Knowledge Hub
A company’s financial health isn’t measured solely by cash inflows. More important than that is understanding how much value the business actually generates after considering all the costs involved in its operation. In this article we’ll delve deeper into the concept of operating margin and show how it becomes a true barometer of business efficiency . What is operating margin … Read more
A contingency reserve is, in simple terms, an amount strategically set aside to protect the company from unforeseen events. It should not be confused with profit or working capital, as its purpose is very specific: to ensure financial security in unexpected situations . In other words, it’s a corporate emergency fund . Just as families organize to … Read more
In fact, creating a business plan is not a guarantee of success, so you should always subject it to an in-depth business feasibility analysis. For this assessment, several business plan viability indicators are used , which measure the sustainability and competitive capacity of your company. In this article, learn about the main business plan viability indicators to … Read more
Corporate finance is needed in order to be stable, grow, and make optimal use of resources at hand. In the corporate world, being wise in finance could mean the difference between success and being operationally challenged. Proper corporate financial management in this context, then, is far more than balancing expenses and revenues. It entails tax planning, … Read more
Good business financial management involves preparing for adverse or unwanted situations, such as default. In this sense, it is important to know what credit risk is and how it can affect the business. From there, it is possible to monitor and manage this condition through risk measures. As a result, you can reduce defaults, increase the level … Read more
A business’s financial management is a collection of methods and practices used to manage its finances. Management can be done by small entrepreneurs, based on planning, recording and monitoring tools and operations. At the same time, it is common for those responsible for smaller businesses to have doubts about this management process. Therefore, knowing what … Read more
Analyzing the financial situation of small and medium-sized companies should be a constant strategic management action in the business routine. In addition to monitoring results, the process also involves good planning. After all, every entrepreneur who wants to run a successful organization must understand that every action taken in the company will have an impact … Read more