Business Finance How to Keep Your Business Financially Healthy

A basic principle of business finance involves managing your cash flow. Without cash to fund your business, you risk not being able to pay expenses or having to borrow funds.

Just like the unexpected happens in life, the same applies in business. It could be as simple as a late customer payment or a broken piece of equipment. Anything can happen that requires you to spend money you didn’t plan on using.

And, the current economic climate isn’t helping business owners. Even if you pay close attention to your business’ finances, forces beyond your control can affect your cash flow.

So how can you best cover your expected and unexpected business expenses? Plus, how can you make sure there’s enough cash flow to grow your business? The following recommendations can help you manage your cash flow at the highest levels.

Manage Your Customer Payments
To survive, you need to get paid. You can’t afford to wait months to get paid, or risk not getting paid at all. A few things you can do to help avoid customer payment issues include:

Invoice promptly. Whenever you finish work for a customer, make sure you bill them right away. You want to get paid as quickly as possible and many companies have longer payment cycles. The quicker you get your invoice in, the sooner you’ll be paid.

Also, consider doing all invoice and payment processing electronically. Sending invoices via email is quick and secure, for the most part. Many email applications provide an acknowledgement when an email is received and read.

Setting up electronic funds transfers, credit cards or PayPal accounts can help keep your business finances in top shape. You won’t have to wait for checks to come in the mail, be processed by your Accounts Receivable department and then be deposited into your account.

You can even provide incentives, such as discounts, for your customers to pay early.

Re-evaluate What You Charge Customers
A basic guideline in business finance is to price your product or service high enough to provide a profit. To make sure you are earning a profit, you must know all of your costs. It’s easy to overlook some costs that go into serving your customers. If you don’t account for all of your costs, you’re probably losing money or at least not earning as much of a profit as you should.

Other business finance practices involve bundling your offerings and selling additional products and services to your existing customers. Keep focused on providing value to your customers, not just earning a profit. You want to maintain a long term relationship with your customers to ensure future cash flow.

Manage Your Business Expenses Carefully
You want to accomplish three things with your expense management:

– Pay your bills on time to build a solid credit rating
– Pay your bills early to earn discounts, when it makes sense for your business
– Balance the two suggestions above with timing your payments to provide the best cash flow.

Finally, always make sure you have emergency funds available to weather a down market, natural disaster, equipment failure or any number of other unexpected things that can pop up. If emergency funds remain unused, you’ll have a surplus to strategically grow your business.

In What ways Finance Industry helps in Infrastructure

Developing a society depends on the various structures coordinating together to facilitate trade of products or services and utilization of certain facilities. These physical structures need to be constructed and designed so that the entire economy stabilizes and grows. Such infrastructures include transport, construction, energy and communication industries with visible structures like roads, boosters and dams. The gap between an infrastructure idea and establishing of the same is filled up by the Finance industry which provides the necessary resources.

Financial Services
The resources needed to come up with infrastructure requires manpower, real estate acquisition, raw materials and system installations which can be easily obtained when you have the right amount of capital. The infrastructure maybe initiated by the public or private sector investors who have seen a job opportunity and need that extra push to be able to make profit and improve the society. The financial industry comprises of certain services like banking, insurance, financial planning, risk management, financial consulting, real estate and money management services that help you acquire capital and also help you in using it efficiently.

Liquidity Assessment
This monetary assistance can come in form of loans and asset management which form the foundation to most of the infrastructure that are put in place. The risk management applied on such infrastructure will help in determining the substantial losses incurred. One of the best financial methods to identify the level of risk in the financial industry is Liquidity management. Basically liquidity management is the weighing of the infrastructure assets and liabilities hence identifying their probabilities in making losses or profits. Most infrastructures go through this method of evaluation before getting any funds from the financial services. Liquidity measurement ratios are the standard modes of evaluating statements and other documents that show the available cash and the debt obligations that need to be serviced.

It is most important for financial service providers to review your liquidity status so that they can be able to see where they can help in case of losses. This will also help in selling ownership of the infrastructure as stock or shares. Public infrastructure can consult the financial services in doing auditing and accounting jobs to help in determining corruption and other money laundering schemes present in a given project. Get investors and sponsors easily by getting connected and form partnership with charitable organizations or opportunistic entrepreneurs in the financial industry.

Connections and Assistance
Some infrastructures are sponsored by international cooperation and business men who need reports of capital utilization. These financial service providers can help in coming up with plans and connect you to some of the affordable resource providers. Also to come up with the infrastructure, one needs to abide to the rules of construction and tax revenues. To abide to these government rules one ought to make certain registrations and agreements, this can be done for you through financial consultants.

Working hand in hand with the leading financial providers guarantees you a fast and easy capital acquisition. Since most of the personnel in these companies are professional graduates from celebrated business institute, chances are you will have a backup of quality advice and assistance. The Financial support and advice will help you start and maintain success in your infrastructure development.

The Ins and Outs of Asset Finance

When starting a small business, you will need to acquire certain assets. With cash flow being one of the many challenges of new businesses, you will most probably be worried about affordability as once off payments for the purchase of expensive equipment are often not an option. In those cases, asset finance is a great solution and there are several options to choose from, depending on your business requirements.

Lease agreement or installment sale agreement
With asset finance such as lease agreements and installment sale agreements you can break down the payment of your assets in monthly chunks which enables you to invest in assets with minimal impact on your cash flow.

The lease agreement explained
When you enter into a lease agreement, you pay for the use of the asset. Asset leasing usually does not require you to pay a deposit which makes it an attractive option for business owners. Lease agreements can have different time frames, anywhere from a month to a couple of years. One of the advantages of leasing is that you can renew the contract after it ends and return the asset to the bank, or you may be offered to purchase your asset.

Another advantage of leasing is that you will always have access to the newest version of the asset which is great when you require machinery that needs regular updating in terms of features, or if you require a vehicle that you want to change every few years. As soon as the lease agreement comes to an end, you can enter into a new lease agreement and acquire the latest machinery that is available, enabling your company to offer your customers the best product or service. Lease agreements usually also include service or maintenance packages which can save your business significant amounts of money as the costs are usually fixed.

The installment sale agreement explained
Entering into an installment sale agreement means that you will be the owner of the asset as soon as your contract is fulfilled. installment sale agreements usually require a deposit of a certain percentage of the value of the asset. Installment sale agreements work in similar ways as lease agreements, you pay monthly. The difference is that at the end of your installment sale agreement, you own your asset. With installment sale agreements you need to keep in mind however, that the monthly repayments for your asset can cost you significantly, sometimes up to 25% in excess of the value of your asset. The advantage of obtaining assets via an installment sale agreement is that there is no need to apply for overdrafts or any kind of loan in order to be able to afford to pay for your asset. Security or collateral is also not required with installment sale agreements. Because you will own the asset after the contract is paid off, you can sell your asset at a later stage, although the value will have depreciated substantially during the duration of the agreement. Nevertheless you will have some return on your investment, which is not the case when you take out a lease agreement.

What is the best option for you
For more information on whether a lease agreement or installment sale agreement is right for you and your business, make an appointment with your relationship manager at your bank. He or she will be able to talk you through the different options so that you can make an informed decision.

Why You Needed CPA Firm

People often think if they need a CPA (Certified Public Accountant) or they can manage their accounts themselves. However, there are many reasons why one should get the help of a CPA firm. If you are also in a dilemma, then there are some solid reasons to do it now:

Effectual management of your investment
You may be a stock market genius, but not real estate or vice versa. There are always some loopholes that have to be filled up when it comes to managing finances to the best level. Your accountant is the one who can advise you on the best route to gain maximum financial freedom while managing it effectively.

Keeping a tab on tax laws
You know tax laws are subject to change without prior notice and hence keeping a track on the changing laws can be extremely difficult. If you do not pay constant attention, you may miss a big fortune. An account knows everything and can help you keep up to date with the changing regulations, saving you from misfortunes. You just need to consult the best Financial Planner In Sonoma County.

More than one channels of income
When you have multiple channels of income, sorting through how to report everything aptly becomes a lot complicated. If it is becoming a nightmare for you, then all you need is to have the support of a reliable CPA firm.

Savings for your kids and your retirement
It is not just income that matters, but what and how you save also matters a lot. You need to save your kids, their higher education that you can do by contributing money to a college savings account or through a trust. Not just this, but you also need to manage some savings for your retirement. A good financial planner can help you maximize your savings for your and family’s bright future.

A new venture
Money management is the most important thing if you have a new business venture in pipeline. If you are all set to start a new business, you need the help of an accountant to prepare you financially. With their help, not only you are able to manage your finances, but also rest assured that your crucial tax forms are filed timely and correctly.

Voluntary Administration Experts Help Through Insolvency And Liquidation

Insolvency and liquidation can be a very traumatic time for the senior officials of any company. Not only does insolvency and liquidation represent a failure on their part to produce profitable results, it means every action they have taken especially during the current and previous financial year will be scrutinised in great detail.

During the insolvency and liquidation process, there is a Damocles sword hanging on top of every senior official’s head and if it found that some had exceeded their mandate or did something wrong, they might even end up doing jail time.

This acute trauma they undergo can be mitigated to some extent by the directors agreeing to and appointing Voluntary administration experts to help through the insolvency and liquidation process. The single most important benefit of a voluntary administration is that, the process freezes any action by the creditors, suppliers, landlords, guarantee holders and other stakeholders. These groups of people to whom the company might own money, are barred from taking taking action against the company until the voluntary administration process (usually one month) is complete.

The basic aim in a voluntary administration is to try and do everything possible so the company might survive. In the normal process, the creditors (through court appointed administrators) would have sold off all assets and liquidated the company. The voluntary administrator on the other hand tries to salvage the situation by paying off some creditors and entering into agreements with others. The whole idea is to allow businesses facing economic hardships to restructure and survive. It is intended to give the business some time to restructure without having to battle with the suppliers, creditors, landlords etc.

Voluntary administration can have two possible outcomes:

– All issues are successfully resolved with new agreements with creditors, the business is restructured and might even have a new management after company is returned to the directors.
– Liquidation   the voluntary administrator fails to make any headway with the creditors, suppliers and others and has no option but to sell off all the assets at the best possible value. This results in Corporate Insolvency Services of the business.

As far as the creditors are concerned, it is in their interest that the company survives because a surviving restructured company will continue to provide business opportunities to the creditors and will tend to reward the creditors in the future for having stood by the company in its time of distress. However, whether this happens or not will depend on the reasons behind the financial distress.

Why SME Should be Taking Advantage of Invoice Finance

If you’re running a small or medium sized business and aren’t sure whether Invoice finance could help your company, here’s a few of the benefits explained.

– Flexibility ? You only pay interest on the money you borrow. Compared to a bank overdraft or asset finance, the rates of lending can be surprisingly competitive.

– Saves you time and resources ? By allowing an Invoice finance company to chase up your customer invoices on your behalf, you can free up precious time and resources to develop your business.

– Improve your cash flow. Most reputable invoice finance companies can provide you with 90% of the sales value of your invoices within 24-72 hours. This means you’re not left waiting around for individual invoices to trickle in, leaving you with the funds you need, when you need them.

– Cut down administration overheads. By simplifying your finances, Invoice finance allows you to cut back on your financial administration overheads, allowing you to channel your resources into other areas of your business.

– See your business grow and develop ? Research by the ABFA shows that companies who take advantage of Invoice finance tend to grow at a faster rate than companies that don’t. A good Invoice finance company will be able to release more funds to you as your business grows, without having to renegotiate the terms of your contract.

Whatever the size of your business, learning about how Invoice finance works is really worth the effort. Look out for reputable, fully accredited companies who might be willing to talk you through the potential advantages to your company.

Machinery Finance Leases Work Best For Small Business and Individuals

Do you have a new project on the go and need more machinery to execute it well? Perhaps you have a bad credit record and cannot obtain loans through the normal financial channels. What do you do? What you should do is to go to an asset finance company and ask for machinery finance, and they will give it to you without asking too many questions. Track or credit records do not matter, and you will get the finance you want within a day or two.

All you need to do is to agree to pay the loan with interest within a particular period of time, without defaulting on payment during the duration of the loan. Most businesses big and small engaged in productivity and relying on orders from clients will require cash from time to time when they acquire new orders and need to expand the existing resources or find new resources. Asset finance can also be used to refinance existing machinery and give you better cash flow. Machinery Finance is available for various purposes such as construction, recycling, agricultural, engineering, material handling, printing machinery and other machinery and if you are involved in any of these businesses, then asset finance can open the doors for you when others are shut.

A Finance Lease is another loan instrument which is asset based, and is where the owner agrees to pay rent on the machinery or asset which is funded by the financial institution or lender for a particular period of time. During this period of time the borrower uses the machinery or asset and in return for this they will pay rent in return. The return of loan is usually based on the revenue earning cycle of the borrower hence, it is more affordable for them to pay rent. A borrower at the end of the lease agreement can either renew the lease and continue using the machines for an extended period under a second agreement or simply return the asset back the lender.

Lease financing is very useful for new business owners as they don’t need to invest in machinery, vehicles or any other asset using their own money. Lease finance is a better option as it does not require anything from the borrower and the lease finance companies offer agreeable terms such as fixing rent amounts and the payment schedule according to the money generation cycle of the borrower. This allows the borrower to breathe easy because they know that they will be in a position to pay the rent.

Ways to Find a Finance Job

Finance job is very tempting to several individuals due to the flexible working hours, the opportunity to work wherever you are and an opportunity to have a long line up of customers. However, if you are only a beginner then achieving something may be a hard task to do. This is the reason why these individuals look for ways on how they can succeed in the world of finance.

If you are looking for this kind of job, the first thing that you need to do is to do a comprehensive research. You must begin to comprehend the company you wish to work for. You can begin your career either from financial advising company or brokerage firm. You can also begin as independent person if you want to. You need to do a careful research so that you can find what really fits your needs.

The second thing that you must do is to set a goal for a long term visions. You need to think about your future as you look for a finance job. However, you also need to keep in mind that you are not going to begin as a millionaire, you need to work hard and take it slow as you make it on the top. You also need to know the kind of company you prefer according on what you want to earn.

For instance, the traditional company will give you a salary with a presentation bonus and a commission, while if you want to be independent, you will get a much higher commission but you will not really have a salary. That is why it is recommendable that you set your goals and know which company you prefer so that you will know exactly what will happen to you as you work.

The third thing that you can do is to seek for an adviser. If you can look for one, you can have a chance to learn from your adviser that has a well career when it comes to finance job. He or she can also help you to search a good company for you to have a work.

Lastly, you need to ask yourself with regard to the things that you need to do regularly in order to acquire a good customer base and also to obtain a strong business. You can do to make telephone calls or contact some people as you search for your work.

Factors Involved With Online Money Transfer Service

Online remittance organizations have profited exchange system less demanding. It has turned out to be simple for individuals to send money online securely and rapidly.

Global money exchange has turned out to be simple with by name online money transfer services. It has inhabited spare time and money as online organizations offer focused trade rates and low expenses. There are a few online money exchange benefits that guarantee a protected and secure remittance experience to individuals who wish to send money to their friends and family in India.

In the event that you have to pick this method of remittance, here are few elements you have to consider:

– Some online remittance offices serve just a specific nation while some offer remittance services to all nations. Remember this while picking the online method of money exchange on your preferred grounds that the office ought to have admittance to the nation where you have to exchange the sum
– It is important to arrange the money exchange services early on the grounds that very late choices can bring about high exchange expense and cost of remittance. Notwithstanding crisis circumstances, it is firmly prescribed to put some time in looking at trade rates and expenses charged by various online organizations to get the best arrangement. It won’t just help you complete the exchange with ease yet after coin change, more money will achieve your friends and family
– Some organizations offer rebates amid specific celebrations or seasons though some offer first remittance for nothing. Keep in mind to request rebates and offers while picking an online remittance organization. It is additionally prescribed to move vast sums in a solitary exchange since it decreases costs brought about on sending money through online medium
– Fourth variable to consider is the unwavering quality of the online remittance service provider you have picked. The specialists or the organization ought to be authorized. On the off chance that you are being offered a staggeringly low foreign exchange rates or conversion scale, don’t fall into the trap. Continuously guarantee that the office has the permit to complete remittance exercises. Banks are entirely dependable with regards to sending money to India from a remote nation however with some examination you can surely locate a solid online organization that offers comparative services at a superior rate and speedier velocity
– Quality of client services is another critical component that you have to consider when you send money online. This is on account of remittance to India can be very unsafe in the event that you have not picked a dependable office. The organization ought to have every minute of every day client benefit so that any issues or questions in regards to the exchange can be comprehended rapidly. On the off chance that you have dispatched an immense sum, you would need somebody to take care of your inquiries if there has been a deferral

Online remittance spares money as well as recoveries a great deal of time in light of the fact that the required data is as of now enlisted in the organization’s database. Each time you have to make an asset exchange, you simply need to start an exchange which will take not over a moment relying upon the velocity of your web association.

Business Adviser – Help You Decide What To Do

Gone are the days when setting up a business also meant setting up and staffing various departments such as finance, hr, accounts, customer support and so forth. That was the old style of doing business where you also instantly got yourself a heck of a large family of employees. The world and the word today, is outsource!

With outsourcing, you keep your business costs down, keep your family small and be decision enabled with the best minds handling everything and guiding you to profitability and success. As outsourcing came into vogue, jobs normally allotted to lower rank staff got outsourced. Senior positions were until now, retained by the company. This too has now changed. Even senior positions especially those like CFO are being outsourced.

The very availability of a virtual CFO has become a boon to businesses big and small. You hire out the position of CFO and all the functions of that office to a firm of Tax Accountant Parramatta such as Business Adviser. Any time you need advice from a CFO, just pick up the phone and ask, it is as if your CFO is right there in the next cabin. Your staff emails data periodically as required to Business Adviser office and Business Adviser in turn, sends back Financial reports and other documents and information and if mandated, also files your corporate tax returns.

In fact, apart from acting as your CFO, Business Adviser can handle your Profit and Cash Flow Statements, all your accounting needs, strategic asset protection, budget analysis, create tax efficient strategies, ensure legal and tax compliance, undertake tax audits, do your financial planning, undertake Superannuation, insurances and handle all corporate investments and so forth.

The availability of a virtual CFO and accounting and tax services under one roof is an even bigger boon to small and medium sized businesses which until today, neither had the financial resources to hire full time CFO nor given the business size, did that position make sense. Today however, they can hire on a pay as you go method keep the costs under control and still avail of expert advice from a highly qualified and experienced CFO.

Have a problem that could have been solved by a CFO (if you had a CFO)? Or have a tax or financial or investment problem and don’t know what to do right now? Irrespective of whether or not you have an contract in place, call Business Adviser right now and your problem will receive the attention it deserves.