The third rule for building a group of companies without signs of artificial fragmentation.
Let's turn to business process notation again. Earlier we decided on the inputs, the activity itself, and the outputs (goals). However, in arbitration practice on artificial fragmentation of a business,…

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Business inheritance using the Articles of Association and Corporate Agreement
Often, business growth is impossible without attracting partners in its individual areas / projects / companies. And relations with such partners must be pre-regulated and legally secured, which is guaranteed…

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The second wave of coronavirus: what should businesses do?
More than half of entrepreneurs have not yet recovered from the first wave of coronavirus, and experts are already predicting a new outbreak. We tell you whether it is possible…

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10 mistakes entrepreneurs make in purchasing
Procurement is not only participation in tenders, but also simply the purchase of goods necessary for a business. Purchasing departments or managers play an important role in a company's business…

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Production accounting in "1C: Management of our company 8"
Capabilities for production accounting "1C: Management of our company 8" allows you to perform comprehensive production accounting - order and serial. With the help of the program, you can control…

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equity is assets

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 likely, if the revenue is higher, then the profit will increase. On the contrary, it also works: if the revenue falls, then the same will happen with the profit. And everything would be very simple if there was a direct relationship between the indicators. But no: the revenue may sink just a little, and this will lead to large losses. 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

Financial health of a business: 9 indicators for a check-up

It happens that a company looks successful, healthy and rich: every month it opens a new branch, hires two thousand employees and does not leave the front page of Forbes. But then – again, and bankruptcy. This happens when the owner looks only at the size of the company or turnover, and these are not the indicators that really reflect the financial health of the business. About those – in the article. Continue reading

Auditor VS Management company: when which instrument to choose
Let us recall that in addition to the general meeting of its members, the board of directors and the director, the structure of the company's management bodies can include the…

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3 business analysis questions
Planning is the foundation of any business. Individual planned indicators or industry averages can be used as base ones. To understand whether the intermediate, final performance indicators for the reporting…

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Cancellation of imposed insurance
The problem with the imposition of insurance on citizens has been taking place for more than a year. Anyone who has ever had to take a loan knows that the…

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