How to allocate the shared expenses to the right business units with the cost allocation methods and the identified activities’ data

Previously, the organization did the business by aiming at the growing number of sales from each business unit because with only the achievement of sale, the company could make the profit as required.

Currently, the philosophy of business proceeding has been changed from focusing only a number of sales to cost supporting sales. As we know that the cost drives the competitive pricing and this enables any business to sustain the ability of competing in the market.

How to use cash book effectively

Currently, SME businesses always receive cash or cheques for their selling products, but don’t always record those cash or cheques onto the cash book the same day. Vice versa, they pay cash or cheques for their buying materials and expenses, but do not record those the same day either. As a result, they have not yet used the cash book effectively. Most reasons are having no time to do it. Actually, faster booking we do, more time we have. Our memories are still fresh to do the quick & good jobs.