Title: What Does Financial Acumen Mean? | Small Business - Chron.com
Headings: What Does Financial Acumen Mean?
What Does Financial Acumen Mean?
Bookkeeping vs. Accounting
Cash Flow Management
Creating Pricing Strategies
Good Cost Control
Managing Your Assets
Creating Tax Strategies
Credit and Debt Management

Content: For example, someone with good financial judgment knows when to sell an aging asset to get the most for it, disposing of it before it costs more to use than it provides in benefits. A business owner with financial acumen understands that paying for maintenance reduces the chance of large repair and replacement bills. Creating Tax Strategies
One way to increase small-business profits is to minimize the taxes you pay. You need financial acumen to create effective tax strategies. For example, you want to depreciate assets over a period that provides you with the best tax write-off. If you're incorporated, you might want to take your pay as a salary or distribution of profits, based on which reduces your payroll tax liability the most. Credit and Debt Management
Understanding how to effectively manage credit and debt is another skill people with financial acumen have. Small-business credit cards offer different APRs, fees, rewards, balance transfer offers and interest rates. In addition to cards, you should understand how bridge loans, SBA loans and lines of credit work. In addition to managing your credit, minimize your debt by paying down debt with cash to reduce interest payments while leaving enough cash on hand for emergencies.