Read through the below post and provide any on of the following: APA format 300 Words.
.Ask a probing question, substantiated with additional background information, evidence or research.
· Share an insight from having read your colleagues’ postings, synthesizing the information to provide new perspectives.
· Offer and support an alternative perspective using readings from the classroom or from your own research.
· Validate an idea with your own experience and additional research.
· Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.
The foundation of any successful small business is selling a product or service for a profit. However, that level of financial acumen is not enough to make a business successful. There are many additional ways to make money if you have the financial knowledge to do so.
One of the areas of financial knowledge that can help in understanding the time value of money. This is particularly important in accounts receivable. When you have customers, who owe you money for extended periods of time, you are missing out on the opportunities that cash could’ve provided for you. In addition, you may fall behind on bills, because the people you owe understand the importance of collecting money on time and may not give you as much time as you’re giving your customers.
On a personal level, saving money, being cautious on spending, keeping a close watch on your earning to spending ratio – these are all steps that we take to make the most of our bank accounts, so we don’t run out at the end of the month. Ranging from pending credit card bills to payment of utility and essential items, often, there’s a money crunch that almost everyone faces that leaves us feeling depleted (Agarwal, 2017).
For anyone managing a budget or a department in their organization, or running their own business, the ability to connect strategies and goals to numbers and the bottom line, and to be able to track success, allows you to take calculated risks (Mitchell, 2017). Financial literacy enables entrepreneurs to take responsibility for every dollar to maintain a sharp focus on costs and the simple measures of cash flow, all of which are critical in maximizing a small business’s chance of survival. This knowledge will also make you better able to deal with the professionals whose job it is to assure the integrity of your business’s accounts, and consequently save both time and money.
Agarwal, S. (2017, June 14). 6 good reasons why financial literacy is important. Retrieved from Born 2 Invest: https://born2invest.com/articles/6-reasons-financial-literacy-important/
Mitchell, S. (2017, Oct 9). Importance of Financial Knowledge to Business Success. Retrieved from LinknedIn: https://www.linkedin.com/pulse/importance-financial-knowledge-business-success-stephen-mitchell