Before each business entity, be it a bank, enterprise or individual entrepreneur, the problem of the turnover of working capital is quite acute. Indeed, the profitability of production activities depends on how efficiently and quickly their circulation is carried out.
Instructions
Step 1
In order to increase the turnover, it is necessary to pay attention to two factors: the volume of turnover and the size of working capital. To increase the turnover, it is necessary to improve the distribution of goods and normalize the placement of working capital. To do this, it is necessary to shorten the intervals between deliveries, reduce the material consumption of products, establish progressive rates of material consumption, purchase them in smaller batches, in order to avoid stagnation, reduce the cost of transportation of goods, improve the organization of warehousing, and eliminate unnecessary stocks.
Step 2
In order to avoid large stocks of finished products in the warehouse, and often because of this, turnover slows down, it is necessary to plan production in accordance with the concluded contracts, observe the terms of production of products, intensify the promotion of products to the market, reduce the cost of production, i.e. actively use marketing solutions.
Step 3
Large balances at the cash desk and on the way often arise due to the irregular development of retail turnover, violations of cash discipline: irregular delivery of proceeds to the bank, storage of large balances of unclaimed funds at the cash desk, etc.
Step 4
Remains of other inventory items are the result of the acquisition or manufacture of surplus materials, fuel, raw materials. It is possible to reduce their stocks if wholesale sales, uniform and frequent delivery are ensured. To normalize cash balances at the checkout, retail turnover should be developed.
Step 5
As for the funds in bank accounts, it is also necessary to monitor their balances. It is better to transfer all available funds to repay loans, invest from deposits, securities, give loans to legal entities and individuals. Acceleration of turnover will free up significant amounts of production, and therefore increase its volume without additional financial investments.
