Advice 1: How to improve the solvency of the company

Currently, the assessment of financial stability and solvency of the leaves on one of the first places in the field of financial management of domestic enterprises. It is connected with aggravation of crisis of non-payments distributed everywhere.
How to improve the solvency of the company
Instruction
1
In order to improve the solvency of the company, it must be remembered that it is determined primarily by the structure and qualitative composition of current assets. Because solvency is the ability of an enterprise to timely repay their debts. And it can be done through a quick sale of assets. Therefore, they must be readily realizable. Therefore, current assets management should include ensuring a balance between spending on maintenance of assets in the amount and structure, ensuring uninterrupted technological process, between the losses associated with the risk of loss of liquidity and income from involvement in the turnover of new funds.
2
Note that solvency depends on the rate of turnover of assets as well as its conformity with the rate of turnover of short-term liabilities. Current activities of the enterprise may be financed by own funds, i.e., the direction of net profit share for acquisition of circulating assets, and also due to the long-term and short-term borrowed sources. If the current organization is provided through short-term income sources additional funding may be loans and borrowings, payables to suppliers and employees. If the organization reduced turnover of assets, and the management is not taking measures to attract additional sources, this may lead to reduced solvency, even if it is currently profitable.
3
If your enterprise has a tendency to increase the operating cycle, take measures to stabilize the financial condition. For example, shorten the shelf life of items, goods, materials, pay attention to the improvement of the system of settlements with customers, work with debtors, in violation of the terms of payment, etc. it does not lose sight of that additional sources of funding are always associated with costs of their involvement. Overall, the solvency of the company can be increased by improving product quality, and by mobilizing resources that will weaken the financial strain on the company.

Advice 2: How to increase the turnover

Before each economic entity, be it a Bank, company or individual entrepreneur, the problem of turnover of working capital is quite acute. After all, how effectively and quickly carried out their cycle, depends on the profitability of production activities.
How to increase the turnover
Instruction
1
In order to increase turnover, you need to pay attention to two factors: the volume of trade and size of working capital. To increase the turnover should improve merchandising and to normalize the distribution of working capital. This requires shorter intervals between deliveries, to reduce the intensity of production, to establish progressive norms of material consumption, to buy them in smaller batches to avoid deposits, reduce the cost of transportation of goods, to improve the organization of storage facilities, to eliminate unnecessary stocks.
2
In order to avoid large stocks of finished goods in the warehouse, and often it is because of this slowed turnover, it is necessary to plan the production in accordance with the signed agreements, to comply with the terms of production, strengthen the promotion of products on the market, reduce the cost of production, ie, active use of marketing solutions.
3
Large balances on hand and in transit often occur as a result of irregular development of retail trade, violations of cash discipline: irregular delivery of revenue to the Bank, the storage of large balances unclaimed cash at the box office, etc.
4
Remains of other commodity-material values are the result of the purchase or production of unwanted materials, fuel, raw materials. Reduce their stocks is possible if to provide wholesale distribution, uniform and frequent delivery. To normalize the rest of the money in the cashier, you should develop the retail trade.
5
With regard to funds in Bank accounts, it is also necessary to monitor their residues. All available funds and better transfer to repay loans, invest deposits, securities, lending to legal entities and individuals. Accelerate the turnover would release significant amounts of production, and hence increase its volume without additional financial investments.

Advice 3: How to increase the financial stability of the enterprise

Financial stability is one of the most important characteristics of the enterprise's activity in conditions of market economy. Is creditworthy financially stable and solvent company that has a supply of its own funds, provided that their value exceeds the amount of borrowed sources.
How to increase the financial stability of the enterprise
Instruction
1
To improve the financial sustainability clearly monitor and manage accounts receivable, follow its quality and value. The breach of contractual obligations of the company and late payment of goods sold lead to loss of reputation and ultimately to its illiquidity and insolvency. For effective accounts receivable management should:

- monitor the payment discipline of customers;
- focus on a greater number of buyers to reduce the risk of non-payment by one or more of them;
- to monitor the ratio of receivables and payables.
2
To accelerate the turnover of receivables and ensure timely payments grant discounts to debtors for the reduction of maturities, use of bills of exchange in accounts receivable, factoring, use trade credit in relations with buyers.
3
To promote financial stability, create a reserve for bad debts. It represents receivables of the organization which are not redeemed in the terms established by the contract and not secured the necessary guarantees. The provision will save on the amount of income tax, it softens the negative impact of bad debts, but not eliminate them.
4
Another option to improve the financial stability is the increase in the equity capital of the company, for example, through the issuance of securities and the reinvestment of profits. When deciding on the borrowed sources, it is necessary to assess the current liabilities structure. The high share of borrowed sources can do to bring in new funds a threat to financial stability.
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