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Gradually the business comes to a sense of a normal goal and the normal functioning of finances. Regular intermediate plan/actual control is a habit of successful companies. Accounting and reporting 6. Lack of consistency in financial reports If one of the three main reports is missing the system becomes incomplete and it is difficult to find an accounting error. How to fix the error : icon 1 The company must produce three reports on a regular basis: balance P&L (income statement cash flow statement (cash-flow Definitely – once a quarter preferably – once a month. They form a system that is easy to check by internal connections and understand how correct the reporting is.

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To simplify the task install a financial accounting system. 7. Late reports If there is a significant delay in reporting the data becomes outdated and its value drops. In addition it indicates a poorly configured system. How to resolve the error: icon 1 Reports Sweden Business Email List must be ready: per month on the 5th–7th day of the new month quarterly – on the 10th-15th day annual – on the 20th-25th. Risks 8. Lack of balance between fixed and variable costs Depreciation of production facilities and labor costs are fixed costs. The use of raw materials in production is variable. The ratio between them should correspond to the market and the stage of development of the company.

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How to resolve the error: icon 1 In a growing market increase fixed costs in a falling market go into variables. In times of crisis it is worth getting out of excess capacity or not entering it initially. icon 2 Start with variable costs. If a startup closes BO Leads the loss of time will be significant but not money. Only after entering the zone of stable demand invest in fixed costs. Then you can reduce the cost and win an even larger market. Problems can arise when a company wants to jump the organic growth phase and immediately invest in a new market. icon 3 Delay as much as possible the moment of rising fixed costs buying equipment and expanding the office.

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