Manage Small Business Finance

MANAGE SMALL BUSINESS FINANCE

TABLE OF CONTENT
 Identification of financial targets and performance measure
 Calculation of KPI financial performance measure
 Effect of financial and operational strategies
 Comparison of financial ratio with industry average
 Interpretation of KPI and Financial ratio performance
 Financial Health of business
 References

IDENTIFICATION OF FINANCIAL TARGETS
AND PERFORMANCE MEASURE
 Positive cash flow statement which indicates that the cash inflow from operating, financing
and investing activity must be higher than the cash outflow.
 The increasing selling prices of the product and sales of the product must be stable on a
monthly basis.
 The financial targets also include the low financial and operation expenses every month as
compared to previous month.
 The cash sales must be higher than credit sales and the credit period allowed to the debtors
must be low. While on the other hand, the credit purchase must be higher than cash
purchase and high trade payable period allowable by the supplier to the company.