Banker shares tips.

Financial strategy is similar to the races. As a result of the usual costs, as well as differences in the timing and amount of gross income of each company always appear available funds. Most importantly – effective use of these funds.

Temporarily free money

Very often the owners of fast-growing businesses are trying to direct all the resources of the firm to obtain fast, but risky income. And the main problem in this case – to use available funds as efficiently as possible, equalizing the current account balance to the size of the banking commission and directing the revenue turnover.

The objects of attachment may be as unplanned costs and additional lines of business the same owner. Of course, this means of control means may not always be beneficial outcome is unpredictable. To make the process of development of the company has become more stable and predictable, while revenue increased steadily, it is necessary not only to continuously analyze cash flow, but to be able to properly and timely planning. For this entrepreneur useful to keep a payment schedule that will help to make more accurate forecasts for the development of the company.

Free money is best to convert into cash equivalents: if you do not take into account the mechanisms of such a risky stock market, the ratio of risk and return, as well as the optimal liquidity would be investing short-term deposits. That is, the company can provide additional income without the risk of losing him on changes in inflation.

The use of deposits as a means of additional income should be made a regular practice. Even better, if the financial manager uses this tool in financial accounting firm.

Favorable opportunities

Of course, availability means may occur not only through careful planning, but also unpredictable. With that there are a lot of options, so you must specify at least the most possible out of them. First, the available funds can appear as a result of the effective collection of debts from debtors. It is also very important to make adjustments to the terms of the investment projects, sometimes change the payment terms with customers and suppliers, to reimburse VAT. In addition, the increase in consolidated income contribute to deferred payments, if this documentary form of payment (bank guarantees and letters of credit), the seasonal nature of the business. Of course, a positive effect on the profitability of business increase sales, especially if they are not planned. Execute transactions can be formed temporarily surplus funds, which you can also send in a deposit account. If this is a fairly large company, the increase in available funds contribute to the additional issue of shares. In the latter situations, the company may not open as many short-term, many long-term loans from 2 to 6 months.

Of course, the appearance of available funds, many entrepreneurs send them to acquire the necessary tools and materials for future work, to pay for various services, payment of rent in advance, refitting office space, etc. But this kind of waste can not only lead to overstocking but in the future may not come in handy, because the dynamics of sales by its nature is very unstable and the demand for a certain group of goods can fall sharply. Typically, premature payments to suppliers and putting money into new projects that can be delayed and require a lot of money, is not very profitable for the entrepreneur. All costs should be carefully planned and very balanced.

In addition, to invest money for a deposit can be almost any length of time, it would be preferable to keep the surplus funds of the repayment period of employee benefits, payment of insurance premiums, taxes, that is, until the period when the costs will be more than usual.

What’s the catch?

For small business can earn extra income by placing money on deposit at various periods ranging from three days. Thus, the income received each day depending on the current rates on the interbank market. Such a possibility exists for the small business, but it is better to increase the term of the deposit up to 14 days. All the benefits of this investment can be estimated by counting the revenue from the contribution of a specific amount for a specific period.

In addition, a significant increase on the account can give even a contribution of money overnight, that is, from Friday to Saturday. Thus, the company will be able to for a weekend get income to cover minor expenses, such as communication charges, utilities or bank fees.

At present Russian banks offer a wide range of deposit for legal entities, who can choose the contributions depending both on their own preferences and the characteristics of their business.

How to spend money

One of the most convenient deposit allows you to not only fill up, but spending of the money, provided that the account balance should not be less than 50% of the amount originally invested. This is especially useful contribution to companies that are engaged in a seasonal business. Thus, you can increase your income in the period of growth in the number of sales. It is best to open a deposit for a period of 3 to 6 months. The main advantage is the ability to increase the interest rate during the term of the contract of deposit and as augmentation funds, because the interest rate depends not only on the term of investments, but also on the amount of investment.

Spend money from the deposit should be in the period of procurement of materials and raw materials, payment of contractors for seasonal work. But at the same interest rate is slightly reduced. If you do not plan any major expenses, you can choose deposits with higher rate for a specific amount of time and investment. This will provide a higher than average income in the market with the same parameters. And in the case of early termination of the deposit, you will not be able to get the expected profit, because in such cases, banks charge only the going rate on deposits “on demand.”

It is also possible to receive income on the balance of funds on non-combustible charge card. Annual interest rate in this case is about 2-3%, and there is no need to open a bank account.

How to deposit

If and chief financial officer and the owner of the company are willing to invest available funds in a deposit account, it remains to solve the question: what is better to invest the same amount? There are several ways that maximize correctly calculate the amount of the deposit. First of all, you should not be on the averages for deposits. According to the Federal State Statistics Service for 2012, the percentage of funds Russian enterprises in the current assets amounted to 7.5, while for short-term investments, the figure was 17.3%. The amount of the contribution depends on the industry in which the company operates, and the stage of its development, etc.

To accurately determine the maximum amount of money for the deposit, should refer to the model developed by Western economists Stone, Miller and Orr. We should not forget about the financial solvency ratio of the absolute, where the norm is the amount of 20-25% of the total existing credit commitments.

In addition, many experienced financiers can independently determine the monetary contribution, based on the characteristics of the business and trends in the industry. A determination of the effectiveness of this investment will be chete professional managers who will be able to capitalize on existing resources much more than provide all of the above methods.

And in order to manage available funds has become more efficient, improve procedures sufficient cash planning and forecasting. Banks, in turn, can provide more timely financial management of the enterprise through the timely preparation of the necessary contracts and the use of the system “Client-Bank”.