Business and Finance System

Archive for the ‘Business Ethics’ Category

Thus the speed with which collections are made of invoices is essential to business competitiveness. Any delay in charging the longer the time lag between the flow of cash outflows and inflows, causing a marked deterioration in the cash position of companies and causes increase in interest expenses and hence financial costs.

Companies should worry about collecting all sales on time, as each day of delay in payment of an overdue bill to the creditor company is a financial cost, and therefore the collection team’s mission is very important to account firm performance.

And do not forget that one of the key factors for the smooth running of companies is the ability to generate cash, and this capability is directly proportional to the effectiveness of management companies achievable.

Keep in mind that one of the most universal principles of good financial management is based on the axiom that measuring the value of a company is best done by evaluating the cash flows by calculating book profits. Therefore when measuring the wealth of a company, the best size that can be employed is the cash flow and not the accounting profit.

The company receives the cash flows and can reinvest in the business, but accounting profits are recorded when received, rather than when money is actually available to the company.

Consequently, it is more valid to the valuation of a company using cash entries (dynamic concept) that the benefit (static concept) that provides the business. Besides the profit generated is a magnitude more manipulable than cash flows.

Why the sale and collection are Siamese twins?

Remember what they are about Siamese twins:

Siamese twins born and living with their bodies together and could not live without each other, and their destiny is to work closely throughout their lives to survive.

Quite often the case that companies that have achieved remarkable success in the commercial area and have achieved a good level of sales, are declared in default for lack of liquidity, or worse, have to cease its business in bankruptcy. The explanation for this unexpected business failure is that these companies have concentrated their efforts on selling, but have neglected payment of their sales.

These companies have failed (or even worse have not wanted to) charge their customers correctly, and this fact has caused them serious liquidity problems, just as it has caused difficulties in financing their realizable, and finally they have been plunged into a situation insolvency.

The central idea is that late payment by customers, can lead to the bankruptcy of companies that have succeeded in the commercial. A study by the EC revealed that one in four EU companies go bankrupt because of bad debts (often deliberate) of its customers.

Therefore the objective of any business is hard to accelerate the entry of charges and it must adopt procedures that optimize the flow of charge and in turn increase liquidity and improve cash flow, a good collection management also helps reduce financing needs of the resources invested in clients and thus the financial costs.

• Conduct research and market analysis. Do not assume anything about your audience. Conduct research to answer these questions: Who are they and where are they? Can provide the services and products they want? What would be a fair, competitive and reasonable for their services? Look at the competition and ask yourself how they compare their organization and their products to them.
  Determine your product profile. Examine the products you have to offer and see if you can match them to the demands of each of its markets. Do you have what you want? Are your products competitively priced? Can your clients afford it? It might require adjustments to their products to make them more relevant to the needs of your market.
• Use compelling messages. Use messages that speak directly to your audience and try on what your audience wants. Be specific and make sure you have facts to back their claims. The consistency and coordination of the message are essential for effective marketing.
  Implement your marketing strategy. Your marketing strategy should indicate how they will deliver your message. Be creative but stay focused on your goals, your audience, and its messages. Among other things might include: participation in community events, conferences , flyers, posters, exhibitions, meetings and public speaking engagements.
• Monitor the budget. Be accurate and realistic to organize your budget. This will help you determine what components of your strategy can be done immediately and what must wait. Remember not to lose sight of their goals.
• Assess the impact. Without ongoing evaluation, after important events or at the end of campaigns can not be sure that your marketing strategy is being successful. By measuring the success of marketing strategies you can determine if you are using your resources wisely or not, and can make corrections as required half the way to achieve their goals

Marketing is a key way to promote your business and increase sales of your products or services. Marketing takes time, planning and commitment. The marketing must be strategic. Grow Your Business

If your goal is to grow your business, you can make it through marketing strategies in four ways:

• Acquiring more customers.
• Convincing each customer to buy more products.
• Convincing each customer to buy more expensive products.
• Convincing each customer to buy the most profitable products.
• Achieving these goals will increase their revenues and profits. Start with the first focusing on acquiring more customers. By acquiring more customers increase their revenue base.

Keep in mind that marketing is different between small businesses and large corporations.
If you’re like most small business owners, your marketing budget is limited. Can maximize their budgets by focusing its efforts on acquiring customers of a specific group.
The reason why the specific marketing (directed to a particular type of audience) is important is that only part of the population is likely to buy any product or service. If you take the time to target their marketing and sales efforts to correct market niche will be more productive and do not waste your time and efforts.

C. A corporation C corporations must file an income tax at the end of the year. Also, if you expect the difference between income tax and credits is $ 500 or more, the corporation must make payments of estimated taxes as you earn or receive income during its fiscal year. Failure to pay a fee at maturity may cause the corporation is subject to a penalty for nonpayment. S Corporations An S corporation pays no income tax but passes its income and expenses to its shareholders. They report this income on her own statements to income.
Single Owner. A company with a single owner is a company with one owner who is not registered with the State as a limited liability company (LLC, for its acronym in English) or a corporation. Unlike a corporation, a business single owner is not considered separate from its owner for tax purposes. This means the sole proprietorship itself does not pay income taxes. However, the owner reports the business income or loss on your income taxes individual income. Note that all business income is taxed to the owner in the year the business receives, whether or not the owner withdraws the money from the business. The owner of a sole proprietorship is personally liable for the amount of any liability related to the business, such as debts or court judgments. This means that if you form a sole proprietorship, creditors of the business can come after your personal assets , your home or car to charge what the business owes them. Sole proprietors use Schedule C or C-EZ for purposes of income tax.

Talking about Business Ethics is immersed in a subject that some believe should be in the attic of ideas or in the basement of the talks without practicality. It is easy to see in any library that the emphasis is not just to combine business and enterprise development and ethics. In fact to go a library is difficult to find publications that discuss the issue, although the amount does not necessarily indicate anything definitive, at least mark a trend.

To win it and make a profit rather than short or medium term, but in a project that lasts over time, ethics is undoubtedly one of the fundamental ways.

Effects of ethics and business associate
1. Build trust. When Ford, in 2000, decided to recall 1.4 million cars from defective seatbelts installed in the driver’s seat and front passenger, not only did it not to be exposed to a flood of lawsuits but to avoid creating an image that was finally risky business for the company. Acting on solid ethical principles and non-utilitarian or Machiavellian, builds trust among consumers.
2. Produce profits. The companies want to sell their products, however, when you want it at all costs, without regard to ethical principles, which ultimately produces a decrease in consumption. Consumers eventually will understand that act under a certain pattern unethical is not a good business.
3. Creates a pleasant working environment. When workers feel shame or rejection by the work you do and what the company makes for a business, then it creates a situation of bad atmosphere at work where there is absenteeism, refusal to compromise with the company, socabar successful efforts, including sabotage. An employee pays more when is proud of his company. It is a constant psychological motivation pride.

Ethics, good business
Acting with universal ethical principles based, is ultimately a good deal. Generate positive attitudes in people to know that companies act according to ethical standards clear and transparent.

It is necessary to deep reflection about the problem. It is also important to encourage more strategies to educate new generations in different ways to address the business and development without neglecting the ethical sense.

When honesty is the best investment
Business Ethics and appear to be diametrically opposed to a fruitful dialogue. However, each day becomes more aware that integrity and profit can go hand in hand.

Often common belief that ethics and business do not go together. Even some often say, half jokingly half seriously that “if we do business, then forget the ethical principles.”

Other, less drastic, talk about a particular ethic to the business world with its own rules and principles do not apply in the everyday world. To what extent is this true? What can you say about the relationship between ethics and corporate business world?

Awareness of a problem
It is known what happened to Enron in the U.S., that the November 8, 2001 acknowledged having used inappropriate practices for more profit. Some of its executives were indicted for participating in maneuvers of fraud, money laundering, misuse of confidential data and conspiracy.

In March 2002 the company Adelphia Communications, the fifth largest cable company in the U.S., announced its bankruptcy and its top executives were accused of using company assets as collateral for personal loans. Several former executives were arrested on charges of plunder and fraud of more than 1,000 million dollars and lead to the bankruptcy of the cable TV network. The directors of the company through partnerships ghosts, emptied financial assets of the firm, to the detriment of shareholders, investors, suppliers, tax authorities and the public.

With bad practices, pay for the sins
These and other recent incidents have put the issue of ethics in the table. As Lerner notes, the reality is that “the problems of values and moral attitudes are occupying an ever greater reflection and corporate power.”

What is striking is that criminal activity has reached the highest levels of several companies, securities firms, accounting firms and auditors and other major firms. This has led to only a few dishonest people have damaged the reputation of many honest companies and executives.

In general, the principles applicable in a real good business can not be separated from our lives as human beings, and these principles are closely related to the value system adopted by each community.

Sonny Keraf (1998) explains, that the principles of business ethics as follows;

* the principle of autonomy, is the attitude and the ability of humans to make decisions and act upon an awareness of what is considered a good thing to do.
* The principle of honesty. There are three scopes of business activities that can be clearly demonstrated that the business will not last long and successful if not based on honesty. First, be honest in fulfilling the terms of agreements and contracts. Second, fairness in the supply of goods or services with comparable quality and price. Third, be honest in internal working relationships within a company.
* The principle of justice demanded that everyone be treated equally in accordance with the rules of fair and rational criteria for objective and reliable.
* The principle of mutual benefits (mutual benefit “principle); demand that business is run in such a way that benefits all parties.
* The principle of moral integrity; mainly internalized as the internal demands within business or company, so need to run the business while maintaining the good name or leader of his people and his company.

Read the rest of this entry »

Corporate work culture is the overall trust (beliefs) and values (values) that grow and thrive in an organization, a basic way of thinking, behaving and acting of the entire human organization, and handed down from one generation to another.

Culture can work in resource use as an effective driving force in achieving its objectives in accordance with the vision and mission of the organization.

Effective work culture can:

* Unify the way of thinking, behaving and acting all beings organization / corporation
* Facilitate the establishment and implementation of the Vision, Mission and Strategies in the corporation
* Strengthen teamwork in corporations, eliminating friction, internal friction arising
* Strengthen the resilience in the face of external pressures.

From the definition above shows how culture plays an important role in the resilience of an organization. Family is the smallest company; there is a father, mother and children. How the implementation of household and the other one will be different, because the properties of different occupants. But there are few things in common between the family and the other one, because it’s like living in a single environment, to create safe and comfortable environment, there are rules that must be understood and adhered to by members of that environment. This regulation is made by people or family environment, so that the regulation be adhered to without the burden, even members of the neighborhood feel comfortable because there are rules, so that each knows “what is allowed and what is not allowed to do.”

Now how to shape the work culture corporative? In the corporative culture, very important leadership role, among others, as: 1) First Adapter, the first recipient and executor of the work culture, 2) Motivator, to encourage human organization / corporation carry out work culture consistently and consequently, 3) Role Model, role model for corporate human on the implementation of Work Culture, and 4) is the creator and manager of strategy, and cultural programs work according to the needs of corporations.

From the above review, it appears that the formation of good corporative culture, the most decisive factor is its people. As good as any rule or system created, without any desire of human beings to change for the better, it all becomes meaningless.

Ethics defines a large part of our personality, is what determines our behavior, moral values and principles. However, this word is extremely complex, since what may be “good or bad” for one person, it is so different for another. We were educated and trained differently, grew up in an environment and a different family environment, from small grasp the rules according to the way we are taught.

However, how do we relate to business ethics? Every day we go out and face a world different from ours. We believe that doing our job well, that we are honest with others and in our work environment “never” have been the subject of some scandal (fraud, manipulation, espionage, conspiracy, misappropriation of funds).

The problem is when we found partners, clients or colleagues that differ from our ethical behavior. In this case, we get carried away by the attitude malicious or decided to retain our position?