FINANCIAL BUSINESS

Accounting Trends 2018 that Business SMEs Should Know

The accounting field in the Year 2017 becomes its milestone. Since this year, accounting began to be applied with technology and automation processes. Application of special software such as Quickbooks Accounting Software, Sage 50 Quantum Accounting, Invoice2GO, XERO or MyOB with all its features by most SMEs companies.

Let us review each feature of accounting software above.

  1. QuickBooks Accounting Software has the following features:

Expense Tracking: Record cost for tax time. You can even take and save your receipt with the QuickBooks Online mobile app. Invoicing: Create custom, professional invoices, sales receipts, and estimates you can send in minutes. Accounting Reports: Instantly see how your business is performing with customizable reports and dashboards. Cash Flow Management: Enter a bill from the vendor, and pay them only when they are due. Periodic payment schedule to save time. Accountant access: Accountant You can manage your records from anywhere, anytime so it’s easy to work together. Automatic backups: QuickBooks Online backs up data every day, so your numbers are always up-to-date. Data security: The bank security level (128-bit SSL encryption) ensures your data is secure. Free unlimited support: If you need help, support is available from Monday to Friday at 7:00 am – 12:00 am (GMT + 8).

  1. Xero Online Accounting Software has the following features:

Easy invoicing: Create regular invoices and get updates when opened. Go mobile: Xero mobile app works with iPhone and iPad & Android phones and tablets. Inventory: Inventory items accelerate invoicing when tracking sales and purchases. Multi-currency: Reconciliation of foreign currency accounts, with exchange rates updated hourly. 700+ third-party apps: Inventory, invoices, time tracking, fees, and more are all integrated with Xero. Attach files to data: Attach source documents to almost anything in Xero – invoices, bills, and more. Create purchase orders: Create and email custom purchase orders and copy them to bills for payment. Claim those expenses: It’s easy to handle personal expenses – just review and approve receipts. Pay bills: Manage your cash flow by scheduling payouts and paid payment suppliers.

  1. Invoice2go has privileges:

Professional invoice templates: Create custom invoices with our various templates. You can easily upload your own business logo, or create it in minutes using our logo designer. Expense Tracking: Say goodbye to digging hours through files and boxes for receipts. Just take a photo to save it securely. You will thank yourself at tax time, when you can export all your expenses in seconds. Time Tracking: Never miss another moment that can be billed again. With Time Tracking you can record your time right from the field or job site, and easily add it to your invoices. That way every hour, minute, and second are counted. Accept debit and credit cards: Eliminate money headaches and check payments. Instead, let the customer pay you online with a debit or credit card. Invoice Tracking: See when your clients see your invoice. You … READ MORE ...

Why is a Tighter Stop-loss Considered Wrong ?

Why is a tighter stop-loss considered wrong?

People have many ways to minimize their loss. One of the popular technique in Forex used by both professionals and novice traders is the stop-loss. This is a strategy where your trades are automatically closed if they reach to your set levels of price. This stop-loss orders do exactly what their name says. They save your money from being gone into the Forex industry. It is not possible for the people to monitor their trades all the time. It creates confusion and you also need to plan for the next trades after placing this trade. One way to close the trades automatically is by setting a stop-loss at your expected price level. When the price comes down and hit this level, your trade will be closed. Many people set this system to tight and lost their money even in natural volatilities. This article will tell you why you should not set your stop-loss too tight.

Give your trade some space

The new traders never want to give space to their trade. Most of them use a tight stop loss to limit their risk exposure. But if you do so the market noise will always trigger your stop loss. You need to give some space to your trade. If you stop loss price is too obvious chances are very high it will be hunted by the big investors. The experienced professionals in the Australian trading community always suggest using a wide stop loss. But when you use the wide stop loss make sure you reduce the lot size. Never trade with big risk as it will cause heavy loss.

Use the price action signal

So what is the ideal place to place stop orders? To be honest no can tell this in the CFDs market. However, if you can understand the Japanese candlestick pattern you can easily use a tight stop loss. But in such case, you have to do the multiple time frame analysis. Multiple time frame analysis is one of the best ways to identify the false trading signals. This dramatically reduces the risk of getting stopped by the wild swings of the markets.

It closes your trades even in natural volatile trends

The nature of this industry is it is volatile. One moment you are trading with currency pairs in a smoother price trend and the next moment it is sky-high. This is very natural as the trends are always changing. You have to keep in mind this changing of volatility and set your stop-loss accordingly. If you set the stop-loss too tight, you know what will happen to your account. Before you can go and have a walk to see your chart, the trade will be closed. This is the first mistake traders make when setting their stop-loss. They forget the nature of volatility and set it too close. The result is they lost money and the trades get closed.

The price change has some pattern in the Forex industry

Every market is different in Forex and … READ MORE ...

A Balance Sheet Is a Financial Statement Of Assets And Liabilities

Fixed assets would be the long-term things the business owns which the small business has acquired and uses to generate company over a number of years. Fixed assets consist of tangible things like land and buildings, plant and machinery, fixtures and fittings, cars and computers.

The numerical worth of the fixed assets shown inside the balance sheet represents the original price of those things less the amount that has written off as accumulated depreciation. Depreciation is definitely the quantity that management has decided to reduce the net worth with the assets as those assets are employed and also serves to put apart from the declared management profits that quantity which would frequently be needed at some future date to replace those assets.

Fixed assets contain a category known as intangible assets. An intangible asset is really a long-term acquisition by the business that may not be a physical item. Intangible assets would incorporate things such as goodwill which is an level of funds the organization has paid out to acquire yet another small business or certain rights.

Other intangible assets would be investments in royalties, trade marks and patents. Products the organization has bought to assistance and extend its small business empire. Long term investments which include loans, debentures and shareholdings would also be regarded as intangible assets.

Existing assets will be the things the business enterprise owns which can change from day to day and offer a snapshot of the asset liquidity with the business enterprise. Current assets contain stock which will be created up of each completed stock offered for resale, work in progress and raw supplies.

Other existing assets include debtors which can be the quick term dollars owed for the business normally from clientele and prospects who’ve received credit terms. Debtors may also include funds the business enterprise has paid out ahead of time in the liability, prepayments.

When the small business includes a credit balance in the bank then that is also integrated in present assets as could be a credit balance on a company credit card, money in hand as well as other short term investments the organization can quickly turn into money.

Existing liabilities are commonly shown instantly beneath the existing assets as the size of each and every balance is definitely an indication from the liquidity on the company.

Current liabilities represent the quick term debts of the business being amounts owing that should really be repaid inside one year which can be before the subsequent balance sheet is expected for publication by most organizations.

Current liabilities contain trade creditors which are the quick term debts owed by the organization to its suppliers as well as other creditors given that it’s typical practise to separate debts owed to the tax authority like vat, tax deductions from sub contractors, earnings tax and national insurance coverage liabilities and also other corporate taxes.

When the enterprise has short term loans repayable within a single year these items would be integrated with things like bank overdrafts … READ MORE ...

Things You Need to Know About Business

Business is one way to earn a lot of money. The reason why many people prefer to have their own business rather than investing their time and energy in jobs, is there are pretty good chances of getting success in business. SO if you are interested to earn a lot of money easily, business is a good option for you. If you are interested to have your own business, you need to read the following points and keep them in your mind:

·        Products and services:

One of the important things is business is to decide the product and the kind of services you want to provide. For example, if you want to launch a product, you should know all the pros and cons about it. If you are planning to sell warm clothes, and you live in the warm area, there is less chance of getting more sales. SO these things should be considered properly and thoroughly and for that you need more than one mind. Make a list of all the pros and cons of the product or services and see what suits you best among them.

·        Loans:

Another important concept that you should be familiar with before you start your business is loans. Yes that’s right. Now you can get loans for any kind of business. All you have to do is sign some papers. Now the main question is what kind of loan should you apply for? Well, if you think you would be able to return money easily, you should take a short term loan; otherwise go for the long term, as it will give you more time to return the money. No matter what kind of loan you take, you should remember to read all the papers before signing them off to avoid any kind of fraud.

·        Tax compliance:

According to many businessmen, taxes are a kind of hurdle in their business. It is an amount that you have to pay to the government in order to keep your business going. The amount of tax depends upon the policy of government that is renewed every year. If you want to know more about tax you can also visit pstein.com. They have all the answers to the possible queries. You should learn each and everything about tax and money so that you should avoid all the possible problems.

·        EIN:

EIN or employer identification number is a special number through which your business is identified by the federal tax committee. This number is not necessary if you are working alone. However, if you have employees or you are working in partnership or corporation. Most of the time, people don’t bother to get their EIN number.  If you are not interested, get it anyway because it is free. You don’t have to pay any fees for that. If you are running some online business, you should apply online to get one for yourself. It also reduces the chance of identity theft, which is … READ MORE ...

Choose Business Loans over Personal Loans, New Study Says

Having adequate funds is key to running a successful business. Cash is king. Experts have always stressed the importance of building company credit from the very beginning. But when it comes to debt, is there an ideal option? Should you avoid debt all together? Or apply for a personal loan or a business loan? A new study has provided some answers.

After analyzing data found in the Kauffman Firm Surveys Finance, professors Rebel Cole of Florida Atlantic University and Tatyana Sokolyk of Brock University in Ontario found that:

  • Companies financed by personal debt actually performed worse than those with no debt at all.
  • Companies that used business bank loans to finance their launch reported nearly twice as much revenue after three years as a startup of similar size that took on no debt.
  • In addition, that same company financed by personal debt (e.g. home equity loan or personal credit card) had on average 57 percent less revenues than one that hadn’t borrowed.
  • Companies with business debt generated, on average, more than four times as much revenue as one carrying personal debt.
  • When survival rates were compared, it was discovered that the chance of making it past three years was 19 percent higher for business borrowers than for companies without debt.

So, what is the explanation? In Cole and Sokolyk’s opinion, it all comes down to a question of selection. They explained that businesses most likely to succeed are the ones that go to the bank for a loan from the beginning. Because the bank is taking a close look at the business, monitoring their progress and providing mentoring, the borrower’s performance increased.

And why does personal borrowing seem to predict poor performance? Again, Cole and Sokolyk point to selection. If a bank doesn’t feel comfortable to work with a business, they will steer them towards personal debt instead. Cole says this causes a lot of problems. Many entrepreneurs choose to skip the business loan and avoid the complicated process and jumping through hoops, opting for personal debt instead. In the long run, they are not doing themselves any favors.

“It’s really almost a story of financial literacy,” says Cole. “We still have millions of consumers who don’t have a credit score because there’s not enough information about them and their ability to repay a loan. Businesses are much worse, because there are far more of them that don’t borrow in the name of the firm. Probably half of them or more don’t have a borrowing track record.”

Believe it or not, there are alternatives to traditional business funding options and personal loans. Alternative providers specialize in providing high risk business loans. These funding options allow many business types and industries – banks turn away – secure the services and cash they need to operate smoothly, regardless of insufficient collateral and operating history. Bad credit or no credit is also not an issue. If you are struggling to find funding your venture needs to get started, consider seeking alternative … READ MORE ...