Tag Archives: Commercial Acumen
The simple difference is microeconomics is generally the study of individuals and business decisions and microeconomics is generally the study of individuals and business decisions.
Macroeconomics looks at higher up country and government decisions.
Macroeconomics and microeconomics, and their wide array of underlying concepts have been the subject of a great deal of writings. The field of study is vast; here is a brief summary of what each covers:
Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy.
For example, microeconomics would look at how a specific company could maximize its production and capacity so it could lower prices and better compete in its industry.
Microeconomics rules flow from a set of compatible laws and theorems, rather than beginning with empirical study. (more…)
All organisations require a level of commercial awareness from their employees because it is an important skill for making good long-term decisions.
The more commercially aware you are, the more likely you will take into consideration all the important factors when selecting one option over another.
Use this self-assessment to gauge your current level of commercial awareness and help highlight the areas where you can improve.
The activity can also be used within a team learning environment.
We cannot all accountants but as a leader in an organisation, it can be useful to have a basic understanding of some of the key financial terms and processes used to manage the organisation's finances.
So, how does accrual accounting differ from cash basis accounting?
In simple terms, the main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognised.
The cash method is mostly used by small businesses and for personal finances. The cash method accounts for revenue only when the money is received and for expenses only when the money is paid out.
On the other hand, the accrual method accounts for revenue when it is earned and expenses goods and services when they are incurred. The revenue is recorded even if cash has not been received or if expenses have been incurred but no cash has been paid. Accrual accounting is the most common method used by businesses.
Finance is important to any organisation as the firm has to know how viable it is and balance profit with costs.
But sometimes leaders rely too much on the finance team to inform them about the financial health of the business.
There are many ways you can tell if a business is healthy, and ratios can be a simple way for the non-financial leaders / manager keep informed about how the money is flowing
through the business.
Although there are many financial ratios you can use to assess the health of the business, this resource includes the main ones you can use easily.
Tony Robbins is a pioneer in the personal development space, but his book on finances is like a graduate course in college.
A novice in finance could read this book and walk away an expert.
Tony takes complicated financial strategies and distils them down to the average reader’s level.
Money is not everything in life, but it is important, especially in the business. There are many entrepreneurs who are great at making income but are clueless as to how to make their money work for them through investing.
You started your business to create freedom, Tony’s book can help you take that freedom to a level you didn’t think was possible through the right investment strategies.
In this 'Be Inspired' interview Paul Bridle speaks to Ed Rigsbee, Chief Membership Evangelist, about Membership Return on Investment within an association.
To view the interview click on the box below.
Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.
Here are nine reasons why financial planning – with the help of an expert financial advisor – will get you where you want to be.
Income: It’s possible to manage income more effectively through planning. Managing income helps you understand how much money you’ll need for tax payments, other monthly expenditures and savings.
Cash Flow: Increase cash flows by carefully monitoring your spending patterns and expenses. Tax planning, prudent spending and careful budgeting will help you keep more of your organisation's hard-earned cash.
Capital: An increase in cash flow, can lead to an increase in capital. Allowing you to consider investments to improve your overall financial well-being.
Employee Security: Providing for your employee’s job security is an important part of the financial planning process. Having the proper employee insurances and policies in place can provide peace of mind for you and your staff. You need to ensure that you plan the finances to pay for pension plans, sick cover, unexpected expenses such as machinery breakdowns.