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🚀 Take control of your finances with our Mastering Accounting Habits webinar! Discover how to budget, track expenses and manage cash flow like a pro. Join us on 16th of june 10 Am Onwords and take the first step towards financial freedom.

Decision making when it is a financial decision, what is it exactly, what are the factors involved while making one?

Decision is certainly not a gamble, “let’s try doing this, we will see what happens we will find a way out then”, such thought process can make your decision very much dependant on stoke of luck making it a gamble rather than a decision.

A Decision is a calculate risk taken with calculated assumptions based on the facts and figure which are concrete and verified.

So, when in your business you have to take decision in your business which has a financial impact, rather almost all have it, what are the step you follow

– Past Analysis – Current Status – Forecasting probable outcomes of this decisions with options to tackle the same – Then finally choosing the right one out of available options.

This completes your decision-making process.

Now, if you look at these stages, at every stage your primary information is sourced from your accounting data

Your Past Analysis is to be done from your previous financials they tell you what was the performance before taking the decision also can give you the factors for preparing the forecasting post decision making.

Your Current status is seen in your current accounting data which will give you the current performance which shall become a centre point to map the effects of decision making.

In a way if you see the decision making starts with the data and ends with it too, which sourced from your accounting data.

🚀 Take control of your finances with our Mastering Accounting Habits webinar! Discover how to budget, track expenses and manage cash flow like a pro. Join us on 16th of june 10 Am Onwords and take the first step towards financial freedom. Don't miss out - sign up now - https://modilipiacc.com/webinar/

Unlock the secrets to financial mastery! Join us for 'Mastering Accounting Habits: A Guide to Financial Success.

Date - 1st June 2024,

Time - 7pm onwords.

Duration - 3 Hours

Welcome to “Mastering Accounting Habits: Your Path to Financial Success,” where we embark on a transformative journey towards financial empowerment. In this guide, we delve into the profound impact that mastering accounting habits can have on your personal and business finances. By understanding and implementing these habits, you’ll gain the tools and strategies needed to navigate the complexities of financial management with confidence and clarity.

1st June 2024, Saturday, 7pm onwords, Duration 3 Hours

Generating money from your business, everyone has different ways to look at it, or have different ideas in mind or targets.

How the angles differ?

We look at some business and see that they have good volume of sales and we tend to assume they are doing good, right?

Or we look at someone with good set up, stable manpower we assume they are doing good, right?

But is it fact every time? Especially with financial aspect the real picture always differ from what looks “going good”.

But what matters the most is what is the goal, target or thought behind the Business, i.e. “Perspective” behind it matters most.

Why so?

So, for a person who wants to grow their business in terms of scale, will never look at the short-term losses because they know this all will be covered once they achieve scale, from outside it might look a loss-making entity, but the real perspective is reach a certain scale first.

Or, for a person who wants to generate short term cash, will always focus on cost cutting, margins because that will hamper their cash generation, this might look a struggling and stagnant entity but real perspective is making fast profits, in which they are successful.

Similarly, if in your business you are able to finalise the goal target then decide the perspective to look at the money in your business, this will help you to stay focused and map your success in proper parameters and not stereotype parameters, which will make you feel lost.

For eg: lets talk about one element, Sales

Now how sales can look at

Perspective

Parameter to be looked at

Short term Profit

Margin in Sales, and credit period given

Higher Volume of Profit

Reach of Sales geographically, new client addition, repetition of client billing, Increase in Sales Volume

Product Level Expertise

The bifurcation of Sales Product wise, Sales volume and margin Product wise

Distribution Business Expansion through Set Channel

Sales and Sales Return, Product level analysis of Sales return, Client Repetition along with Volume of Sales

Manufacturer with Aim to Establish Foot hold in Market

Fast moving Product in Sale, Unsold Inventory item, Geographical area wise Sales Volume Growth, Area wise Inventory Sold Unsold chart