Key features of ODOP
To understand Profitability ratios
March, 30
By Srinivasan
The second important ratio the Business Owner should understand is the borrowing level in comparison to the capital & reserves in the books.
Out of many classes of investment, Mutual Fund investment is considered one of the best avenues to kick starts the savings at the early age.
An entrepreneur should see the balance sheet and understand that there are two components compiled by the accountant / auditor. 1. Balance Sheet 2. Profit & Loss Account
It is important that the small business owners should focus a bit on understanding the nature of balance sheet and profit and loss account. It matters a lot when it is submitted to the Bank / Financial Institution for obtaining / seeking credit facilities.
This data is the business plan of the Firm / Company and to boost the relationship for the credit growth the owners/promoters could delve deeply in presenting the estimates/projections with almost clarity.