Category: Business Management

Create Key Performance Indicators an essential enhanced business management method for your business creating KPIs creates internal business efficiency and delivers processed data for financial evaluation and control.

KPIs are also referred to as KSI key success indicator produce metrics for commercial and industrial progress and performance management. To create KPIs many companies group together the in-house teams that are involved in the business and productivity process have a collective brainstorming session to come up with business KPIs that are needed for the company business, making sure that the session moderator records on record all the KPIs which are tabled by, the engineers, the financial controllers, the quality control team, the health and safety regulators, the IT teams, and of course the production line special equipment experts. On completion of the creating KPIs process, the KPIs can then be introduced into the system software application implementation plan. When a single KPI is created there must be a way to measure and record the data necessary to produce KPI data output. Once a KPI parameter is set then if the production line that the KPI is applied to does not change then the KPI value set points must be the same year after year. This is to ensure erroneous data is not delivered say to the financial department, in-accurate data produce in-accurate statistics, this is not acceptable. All data mining extrapolated from the system must be accurate and correct data as per the KPI settings.
One example of a new year initiative from the finance department for example reduce product by 5 per cent. Then the IT teams and the system engineers need to re-calibrate all the KPI set points to ensure that during operation the production line outputs 5 per cent less units. KPI creating and managing is a proven process of control all over the world across a very broad spectrum of industrial and commercial sectors.

A successful KPI creation program is based on an established criteria of benchmarks for example on a production line set say 6 parent KPIs for finance, quality, output, quantity, material usage and equipment run timelines, then attach 5 to 6 KPs to each parent KPI, this will produce a tight packaged productivity control program, the children KPIs can be supervised by financial controllers, quality control engineers, material procurement personnel, equipment specialist experts. Controlled efficiency produces controlled output. Controlled quality produces quality products. Controlled material usage equates to cost expenditure efficiency. Controlling equipment run times produces power consumption efficiency. Set achievable objectives in your business adopt and implement proven computerized efficiency systems be smart set SMART goals – Specific, Measurable, Achievable, Realistic and Time limited. When your business is under control the business owner/operator is in control too.Business management KPI creativity is an affordable solution for all commercial and industrial businesses.Creating KPIs in your business quite simply means creating in-house business efficiency! When a business wants to manage. and measures efficiencies then the solution is to create Key Performance Indicators.Can your business afford not to be efficient? Make a balanced and financially enabled decision and create Key Performance Indicators for your business now.

The 3 most commonly used valuation methods are the Income, Market, & Asset approach. With the income approach, a business value is based upon the earnings the enterprise generates. Buyers are most concerned with the amount of earnings that the company produces should they acquire the business. The net ordinary income, utilized for tax reporting purposes, does not properly reflect the true earnings of the company based on the non-cash, discretionary & non-recurring items that are expensed by the business owner. Earnings are kept low to achieve the goal of reducing taxes. Therefore, to calculate the true earning capacity of the company, the P&L statements need to be adjusted during a valuation to determine SDE or EBITDA. Re-casting the financial statements will standardize (or normalize) the company earnings through the exclusion of discretionary, variable and non-recurring components, allowing an objective comparison to be made between two or more companies. By applying a multiple to the EBITDA or SDE amount, consistent with the industry sector and a weighting of the issues affecting the business, will derive the business value.

What is Sellers Discretionary Earnings (SDE)?
Sellers Discretionary Earnings is utilized for businesses with under $1mm in adjusted earnings. These businesses often have the owner managing the company and receiving a salary. With these small enterprises it is critical to determine what the owner benefit is as opposed to the earnings of the company. This is accomplished through a series of profit and loss statement adjustments termed add-backs that are made to the pre-tax company earnings. In some instances, there are negative add-backs as in the case with a business that owns real property (e.g. the building & land) where the owner is compensating himself a below market rent or a family employee working for the company who is receiving a below market salary. In both of these cases, an adjustment is made to normalize the expense to the current market value.

The most common adjustments used during the re-casting process are:
1. Add-back one owner’s total compensation
a. Salary
b. Payroll Taxes
c. Retirement Contributions e.g. 401K
d. Insurance
e. Perks (Health Club, etc)

2. Add-back interest expense

3. Add-back discretionary expenses
a. Donations
b. Personal Cell Phones
c. Travel, Meals, & Entertainment
d. Owners Vehicles (not used in business)

4. Add-back non-cash expenses
a. Depreciation
b. Amortization

5. Add-back Non-recurring expenses
a. Fines / Bank Penalties
b. Attorney fees (e.g. sale of business consultation)

6. Adjust Lease to Fair Market Value

What is Earnings Before Interest Taxes Depreciation Amortization (EBITDA)?
EBITDA is used to define the earnings of the company for businesses with adjusted income greater than $1mm. Here, the owner/investor is typically not active in the direction or daily management of the business and will hire a general manager to perform that function. Therefore, the EBITDA calculation will differ from SDE as it incorporates the general managers salary in the earnings calculation as an expense. EBITDA is a non-GAAP measure that is used to determine profitability and to make comparisons between companies and industries as it eliminates the impact of the financing and accounting decisions made. An easy way to determine EBITDA is to subtract the owners compensation and benefits from SDE. The EBITDA dollar amount will be lower than SDE but the multiple used in the valuation formula will be higher, often 2-2.5 times the SDE multiple. Therefore, as one would anticipate the FMV of the same business calculated using either method should be very close to each other. If not, an assessment as to why and which (or what other method(s)) must be undertaken.

As the global market receded in the previous years, business proprietors found themselves back in an unfamiliar labyrinth where they are unsure of most of the steps they take. They are confused about the economic future, especially because there are social, political, and financial problems all around. Despite all that, a majority of economy experts managed to see through all the uncertainties and predicted a positive outlook for the coming year.

However, business owners should be educated about the pressure points of the economic condition in 2012 so they can fully prepare themselves in reaching tomorrow’s success. The target issues in maintaining business viability include profit improvement, employee and client retention, and market spot preservation. The key in handling all these three effortlessly lies on certain accounting and management principles combined with the power of advanced technology.

Of course, the attempt to generate more profit relies on the efficiency of financial audits. These financial statements do not only hold vital financial information, but also function as a concrete reference in making tomorrow’s decisions. Hence, it is a must to complete these financial records with the greatest thoroughness and the most competent technological devices.

For instance, a company can employ a Peachtree accounting software that can help them achieve a more organized way of handling their trades. It is as if their accountants will be equipped with more eyes to monitor details and innate calculating devices to compute with precision. With such accounting software, tasks can be accomplished with better accuracy and in less time.

Peachtree complete accounting software can also aid businesses in facing the second pressure point that 2012 will pose–the improvement of income generation. Of course, with precise audits, business owners can make the right interpretations; consequently, they can effectively plan all their movements for the year ahead. Furthermore, they can closely monitor their assets and liabilities and all the details of their cash flow. Through that, they can determine their strong and weak points that they should turn their attentions to.

Finally, professional economists predicted the employees will have more value in 2012. Since there are a lot of jobless people, businesses will fight over the most competent professionals that are still in the market. Hence, it is a matter of enriching employees to retain them in the company and not be recruited by a rival business entity. One way of helping and developing staff is by granting them with reliable accounting software and the relevant education such as the Peachtree training. Through that, they can work more efficiently in sustaining companies in their respective trading fields.

Managerial job is no easy task to perform. You should have proper vision and skills to manage any organization. There are some natural leaders who have better chances to make the most out of this profession. However, management can be taught in schools and thus several institutions are flooded with students who all are aspiring to make careers in business management. If you are one in the list, then you must be planning a lot of in terms of choosing a perfect management institute and a perfect course for you. But it will never be an easy task in India. Although there are so many management colleges in the country and some more are on the row to come soon, yet you can’t take all of them for granted when it comes to quality of education and other facilities. One thing is certain that there are no lacks of scopes in the field with so many small business houses and corporate organizations making their ventures in the country recently. There can be vacancies both in low level and in high level jobs. So, getting an entrance will never be a big issue for management graduates and post graduates. However, if you really want to use your degree in management as a ladder to climb on the corporate ladder then you must select one of quality management courses for you. There are so many things to consider for you. Firstly, know your own level of interest and choose courses according to that. You can get specialized training for a certain section of business and that actually is the need of the hour for you. If you are planning to enter into health industry, then relevant courses which focus mainly on health management can come handy for you. The course expenses, the placement facilities, the equipment and lab issues, the practical training and the teaching faculty are some very important things to check out for students who are planning for a business management course in India. Doing every selection right can pay dividends for you as well. Students can make things happen for them with methodical online and offline searches for a college in which they are planning to get admission.

An environment consists of all the things like the living and the non living things in it. It can be categorized as Natural Environment and the Built Environment. One has to keep some points in mind while writing an environment essay. Natural environment consists of phenomenon occurring naturally where as the built environment a term that describes man’s made landscapes such as buildings, cities, dams etc. The Nature and Environment Essay can give more details about it.

The natural atmosphere is being polluted due to the unnatural factors. While natural causes like volcano’s have its own turn in causing pollution it is the man made ones that are more rampant. The environmental condition is degrading day by day due to destructive and careless attitude of human being. It is the humans that are responsible for the destruction of the natural environment for their selfishness. An Environment Essay should contain the causes that destroy ecosystem.

All living beings adopt an environment in which they are born and live, and any change in its condition affects the normal life. Built environment, which lacks natural components, has become quite significant in today’s era. This increasing significance has caused a great deal of hazards to earth’s environment which in turn is giving rise to several environmental issues like Global warming, Land degradation, pollution etc.

Global Warming is defined as the increase in the average temperature of the earth near surface air and ocean since the mid 20th century and its projected continuation. There is a lot of heat caused to the earth due to the green house gases that get rapt in the suns rays thereby causing global warming. Try to get more information on Global Warming in the Global Warming Essay.

There are several causes of environmental deterioration which the author should keep in mind and mention in an Environment Essay. With the increase in population and economic development, the pollution is also increasing. Everyone must understand that the ecological balance has to be maintained so that on can stop the destruction being caused to every living and non living thing in the environment.

One needs to definitely specify the causes for the various kinds of environmental issues and what can be done about it. The consumption of petroleum has to be brought down by one and all. We need to consider the products that have been made using petroleum so that their usage can be reduced. One has to take all the required action to keep a tab on dreadful conditions in the environment. You can d your bit in a small way by making some changes like shift to a more fuel efficient vehicle make use of paper bags try to economize by using the car pool or public transport go by walk or use a bicycle recycle things etc.

One can also specify the issues that cause a lot of problems to the human beings because of the environmental pollution and the ways they can adopt to make the world a better place to live in. Learn from the proverb “We won’t have a society if we destroy the environment” and understand the value of having a hail n hearty environment as that will be for our own wellbeing to have a clean and green environment.