Posts Tagged ‘income’
Tricks Managing Business Finance
August 14th, 2010 | 
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A friend once complained income from his business always ran out before the save. If any one can be saved, their number was small. In fact, a project that he has received quite a lot. Supposedly, the business can run smoothly and be happy despite life’s not in order. However, the opposite happens.
This may have been experienced by some people who started the business world. Moreover, if the business belonging to types of family business. At the start of business, when a project, money was always just out to support the family. Terminology, when it pleased, forgetting everything. Forgot to pay electricity, telephone, internet, transportation, and so forth.
And one thing that always forgotten is the record of all activities and transactions. Not many small businesses do. In fact, the listing is an important basic step that must be done to advance the business. Then, how to manage a good financial business?
1. Determine the Financial Portion
The easiest way to manage the financial business is to agree early on how many servings of money to be used according to the money it needs traffic. For example, how much money will be used to pay salaries, operations, and how profits will be used to develop the business and to save.
For starters, you could try dividing the portion of 30:30:30:10. The portion of 30 percent for salaries, 30 percent more for operations, such as office rent, electricity, telephone, fax, transportation, and others. Then another 30 percent to expand the business, and the remaining 10 percent for personal savings.
So, for example, revenues amounted to USD 20 million, Rp 6 million (30 percent) immediately cut in early to save as salary, USD 6 million for operating costs, USD 6 million for the costs of business development, and Rp 2 million for personal savings.
Distribution pattern with the structure of this percentage is not absolute. You are allowed to specify their own. Noteworthy is the discipline in share based on an agreed value at the beginning. In this way, you’ll more easily manage the financial business.
2. Separate your Personal and Business Accounts
Once the portion is determined, the next step to do business financial records. Indeed, if the business is still small, we tend to often equate the money received in the effort and money for personal purposes. In fact, we usually keep the money in an account number.
In fact, if the financial business and personal finances were merged, you will have difficulty in monitoring any income or expenditure that has been done. By making the separation between the financial records of business with personal finances, it will be easier to distinguish between funds flow from operations with the use of the money for personal purposes.
In addition, the separation of recording can also provide clearer information about the financial situation of the business running. Moreover, some banks are currently providing service products that can support your business financial records.
3. Do not easily Seduced
These are the main points as a form of self discipline. And, indeed the main key is to manage the business of financial discipline in complying with the portion of the percentage that we set for business and personal finance.
Temptation usually comes when it is often many orders. Goods were not already too important to be like “asking purchased”. There are times, when large amounts of money coming in, we suddenly feel the need of this and that. One of them, buy clothes in order to make it look more reasonable when meeting with clients.
It does not hurt to fulfill that desire. But with the note, you should be able to distinguish between needs and wants. Before you buy something with a business reason, ask first, whether it is an urgent need or desire that can be postponed. Well, this answer will help you determine where money could be used.
Where possible and have sufficient funds, you can use accounting software for business financial records. With this software, financial records could be made more professional and neat. That way, you also do not have an opening for barge business taking money for personal needs.
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Four Steps Savings and Investment Balance
Security financially is very desirable and sought after by everyone. One key factor that is able to balance the amount of savings to investment.
Well, here are some recommended steps to maintain the balance of your savings and investments:
1. Prioritize short-term needs
Food, clothing, and shelter are basic human needs should be prioritized. Take time to make a list of various short-term needs as well as your long-term, and then sort by priority scale. You will be surprised to find how many luxuries in life is the lowest rank.
If you need a way to save more money, start by cutting the frequency of eating and drinking at expensive restaurants, designer clothes shopping, etc. only because of prestige. Also, consider delaying the long-term savings plan that you are living. Better to focus on meeting emergency savings than saving for college tuition unborn child.
Refine gray area between wants and needs, to determine how much money you really need if at any time to lose jobs and have no income.
2. Do not run away from the market
If you are currently investing and stock prices decline slowly, not time to panic and pull themselves out of the market. Instead, do your research, talk with your financial advisor, and make a wise decision. Open your eyes to the market reaction, to search for opportunities to sell some assets if you need funds in the short term.
3. Invest funds, regular and periodic
If savings are not much was allocated in the market and you have a lot of cash, then you have a good position. Say 80 percent of your money in the bank, while the remaining 20 percent invested. If you want to increase the amount of investment to 40 percent, you certainly do not want to act recklessly with a fifth straight risking your savings into the market.
Instead, get up slowly with the position of investing funds, regular and periodical, or by entering the market when the index falls.
4. Investment Diversification
Carefully the various different stocks and bonds to diversify your stock portfolio. The same thing applies to diversify your investment choices. If you now have sufficient savings and secure jobs, consider buying a house, land, or gold as an investment.