Blog

Xebra® shines at Maharashtra State Conclave

Read More...
Blog

Xebra® at Dubai Expo: Exhibiting Indian innovation on a global scale

Read More...
Blog

Neo Banking Unleashed: Xebra® at Bharat Fintech Summit

Read More...
Blog

Empowering MSMEs: Xebra® joins Social Innovation Lab

Read More...
Blog

Charting the course for future enterprise software adoption

Read More...
Blog

Turn the Petty Cash chaos around.

Read More...
Blog

Less juggle, more success: Your business wingman at play

Read More...
Blog

6 Invoicing secrets you wish you knew

Read More...
Blog

Excel in payments, bookkeeping, and invoicing mastery

Read More...
Blog

Your business's Sherlock Holmes: Unraveling the mystery of All-in-One solutions!

Read More...
Blog

TDS asset mastery: Click, Win, Pay

Read More...
Blog

Where billing glam meets a party vibe

Read More...
Blog

Ditch the numbers crunch, dance with Xebra®

Read More...
Blog

Navigating HR waters? Xebra's got the magic wand

Read More...
Blog

Embrace the cash flow groove

Read More...
Blog

Elevate Your Business to New Heights with Xebra

Read More...
Blog

Struggling with invoices? Meet Xebra, your financial GPS

Read More...
Blog

Elevate Employee Celebrations with Xebra®

Read More...
Blog

Experience inventory genius with Xebra®

Read More...
Blog

Experience billing excellence with Xebra®

Read More...
Blog

Renew your Xebra® subscription to unlock the future

Read More...
Blog

Xebra®: Invoicing and Payments perfected

Read More...
Blog

Cash Flow Mastery with Xebra®

Read More...
Blog

Empower MSMEs: Xebra® HRMS - Elevate Efficiency

Read More...
Blog

Effortlessly Convert Leads with Xebra® Lead Master

Read More...
Blog

Mastering the art of positive cash flow: Strategies for sustainable business success

Read More...
Blog

Xebra® Company Profile: Unlock your business potential today

Read More...
Blog

Unleash Success with the Right ERP Solution

Read More...
Blog

Procure with Xebra®: Effortless purchase orders for vendors

Read More...
Blog

Simplify Payments, Automated Invoices Made Easy

Read More...
Blog

Record debit notes without much hassle

Read More...
Blog

Xebra® ERP: Simplify Payroll, Maximize Efficiency

Read More...
Blog

Recording a credit note is the simplest task of your day!

Read More...
Blog

Effortlessly track and manage asset sales and receipts

Read More...
Blog

Online GST accounting software: streamlined accounting, tax compliance, efficient record-keeping

Read More...
Blog

Add asset & supplier entries in asset master with ease

Read More...
Blog

Unlock your business's financial potential with Xebra®- Empower and Grow

Read More...
Blog

CRM Implementation Excellence: Empowering Business Success

Read More...
Blog

Streamline your journal voucher entry process with Xebra®

Read More...
Blog

Empower your business with a complete software suite - streamline, succeed, excel

Read More...
Blog

Chart of Accounts entries with Xebra®

Read More...
Blog

Revolutionize your MSME's success: Unlock efficiency and boost profits with Xebra® integration

Read More...
Blog

Simplify your company Event planning with Xebra's user-friendly platform

Read More...
Blog

Revolutionize your Company Policy management with Xebra's digital notice board

Read More...
Blog

Streamline Item management and Taxation with Xebra

Read More...
Blog

With Xebra you can record and track your stock items in real- time!

Read More...
Blog

Save time with Xebra’s unique vendor master module

Read More...
Blog

Xebra’s unique client master module automates your documentation & communication processes entirely

Read More...
Blog

Get employees to access Xebra to upload their investment details along with supporting documents

Read More...
Blog

Say goodbye to physical storage of documents

Read More...
Blog

Track your assets between cities and employees at a glance with Xebra

Read More...
Blog

Trim wasteful expenses with Xebras comprehensive analytics of your business expenses

Read More...
Blog

Make customised and compliant invoices in less than 60 secs using Xebra

Read More...
Blog

Migrate all your data from any accounting software to Xebra in three simple steps

Read More...
Blog

Xebra eliminates the process of physical documentation for expense vouchers entirely

Read More...
Blog

Decode cash flow statement to boost your company’s growth

Read More...
Blog

Eliminate the employee onboarding hassle with Xebra’s automation

Read More...
Blog

As govt pushes for digital payments, here’s how active MSME Ministry is in transacting digitally

Read More...
Blog

Xebra’s Vendor Portal that streamlines payments

Read More...
Blog

Improve your cash flow with Xebra’s dedicated client portal

Read More...
Blog

Xebra’s smart alerts notify you when expenses can cross budgeted limit

Read More...
Blog

Xebra helps you track your revenue targets that you have set client-wise or product/service wise!

Read More...
Blog

Xebra is thrilled to be selected in NASSCOM 10,000 Start-ups program

Read More...
Blog

Eliminate the hassle of manually creating monthly recurring invoices forever!

Read More...
Blog

Disburse monthly asset purchase payments in less than a minute!

Read More...
Blog

How did digital communication change post covid?

Read More...
Blog

Watch how pandemic has changed communication strategy for MSME companies

Read More...
Blog

The Evolving Landscape of Security and Privacy in FinTech

Read More...
Blog

Ecommerce Agency Owner Roundtable (Virtual Event)

Read More...
Blog

Disburse monthly company purchases in less than a minute!

Read More...
Blog

Increase your cash-flow and profitability with Xebra!

Read More...
Blog

Multiple GST no’s delayed your tax calculation and accounting entries?

Read More...
Blog

Disburse employee monthly salaries in less than a minute!

Read More...
Blog

Disburse your monthly Company Expenses in under a minute!

Read More...
Blog

Ways to Improve your cash flow and collect money faster from your clients

Read More...
Blog

Step by step guide to kick-start your small business

Read More...
Blog

How can you maintain accounting accuracy for your small business?

Read More...
Blog

Onboarding Simplified for MSMEs

Read More...
Blog

How & Why Saas tools can help your small business?

Read More...
Blog

Should SMEs in India buy Saas applications and other online tools to become efficient and effective

Read More...
Blog

Xebra makes payroll a breeze!

Read More...
Blog

How does an invoicing software work?

Read More...
Blog

What are the basic accounting disciplines that small companies and start-ups should follow?

Read More...
Blog

SaaS application that streamlines your accounting, invoicing, and payroll needs of your business.

Read More...
Blog

Do biz-finance software’s contribute to start-ups in terms of value creation, relationships, counsel, and influence

Read More...
Blog

Accountant Vs. Bookkeeper- What’s the difference?

Read More...
Blog

Will accountants be replaced by computers in the coming years?

Read More...
Blog

Is an online business and finance software the right move for your small business?

Read More...
Blog

Should small business outsource their bookkeeping requirement or carry it out in-house?

Read More...
Blog

What are the accounting alternatives to tally for a small business?

Read More...
Blog

All You Need to know about Banking Terms

Read More...
Blog

Everything you wanted to know about Tax Deducted at Source TDS

Read More...
Blog

5 Ways Small Business Are Adopting Cloud Software

Read More...
Blog

In Conversation with Nimesh Shah Xebra Business Financial Suite

Read More...
Blog

How Cloud Accounting Can Help Small Business

Read More...
Blog

Don’t let the lockdown impact your business

Read More...
Blog

Why every founder must do business financial analysis during this lockdown

Read More...
Blog

Four free business applications you can use while working from home

Read More...
Blog

The 10 features in an ideal Online Invoicing Software

Read More...

Why every founder must do business financial analysis during this lockdown

By Nimesh Shah | August 07, 2021

The author had written this article for Afaqs! and it has been reproduced here

While desperate times require desperate measures, it is advisable to take stock of the situation. Simplifying business numbers is a step in that direction.

In times of peace, prepare for war – this quote has been around for a while, and is very close to the passages from ‘The Art of War’ by Sun Tzu. This lockdown, that has affected us during the financial year-end, is an excellent opportunity for all business owners to carry out in-depth analysis of their business.

I have met several founders, who are doing reasonably well in their business, but don’t dare to deep dive into their numbers. They fear that because they don’t have an accounting, or finance degree, it will bounce over their head. However, the reality is far from that. Today, there are products that have business intelligence loaded on top of their invoicing, and accounting modules.

Business financial analysis helps in analysing, decoding, and simplifying your numbers to assist you in making profitable decisions.

Better visibility on your cash flow

Cash flow is the most critical element for any business. What an adequate working capital does to your company is what engine oil does to your car – ensures a smooth run on the road. You must have a cash runway (months before cash runs out) of at least 4-6 months to allow you to focus on growing your business.

Boosting the performance of the business

Revenue and profits should be mapped on month-to-date (MTD) and year-to-date (YTD) basis. MTD is a comparison of same month last year, with this year’s corresponding month. YTD is a comparison for a particular calendar period of the previous year with the current one. A YTD analysis done at a client level helps tremendously in knowing your real growth, and growth potential. Always go a layer, or two, deeper with your numbers to get a better hold of your numbers. This will lead to a fruitful discussion with your sales team.

Employee-based analytics

Employee and their welfare-related costs form a big chunk of expenses for any company, even more for service-based ones. So, it becomes imperative that there is clarity with the founder to know the spread of his resources, department-wise. It also helps them know if they are overstaffed in one department, and less in the other. It gives an understanding of the nature of expenses incurred, and firm company’s policies accordingly.

Cost of credit

Identify your top profitable clients by mapping the credit history. Contrary to popular belief, the best clients are not the most revenue-generating ones, but the ones who pay on time. You are better off with a set of smaller billing clients, who pay on the credit period agreed. A good software would help in getting a list of exact client-wise outstanding amount, and even an invoice level outstanding dues for effortless follow-ups.

Risk analysis of your company

Risk analysis module in business intelligence software will help the entrepreneur gauge the quantum of risk he has already taken. Business is about taking calculated risks, and this allows them to know if the company is highly dependent on a small set of clients, or services/products. A small set of high-yielding clients might appear as a tempting proposition, given less managing time. However, it comes with its share of risk, should anyone drop out of the contract. As a thumb rule, if 25 percent of your clients are contributing to 75-plus percent of your business, then your business is at risk.

I hope these points will help you better understand, and grow your business, once we are all out of current lockdown.

How is SaaS making the solutions more cost-effective for businesses? Xebras founder Nimesh Shah, shares his insights on these questions and more with Agency Reporter in a freewheeling interview. Read the complete interview here.

As a small business owner are you debating whether you should switch to outsourcing your bookkeeping requirement? Let us help you make this decision. Click here.

 

This Post Has 0 Comments


Leave a Reply

Your email address will not be published. Required fields are marked *



*

SEARCH

CATEGORIES

FOLLOW US ON

Koo

ARCHIVE

SUBSCRIBE TO XEBRA NEWSLETTERS