Managing Accounts in a Vending Business

Managing the accounts of your Planet Antares vending business will be easy because you will find everything they need on their balance sheet and income statements that you keep for day to day accounting purposes. Not every operator keeps financial information according to the same format. The key important elements are income, which every operator should know, along with assets and other information that is typically included on a company’s profit and loss statement.

For those Planet Antares operators who are struggling with the financial aspect of running the business and keeping track of figures like income, assets and expenses, there are several excellent accounting packages available.

While gathering the information can be time consuming, it pays off in a variety of ways. Small operators just need to understand that in the vending service, they must continuously think about their future capital needs. Vending is a capital intensive business.

Better equipment
New and improved equipment can work well for a vending business. Better equipment can bring more sales. There are many instances in which vending operators have been able to win business because they offered a piece of equipment with new features. Planet Antares vending machines are quality machines that have all the latest features. These features can be enhanced with some of the new technologies that are in the market. Vending machines that have technological advances are better equipment.

Financial ratios
As your Planet Antares vending business grows, the costs will also increase and hopefully, the sales will as well. The financial ratios will keep track of the relationship between expenditures and sales, and account for all the line items that contribute to both. The financial ratios will give you the measurement tools you need to know how a particular investment will affect your company’s financial health over a period of time. As a company’s overhead needs increase, a business will naturally look to financing more of its expenditures. If you do not have accurate financial information and your financial ratios are not in line, you might not find it easy to secure funds that will grow the business.

Key variables
When you are through with evaluating the basic gross sales, net sales and overhead, the next most important ratios to evaluate will be four other critical profit variables below:

• Sales per employee, an excellent measure of employee productivity.
• Gross margin percentage, which reflects the ability to manage cost of goods sold effectively.
• Operating expense percentage, this focuses on expense control.
• Inventory turnover, which reflects how well inventory is managed.