Guides · Running the business
Running the business guides
Cash flow, collections, credit, stock, sales teams and closing the books.
55 guides3 h of readingFree to read
Cash flowCash flow management for MSMEsCash flow management means knowing, week by week, how much money will come in and go out, and acting early when the two do not match. A profitable bus4 min read
Working capitalThe working capital cycle explainedThe working capital cycle is the number of days between paying for stock and getting paid by your customer. The shorter it is, the less of your own mo3 min read
CollectionsHow to reduce outstanding receivablesOutstanding receivables fall when you make terms clear before the sale, follow up on a fixed rhythm after it, and stop new credit to parties who are a3 min read
Credit controlCredit control policy for distributorsA credit control policy is a one-page set of rules for who gets credit, how much, for how long, and what happens when they pay late. Written down, it 3 min readCollectionsHow to ask customers for paymentAsk early, ask specifically and ask the same way every time. A clear request for a named amount on a named date is more polite, and more effective, th3 min readCollectionsPayment reminder message templatesBelow are polite, ready-to-use payment reminders for each stage, from a friendly note before the due date to a final notice. Each has an English and a3 min readReceivablesAgeing analysis explainedAn ageing analysis groups unpaid bills by how old they are, usually in 30-day buckets. It tells you not just how much customers owe, but how stale tha3 min readMSME lawThe MSME 45-day payment ruleIf you buy goods or services from a micro or small enterprise, the MSMED Act 2006 expects you to pay within the agreed period, which cannot exceed 45 4 min read
MSMEUdyam registration and its benefitsUdyam registration is the government's free, online identity for micro, small and medium enterprises. It is based on Aadhaar and PAN, and it is what b3 min readCredit controlSetting credit limits for customersA credit limit is the most a customer can owe you at any time. A simple way to set it is the party's expected monthly purchases multiplied by your cre3 min read
Trade schemesManaging dealer schemes and discountsSchemes and discounts drive dealer sales, but they are also where margin quietly leaks: wrong slabs applied, schemes claimed twice, credit notes never4 min readPricingPrice list management for dealersA good dealer price list has one base price per item, a small number of dealer types, and clear discount rules on top. When the rules live in your sys4 min read
Field salesManaging a field sales teamA field sales team works best with three things: a clear territory and visit plan for each person, a simple daily report of visits, orders and collect3 min read
Field salesSales beat planningA beat is a fixed set of outlets a salesperson visits on a given day of the week. Good beat planning makes sure every outlet is visited at the right f3 min readField salesMeasuring salesperson performanceJudge salespeople on a small set of numbers that cover effort, results and money actually collected. Sales value alone hides too much: it rewards push3 min readField salesSalesperson incentive structuresA good incentive pays for sales that are collected, rewards the behaviour you want (coverage, range, new outlets), and is simple enough that every sal3 min readShowroom salesShowroom customer follow-upMost showroom customers do not buy on the first visit. They compare, consult family, wait for the site to be ready. The showroom that records what the3 min readShowroom salesConverting walk-in customersWalk-in conversion improves when staff ask the right questions, show fewer but better-matched options, give a clear written quote, and follow up. Meas3 min readShowroom salesWishlist selling in showroomsA wishlist is a saved list of the items a customer liked during a visit, with quantities and notes. It turns a vague "we'll think about it" into a con3 min read
SellingWhatsApp for business sellingWhatsApp is where most Indian customers and dealers already talk to their suppliers. Used well, it shortens the sales cycle: catalogues, quotes, order3 min read
SellingCatalogue sharing for B2B salesA B2B catalogue should let a dealer find an item, see what it looks like, know its code and pack size, and ask for it in one message. A current, searc3 min read
InventoryInventory turnover and dead stockInventory turnover tells you how many times a year your stock is sold and replaced. Dead stock is what has stopped moving altogether. Both are cash si3 min readInventoryReorder levels and safety stockThe reorder level is the stock quantity at which you place a new purchase order. It should cover sales during the supplier's lead time plus a safety b3 min read
InventoryStock audit checklistA stock audit compares what is physically in your godown with what your books say should be there, and explains every difference. Done properly once o3 min readPricingGross margin vs markupMarkup is profit as a percentage of cost. Gross margin is profit as a percentage of the selling price. The same rupee profit gives a bigger markup per3 min readPricingPricing strategy for tradersMost traders price by adding a margin to cost or matching the market. Both are fine starting points. What separates profitable traders is knowing thei3 min read
AccountsMonth-end closing checklistClosing the books every month means getting all entries in, reconciling bank and parties, checking stock and taxes, and reviewing a few key reports. I3 min read
Year-endYear-end closing checklist for small businessesClosing the financial year on 31 March means making the books match reality: stock, cash, bank, parties and taxes. Work through the list below in Apri4 min read
Reading reportsHow to read a profit and loss statementA profit and loss statement shows what you sold, what it cost you and what was left over in a period. Read it top to bottom: sales, cost of goods, gro4 min readReading reportsHow to read a balance sheetA balance sheet is a snapshot of what the business owns and owes on one date. Liabilities and capital on one side, assets on the other, and the two si4 min readReading reportsTrial balance explainedA trial balance lists every ledger with its closing debit or credit balance on a date. If the debit and credit totals match, the double entry is compl4 min readCash flowCash vs profit: why they are not the sameProfit is what you earned on paper; cash is what you can spend today. A business can show a healthy profit and still struggle to pay salaries if money4 min readRunning costsExpense control for small businessesExpense control is not about cutting everything; it is about knowing what each rupee buys. Group your costs, compare them with sales every month, set 4 min readBank and cashBank reconciliation basicsBank reconciliation means matching the bank ledger in your books with the bank's statement and explaining every difference. Done monthly, it catches m4 min readBank and cashPetty cash management for small businessesPetty cash is the small float kept at the shop, office or godown for daily expenses like tea, courier, auto fare and minor repairs. Keep a fixed float4 min readGrowing the businessManaging multiple branchesOpening a second branch doubles the places where stock, cash and credit can go wrong. Decide early how the books are structured, how stock moves betwe3 min readTeamDelegating accounts work to staffMost owners do too much of the accounts themselves because they fear losing control. The fix is not to do everything, but to split the work clearly, g4 min readControlsInternal controls for small businessesInternal controls are the simple rules that make mistakes and fraud hard to hide: no single person handles a transaction from start to finish, approva4 min read
Going digitalDigital transformation for MSMEsFor a small Indian business, going digital does not mean replacing everything at once. It means removing the paper and phone-call steps that cost you 4 min readGoing digitalMoving from paper to digital ordersPaper order books and phone orders work until volume grows: lines get missed, rates are guessed, and billing staff retype everything. Digital orders c4 min readServiceRunning an after-sales service businessAfter-sales service — repairs, installations, pickups and warranty work — can be a steady profit line or a constant headache. The difference is a clea4 min readServiceAnnual maintenance contracts (AMC)An annual maintenance contract is a yearly fee a customer pays you to keep their equipment working — scheduled visits, breakdown calls and sometimes p4 min read
DispatchDelivery management for distributorsFor a distributor, delivery is where promises are kept or broken. A clear dispatch cut-off, orders grouped by route, the right documents with every lo4 min read
ReturnsReturns and replacements processReturns are part of trading, but unmanaged returns cause stock mismatches, party disputes and lost supplier claims. A written policy, inspection on ar3 min readFinanceBusiness loan documents checklistWhether you apply for a term loan, a cash credit limit or a renewal, lenders want proof that the business is real, profitable and able to repay. Keep 4 min readWorking with your CAPreparing for a meeting with your CAA meeting with your CA is most useful when the books are already clean and you arrive with clear questions. Send reports a few days early, bring the d4 min read
Income taxTDS basics for business ownersTDS (tax deducted at source) means that when your business makes certain payments — to contractors, professionals, landlords, agents and employees — y4 min readIncome taxAdvance tax for businessesAdvance tax means paying income tax during the year in instalments instead of in one go after the year ends. Businesses whose tax for the year (after 4 min readIncome taxTax audit basics for business ownersA tax audit is an audit of your books by a chartered accountant, required under income-tax law once your business crosses certain turnover limits. The4 min readStock planningFestive season stock planningFor many Indian traders, the festive months bring a large share of the year's sales. Plan stock from last year's item-wise sales, buy in stages rather4 min readStarting upStarting a distribution businessA distribution business buys from manufacturers or brands and sells to retailers in a territory. Margins are thin and credit is heavy, so success depe4 min read
Starting upCompliance checklist for a new businessA new business in India needs a handful of registrations at the start and a steady rhythm of filings afterwards. Which ones apply depends on your stru4 min readFamily businessFamily business succession and the booksMost Indian MSMEs are family businesses, and many carry decades of knowledge in one person's head. Succession goes smoothly when the books are clean, 4 min readCollectionsCustomer ledger statement best practicesA customer ledger statement shows every bill, payment, credit note and the closing balance for one customer over a period. Sent regularly and in a cle4 min readCollectionsHandling disputed billsA disputed bill is one the customer will not pay because they disagree with something on it — quantity, rate, quality, or whether it is owed at all. T4 min readCashflow OS · works with TallyPrime
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