Registering a company is currently very easy, but companies that can make money in this era where competition is growing exponentially are the best. So the key to making money is to make correct decisions. As long as you do everything in a down-to-earth manner according to excellent ideas, success will not be out of reach. The ability of a small company or even a micro-enterprise to maintain a level of profitability under fierce competition has a lot to do with its financial philosophy and financial and tax management.

The first thing to talk about is cost control. Cost control is a common concern for many small and medium-sized enterprises, but cost saving should be a principled saving with trade-offs. In order to save personnel expenses, small businesses can adopt different approaches to cost control in different situations.

Many companies have established a sales and collection responsibility system. Sales staff are not only responsible for selling products, but also responsible for collecting payments, and link collection of payment to sales staff’s bonuses. This is to prevent accounts receivable. Effective measures for payment risks, but attention should be paid to the balance between incentives and constraints. If an enterprise has a large business volume, it can establish a computer management system for accounts receivable and use computers to monitor customers in a timely manner.

Small and medium-sized enterprises should establish the concept of continuously reducing product costs through technological innovation. Technological innovation is used to promote cost management. In the short term, technological transformation requires investment, and the development of new products also requires investment, which are factors that increase costs. But in the long run, not only can greater benefits be obtained, but it is also conducive to gaining the initiative in competition. The profit-increasing factors it brings are greater than the cost factors of its investment.

Finally, we must pay attention to inventory management. It is very good if the inventory takes up less funds. The set payment ratio is synchronized with the payment ratio in the buyer's contract, which greatly reduces the risk of a large amount of cash being occupied due to the payment time gap. It also plays a role in the after-sales service provided by the manufacturer during the installation of the machine and equipment. A certain containment effect.

If the company is small but pays attention to absorbing advanced technology and uses management software for inventory management, it can not only ensure the supply of inventory, but also save the funds occupied in inventory. At present, most trading companies adopt a zero-inventory approach and supply orders directly to customers, thus avoiding the risk of inventory losses due to price changes. There are also many companies that implement business process reengineering (BPR) and enterprise resource planning systems (ERP). These are all means to improve the speed of business operations.