When running a business you might have a plan to create a company and find a company setup singapore to help you. Before building a company, you must know in advance what type of company you will create. Small and medium companies have differences on several things. However, before reviewing further, let us first know why companies are grouped into small and medium-sized companies. Basically, the difference between small and medium-sized companies lies in a large number of assets and turnover.
The following has summarized the differences between small and medium-sized companies as below:
1. Amount of Assets
Asset or in economic terms is called active is the sum of all assets owned by the company. Assets are used by a company to carry out all its production and operational activities. These assets must be measured in a unit currency balance sheet. So suppose that the asset is in the form of a stock of goods then the goods must be numbered into the national currency.
2. Number of turnovers
Turnover is defined as the amount of revenue generated from the sale of a product in one sale period. The selling period is divided into daily, monthly and annual selling periods. So there are terms of daily turnover, monthly turnover, and annual turnover. In small companies, the turnover is only in the range of $ 50,000 – $ 1,000,000 per year. For small and medium companies the turnover is obtained between $ 1,000,000 – $ 50,000,000. As for large companies, an annual turnover that can be obtained is worth twice the acquisition of small and medium companies.
3. Owned Facilities
In terms of facilities owned, of course, small and medium companies have a number of different facilities. In small companies, the facilities or completeness of their businesses are also relatively few. If the small company is engaged in the sale of facilities owned pliers may only be a store and product display rack. For medium-sized companies, of course, more facilities are owned, because usually this company is engaged in a larger and higher level than a small company. This also applies to large companies, of course, the facilities owned will be more and more sophisticated.