Not only acute problem, but also, and perhaps most urgent task of the financial managers of different companies is cost reduction. High costs, exceeding the norm laid down in the development plans of firms and enterprises reduce profit. Cost control is not so much the tracking of fluctuations in the prices of raw materials, transport and other services, as they reduce or hold at the same level. However, during periods of seasonal price increases, for example, the raw material cost of its purchase inevitably grow. In this case have two to three backup suppliers.
• First, this way you will ensure the reliability and continuity of supply.
• Second, will be able to determine exactly when the growth of prices in the market. And not just from one supplier.
Low revenues — the second largest problem faced by CEOs. The influence of revenue on the financial condition of the enterprise is the ability to generate cash flow that ultimately generates the company's profits. By and large, the problem of sales growth solves complex marketing challenges. For most companies, small and medium business they are reduced to the price control of sales, product range and sales network.
Structural distortions of balance — the growth of payables or receivables can also have a negative impact on the financial condition of the enterprise. For example, a large measure of accounts receivable means that the company might not have enough working capital to Finance current operations. The increase in accounts payable usually happens when the company can not cope with the payment obligations to counterparties. It can also be a result of the shortage of circulating money. In this case, analyze receivables for each counterparty. Shorten the terms of payment for shipped products. Possible apply sanctions (fines) to unscrupulous buyers.