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FINANCIAL MANAGEMENT
& BUDGETS

The goal of Financial Management of a small business is to have enough financial resources (cash/credit) to ensure a sound capital structure that allows the organization to fulfill its objectives of profitability. 

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Cash management is is a major component of financial management and is required for purposes like payment of wages and salaries, payment to utilities & creditors, and meeting current liabilities.

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A properly prepared Annual Budget estimating the revenue and expenses of the organization can assist in the planning, organizing, monitoring and control of the cash and credit  resources of the organization. 

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Small Business Record Keeping is Vital
SOURCE: https://www.irs.gov/businesses/small-businesses-self-employed/why-should-i-keep-records
 

Everyone in business must keep records. Keeping good records is very important to your business.

Good records will help you do the following:

  • Monitor the progress of your business

  • Prepare your financial statements

  • Identify sources of your income

  • Keep track of your deductible expenses

  • Keep track of your basis in property

  • Prepare your tax returns

  • Support items reported on your tax returns

Discussing project on screen
CREDIT MANAGEMENT STANDARDS

If a small business currently extends credit to  qualified customers, or is contemplating extending credit to any customer, they should establish  a Credit Management Policy that includes a Credit Period, Cash Discounts, Credit Standards, and a Collection Policy.

The Credit Period is the length of time a customer can utilize to pay for the products / services.

A Cash Discount is sometimes used as an incentive for customers to payoff the credited product / service more quickly.

Credit Standards are used to establish credit worthy customers by utilizing their DUNS number to determine whether they have legal judgments, gauge patterns of  payment, and over-all credit history.

A Collection Policy is created to keep slow paying customers honest about truly paying for the product / service received.  The policy  can be aggressive or passive in it's approach to collecting from slow paying customers.

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Credit Card
   NOTEWORTHY
EXPERIAN exposes credit scores of millions of Americans

Published on May 3, 2021,

by Cloudentity

Experian’s credit score Application Programming Interface (API) drew the attention of a security researcher Bill Demirkapi, an independent security researcher studying at the Rochester Institute of Technology, when he noticed that Experian let anyone access the API without any sort of authentication and look up the credit score of tens of millions of Americans just by supplying their name and mailing address.

It is unclear how many individuals’ credit scores have been revealed to unauthorized parties and

the fact that such a critical API intended for partners was accessible without authentication raises doubt about whether proper governance and controls are in place across the board.

 

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FINANCIAL EDUCATION
KEY-PERSON INSURANCE PLANS

Financial Education is essentially giving someone enough information to make them financially literate. They should have the ability to understand and effectively apply various financial skills, including personal financial management, budgeting, and become self-sufficient so that they can achieve financial stability.

  • Financial literacy results in the ability to properly apply financial management skills like managing debt, understanding the time value of money, calculating annual percentage rates (APR).

  • The primary principles of financial literacy include effective financial planning, learning how to budget, track spending, effectively pay off debt, and properly plan for retirement.

  • Financial illiteracy contributes to people making poor financial decisions and becoming victims of abusive financial practices.

Glasses on Spiral Notebook

In general, it is an insurance policy owned by a business to compensate that business for financial losses that would arise from the death or extended incapacity of an owner or other important executive of the business. 

  • Key Person Insurance is a life insurance policy a corporation buys on the life of its top executive(s). 

  • Such insurance is needed if that executive's death or inability to work would be devastating to the future of the company.

  • For small businesses, the key person might be the owner or founder, and in some cases, the only person capable of running the business.

  • The company pays for the insurance, pays the premiums and is the policy beneficiary, should the person die or become incapacitated.

Discussing project on screen
LIVING BENEFITS  Policies Available
 

Deborah F Tate

Life Insurance Agent

(AZ, CA, GA, MA,

MI, NV, VA)

 

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Testimonials 

 

Mr Tate was a great help in getting us organized,  up and running professionally with solid documentation.

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Mr Tate's 1hr Free Consultation set the pace for our relationship, he used a checklist to evaluate my situation, determine how he could help, and then asked the question...'Can I get to work for you?'

That's all I needed!

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A M

Knowledge Network Inc

Daphne, AL

Y E

LA'Y Trucking Inc

San Diego, CA

     

I was impressed with Mr Tate from the 1st hour forward.  His experience shined through, thinking of areas I should consider that I had not considered.

I'm glad he is part of my think tank.

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A D

DAB Smokehouse LLC

Daphne, AL

     

I'm really particular about who sees my finances, so after 1hr with Mr Tate I felt he would treat my information with confidence.

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A P

Baker's Residential Care

San Diego, CA

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