When you can't do without an agency agreement
We have repeatedly talked about the pros and cons of an agency agreement (see, for example, here), pointing out the need for a deliberate approach to the use of the…

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How to receive dividends regularly and without harm to the company
If the company makes a profit, then the owner of the business can receive dividends. But it is often not clear how much you can withdraw and how to do…

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Let's break it down into ions: writing off perishable food
The life cycle of a perishable can be from several hours to several years, but the shorter it is, the higher the risk of write-offs, so management must be clearly…

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How to get through the off-season without cash gaps
In the spring and summer, the company had strong sales, and in late autumn, winter and early spring it had to take out loans and overdrafts. They figured out how…

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Not a single share ... And again about the motivation of top managers
Increasingly, we are faced with a request from business founders: we want to give top managers shares so that they receive a percentage of profits and are associated with the…

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Direct and indirect costs or why it is impossible to count net profit by line of business

In companies with several divisions and branches, it is difficult to calculate the profit of each. You can subtract all expenses from all income and get some value. But this approach is not entirely correct. Rather, it would be to understand the direct and indirect costs, calculate the gross profit and only in this way determine the efficiency of the business.

Why exactly and what all these parameters mean – we will consider in this article. Continue reading

Types of cash flows: operating, investment, financial

You count the money at the end of the month and see that the expenses are more than the income, which means that it has gone into negative territory. I even had to take a loan at interest from a friend in order to pay salaries. At such a moment, the heart skips, and the question arises in my head: is everything really bad?

Maybe not. “Bad” minus or “good” can be found by dividing the cash flow by type of activity. What types to divide into and in what report – we will analyze it today. Continue reading

Opportunities for mutual funds for financing in a group of companies

All this is really applicable to mutual funds. A mutual fund, as a tool, has unique properties. However, the high cost of “maintenance” due to the need to comply with a number of mandatory procedures makes mutual funds inaccessible and inappropriate for mass use.

Having rich experience in structuring a business using bold decisions and non-standard combinations of various organizational and legal forms, we will make a small remark – the effects achieved with the help of mutual funds are purely individual. Continue reading

Operating leverage: what happens to profit margins if revenues fall. And if it grows up?
Usually business owners are interested in two interrelated indicators: revenue and profit. Revenue shows how much the company earned, and profit shows how much is left after deducting expenses. Most…

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Progressive tax rate
Tax base and set of tax bases When determining the tax base, all incomes of an individual that are received by him both in cash and in kind or the…

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Types of cash flows: operating, investment, financial
You count the money at the end of the month and see that the expenses are more than the income, which means that it has gone into negative territory. I…

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