In this week's post we are going to share with you some financial concepts that as an entrepreneur you should apply in your business and that can help you know where you are going.
Assets , the assets of our company, which range from the premises to the computers.
Cash flow , refers to the money you have in cash, it would be the difference between collections and payments.
Working Capital or Circulating Capital , refers to the amount of money you need to meet your fixed costs on a constant basis, that is, payroll, payment to suppliers, payment of services, etc.
Financial mattress , the amount of money you have reserved in case any eventuality arises.
The company is in the black when it has liquidity. If you do not have liquidity, you are in red numbers .
Liabilities , refers to the obligations we have with third parties.
Break-even point , when the company earns enough to cover its expenses.
Sales margin , this is the difference between the cost of your product and the selling price, which refers to your profit.
Some basic concepts that you should know to introduce yourself to finances and be able to understand it.
Image source: https://economipedia.com/definiciones/finanzas.html