses use to determine what to charge for the goods and services they sell. Pricing is a key component of the business’s marketing strategy which takes into account factors such as: the cost to the business to produce or purchase the good, or to deliver […]
Category: BSBSMB402
Post Tagged with small business finance Business Products
Posted by SkillMaker in Dec, 2016
What are Business products Business products are either good or services or a combination of both. The product sold by a books store is books (goods) just as the product sold by accounting firms is advice (service). Products can be sold to consumers (B2C) or to other businesses (B2B). There are different types of products, […]
Category: BSBSMB402
Post Tagged with small business finance Business Plan
Posted by SkillMaker in Dec, 2016
What is a Business plan? A business plan is a document that provides a ‘roadmap’ on how a business is going to work and succeed in achieving its goals. It describes the business, its market, its objectives and the strategies developed to achieve these. New businesses, businesses seeking formal funding and businesses changing direction typically […]
Category: BSBSMB402
Category: BSBSMB402
Post Tagged with finance, glossary, small business, small business finance, small business finance glossary, SMB