Professional Documents
Culture Documents
Act 12-ENTRE
Act 12-ENTRE
Business report is a set of information in a business that is usually done on a regular basis. It
helps the business owner and others associate to know what is happening in the company. But
why it is important, simply because it provides valuable data that shows different information
that is vital to a business. It shows how the company develops in a particular period that is
normally on an annual basis but also shows other important data such as potential problems that
might exist in the future that are needed to resolve immediately. Business reports also help the
company attract potential investors as it shows how the company performs that is good for its
reputation. And lastly, it helps the business owner to make a wise decision that is good for the
future development of the company.
Managing the business funds is a must and should always be the top priority as it is the
money or the capital that will be used in the whole business enterprise. And in order for business
to survive, a business owner should know many various ways on how to manage the business
enterprise funds. The first one is by knowing that there are many possible sources of funds, it can
either be their friends, family, banks and other lending institutions that will fund their business. It
is also important that the funds that they will get are budgeted and have an internal control so
that when the time comes that it is needed, it is available. And to help the entrepreneurs and
business owners to manage their funds, the DTI-BSMED enumerated strategic cash management
approach to help them guarantee that whenever he/she needs a money, it is available:
The first one is the Barter; it is an act of exchange of goods without money that benefits not just
the entrepreneur but also the one that he/she exchanges with, in hope for a good return.
Next is Once a week disbursement, which means that the entrepreneur should limit his/her
disbursement to facilitate tracking of both inflow and the exit of funds.
The third one is the Disallowance of prepayment. Paying bills in advance is good as it avoids
the shock of the bills, but as an entrepreneur do not make prepayments in advance as the business
might suffer loss whenever the supply goes off.
The sixth one is the Concentration banking. The entrepreneur should maintain a "main" bank
account, where all deposits are transferred to facilitate bank consolidation.
Next is the Lock box system, which means renting a post office box (P.O. Box) can help the
entrepreneurs debtors pay their debt if the distance is the issue why they are not paying. By
clustering the debtors into one area and selecting a central office to the closest where they live, it
can help the debtors pay their payments as they can send it in the P.O. Box. The other alternative
is by creating a bank account that is closest to them. The payments made by these customers to
that account will be remitted by the bank to the branch where you maintain your account.
And the last one is the Requirement of down payment. It means that when the customer cannot
pay in full, requiring them to make a down payment can lower the risk you pose to them.