Cash Management for Small Business

A business can be either classified into a large business or a small business. Certain factors can be used to identify a small business. The basic feature of a small business is that it operates on low profitability and has low revenue. But it can be said that lower revenue does not always mean low profitability. Some businesses deduct costs by using their facility or premises for the business or by hiring fewer employees and working yourself. This results in high profitability with low revenue. Small businesses have a small market area as compared to large industries. They usually target people who are in proximity to their business, such as a convenience store in a rural township. These businesses tend not to grow beyond the scale of operations of a small business as it would bring them into a different classification altogether. Unlike large businesses, small ones are either solely owned by one person or are in a partnership form where two or more people work collectively. These businesses do not generally file separate taxes but instead, show their income and tax returns on their tax returns. Large businesses, on the other hand, are either a public or a private limited company and have separate accounts for every matter. Cash management is an essential function of all small businesses. There… Read the rest “Cash Management for Small Business”Read More