The annual financial balance sheet constitutes the source of information not only for the entrepreneur preparing it but also for the potential customers and business partners. It is a perfect tool of business intelligence used by companies searching for business partners. Financial analysis may be the reason deciding on establishment of cooperation, so it is worth ordering it.
Ordering of the balance sheet may provide a lot of valuable information on the system of management of the finance of the company. Thanks to it, it is easier to notice the problem and to select proper tools for its solution. In this way, the entrepreneur may both improve the financial results and obtain higher VAT return.
In ordering of the balance sheet, assistance of a factoring company that will adjust proper tools to individual needs of the client may turn out to be necessary. The entrepreneur may use several options of balance sheet ordering.
- Sale of a payable receivable. Thanks to it, we can exchange the receivable into cash in a couple of days. As a consequence, the company may avoid unnecessary discussion with the auditor whether it should make a write-off for a given receivable and thus charge the financial result.
- Ordering of debt collection to a specialised entity that will allow for ordering of the non-paid receivables. The recovered amounts will increase cash while obtaining of a decision on ineffective enforcement in case of uncollectible receivables will allow for obtaining of the VAT paid on them.
- Factoring. This method ensures immediate cashing of non-payable receivables, which entails higher cash in the enterprise. Thanks to the use of factoring, the liquidity and the receivable turnover cycle improve.
A lot of companies boast about their favourable annual balance sheets on their websites. It should be remembered that a good and credible balance sheet affects the image of the company. It can make us a credible business partner or help to avoid serious financial problems, such as financial jams.
Published on: 18 November 2014