How to negotiate with top suppliers: Pricing variability data

📚 Businesses, have you checked your cost flow methods lately? 😯 It's not just FIFO, LIFO, WAC or LOFO – there's more 🚀 Method choice can majorly impact your financial statements! 💰 📉 FIFO? Expect lower COGS during inflation ✅ 📈 LIFO? You might reduce taxes 👏 🧮 WAC smoothens out price fluctuations for consistent gross margins & specific identification gives visibility into profit per sale! 💼 🖥️ Tech tools are crucial for accuracy & avoiding valuation distortions 🙅 Finally, don't forget to consider market trends & compliance when choosing a method – it's a strategic decision! 🎯 Learn more: 👉 https://lnkd.in/e54DMe2t and don't forget to follow our company page: https://lnkd.in/ewUTSbzB #InventoryManagement #FinancialPlanning

🔍 Why Do Suppliers Request the Financial Statements ? In the business world, trust isn’t built on words alone — it’s built on numbers and transparency 💼📊 When a supplier asks for a company’s financial statements, it’s not just a formality — it’s a strategic step to ensure a stable and reliable business relationship. Here’s why 👇 1️⃣ To assess financial capability – ensuring the buyer can meet payment obligations on time. 2️⃣ To set appropriate credit limits – determining how much credit can be safely extended without financial risk. 3️⃣ To evaluate financial stability – understanding the company’s long-term strength and sustainability in the market. 4️⃣ To comply with internal or regulatory policies – especially for large organizations that follow strict risk assessment guidelines. 5️⃣ To build transparent and trustworthy relationships – because transparency is the foundation of successful partnerships 🤝 In the end, financial statements aren’t just numbers — they are the language of trust between suppliers and buyers 📈✨ #SupplyChain #SupplyChainManagement #Purchasing #Sourcing #SupplierManagement #SRM

Contract Leakage: The Unseen 9% Drain on Revenue Research shows companies lose an average of 9% of annual revenue to poor contract and process management. (GrowCFO) Manufacturing CFOs often track raw material cost, labor cost, overhead — but how many track contract cost leakage? Missed escalations, hidden pricing terms, and service obligations all drain revenue invisibly. In manufacturing, that means orders delivered under outdated terms, rush-orders that cost more, and low-margin fixed contracts that chew away at profit. At Dayda, we dig into your operational, sales and service data — uncovering where contracts are silently cost-driving your business and triggering margin leaks. Find out how much contract leakage might be costing you — run our 2-minute Cost Leakage Calculator → https://lnkd.in/dyU_KKdV #ManufacturingCFO #RevenueLeakage #ContractManagement #OperationalFinance

💡 “It’s a buyer’s market — the vendor can’t improve the price offered.” That’s a myth worth challenging. Accountants can play a vital role in helping clients maximize business sale value — even in a buyer’s market. Start by reviewing the business metrics, understanding the “valuation gap,” and implementing the right systems to lift profitability and value. ✅ It’s not luck — it’s strategy. #ESSBIZTOOLS #BusinessAdvisory #SMEAdvisory #SellingABusiness #AccountingFirms #BusinessGrowth #Valuation #FinancialAdvisory #AustraliaBusiness

📊 𝗧𝗵𝗲 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗔𝗰𝗰𝘂𝗿𝗮𝘁𝗲 𝗦𝘁𝗼𝗰𝗸 𝗥𝗲𝗰𝗼𝗿𝗱𝘀 1️⃣ 𝗜𝗻𝗮𝗰𝗰𝘂𝗿𝗮𝘁𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 -Misstated profit & loss, wrong balance sheet figures. 2️⃣ 𝗢𝘃𝗲𝗿𝘀𝘁𝗼𝗰𝗸𝗶𝗻𝗴 𝗼𝗿 𝘀𝘁𝗼𝗰𝗸-𝗼𝘂𝘁𝘀 -Excess cash stuck in inventory or missed sales due to unavailability. 3️⃣ 𝗣𝗼𝗼𝗿 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻-𝗺𝗮𝗸𝗶𝗻𝗴 – Management cannot plan purchases, sales, or pricing effectively. 4️⃣ 𝗟𝗼𝘀𝘀 𝗼𝗳 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗧𝗿𝘂𝘀𝘁 – Inconsistent stock levels can lead to delayed or missed deliveries,damaging customer trust and loyality. ✅ Keeping stock updated means better control, accurate accounts, and stronger growth decisions. For any assistance DM #Accounting #BusinessGrowth #InventoryManagement

That’s where the Cash Conversion Cycle (CCC) comes in. It shows how long it takes for money spent on inventory to come back as cash from sales. Here’s the formula 👇 CCC = DIO + DSO - DPO 🟠 DIO (Days Inventory Outstanding): How fast inventory sells. 🔵 DSO (Days Sales Outstanding): How fast customers pay. 🔴 DPO (Days Payable Outstanding): How long the company takes to pay suppliers. ➡️ A shorter CCC means better cash efficiency and liquidity. ➡️ A longer CCC might signal issues with sales or collections. Cash flow is the lifeblood of any business — managing it smartly keeps the company alive and growing. Want to learn more? Grab this Financial Analysis Course Free here: https://lnkd.in/dxxedgyG

𝑨 𝒎𝒂𝒏𝒖𝒇𝒂𝒄𝒕𝒖𝒓𝒊𝒏𝒈 𝒄𝒐𝒎𝒑𝒂𝒏𝒚 𝒐𝒏𝒄𝒆 𝒔𝒉𝒐𝒄𝒌𝒆𝒅 𝒊𝒕𝒔 𝒊𝒏𝒗𝒆𝒔𝒕𝒐𝒓𝒔 𝒘𝒊𝒕𝒉 𝒂𝒏 𝒖𝒏𝒆𝒙𝒑𝒆𝒄𝒕𝒆𝒅 𝒍𝒐𝒔𝒔, 𝒅𝒆𝒔𝒑𝒊𝒕𝒆 𝒓𝒆𝒑𝒐𝒓𝒕𝒊𝒏𝒈 𝒄𝒐𝒏𝒔𝒊𝒔𝒕𝒆𝒏𝒕 𝒑𝒓𝒐𝒇𝒊𝒕𝒔 𝒆𝒂𝒓𝒍𝒊𝒆𝒓 𝒊𝒏 𝒕𝒉𝒆 𝒚𝒆𝒂𝒓. 𝑻𝒉𝒆 𝒓𝒆𝒂𝒔𝒐𝒏? 𝑻𝒉𝒆𝒊𝒓 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝒓𝒆𝒑𝒐𝒓𝒕𝒊𝒏𝒈 𝒘𝒂𝒔 𝒇𝒐𝒄𝒖𝒔𝒆𝒅 𝒐𝒏𝒍𝒚 𝒐𝒏 𝒄𝒐𝒎𝒑𝒍𝒊𝒂𝒏𝒄𝒆, 𝒏𝒐𝒕 𝒂𝒏𝒂𝒍𝒚𝒔𝒊𝒔. Expenses like warranty claims and rising raw material costs were buried deep in accounts but never highlighted in management reports. By the time leadership noticed the trend, the company was already facing margin erosion. 𝑨𝒇𝒕𝒆𝒓 𝒕𝒉𝒆 𝒔𝒆𝒕𝒃𝒂𝒄𝒌, 𝒕𝒉𝒆𝒚 𝒓𝒆𝒃𝒖𝒊𝒍𝒕 𝒕𝒉𝒆𝒊𝒓 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝒓𝒆𝒑𝒐𝒓𝒕𝒊𝒏𝒈 𝒑𝒓𝒐𝒄𝒆𝒔𝒔. 𝑴𝒐𝒏𝒕𝒉𝒍𝒚 𝒓𝒆𝒑𝒐𝒓𝒕𝒔 𝒎𝒐𝒗𝒆𝒅 𝒃𝒆𝒚𝒐𝒏𝒅 𝒃𝒂𝒍𝒂𝒏𝒄𝒆 𝒔𝒉𝒆𝒆𝒕𝒔 𝒂𝒏𝒅 𝒊𝒏𝒄𝒐𝒎𝒆 𝒔𝒕𝒂𝒕𝒆𝒎𝒆𝒏𝒕𝒔. 𝑻𝒉𝒆𝒚 𝒊𝒏𝒄𝒍𝒖𝒅𝒆𝒅 𝒅𝒂𝒔𝒉𝒃𝒐𝒂𝒓𝒅𝒔 𝒐𝒏 𝒄𝒂𝒔𝒉 𝒇𝒍𝒐𝒘, 𝒎𝒂𝒓𝒈𝒊𝒏𝒔, 𝒂𝒏𝒅 𝒘𝒐𝒓𝒌𝒊𝒏𝒈 𝒄𝒂𝒑𝒊𝒕𝒂𝒍. 𝑽𝒂𝒓𝒊𝒂𝒏𝒄𝒆 𝒂𝒏𝒂𝒍𝒚𝒔𝒊𝒔 𝒄𝒐𝒎𝒑𝒂𝒓𝒆𝒅 𝒇𝒐𝒓𝒆𝒄𝒂𝒔𝒕𝒔 𝒘𝒊𝒕𝒉 𝒂𝒄𝒕𝒖𝒂𝒍𝒔, 𝒉𝒆𝒍𝒑𝒊𝒏𝒈 𝒍𝒆𝒂𝒅𝒆𝒓𝒔𝒉𝒊𝒑 𝒔𝒑𝒐𝒕 𝒓𝒆𝒅 𝒇𝒍𝒂𝒈𝒔 𝒆𝒂𝒓𝒍𝒚. This shift turned reporting into a decision-making tool. Instead of just satisfying regulators, reports now guide strategy. Management could quickly adjust pricing, renegotiate supplier contracts, and optimize inventory, all informed by data. 𝑻𝒉𝒆 𝒊𝒏𝒄𝒊𝒅𝒆𝒏𝒕 𝒔𝒉𝒐𝒘𝒔 𝒕𝒉𝒂𝒕 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝒓𝒆𝒑𝒐𝒓𝒕𝒊𝒏𝒈 𝒘𝒊𝒕𝒉𝒐𝒖𝒕 𝒂𝒏𝒂𝒍𝒚𝒔𝒊𝒔 𝒊𝒔 𝒊𝒏𝒄𝒐𝒎𝒑𝒍𝒆𝒕𝒆. 𝑪𝒐𝒎𝒑𝒍𝒊𝒂𝒏𝒄𝒆 𝒎𝒂𝒚 𝒔𝒂𝒕𝒊𝒔𝒇𝒚 𝒆𝒙𝒕𝒆𝒓𝒏𝒂𝒍 𝒔𝒕𝒂𝒌𝒆𝒉𝒐𝒍𝒅𝒆𝒓𝒔, 𝒃𝒖𝒕 𝒊𝒏𝒔𝒊𝒈𝒉𝒕-𝒅𝒓𝒊𝒗𝒆𝒏 𝒓𝒆𝒑𝒐𝒓𝒕𝒊𝒏𝒈 𝒆𝒎𝒑𝒐𝒘𝒆𝒓𝒔 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔𝒆𝒔 𝒕𝒐 𝒂𝒄𝒕 𝒃𝒆𝒇𝒐𝒓𝒆 𝒑𝒓𝒐𝒃𝒍𝒆𝒎𝒔 𝒆𝒔𝒄𝒂𝒍𝒂𝒕𝒆. Numbers don’t just record history; they can shape the future when analysed properly. “𝑫𝒐 𝒚𝒐𝒖 𝒃𝒆𝒍𝒊𝒆𝒗𝒆 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝒓𝒆𝒑𝒐𝒓𝒕𝒊𝒏𝒈 𝒔𝒉𝒐𝒖𝒍𝒅 𝒑𝒓𝒊𝒎𝒂𝒓𝒊𝒍𝒚 𝒔𝒆𝒓𝒗𝒆 𝒄𝒐𝒎𝒑𝒍𝒊𝒂𝒏𝒄𝒆, 𝒐𝒓 𝒔𝒉𝒐𝒖𝒍𝒅 𝒊𝒕 𝒇𝒐𝒄𝒖𝒔 𝒐𝒏 𝒅𝒆𝒄𝒊𝒔𝒊𝒐𝒏-𝒎𝒂𝒌𝒊𝒏𝒈 𝒇𝒊𝒓𝒔𝒕? . . . . . #ForensicAudit  #ForensicAuditor  #ForensicAccounting  #FraudDetection  #AntiFraud  #FinancialForensics  #FraudInvestigation  #AuditTrail #FinancialReporting #BusinessFinance #ManagementReporting #DecisionMaking #DataDrivenInsights #FinancialAnalysis #CorporateGovernance #FinanceTransformation #shareeshgadde #cashareeshgadde

You Cannot Build a 2026 Budget on Bad Data As planning season begins, one question matters most: Is your data verified? Too many budgets are built on ghost stock, outdated pricing, and assumed inventory. The result? Missed forecasts. Unnecessary purchases. Hidden risk. Physical inventory validation may not be glamorous— but it is the foundation of every reliable budget. Without verified data, even the best strategy is built on unstable ground. #Finance #BudgetPlanning #PhysicalInventory #DataIntegrity #OperationalExcellence #ALLSERV

Price changes aren’t the real problem, it’s your cost response delay. When supplier prices shift, most businesses spend weeks updating static spreadsheets. That lag silently eats into profit margins. Our Dynamic Response Model (DRM) eliminates that delay, every operational component (Inventory, Labor, Overhead) adjusts instantly to new cost inputs. You see the full financial impact in real time and make data-driven decisions before losses occur. Stop reacting late. Start controlling the consequence.

🔍 3 Red Flags I Notice Instantly in a Balance Sheet After reviewing balance sheets over the years, I’ve learned that small details often reveal bigger issues behind the numbers. Here are three red flags that immediately catch my eye 👇 1️⃣ Mismatched Trade Payables and Receivables Trends When payables are rising faster than receivables, it could signal potential cash flow stress or supplier pressure. 2️⃣ Sudden Changes in Inventory Levels A sharp rise or drop without corresponding sales growth often points to mismanagement or demand forecasting issues. 3️⃣ Unexplained Adjustments in Equity or Reserves Frequent “adjustments” in retained earnings or reserves can hide accounting manipulations or one-time losses. #Finance #Accounting #BusinessInsights #FinancialAnalysis #CFO