{"id":345815,"date":"2021-09-29T12:04:00","date_gmt":"2021-09-29T09:04:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nerdwallet-4-essential-concepts-for-managing-business-success\/"},"modified":"2021-09-29T12:04:00","modified_gmt":"2021-09-29T09:04:00","slug":"nerdwallet-4-essential-concepts-for-managing-business-success","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nerdwallet-4-essential-concepts-for-managing-business-success\/","title":{"rendered":"#NerdWallet: 4 essential concepts for managing business success"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a33e479b34a7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a33e479b34a7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-4-essential-concepts-for-managing-business-success\/#Technology_can_help_you_track_performance_of_your_small_business\" >Technology can help you track performance of your small business<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-4-essential-concepts-for-managing-business-success\/#1_Cash_flow\" >1. Cash flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-4-essential-concepts-for-managing-business-success\/#2_Profit\" >2. Profit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-4-essential-concepts-for-managing-business-success\/#3_Accounts_payable\" >3. Accounts payable<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-4-essential-concepts-for-managing-business-success\/#4_Accounts_receivable\" >4. Accounts receivable<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/nerdwallet-4-essential-concepts-for-managing-business-success\/#Randa_Kriss\" >Randa Kriss<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#NerdWallet: 4 essential concepts for managing business success<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Technology_can_help_you_track_performance_of_your_small_business\"><\/span>\n  Technology can help you track performance of your small business<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\" role=\"region\" aria-label=\"article body\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000420468\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000420468\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <em>This <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/small-business\/business-financial-metrics?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=1059563\" class=\"icon none\"><em>article<\/em><\/a><em> is reprinted by permission from <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\"><em>NerdWallet<\/em><\/a><em>.\u00a0<\/em><\/p>\n<p> In order to make informed business decisions, such as seeking financing, you need to be able to understand your financial performance \u2014 especially since the COVID-19 pandemic has altered the way many small businesses operate.<\/p>\n<p>Navigating your financial metrics doesn\u2019t mean you have to sit crunching numbers on a calculator, however.<\/p>\n<div class=\"paywall\">\n       When you use <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, like accounting software, you can automate data processing and instead spend your time looking at the actual insights the data provides, says Ben Richmond, a chartered accountant and U.S. country manager at Xero, a cloud-based accounting software platform provider. With the right tools, you can take more control of your business and have more confidence, he says.<\/p>\n<p>Here are four metrics that are essential to understand when managing your business finances.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"1_Cash_flow\"><\/span><strong>1. Cash flow<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Cash flow, or the amount of money coming into and going out of your business, is one of the most important indicators of financial performance. Richmond uses the analogy of a business as an amazing Ferrari<br \/>\n        RACE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208128355\/composite\" class=\"negative\">-2.42%<\/bg-quote><span>,<\/span><br \/>\n       and cash flow, the gas. \u201cIf you\u2019ve got no gas, the Ferrari is nothing but an ornament sitting in the garage,\u201d he says.<\/p>\n<p>Most bookkeeping and accounting software platforms allow you to automatically generate a cash flow statement. Understanding how much cash you have on hand is the first step, Richmond says.<\/p>\n<p>Then, you can create cash flow predictions and take action from those insights. For example, you can determine whether you need to tighten up expenses to make sure you\u2019re well funded. On the other hand, if you\u2019re experiencing growth and have a cash flow surplus, you can decide the best way to capitalize on that opportunity.<\/p>\n<p><strong>Don\u2019t miss:<\/strong> My bank accidentally deposited $10K in my account. I reported it, then moved it to my savings account. Have I done enough?<\/p>\n<h6><span class=\"ez-toc-section\" id=\"2_Profit\"><\/span><strong>2. Profit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Profit is the big picture goal for most businesses. The profit and loss statement, which shows your profit (or loss) over a period of time, is one of the most useful reports to have at your disposal.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>What percentage of revenue is generated from your top three clients or products? How many employees are needed to run operations?<\/p>\n<p>These are numbers small-business owners need to know, said Marko Mijuskovic, via email. Mijuskovic is a certified exit planner and senior partner at WestPac Wealth Partners, a wealth management firm headquartered in San Diego.<\/p>\n<p>Like the cash flow statement, you can generate a profit and loss statement automatically using accounting software. Then, you can identify opportunities to cut down on unnecessary expenses and prioritize your most successful products and services\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/small-business\/most-profitable-business?utm_campaign=ct_prod&amp;utm_content=1059563&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">in order to maximize profit<\/a>.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"3_Accounts_payable\"><\/span><strong>3. Accounts payable<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>The common saying holds true: You have to spend money to make money. And by actively monitoring your accounts payable \u2014 the money you owe to vendors or suppliers for purchases made on credit \u2014 you can determine how much cash you\u2019re going to need and when you\u2019re going to need it.<\/p>\n<p>You\u2019ll want to make sure that you have enough cash to keep your business running and pay your vendors on time. Not having enough cash generated from business revenues to meet obligations is one of the top reasons that businesses fail, said Sallie Mullins Thompson, a certified public accountant who works with small-business owners, via email.<\/p>\n<p>Making on time (or even early) payments allows you to maintain a good relationship with your vendors, take advantage of potential payment discounts and build business credit \u2014 which is essential if you\u2019re looking for financing in the future.<\/p>\n<p><strong>Also read:<\/strong> How to hire your first employee<\/p>\n<p>Accounting software can help streamline your accounts payable at a basic level, but dedicated\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/small-business\/accounts-payable-software?utm_campaign=ct_prod&amp;utm_content=1059563&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">accounts payable software<\/a>\u00a0can automate the process even further.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"4_Accounts_receivable\"><\/span><strong>4. Accounts receivable<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Which invoices are outstanding? How long does it take for your customers to pay their invoices? How much of your cash is typically tied up in unpaid invoices? These questions all speak to your accounts receivable, the money that customers owe your business for goods or services that have already been delivered.<\/p>\n<p>Tracking your accounts receivable has similar benefits to tracking your accounts payable: By determining how long it takes your customers to pay their invoices \u2014 and making sure they pay on time \u2014 you can better\u00a0manage your cash flow\u00a0and avoid losing out on profit.<\/p>\n<p>Accounts receivable software\u00a0can streamline this process, as well as provide tools to help improve communication with your customers. These platforms can also aggregate all of your accounts receivable data in one place so you can gather additional insights about your business\u2019s performance.<\/p>\n<p><strong>See<\/strong>: 6 questions to ask yourself about expanding your small business<\/p>\n<p>Understanding your accounts payable and receivable goes a step further than strictly looking at your business on a cash basis \u2014 cash in, cash out \u2014 Richmond says. Tracking these movements allows you to think ahead and get a full picture of the business, he says.<\/p>\n<p><strong>More From NerdWallet<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/small-business\/freelance-to-full-time?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=1059563\" class=\"icon none\">5 Steps to Turn Your Side Gig Into a Full-Fledged Business<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/small-business\/4-new-rules-for-entrepreneurs-in-2021?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=1059563\" class=\"icon none\">4 New Rules for Entrepreneurs in 2021<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/small-business\/5-tips-for-fostering-a-successful-hybrid-workplace?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=1059563\" class=\"icon none\">5 Tips for Fostering a Successful Hybrid Workplace<\/a><\/p>\n<\/li>\n<\/ul>\n<p><em>Randa Kriss writes for NerdWallet. Email: rkriss@nerdwallet.com.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Randa Kriss\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Randa_Kriss\"><\/span>Randa Kriss<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-766A-747F05E571E8%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#NerdWallet: 4 essential concepts for managing business success&#8221; Technology can help you track performance of your small business This article is reprinted by permission from NerdWallet.\u00a0 In order to make informed business decisions, such as seeking financing, you need to be able to understand your financial performance \u2014 especially since the COVID-19 pandemic has altered&#8230;<\/p>\n","protected":false},"author":1,"featured_media":345816,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-345815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/345815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=345815"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/345815\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/345816"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=345815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=345815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=345815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}