SET UP DIRECT DEBITS
Direct debits allow companies to take the money direct from your account when the bill is due. Once you know how much you need to pay on bills each month you can leave that amount in your account or transfer the full amount to another account if you want to use a separate one for bills. Companies will inform you of any increases so you can adjust the amount you pay. If possible choose the same day for the payment to come out if you are paid monthly, or the nearest day, which is useful if you have all your outgoings coming out of the same account.
Note: these companies can only take out what has been authorised so you don’t have to worry about extra money being paid out. There are also times when they may take the payments 2-3 days earlier because of the direct debit date falling on a weekend or a bank holiday so make sure your money is in your account in advance. Call the
The idea is to start small; you do not need pots of money to invest. Here is a list of possible areas where you can venture into to understand smart investing. These financial investments should be at your New Year’s resolution list as they are a combination of risk-taking, investment amount and return of investment (ROI). These investment ideas will allow you can to balance your short-term and long term financial interests.
Invest in gold: Investing in gold is always considered good as it is an indispensable asset across cultures and geographical boundaries. Gold investment can either be made in physical form (like buying gold jewellery, gold coins, or bars) or by means of ‘paper gold’ (via Gold Investment Accounts of banks).
Real Estate: This investment option carries medium risk and investors need to select the right property to get the highest return.
Unit Trust: This is a collective investment plan that permits small and medium investors with similar investment ideas to pool in their funds and invest in a portfolio of securities. The pooled funds
Plan for Escaping the Rat Race and Living the Rich Life
Have you adopted the Thrive Budget, Modern Portfolio Theory, easy-as-a-pie-chart nest egg strategies and the 3-Ingredient Recipe for Cooking Up Profits? Or are you clinging onto investments that have lost value, praying for a Hail Mary miracle that erases your losses and achieves unbelievable gains, and borrowing money to stay afloat in the meantime? Are you so afraid of the idea of investing that you invest only in yourself and your business, but get tempted to buy gold because that’s what everyone else is doing?
Health, Health Insurance and Health Savings Accounts
Do you have a high deductible with health savings account that you manage for 10% ROI? Or, are you stressed out all of the time, worried about your health, angry at all of the ways you are being eaten alive by bills, and paying an arm and a leg for health insurance because you have to? Or, do you spend most of your “extra” money on fun and pleasure instead of health insurance? Are you uninsured?
Outlook on Business
Do you work hard, course correct, adopt best business practices and
Make a list. Every time you go out, make a list.
This is easy to do and has an effect, simply because when something is not on the list you have to think about buying it, and that moment is death to the impulse buy. Keep the list in hand and refer to it, so that when something is not on it, it’s a lot easier to ignore.
Don’t go shopping hungry.
This matters – studies show that hungry shoppers buy more, sometimes as much as 40% more, compared to people who are shopping on a full stomach. When you’re hungry you are swayed much faster by not just the smell of the caramel popcorn at the other end of the store, but also by those cute wineglasses you are just certain you urgently need.
If you are married, make a plan at the start of every month.
Planning your monthly spends is pretty useful for single people too, but it’s an especially powerful exercise if you are married. No matter what, no two people are entirely alike in their financial behavior. Sit together at the start of every month and plan out
Flicking the switch
So how is a ten-fold boost in productivity possible? It’s simply a question of automating as many aspects of the AP function as possible. The real costs involved in AP are the man-hours involved in manual tasks, including: finding purchase orders and good received notes; checking and matching these; manual data entry into core business systems such as ERP; manual validation; processing complex invoices which may involve checking against service level agreements, and more.
Even more costs are incurred in tasks such as long-term filing and storage of documents, staff turnover and teaching systems to new staff. If these tasks can be automated, then accounting staff can be redeployed in more strategic roles such as data analysis, and not be involved in time-consuming paper trails.
The ultimate aim is sometimes referred to as “lights-out accounting [http://www.dvtl.co.uk/index.pl?art=14]” – in other words, switching off the lights while the work proceeds automatically. And although it’s not yet possible to flick off the light switch all the time, the latest-generation invoice data capture and processing solutions really do deliver gains in productivity of up to 1000%, helping to turn AP into a profit centre, not a
The stock market continues to make new all-time highs, but there is no good financial news to substantiate it. As companies continue to file bankruptcy, move overseas or plain old just close, no one’s job is safe. Being proactive when it comes to financial matters will help anyone survive this economic downturn. Pride is one of the biggest problems that stop people from admitting they are in need of filing for bankruptcy. Instead, they continue to borrow more and kick the can down the road, hoping that things will get better after the election. Now that the election is long behind us this type of logic is foolish, because things are not going the way that most expected them to go.
This study came out that reported the average American is only three weeks away from filing for bankruptcy. This doesn’t mean that everyone is filing bankruptcy in three weeks, but Americans as a whole no longer have any kind of savings or reserves. When you ask someone if they have anything for backup, most people will say they have a Visa card with no balance on it for emergencies. In the past, it was the norm
You placed your primary focus on creating business (which is vital), but neglected to monitor the ebb and flow of revenues and expenses (which is vital). Every business owner must keep an eye on the money and take corrective actions as needed if we want to build a thriving business because quite perversely, as sales go up, cash-flow might go down.
Here’s how cash-flow crashes happen. As business expands, staying on top of accounts receivable becomes more time-consuming. Those in service businesses (like website design or public relations) may find that clients, oftentimes those whose names we crave for our client list, may unilaterally decide to pay receivables in 60 days, instead of 30 days. Meanwhile, you have payroll and other operating expenses that are due ASAP.
Improper pricing is another cause of cash-flow crashes. You may sell a ton of T-shirts but if the profit margin is too thin, excellent sales volume may not overcome an inadequate mark-up. Revenues generated may not cover expenses. The remedy is to either acquire the product less expensively, or raise the price.
A growing business brings up still more issues that keep its owner awake at night: capital
The most common form of skimming is not recording the sale of goods but collecting the money from the customer. Despite controls such as register tape, managers, and surveillance equipment, employees may be able to manipulate the system in order to prevent fraud detection. In some examples of unrecorded sales, the fraudster manipulates the register tape so that it does not print on the tape when transactions are keyed into the system. A means of detection would be pre-numbering the system records so that if skimming were perpetrated when the fraudster turn the register tape back on there would be a break in the pre-numbered transactions. Companies should be specifically careful of unrecorded sales schemes with revenue streams that are difficult to monitor and generally unpredictable in value.
Understated Sales and Receivables
In these skimming schemes the customer receives a receipt that is for the total amount of the transaction but when the employee enters it into the system they record either a discount or a sale of lesser value. In order to cover their tracks they can manipulate carbon copies of the receipt by writing in their own amounts or generating false
Transfer Mispricing sprouts when there is a form of more phenomenon known as trade mispricing. When business takes place between two unrelated or apparently unrelated parties, such results out. Estimation, that about 60% of the international trade happens within rather than between multinationals which are across national boundaries but within the same corporate group.
The estimates vary depending on how much tax revenues can lose by the governments due to transfer mispricing.
But as two unrelated companies sit to trade with one another, they may wish to distort the price with an intention to minimise the overall tax bills. But with the “Arm’s Length” principle such practices are supposed to stop and ensure that costs recorded as if the trades is taking place with ‘arm’s length.’ Because the ‘Arm’s Length’ stands unworkable in most of the situation, this is why multinational corporate tax avoidance occurs for a reason.
The conventional international approach deals with transfer mispricing through ‘arm’s length ‘principle. This type of transfer pricing policy takes place when bilateral treaties between governments take place.
Most of the businesses take up arm’s length principle while most just move in the opposite direction. It may
Create a Business Checking Account
This should be your first step when starting a new business, and you should get into the habit of depositing income here and paying bills from this account as well. If there is ever any question as to whether you are running a hobby or a business, the IRS will first look to see if you’ve opened a separate account, which will help them decide whether to grant you that all-important distinction, so you want to make things as simple and clear as possible for yourself from the beginning.
Open a Business Credit Card
If you are a new business owner, it can be difficult to get approved for a credit card, but apply anyways, it’s no use wondering “if”. And if you get denied, continue apply especially as your business grows. Little secret about doing this is that business credit cards are the only credit cards on which interest accrued is deductible as a business expense.
Pay Yourself a Salary
Writing a check from your business checking account to yourself for the same amount each month will help you maintain a sustainable business budget. It can be
As per Generally Accepted Principles of Accounting (GAAP), cash flow statements can be prepared in two ways: direct and indirect. The latter mode is deemed appropriate because it shows the relation between net income and cash from operations. Moreover, it starts with accrual method’s net profit (or loss) and proceeds further. The former mode, on the other hand, presents a summary the cash flows from various activities only.
Despite the name, non-cash items including leasing to purchase an asset, conversion of debt to equity, exchange of non-cash asset, liabilities for similar non-cash assets, or liabilities, and issuance of share in exchange for assets should also be recorded. This can be done as a note or within the statement itself, as the management deems suitable. Also disclosed in the notes are any significant noncash transactions like depreciation, amortization or impairment loss.
Accounting applications help in making accurate information to be presented in cash flow statements. Direct method or indirect method, applications are capable of preparing precisely – after all, it comes from the journal entry that is made in the initial stages of accounting, and the app makes sure of it – what the management wants. The
To support a simple billing procedure, the online billing methods are playing an important role. For businesses like medical care services and law firms, simplified billing methods are vital. Providing medical services can be more important for any physician than solving the complex calculation work of billing rules. In such a field, the wastage of time can cause fatal results. This is why for businesses like medical care services, it is very important to go with the technology that saves a fair amount time as well as resources.
Traditional billing methods can be very time-consuming and costlier as compared to electronic payment methods. The online billing technique or the E-commerce payment system can cut down the expenses by cutting down the costs of several items that are required in traditional billing methods. Online billing is the fastest method for generating bills. You can create bills within seconds no matter how long they are. The calculations done with the help of online billing methods are so precise that manual calculations cannot beat them. With the help of online bills, you can generate a number of copies without any wastage of time. With the help of an online billing