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Guide To Better Budgeting

Guide To Better Budgeting

A budget is basically a money plan, outlining your financial goals. Having a budget, you can well establish and regulate funds, set and achieve your financial objectives, and make advance decisions as to how you want your finances to function well for you.

The main idea in budgeting is for you to put aside a certain amount of money for expected as well as unexpected costs.

Simply put, budgeting means an estimation of monthly home expenses basing it on previous expenses and bills.

The initial step to take in budgeting is to find out how long will your compensation last. Define fixed expenses like car payments, home rental, insurance, etc. Likewise follow up your expenditures thoroughly for a month so you can discover and understand where your funds are going. Through proper determination of your “spending patterns”, you can immediately identify solutions for effective budgeting.

For instance, when you have a steady monthly income of $4,000, you should subtract all your identified monthly bills from that income.

Other bills can be assessed and then subtracted from the amount of your income. The balance that remained after fixed costs can now be your budget in the household. Rather than allocating money for miscellaneous like gas, clothing, entertainment and groceries, financial planning will allow you instead to use proportions or percentages of it.

The strategic solution in order for budgeting to be successful is inflexibility as well as flexibility; there are fixed expenses so payment must be an inflexible factor.

Budgeting will best work when very scarce omissions are made to greater limits. The idea here is to formulate goals and plans, then abide by it as much as you possibly can.

Here are tips on how to budget:

1.   Have good sense of money management. Your attitude is essential. Reach an agreement and compromise and know the significance of reducing expenditures; it all involves a lot of sacrifice.

2.   Plan your situation. Make a listing with your earnings to one side and your overheads on the other side.

3.   Know the difference between luxuries and necessities. List down what you believe as luxuries, with it, split the list in half, crossing out half the list.

4.   Practice frugality but with dignity. You can have fun with little or without spending at all. Rather than going shopping, play with the kids at the beach or at the park.

Budgeting is an effective and fundamental tool that is readily available to everyone. Consider it, and benefit from it.

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April 14, 2022
WHO, UN Foundation and partners launch first-of-its-kind COVID-19 Solidarity Response Fund

GENEVA and Washington, D.C. – A new coronavirus disease (COVID-19) Solidarity Response Fund will raise money from a wide range of donors to support the work of the World Health Organization (WHO) and partners to help countries respond to the COVID-19 pandemic. The fund, the first-of-its-kind, enables private individuals, corporations and institutions anywhere in the world to come together to directly contribute to global response efforts, and has been created by the United Nations Foundation and the Swiss Philanthropy Foundation, together with WHO.

“We are at a critical point in the global response to COVID-19 – we need everyone to get involved in this massive effort to keep the world safe,” said Dr. Tedros Adhanom Ghebreyesus, WHO Director-General. “We are immensely grateful to the UN Foundation and the Swiss Philanthropy Foundation for coming forward to help us set up this fund. A lot of people and institutions have been saying they want to contribute to the fight against the novel coronavirus. Now they can.”

The fund launches with major support already lined up, including from Facebook and Google who have instituted a matching scheme for funds raised through their platforms, while individual donors are also supporting the fund through www.COVID19ResponseFund.org.

“We can’t ignore the fact that this is a truly global problem – one that requires truly global solutions,” said Elizabeth Cousens, UN Foundation President and CEO. “The case for global cooperation could not be clearer – communities everywhere are affected, and people want to contribute. This new fund will create space for people everywhere, together, to fight this virus.”

Funds will go towards actions outlined in the COVID-19 Strategic Preparedness and Response Plan to enable all countries – particularly those most vulnerable and at-risk, and with the weakest health systems – to prepare for and respond to the COVID-19 crisis including rapidly detecting cases, stopping transmission of the virus, and caring for those affected.

WHO and its partners are seeking financing for protective equipment for frontline health workers; to equip diagnostic laboratories; improve surveillance and data collection; establish and maintain intensive care units; strengthen supply chains; accelerate research and development of vaccines and therapeutics; and take other critical steps to scale up the public health response to the pandemic.

The COVID-19 Solidarity Response Fund is hosted by two foundations, the UN Foundation (registered in the United States) and the Swiss Philanthropy Foundation (registered in Switzerland). Both foundations have established relationships with the World Health Organization, allowing for efficient transfer of financial resources to enable COVID-19 response efforts.

Apart from giving online at www.COVID19ResponseFund.org, the UN Foundation can also receive donations via check or wire from around the world by contacting COVID19Fund@unfoundation.org.

All donations made to the United Nations Foundation and Swiss Philanthropy Foundation are tax-deductible to the extent allowable by the law, where applicable (U.S. and Switzerland). Additionally, Swiss Philanthropy Foundation has partnered with Transnational Giving Europe to extend tax benefit to certain additional European countries where applicable.

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More:

COVID-19 Strategic Preparedness and Response Plan

Coronavirus disease (COVID-19) outbreak information

About the United Nations Foundation

The UN Foundation brings together the ideas, people, and resources the United Nations needs to drive global progress and tackle urgent problems. Our hallmark is to collaborate for lasting change and innovate to address humanity’s greatest challenges. With an insider’s knowledge and outsider’s flexibility, we stay agile to get things done. Learn more at: www.unfoundation.org.

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https://www.who.int/news-room/detail/13-03-2020-who-un-foundation-and-partners-launch-first-of-its-kind-covid-19-solidarity-response-fund

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March 14, 2020
Smart Bill Paying Tips for Online Families
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Back in the analog days before personal computers, the internet and smartphones, paying monthly bills was an event! Bills arrived in the mail and were collected in a specific location and saved for that special day each month when they were paid. The bills were reviewed to make sure all expected items had arrived and each check was written out with a corresponding entry added to the (paper) check register. It was a manual exercise requiring good organization, basic math skills and the concentration to ensure the accounting was properly logged. Mailing out the checks and tracking them in the register wasn’t the end of the process – it was imperative to scrutinize the monthly bank statement and balance the checkbook to ensure that there were no math errors, the checks hadn’t gotten lost in the mail, they were actually cashed by the creditor and correctly credited to the account. Because there was always a lag between the bills coming due and the bank statement arriving, sometimes it was difficult to avoid unpleasantness such as the power or telephone company threatening to turn off service due to a clerical error or post office delay.

Since that time, things have changed dramatically. First was the introduction of financial software that could help with monthly budgeting and bill-paying. Computerization increased organization and cut down math errors, making it easier to keep control of monthly obligations. Today’s consumer has a wealth of tools at their disposal to pay bills, track accounts and keep their personal finances organized. Instead of a shoebox full of paper and a checkbook, bills can be paid with a computer or smartphone connected to the internet. Payments made using either a checking account or credit card can be monitored almost in real-time. Even the role of the post office has diminished considerably because of changes in the bill-paying process. Many people utilize automatic bill payment options that are available directly from vendors such as the phone company or insurance company, as well as from many banks. Consumers may still have a checkbook in their possession, but most of the time it gathers dust on a shelf or in a drawer while bills are paid in a variety of other ways.

Automatic bill payments are the most convenient of all, with options to pay each vendor directly from a bank account or credit card. Auto-pay is great for convenience and flexibility, but the responsibility still falls to each consumer to ensure the process works as expected and to maintain control of their finances. What are some things to be aware of with auto-bill pay and what are some tips for keeping control of your budget while still taking advantage of the automation available?
- Choose the payment method that works for you: Many people find it more convenient to set up their auto-pay on a credit card instead of having the money deducted instantly from their checking accounts. That way, monthly bills appear together in 1 place, and there is less worry about cash flow during the month. And with credit card accounts accessible online, the balance can be monitored as needed. Many credit cards can offer consumer benefits such as frequent flyer miles, free merchandise and other perks. Using a credit card as the payment method is great for organization, but be careful!! Accruing charges on a credit card makes it easy to exceed your budget and get into trouble at the end of the month. Only use this method if you are prepared to pay off the balance on your credit card each month to avoid paying high finance charges on your fixed monthly expenses. If you’re on a very tight budget or have trouble limiting credit card spending, paying bills directly from your checking account is a better solution.
- Be prepared for changes: When using a credit card to pay most monthly bills, if your credit card is stolen or hacked, or when it expires and a new card is issued, be aware that any auto-payments you set up using that card will no longer process. Keep a list of accounts that use auto-pay, including which credit card is used as the payment method for each account. This way, you can quickly update them all when a new credit card is received. If you’re tempted to just check your most recent statement instead of keeping a list, remember – some bills come monthly, others are quarterly and still others are annual so they won’t all appear on your most recent statement. Keeping a list is most efficient way to easily update all applicable accounts.
- Stay involved in the process: Many banks help in the process and provide alerts when an expected bill arrives or does not arrive when scheduled – bill payment is a great feature of online banking and can help you stay on top of your obligations! Make time to review the bills each month to make sure there aren’t any unforeseen or erroneous charges; especially if you are on a tight budget and paying directly from your bank account. Unanticipated charges that are automatically deducted from your account can cause unexpected drops in your bank balance.
- Be smart when it comes to cash management: If possible, don’t set up auto-pay on bills that can vary greatly from month to month, such as credit card bills. And always avoid paying off the balance of one credit card by adding it to the balance of another.
- Keep your credit rating in good standing: Due dates for items such as credit cards, health insurance, mortgage and auto payments are typically due on the same day each month, making it easy to ensure that auto-pay bills arrive on time. However, the due date on some bills may vary. Be sure the payment date that you set up for each bill allows sufficient time for the creditor to process the payment in order to avoid late charges. Similarly, if using your bank’s bill-paying service, for some vendors there is a lag between the date paid and the date received – make sure you allow sufficient time to stave off late fees and avoid bad credit.
The most important concept to remember is that even though paying bills has become extremely convenient and paper cuts are much less common these days in the bill-paying process, you are still ultimately responsible for your finances, your bills and your credit rating. Monitor closely, take advantage of the online tools available from your bank and your creditors to help you keep track of your finances and remember to dust off that checkbook once in a while! Regardless of the method you choose for paying bills, it is highly recommended that you keep a current register of all checks and debits, making a deduction for each item immediately (as soon as you have issued or authorized an item for payment), including any associated fees. This will allow you to have an accurate, up-to-the-minute checking account balance from which to work. This will also help prevent incidences of insufficient funds and their associated fees. Accurate and timely account records never go out of style!

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Source by Ellen Debboli

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February 10, 2020
Why Sage Hosting Is A Real Big Thing For Tech-Savvy Accountants and CPAs
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The modern accounting world is the proof that technology accelerates every industry it touches. Whether it be data or relationship with clients, advanced accounting software is efficient enough to handle it all. Before the emergence of cloud technology, CPAs and accountants were handling their complex financial data on spreadsheets. But, it is hard for them to claim better results with spreadsheets, and that’s when the need for a reliable cloud-based accounting software come to the fore.

Sage 50 Cloud is a familiar name among tech-savvy accountants and CPAs, who prefer technology to get expected results. From small businesses to huge enterprises, entrepreneurs to individual professionals, the hosted solution has worked exceedingly well for everyone. The major reason behind the popularity of Sage hosting solutions is flexibility, which allows firms to streamline complex accounting tasks smoothly. The hosted software not only minimize the overall cost but also bring productivity into your business.

There is plenty of other accounting software in the market that has the same set of features, but Sage gains the slight edge due to its cost-efficient pricing solutions. The hosting feature of Sage is also one major factor that makes it future ready. Let’s discuss further factors that justify the name of Sage in the accounting world. In short, here are the benefits of hosting your Sage to the cloud.
1. Mobile Device Compatibility to Focus on Core Business Goals:
  
  Sage, when hosted to the cloud, ensures that you can access your data from any location at any time and with any device. You are able to achieve better results when you enjoy doing your work. The hosted application allows you to work according to your comfort zone, which means you can complete tasks more efficiently. It is not less than a perk for technology-oriented accountants to have the comfort of the place and satisfaction of AI while handling complex accounts.
2. Supreme Operations to Avail Professional Growth:
  
  The presence of cloud help businesses to think beyond accounting hassles as the hosted accounting application is versed enough to take care of it. Accountants and CPAs can strategize new ways to expand their services globally or, simply think about resources management. There are lots of other tasks that they can handle in the meantime. Dedicated server, timely software upgrades and automated integration processes are some of the features that help accounting firms to claim professional growth.
3. Updated Technology to Stay Ahead of Market Game:
  
  In today’s competitive market world, it is hard to stay at the top always but not impossible. Accounting firms can find a sustainable place for themselves only if, integrate with cloud technology. Fortunately, Sage 50 cloud is able to do that for firms. The expert of hosting provider ensures that your accounting software will upgrade to its latest version, and you don’t have to pay any upfront cost for that.
4. Excellent Support to Think About Business Productivity:
  
  You automatically say yes to the assistance of cloud vendor when your data migrated to the cloud. There are many instances in business that makes it hard to focus on core business goals. But, the same is not a case with Sage hosting as experts assist every user 24*7. Be it day or night, experts will take care of your data and assist you with sustainable solutions. Hence, it is always beneficial to have an automated accounting software in the process.
Final Words

Sage hosting offers many benefits to its users, especially to accountants and CPAs, that allow them to explore the data, market opportunities and global expansion. Most of the traditional users still consider cloud as an expensive option. But, the truth is hosted application play a bigger role in the overall transformation of the firm’s growth. Organizations who truly want to stay ahead of the accounting game should make a quick switch to the cloud as it is the only way to steer the firm’s innovation.

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Source by Tina S Smith

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February 9, 2020
Caribbean Medical School: Fastest Way to Be a Doctor?

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Caribbean medical schools have long been the butt of jokes but their graduates are the ones having the last laugh. There are thousands of licensed physicians from Caribbean schools practicing all across the country. Over 25% of all doctors in the US are from international schools. Do you know where your primary care physician went to medical school? This is the field where Caribbean graduates are expected to dominate with a large percentage of graduates training in Internal and Family Medicine. They are expected to fill a nationwide shortage that is currently occupied by Physicians Assistants and Nurse Practitioners.

Picture this. A 17 year old high school graduate enrolls in a pre-medical program at a Caribbean university. Schools will automatically accept students to their medical programs as long as they maintain a certain GPA in the pre-program. This means there is no need to take the MCAT so you can save yourself the headaches from preparing for that. The program is completed in 2 years and the student enrolls in the first year of the medical degree program at 19 years old.

Numerous Caribbean schools offer an accelerated curriculum that divide the year into trimesters. Students attend school year round and are able to complete their M.D. in less than 36 months. Not to mention you only spend 18 months studying on the island. The clinical years are spent training alongside American medical student at hospitals in the US. St. George’s medical school has hospital affiliations that match any US school. Our fictional student graduates with his Doctorate in Medicine at the ripe age of 22 (going on 23).

Our new graduate is eligible to practice in any state in the country as long as he attended one of the “Big 4” Caribbean medical schools (St. George’s University, Saba University, Ross University and American University of the Caribbean). Internal Medicine residencies last 3 years so we have a residency trained physician ready for board exams, licenses and employment at a mere 25 years old. Not quite Doogie Howser but it’s impressive to say the least.

This accelerated path also benefits those seeking a new career or chasing their dream of being a doctor. Time is of the essence and wasting summers off in the traditional semester system is not time well spent. Caribbean medical schools are littered with nurses, pharmacists, dentists, chiropractors and many other health care practitioners. Many schools offer several different entrance times during the year giving flexibility for students who want to begin their medical education immediately.

There is risk involved in attending a medical school overseas but there have been thousands who have blazed the trail before you and set the precedent. Caribbean medical schools produce capable physicians and fill an integral need in the health care system of the US.

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Source by Greg Andrew Park

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February 5, 2020
Women Managers Leaving Corporations for Entrepreneurship

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Increasingly, women managers are choosing to “opt out” when corporations fail to meet their professional needs. Opting out–the latest catch phrase within corporate circles–describes the growing trend of leaving corporate positions for alternative career paths.

A significant number of women managers are leaving large companies to start their own businesses. In fact,

women are quitting corporate jobs in favor of entrepreneurship at twice the rate of men, making a significant impact on the traditional and online marketplace, according to Cheskin Research, a California-based strategic market research and consulting company.

Recent research indicates interesting trends for women entrepreneurs. According to the Center for Women’s Business research, the number of women-owned U.S. businesses grew at twice the rate of all firms between 1997 and 2002. And the U.S. Small Business Administration reports that women-owned businesses account for 28 percent of all privately-owned companies. They employ 9.2 million people and contribute $2.38 trillion in revenue to the U.S. economy.

Why Women Managers are Leaving Corporate America?

Women used to be willing to devote their time, energy, and effort to the corporation’s needs–at the expense of meeting their own professional goals. But not anymore. They’re starting their own businesses in an effort to gain more freedom, recognition, money, opportunities and other rewards.

Fifty-one percent of women business owners with prior private-sector experience cite the desire for more flexibility as the major reason for leaving corporate positions, according to a study by Catalyst, a nonprofit research and advisory organization working to advance professional women. Twenty-nine percent said restrictive glass-ceiling issues drove them out the door. Of those women, 44 percent felt their contributions were not recognized or valued.

“As women walk out the door after years of training,” said Catalyst President Sheila Wellington, “what really walks out is the potential that those women would have brought to Corporate America.”

The Catalyst research–co-sponsored by the National Foundation for Women Business Owners, the Committee of 200, and Salomon Smith Barney–also revealed that:

o A third of the women surveyed by said they weren’t taken seriously by their employer or supervisor.

o Fifty-eight percent of them said that nothing would attract them back to the corporate world.

o Twenty-four percent said they could be lured back by more money, and 11 percent by greater flexibility.

Keeping Women in Corporations

Experts say corporate America isn’t doing enough to keep women from walking out the door. Companies need to focus on providing flexibility, as well as continuing challenges and opportunities for personal growth, to retain women whom they view as high-potential or who are already significant contributors, says Catalyst. In addition, companies should identify potential women managers early in their careers, reward women’s bottom-line contributions, and recruit female entrepreneurs to corporate boards and senior line positions.

Expanding opportunities for women in leadership will require corporate change, as well as accommodations on the part of women themselves. Corporate cultures must support initiatives such as giving women high-visibility assignments, making gender diversity a part of succession planning and holding managers accountable for women’s advancements.

Women managers can hone their leadership ability by seeking out risky, high profile assignments. If they need to strengthen their leadership skills to meet new challenges, they should consider hiring an executive coaching firm. For example, QuadWest Associates of Michigan offers a variety of business coaching and leadership development services to help executives optimize their skills and performance.

By investing in coaching services, women managers can position themselves to expand their boundaries. This can help them excel–whether they remain in a corporate setting or strike out on their own.

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Source by Susan West

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February 4, 2020
Risks in International Business

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Just as there are reasons to get into global markets, and benefits from global markets, there are also risks involved in locating companies in certain countries. Each country may have its potentials; it also has its woes that are associated with doing business with major companies. Some of the rogue countries may have all the natural minerals but the risks involved in doing business in those countries exceed the benefits. Some of the risks in international business are:

(1) Strategic Risk

(2) Operational Risk

(3) Political Risk

(4) Country Risk

(5) Technological Risk

(6) Environmental Risk

(7) Economic Risk

(8) Financial Risk

(9) Terrorism Risk

Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competitiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers.

Operational Risk: This is caused by the assets and financial capital that aid in the day-to-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization.

Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable country’s political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets.

Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. Some of the country risks come from the governments’ policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk.

Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena.

Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area.

Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business.

Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firm’s ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms’ assets are confiscated and that contributes to financial losses.

Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences in culture and religious philosophy, and/or merely hate of companies by citizens of host countries. It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of the employers and employees. Such frustrating situations make it difficult to operate in these countries.

Although the benefits in international business exceed the risks, firms should take a risk assessment of each country and to also include intellectual property, red tape and corruption, human resource restrictions, and ownership restrictions in the analysis, in order to consider all risks involved before venturing into any of the countries.

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Source by Sidney Okolo

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February 2, 2020
Effective Working Capital Management and Optimal Synchronization of Cash Flows

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How do firms choose their operating cycle? How do firms choose their cash conversion cycle? What is the impact of firm’s operating cycle on the size and periodicity of investments in receivables and inventories? How do seasonal and cyclical trends affect firm’s operating cycle, cash conversion cycle and investments in current assets? These strategic policy questions relate to optimal cash flows synchronization and effective working capital management designed to maximize the wealth producing capacity of the enterprise.

In this review, we will examine some pertinent and extant academic literature on effective working capital management and provide some operational guidance to small business enterprises. The shorter the cash conversion cycle, the smaller the size of the firm’s investment in inventories and receivables and consequently the less the firm’s financing needs. Although setting ending cash balances is, to a large extent, judgmental, some analytical rules can be applied to assist effective formulation of better judgments and optimize cash flow management.

As you know, a correlate to cash is net working capital. Net working capital is not cash but the difference between current assets (what a firm currently owns) and current liabilities (what a firm currently owes). Current assets and current liabilities are firm’s immediate sources and uses of cash, respectively. Clearly, a firm’s ability to meet its current financial obligations (bills due within a year) depends on its ability to manage its current assets and liabilities, efficiently and effectively.

Effective working capital management requires the formulation of optimal working capital policy and the periodic management of cash flows, inventories, account receivables, accruals and account payables. And because poor working capital management can severely damage a firm’s credit worthiness and limit its access to money and capital markets, every effort must be made to minimize business default risk.

The significance of liquidity cannot be overemphasized. In addition, anything that adversely impacts a firm’s financial flexibility degrades its ability to borrow and cope with unexpected financial hardship. A firm must preserve its ability to react to unexpected expenses and investment opportunities. Financial flexibility derives from a firm’s use of leverage as well as cash holdings.

In practice, optimal working capital management includes effective cash conversion cycle, effective operating cycle, the determination of appropriate level of accruals, inventories, and account payables and the attendant funding options. Working capital policy impacts a firm’s balance sheet, financial ratios (current and quick assets) and possibly credit rating. Critical to efficient firm’s working capital management is a good understanding of its cash conversion cycle, or how long it takes for a firm to convert cash invested in operations into cash received.

The cash conversion cycle captures the time passed from the beginning of the production process to collection of cash from the sale of the finished products. Typically, a firm purchases raw materials and creates products. These products go into inventory and then are sold on account. Once the products are sold often on credit then the firm waits to receive payment, at which point the process begins again. Understanding the cash conversion cycle and the age of account receivables is critical to successful working capital management.

As you know, the cash conversion cycle is divided into three parts: the average payment period, the average collection period and the average age of inventory. The firm’s operating cycle is length of time from the receipt of raw materials to the collection of payment for the products sold on account. The operating cycle is therefore the sum of the inventory conversion period (the average time between when raw materials are received into inventory and product is sold) and the receivables conversion period (the average time between a sale and collection of the receipt). Note that the operations of a merchandising enterprise involves purchasing (the purchase of merchandise), sales (the sales of products to customers, and collection (the receipt of cash from customers).

Some Operational Guidance:

There is gathering empirical evidence suggesting that effective working capital management begins with assessment of operating cycle and optimizing cash flows from firm’s operations. Management must know, understand and anticipate the impact of cash flows on firm’s operations and its ability to maximize the profit producing capacity of the enterprise. Effective cash management is critical to the success of a business enterprise. It is all about cash flows.

One of the best ways to increase cash availability is to accelerate the receipt of incoming payments by reducing the age of account receivables using appropriate mix of incentives and penalties. A firm must evaluate current payment processes and identify effective options to expedite collection of account receivables.

There is strong evidence suggesting improving payment processes and moving to electronic alternatives will maximize liquidity and better manage costs of receivables. Liquidity is critical to the success of every business enterprise and effective cash management is the core of liquidity. In practice, a careful analysis of cash flows and assessment of investment strategies and policies is required to ensure that a firm has appropriate tools needed to maximize firm’s liquidity, and optimize cash flow management.

A firm optimizes cash flow management in its operating cycle by rationalizing-streamlining and improving the ways it manages the inflow of cash receipts, makes outflow cash payments and minimizes the age of account receivables. A firm needs digital records, electronic banking, robust internal controls and agile accounting systems for quick reconciliation of bank statements through timely access to bank accounts, customer records; and synchronizing cash flows, accounts payables, and accounting systems for increased efficiency.

Best industry practices include analyzing cash flows monthly to determine ending cash balance (the difference between total cash inflows and total cash outflows). The goal is a rising or positive periodic ending cash balance; Monitoring customer balances to manage account receivables (money owed to the firm from customers); and appropriate pre-qualifying processes before extending credit to customers is essential to minimizing incidence of bad debts.

A tracking system that monitors outstanding receivables and sends automatic reminders, invoices and statements is a useful tool. Some firms use factors by selling their receivables to factoring companies to ensure steady cash flows; Slowing down cash disbursements: Prudent cash flow management dictates that a firm retains cash as long as possible. Optimize cash flow management by paying on time while utilizing all accommodations consistent with the calculus of financial advantage. Finally, borrow long and lend short and time large expenses by setting aside small amounts to fund large expected expenditures. Always remember that long term liabilities become current liabilities in the accounting period in which they mature.

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Source by James Gaius Ibe

Views: 0

January 29, 2020
What’s The Difference Between Direct Sales And Network Marketing?

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My purpose and commitment is to really help you understand and appreciate the MLM industry. One of the things you need to know when shopping for a business opportunity that is built on the multi-level marketing format, is not only how these businesses work but which one will compliment your skill set, personality and area of expertise.

The Difference Between Direct Sales and Network Marketing

Direct Sales and Network Marketing are both based on the multilevel marketing business model. MLM or Multilevel simply refers to the business structure in which the compensation plan is mapped out. The Direct selling and Network marketing vehicle is the actual distribution system or the way the products are dispersed.

With Direct Selling, the emphasis is usually on direct, person-to person product distribution, which typically involves the independent sales representatives earning a commission from the products that they sell directly to the customers.

The usual way of getting their products out to the masses or finding customers is by hosting product parties, trunk sales, booths and etc., by way of their circle of influence. Advancing in rank is dependent upon the volume of products sold.

In some companies you can recruit other people to hosts parties in which they would be offered a discount on the products for hosting that party and also earn free products if they sell a certain amount of merchandise.

This is important to know if happen to be a really good sales person or if you hate the thought of selling in this way, when choosing a mlm company.

Some examples of Direct Selling companies are:

Avon, Natura, Vorwerk, Herbalife and Mary Kay

Now with Network Marketing, the emphasis is on team building. Building a team of partners who are in agreement to use the company products in their household as well as share products with others outside of their network.

You are basically the customer as well as the business owner and you are able to sponsor, support and train others who want to build a business of their own. So the importance here is on building an organization of like minded individuals who use and move product within and outside their network.

In network marketing, you also have the flexibility to host product parties or have a booth, etc., in order to promote your products if you so choose. You are the business owner, not just a sales representative so you have the power to run your business as you see fit.

This model is a great if you love networking, team building and training others.

Some examples of Network Marketing companies are:

Sisel International, Vemma, Amway and Visulas.

Some direct sales companies also incorporate the network marketing team building model as well depending on the compensation structure, so make sure to do your research.

Understand that the purpose of both models is product distribution, but, it’s the way the distribution happens and the way you, the marketer, gets compensated, that makes the difference.

On a side note, steer clear of companies that don’t have a product OR they have a limited product line that offers little to no value to the public.

End the end, the difference between direct sales and network marketing is fairly minimal. Both serve as an opportunity for the ordinary individual to build their own business, delivering quality products to the masses in a less expensive and more personal way.

By eliminating the middle men; expensive advertisers and merchandisers, the network marketer and direct seller can create residual/ passive income from home with less time, less money and less hassle than the traditional business model.

So Tell Me…

Have you ever owned a network marketing or direct sales business?

What did you like or dislike about it?

Did you find it too challenging? If so, tell me why.

I would love to hear from you!

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Source by April Ray

Views: 0

January 29, 2020
Rich and Varied Heritage

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India is always remembered as a land of diverse cultures. The geographic position, climate and the extent of exposure to foreign cultures have totally influenced the traditions and culture of the different regions at different periods. The greatness of Indian culture has been in adopting the best from all the invaders and intermingling their customs and styles with the existing and this is visible in all aspects of culture.

Indian culture have always been attached to the great river systems, the watersheds of the Indus and Ganges, the Deccan plateau and South India.

Secular India is home to Hinduism, Islam, Christianity, Buddhism, Jainism, Sikhism and other innumerable religious traditions. Hinduism is the dominant religious faith followed by the majority of the population. Colorful traditional festivals are almost 400 that have been happening for centuries. Not a single day passes by without a festival in one region or the other. It is an occasion for men to put on a new traditional costumes and jewelery.

Traditional wears like the silk saris, cholis have fascinated many a traveler over the centuries. Men in villages are still more comfortable in traditional attire like kurtas, lungis, dhotis and pyjamas.

Indian literature, Indian poetry, Indian epic poetry Ramayana and Mahabharata, Painting, Sculpture, Architecture- everything is depicted and interpreted through religion and philosophy.

Well known classical styles of dancing on the Indian stage are Bharatanatyam, Kathakali, Odissi, Kathak, and Manipuri. Folk dances also contribute to the plethora of Indian dances. The common root of all classical dance forms can be traced to Natyasastra, ascribed to Sage Bharata who is believed to have lived between the 1st and 2nd Century AD

18 Indian languages with 1600 regional dialects are spoken and the linguistic lines are drawn by State boundaries Besides Hindi and English, the other popular languages are Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Sanskrit, Sindhi, Tamil, Malayalam, Marathi, Punjabi, Oriya, Telugu and Urdu

Indian Cuisine skill lies in the subtle blending of a variety of spices to make various delicious recipes. These spices are used as home medicines too.

A typical North-Indian meal would consist of wheat. Rice is the staple diet in South Indian food. Coconut and oil are essential ingredients in all the meal. A meal is rounded off with betel leaf which holds an assortment of digestive part.

Women are the mirrors of culture of a society. Indian women are becoming increasingly visible and successful in the professional and public sphere. Whether it is Barkha Dutt, Arundhati Roy, Kiran Mazumdar Shaw, they have all heralded the arrival of Indian women professionals.

Latest outsourcing of technological agility, quality, flexibility, cost control, time-to-market and competitive advantage have made India well known in the business world.

India exports software to 95 countries around the world, outsource high quality brain-power 82% of the US companies ranked India as their first choice for software outsourcing.

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Source by Shobana Sridhar

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January 28, 2020