Keeping a company running requires planning. Because of this, entrepreneurs dedicate a lot of time to develop studies that can help them with this mission. An example of this quest is to better understand the net working capital.
Not understanding its real importance can often lead the company to its closure. This is usually related to a lack of financial organization.
If you are not sure what this concept means, don’t worry. This article will explain what net working capital is, how to calculate it, how to prevent its deficit, and what factors affect this resource. Shall we?
What is the net working capital?
A company cannot wait for all its customers to pay their debts to keep operating, right? After all, it takes a few months to bring a return to investors after a business starts running. Even then, it has to bear the costs. During this period, what keeps the company running? The answer is: the working capital.
With this resource, it is possible for a trader to restock their store after selling almost everything, even if their customers have paid in installments, for instance.
Thus, the working capital is restricted to the amount needed to make the enterprise operate. In turn, the net working capital has an even more specific function.
It represents the assets your business has that can be turned into cash. Some examples include:
Therefore, it is a study that tends to reveal your company’s ability to continue operating, but also pay its debts.
How to calculate the net working capital?
The first step is to identify the current assets and liabilities. Current asset is an accounting term that shows all the goods a company has, in addition to all the capital it will receive in the short term (up to 12 months). This information is on the company’s balance sheet.
With it, we find the liquidity of the business. Note that each item in the current assets has its own liquidity.
Current liabilities are the part of the balance sheet that includes short-term debts (12 months). It usually refers to the payment of suppliers, taxes, financial charges, etc.
To know the amount of the current working capital, the following calculation must be made: Net Working Capital (NWC) = Current Assets (CA) – Current Liabilities (CL).
If the result of this calculation is negative, it could mean that the company will have to resort to third-party capital, such as a bank loan, in order to pay its debts.
Why is it important to know the net working capital?
The goal of an enterprise is to bring financial return to investors. That is why a company that cannot pay the bills needed for its operation will hardly be seen as a good investment.
In many cases, there is a demand for the product or service marketed, but because administrators don’t carefully study the company’s numbers, they make the wrong financial decisions.
A company needs the working capital to operate, and an entrepreneur has to know the net working capital amount in order to understand the debt capacity of a business, as this will determine the direction of investments, influence negotiations with suppliers, and reveal the liquidity of the company’s assets.
Failing to control the net working capital can pose several risks to the organization. Your cash can become negative, which compromises the proper operation of the business. Therefore, it is important to prevent the deficit of these current assets in order to ensure a positive balance. To do so, it is simple. Here are some tips:
So, if you don’t want to go through financial problems, try to ensure favorable conditions for your company to have enough money left, and thus, have net working capital. This is essential to meet customer needs and keep up with market growth.
Some situations affect the net working capital positively and negatively. Therefore, it is important that they are monitored and controlled in order to ensure the organization’s financial health. Check it out!
If the net working capital amount is positive, the business will have cash available to pay current liabilities in the short term. Some points that benefit this process include:
When the net working capital is negative, the organization will certainly not have enough funds to pay off its short-term financial expenses. Check out what negatively influences this resource:
Knowing these factors, pay attention to all the points mentioned that influence the net working capital. However, keep in mind that this current asset is not the amount of money needed for the company to operate, but the resource that verifies whether it is capable of financing itself in the short term.
Given this, it will be of little use for an enterprise to have good products, efficient marketing and an excellent team without working capital. Thus, without the health of this resource, all other efforts of the company will be jeopardized.
A tip to make the financial management easier and keep the net working capital stable is to rely on technology. Nowadays, there are several financial control software that assist in these processes, handle a large volume of data and offer the integration of the company’s sectors.
Now that you know what net working capital is, how important it is, how to prevent its deficit and what factors affect this resource, be sure to apply a strategic financial management and invest in technological tools. This will help increase your profitability, keep good process maintenance and control the company’s cash flow.
Was this content helpful? Subscribe to our newsletter to receive more articles about the business world and keep up to date!
The fate of a company depends on the choices of its managers. If they make bad choices, the enterprise goes under, but if good decisions are made, the organization grows while remaining competitive in the market and with good profit rates. This entire process involves risks and opportunities. Thus, the business decision-making needs to be supported by correct information for the best choice to be made.
Managers can base their decisions on personal interpretations – experience and intuition – or use software developed for that purpose. If you want to know how to make the best decisions for your business, keep reading the article!
Decision-making is related to the set of actions aimed at solving specific issues within the organization. It encompasses two or more possibilities that will have consequences, whether positive or negative. These choices affect not only the company, but also employees and customers.
To make good decisions, the manager needs experience and knowledge in the area. The union of these two skills develops the administrator’s critical thinking, thus, they are able to analyze risks and what are the best solutions for certain problems. There are three types of decision-making, as follows:
Do you know what Data-Driven Decision-Making (DDDM) is? It is the decision the manager makes based on actual data, not their intuition or personal interpretation. This is only possible due to the use of specific information processing software.
Firstly, solutions such as Enterprise Resource Planning (ERP) group important data from the organization. Having specific programs for financial, sales and customer relationship (CRM) management also helps to concentrate data that can be valuable for the production of insights later on.
Secondly, Business Intelligence (BI) software can collect and process large amounts of data with the purpose of supporting important decisions by the manager. They are able to provide accurate reports, graphical dashboards and KPI monitoring. According to a study by the MIT Center for Digital Business, companies that make data based-decisions have 4% higher productivity with a 6% increase in profits.
The use of software ensures a more professionalized management, effectively helping with the fulfillment of the company’s planning. The data processed by these programs provide a better assertiveness for business decision-making.
MyABCM is a multinational company that provides software for strategic cost, profitability and performance management. MyABCM Express was designed for simpler implementations and can be customized according to customer’s preferences, while MyABCM Corporate is a solution for more complex and advanced implementations, with the ability to process models with large amounts of data.
If you want to make the best decisions for your business, contact us! We have the best solutions for your company!
Business Intelligence in healthcare is no longer just a choice, but a requirement if the intention is to remain competitive in the market. To achieve this goal, it is necessary to make the right decisions in short periods of time. This is only possible due to the use of data analysis tools. Taking this into account, the applications of Business Intelligence in healthcare can bring numerous benefits to the business.
They allow carrying out analyses and taking action, as they cross-reference data from different sectors of a hospital institution, helping to identify failures, risks and opportunities. To find out what the advantages of using BI in healthcare are, check out the article!
Business Intelligence is a set of data processing procedures aimed at helping business managers to make the best decisions related to their enterprise. This processing is divided as follows: data collection, analysis and decision-making.
BI software is capable of performing many functions. It accesses and examines data groups, presenting results in analytical reports, graphical dashboards and maps. That way, managers are provided with detailed information on the progress of the business.
The choice of tools and solutions that integrate data from different sources allows for a broad view of the healthcare unit as a whole. BI lists a variety of information needed to help with the strategy and operation of the hospital. As a result, management becomes more competent.
How does this happen? Business intelligence software helps to assess the performance of all departments in the company, finding bottlenecks in different sectors. This process contributes to the optimization of daily tasks. With more activities optimized, the time to carry them out is reduced, thus increasing the productivity.
For example, in the field of diagnostics: business intelligence tools monitor the patient’s clinical evolution, helping in the choice of the best treatment options. The results also provide a historical basis for comparing the completion of similar cases. Some advantages of BI in healthcare are:
For the hospital institution to remain sustainable and competitive in the market, it is necessary to carry out cost and performance evaluations. To this end, Business Intelligence programs for healthcare are essential. The data processing carried out by them gives the manager the opportunity to make the best possible decisions for the business.
Given all of this, the use of Business Intelligence software in healthcare is increasingly frequent. Therefore, consider implementing one of them in your hospital unit. It is worth remembering that MyABCM has a set of cost, profitability and performance management software that can help your business grow.
If you are interested in using Business Intelligence in healthcare, contact us!
It is possible to see the great influence of technology in human relationships and activities over the years. And in the business field, this is no different.
With the innovation of the processes involved in the management and production of an enterprise, it is clear that corporations that do not keep up with this development end up missing out on great opportunities, which may even lead to the business’s stagnation.
Always aiming to be up to date with the market demand and with new tools that have shown advantages at the present time is what defines a successful company.
Within this topic, we can mention the mobile software as an example of successful innovation. It can be accessed on tablets and smartphones and allows managing costs in the company with greater mobility.
For you to know about the importance of this tool, we have prepared this post with its main benefits. Read on!
The first advantage provided by the use of mobile software is high productivity. This is possible thanks to the ability of these resources to offer greater automation of activities and tasks, in addition to a more effective organization of processes. Thus, the business’s productivity is ensured as the demand of the activities is optimized.
Mobile software also improves communication. With this technology, it is possible to send instant notifications in a shorter time to all technicians or production teams in the company.
In practice, having a mobile application prevents professionals from having to move around to pass on information or make any changes to certain processes. Furthermore, this advantage also ensures that the company reduces interpretation errors, as all data is stored in the software.
By using mobile software, it is also possible to direct, in a simple and practical way, the role of each professional in the company and the tasks and goals to be fulfilled.
All production and performance data is stored in the system, which encourages employees to be more committed to their work. Thus, this type of tool improves engagement and promotes the effective participation of the entire team.
Finally, a great advantage achieved by the system is the greater reliability of data and information. That is because, by recording the condition of the work carried out – as well as variables, production numbers and other content related to the company –, there is greater security in data processing.
This helps to eliminate various problems, such as misinformation and poor accuracy when reporting on the progress of the institution’s internal processes.
These are the main advantages guaranteed by mobile software. You can see how this tool can provide countless benefits for your company, can’t you?
That is why it is very important to look for partners that have quality solutions that are compatible with your needs. This is the case of My ABCM, which offers MyABCM Corporate, a software capable of carrying out important functions in your business and that provides several benefits.
Did you like the article and want to know more about our services? Then contact us and talk to one of our consultants!
Healthcare data security is a very important issue and should be prioritized by managers. After all, this sector, like many others, collects and stores a large amount of information from patients and the institution itself.
Furthermore, this protection is a right of all people, especially in this area where data are more sensitive. When there is no investment in it, the company is vulnerable to hacker attacks, information leaks, among other risks.
Therefore, we’ve listed some tips to help you improve the healthcare data security. Read on!
Encryption is a mechanism used to mask information, making them unreadable. This practice is essential for protecting digital documents, electronic medical records, messages, confidential files, patients’ tests, etc.
With an encryption system, it is possible to convert data into indecipherable codes, which can only be viewed by authorized persons. That way, you ensure the security of healthcare data and avoid risks for your institution.
Another way to protect information is to limit users’ access to documents and files in the system. By doing so, it is possible to allow only the right professionals in each sector to see the data. For example, a physician does not need access to financial data, and the person responsible for controlling finances does not need to see patients’ tests.
Including tools such as antivirus and firewall are important methods that help ensure the healthcare data security. Therefore, invest in resources that block threats to your internet network and computers, and always keep programs and systems up to date.
Also, block malicious links and other access that can damage the information that are stored on your computer.
Using software that collect and store a large amount of information in the cloud is critical to protect the healthcare data. After all, this resource uses an online server, on which professionals can access data whenever and wherever they want.
This feature, in addition to being more practical, is completely secure. This is because if something happens to your computer, your data will not be affected, as they do not depend on this instrument to be accessed.
Furthermore, technology is a tool that helps healthcare institutions to adapt to the General Data Protection Law (LGPD, in the Portuguese acronym). Its rules set requirements that provide security to doctors and patients. Thus, having data management software increases the care of your company’s files, speeds up processes, improves the financial management and reduces costs.
Now that you know some tips for healthcare data security, put them into practice to improve and protect your organization. That way, it is possible to offer a safe service to patients, ensuring their satisfaction and reducing losses in case of document theft.
Did you like this content? Follow MyABCM on LinkedIn and check out more information like this to improve your business!
For a company to do well and achieve a good position in the services market, it is necessary to seek new ways to evolve its processes and ensure the good performance of internal activities.
Among the areas of the company that require attention, one of the main ones is the finance department. This is because it is responsible for ensuring the balance between the investments, expenses and earnings of the business, enabling the institution’s sustainability.
For this reason, the leaders should know about some topics that involve this area, such as the control of accounts payable and receivable. This measure enables generating a greater security when carrying out new projects, always allowing the enterprise’s financial health to be maintained.
If you still haven’t learned about this topic, we have prepared this article with the 4 best tips on how to do this management. Read on!
The first tip for you to be able to carry out a good control of accounts payable and receivable is to record each transaction.
In the case of accounts payable, it is possible to find direct expenses, which refer to expenses with labor, raw material and sales commissions. In addition to these, we have the fixed bills, which refer to salaries, water and electricity bills, and accountant’s salary, among others.
As for accounts receivable, they are related to revenues from products and services. The record should also include future receipts or amounts that the company is yet to obtain.
You should also track the records monthly. For this to be done in an organized way, it will be necessary to use some tools, such as the famous spreadsheets, which help in scheduling the frequency of records.
By studying the data and information collected, it is possible to create an analysis of financial processes and compile the results month by month. That way, it is possible to know if the number of accounts is decreasing or increasing and how much revenue was spent by the company.
For both accounts payable and receivable, there is the possibility of seeking their negotiation. This can be a great strategy if your company does not have the revenue needed to pay off some of the business’ debts, for example.
Through some negotiation resources, such as the use of loans, it is possible to maintain the enterprise’s sustainability.
The use of technologies has become quite recurrent nowadays. This is due to the numerous benefits provided by these resources, such as process optimization and increased productivity of employees.
Following this idea, automating the accounts payable and receivable control activities is a good way to ensure information security and allow data to be stored and processed strategically and productively.
If you want to carry out this deployment, don’t forget to understand what your company’s demand is. Moreover, relying on partners that have the expertise in this segment is essential, as is the case of companies that offer management software.
These were the main tips on how to control accounts payable and receivable. By putting them into practice, you will realize how important they are to ensure the stability and success of the financial sector of your segment.
If you liked this article, take the opportunity to share it on your social media so that your friends also stay on top of our tips!
Technology is present in all sectors of society and has been helping companies to achieve better results, with a reduction in costs. Therefore, the installation of medical software is essential in hospitals and clinics. With it, it is possible to obtain many advantages in management.
But for you to choose the ideal one, according to your demands and infrastructure, you need to follow some tips, like the ones we will show you throughout this post.
Imagine filling out medical appointments on paper, writing charts with pens, and filing documents in physical folders.
In addition to the delay in procedures, there would be an increase in costs and many security risks, not to mention even jeopardizing diagnoses.
By installing medical software, your hospital or clinic will invest in automation, being able to count on online appointments and have access to the status of customers, with all the contact information.
Thus, organization becomes a fact. Another advantage is the electronic medical record, allocating each patient’s information quickly.
As a result, the procedures are done with more quality, increasing efficiency, as the patient data can be consulted in real time, which means that numerous types of errors are avoided. But to choose the ideal software, you need to follow some tips.
Here are some that we have specially selected for your clinic or hospital.
When choosing an Information Technology (IT) service provider, the ideal is to choose a company that has experience in software management.
After all, this is a considerable investment that requires a system that is well-functioning and focused on the reality of your hospital.
Therefore, research the company’s history and consult with other customers to certify its reputation.
The interface is the users’ experience, which means it needs to be easy to understand for employees to adapt quickly.
With that in mind, run tests with the medical software and check if the navigation is smooth, if there are buttons that make the operations easier and the features needed for a hospital or clinic, such as electronic medical record, medical appointments, finances, inventory and registration, among others.
Data security is critical. The software also needs to be stable and have good servers in order to avoid errors at any some point of the day.
As a lot of important patient information is entered into the system, keeping it confidential is essential.
Therefore, in your medical software analysis, you should pay careful attention to operational security.
Throughout its use, it is common for users to have doubts and need some changes from time to time.
There is nothing better than adequate support for everything to work smoothly. Therefore, check if the service provider offers a technical team to solve some issues. Ideally, the support should be 24 hours.
That is because hospitals and clinics operate full time and need special attention with regard to IT.
As each customer has a different reality, you should have a variety of plans in order to choose the ideal one, such as storage capacity, support, features, etc.
Thus, check if the company has this diversity. By following our tips, the chosen medical software will certainly be the ideal one for your company, reducing costs by using technology.
Do you want to improve results in your hospital or clinic? Then contact our team and learn about our plans!
With the purpose of evaluating numerous procedures, hospital audit, which has a direct impact on quality control, is a highly positive practice that cannot be ignored in the routine of managers. This audit goes beyond traditional factors such as finance, accounting and tax.
So that you can understand the countless possibilities and benefits, we created this post with very important. Check it out!
Hospital audit is understood as procedures that help to improve management in all sectors, with a focus on previously defined strategies. All of this is done with the help of technology.
It can be internal or external and takes place at pre-determined periods or continuously.
In general, the hospital audit does a kind of X-ray, outlining the positive and negative points. That way, the manager can make more accurate decisions, always focusing on reducing costs, increasing productivity and optimizing time.
To arrive at the results, auditors carry out different types of analyses, mainly using indicators that present information about many factors, from finances to emergency care.
As a hospital involves a series of procedures and sectors, there are some types of audits, as we will show you now.
This hospital audit always takes place in advance, as the name suggests. With it, it is possible to review all the steps of the procedures that should be implemented.
By analyzing them, the manager can see whether or not they meet the needs of the hospital. We can mention as an example the installation of medical software.
Before purchasing it, the hospital will carry out a preventive audit to see if the system will meet the needs with the features offered.
The analytical audit makes a complete analysis of the hospital or clinic, accurately presenting the main bottlenecks and strengths and designating strategies for new investments that can improve processes.
The idea goes beyond collecting information, as it also involves the study of situations with their respective risks and business opportunities.
As the name says, the operational audit is aimed at the daily life of a hospital. It focuses on the steps of service, as well as the beds provided.
The idea is to always improve the quality of care, avoiding problems that could interfere with management, such as the loss of a health insurance plan or a drop in private care.
The account audit makes corrections in the amounts that will be sent to the patient or health care provider, in order to avoid undue charges.
It also analyzes possible irregularities in the accounts, such as the amounts in medications, hospitalizations, etc.
By monitoring the practices carried out, the auditor contributes to all sectors of a hospital or clinic, having a direct impact on the progress of management.
With the hospital audit, it is possible to improve the quality of services and care, in addition to standardizing procedures; as a result, the accounts are balanced.
For everything to happen in a harmonious way, a good tip is to have management software.
That way, it is also possible to always keep up-to-date with accounts, with reports on the performance of different sectors, which promotes the hospital’s full development.
In addition to the advantages mentioned above, we should highlight that hospital audits reduce costs, improve the relationship with patients and increase the level of competitiveness.
So, were you excited about our post? Do you want to keep up with our news? Then follow us on social media. We are on Facebook, LinkedIn and Twitter.
Every day, several pieces of information are entered into hospitals’ database, and hospital indicators are an excellent way to improve management. With them, it is possible to assess the performance of sectors and teams and have budget planning and assistance in decision-making.
Aiming at a professional management, throughout this post we will show you seven indicators that should always be part of your hospital or clinic’s daily routine.
As its name suggests, this indicator traces the percentage of patients seen according to the number of beds available. To that end, it is necessary to take into account the treatment time of each person.
The occupancy rate also takes into consideration the beds for post-anesthesia, nursery observation and pre-delivery, in addition to the traditional ones.
With the indicator, the manager has knowledge about the type of bed most used, age group, gender, health insurance that is most in demand; in other words, the budget is always organized.
It is calculated by the average time that a surgical center is unoccupied, that is, it is the period of idleness of a bed.
How to calculate it? Multiply the average length of stay by the percentage of vacancy, dividing the result by the percentage of occupation.
Thus, if it is a high index, the waiting list increases. Otherwise, finances can be affected by unoccupied beds.
It is calculated by the average length of stay of patients in a given period.
With this hospital indicator, the manager is able to know the number of discharges, transfers and deaths, that is, it is essential for both the financial and operational routine.
The profitability indicator demonstrates how much the hospital earned in relation to investments, presenting the well-known ROI.
This account includes care paid by health insurance, privately, public health care, sectors, etc. Therefore, the larger the productivity, the better is the use of resources.
A crucial factor in administrative management, revenue is linked to accounts payable and receivable, as well as to the hospital’s efficiency capacity analysis, always aiming at saving resources.
The revenue indicator reveals the best health insurances, being essential for potential continuations or cancellations.
As patient satisfaction is a hospital indicator that is in line with the humanization of care, it is obtained through assessments.
With technologies, it can be evaluated through totems that have questions about the quality of services provided and are open to suggestions and criticism.
Questions about potential recommendations of the unit also help in the calculation, as the answers provide a guide for decision-making.
To achieve this indicator, it is necessary to have the help of management software, which will show the services that provide the most financial return, from complex procedures to surgeries and appointments.
That way, it is possible to see which areas are more productive, being a good indicator for investment and teams’ retention.
In addition to the hospital indicators mentioned, there is also the mortality rate, which traces the number of deaths in a given period, showing which ones happened in surgeries or other situations.
With the rate, it is possible to set actions that lower the indexes. Therefore, hospital indicators are extremely important in management and must always be put into practice.
Did you like our post? Do you want to keep up with our news? Follow us on social media. We are on Facebook, LinkedIn and Twitter.
Nowadays, one of the main objectives of entrepreneurs is to ensure the development and sustainability of their company. To do so, many choose to invest in improving their management together with the use of technologies in the corporate environment. In this sense, we should emphasize the role of financial management, as this is one of the main areas responsible for ensuring the business’s stability.
If it is not done strategically, financial imbalance may occur, leading to the stagnation of the business. To avoid this, it is crucial that managers know all the issues related to the financial sector. We can mention the direct and indirect cash flow as one of the items that is essential to a good organization in this department.
If you have no idea about what each concept is, we’ve prepared this article for you. Read on and stay on top of it!
Direct cash flow is nothing more than the record of all amounts, whether paid or received by the company, which were moved in a given period. With it, it is possible to identify the business’s gross results in a realistic way.
It uses the cash system, which can be said to be the most common one currently. As the main benefit, we can highlight that direct cash flow allows obtaining quickly updated data and information that are very useful for the work of financial managers.
Indirect cash flow is based on the net income analysis and measures the impacts on cash flow. Thus, unlike the direct cash flow, it does not provide an input and output view, as in this case it uses an accrual basis.
In practice, the main idea is to study the variation in cash for a given period from an accounting point of view. That way, it is possible to distinguish the actual cash from the balance of the financial statements.
As for the definition of which method to use in your company, it is worth mentioning that one should not necessarily exclude the other. In fact, the two complement each other to generate pertinent information about the control of your business’ finances.
By using them, managers are able to better understand factors such as revenue, net and gross income, costs and expenses, and several other topics related to the finance department.
It is worth noting that if your intention is to obtain greater control and clarity over these processes, in addition to using these methodologies, it is essential to count on the help of a management system. With this feature, you are able to centralize data and information about the company’s sectors, as well as manage the sales operations and expenses of the institution.
So, these were the main information about the difference between direct and indirect cash flow. Being aware of topics like this contributes a lot to optimizing the work of financial management, in addition to making a greater control over these processes possible.
Did you like the article? Then check out our profile on LinkedIn and stay tuned for all our updates!
