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How to improve the financial condition of the enterprise

How to improve the financial condition of the enterprise

The problem of improving the financial condition of the enterprise is not only anti-crisis measure.

The financial position of the company is getting worse not suddenly, as a result of missed opportunities earlier.

Drawing attention to a few factors: costs, revenues and balance sheet structure, it is highly likely to prevent future crises.



Not only is the pressing problem, but also, perhaps,the most urgent task of financial managers of different companies is to cut costs. High costs in excess of the norm laid down in the development plans of companies and enterprises, reduce profits. Cost control consists not so much in tracking price fluctuations in raw materials, transportation and other services, as their decline or hold steady. However, during periods of seasonal rise in prices, for example, the raw material to its purchase cost will inevitably grow. In that case, have two or three backup suppliers.
•; In the first place, so you will ensure the reliability and security of supply.
•; Second, you will be able to determine exactly when it started all over the market price increases. And not only from one supplier.


Low revenues from the sale - the second most important problem faced by business leaders. The impact indicator of revenue on the financial condition Company is the ability to generate cashflow, which ultimately generates profit. By and large, the sales growth of the problem solves the complex marketing problems. For most companies, small and medium-sized businesses, they are reduced to the sales price management, product range and network implementation.


Structural balance distortions - or the growth in accounts receivables - may also have a negative impact on the financial position Company. For example, a large measure accountsdebt means that the company may not have enough working capital to finance ongoing operations. Increase in accounts payable usually happens when a company can not cope with the payment obligations of the counterparty. It may also be due to lack of money circulating. In this case, analyze receivables for each counterparty. Cut the terms of payment for shipped products. If possible, apply sanctions (fines) to unscrupulous buyers.

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