What is the “banking pool” and why should I diversify it?
It is the set of financial institutions with which your SME maintains debts, credit lines or operational services.
What is operating Cash Flow and how can it be calculated quickly?
It is the cash flow generated by the main activity of your business. A quick and simplified way to calculate it (indirect method)
How can I easily calculate my cash cycle or cash conversion cycle?
It measures the days that pass from when you pay one euro to your suppliers until you recover that euro after collecting from the customer.
What is the real difference between the “accounting result” (profit) and “cash” (liquidity)?
Accounting profit is governed by the accrual principle (it records income and expenses when they arise, for example, when an invoice is issued).
What do you gain by periodizing insurance, maintenance, and licenses?
You get a cleaner reading of the actual monthly cost. This helps to set prices, compare months, and avoid artificial peaks in the final result.
Why is it advisable to budget for taxes month by month?
Porque así no te engaña la caja aparente. Reservar poco a poco evita que un vencimiento fiscal te rompa un mes que parecía bueno.
Why is it beneficial to perform a monthly financial close even if the company is small?
Because waiting for the quarter or the annual closing causes problems to be discovered late. A short and orderly closing improves control
What is gross profit margin on invested inventory, and when is it useful?
It relates the gross margin to the money tied up in stock. It is very useful for retail, distribution, and warehouse-based businesses
How does the price, volume, and mix analysis help?
Separate whether the improvement or deterioration of the result comes from selling more units, changing prices, or selling a different mix.
What is promissory note or bill discounting and how does it differ from factoring?
In discounting, the bank advances a specific instrument, promissory note, bill of exchange, and the assignor is normally liable if there is a default…
