A Penny Saved Is A Penny Earned - How It Is Helpful For Business And Cash Management

The proverb “A penny saved is a penny earned” offers a good idea and advice to save money. When a penny is saved, it can be regarded as a penny has been earned leading a person to have worth of one penny. It also implies that money can be saved even if it is done little by little. The notion that money must be spent wisely is also revealed in this proverbial meaning. Further, it gives a precious advice that can lead a business management to strengthen the strategies for cash management.

Effective cash management is one of the most important

aspects of any business leading it to make profitable or unprofitable. It is due to effective cash management that the progress, performance and profitability can be ascertained, while inefficient cash management creates various problems in a business organization. Having been related to working capital management, the activity of maintaining and providing funds as and when needed is regarded as an essential task, as it leads to meet the day-to-day expenses of a business as well as paying the dues or clearing the obligations. It also helps to manage the events efficiently in which unexpected expenses are to be incurred. For all the above reasons, the concept behind the proverb is very much helpful to business management, as it leads to control unnecessary expenses while it enables to save the money which is not spent. In this way, a business can not only avoid unimportant expenditures, but it also
saves money, which can also be used for unforeseen events.

As regards receivables, a business entity needs to collect its receivables from its customers or clients on time. If it fails to make collections on timely basis, the situation may bring various problems, such as, lack of financial resources. If it is done properly, the company will be in the money. This way, money is earned on regular basis. Even if it’s a little, when collected on time, it can be accumulated leading a business to remain solvent and pay its debts.

The proverb, “A penny saved is a penny earned” helps you find out ways in which you can monitor and control you expenses so that you can spend money efficiently and save it wisely. Following this precious advice, you can save money and earn money successfully at the same time.

Written by:
K.A.Fareed (Fareed Siddiqui)
Writer, Trainer, Author, Vba/Vb Developer
BBA; MBA-Finance; M.Phil-Financial Management; (PhD-Management)
MA-English; M.Phil-English
Pursuing CMA-USA
Individual Member of Institute of Management Consultants of India

You may also like these:



Article Written By FAREED SIDDIQUI

I am an Individual Member of Institute of Management Consultants of India. I am a Professional with a high creative capability based on Business, Management, Financial Accounting, Management Accounting, Finance and Management Consulting Field. I impart part time training and development programs. I write professional articles on business & management, business English and Software Engineering.

Last updated on 27-07-2016 94 0

Please login to comment on this post.
There are no comments yet.
The Objectives Of Training In The Business Organization
The Importance Of Non Verbal Communication In Business Organization