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7 Tips for Managing Small Business Finances

Managing small business finances can be tricky. For every business, no matter how big or small they are, is concerned about one thing – money management. It is a crucial thing for entrepreneurs to survive in a competitive world of business industry. In addition to that, taking in charge of your clients, cash flow and managing your accounts properly at the same time is what makes the task difficult. Real estate investment is no exception. When it comes to managing your finances, you have to be keen for you to pay its monthly bills and mortgages.

If you plan to invest in an income generating property such as the Arca South Taguig, there are things you need to consider before making any decision. Making an impulsive decision will only lead you to financial problems. That means, you have to know the dos and don’ts when managing small business finances. And to give you some ideas, below are some tips you can apply to have a better outcome.

1. Educate yourself

First things first, you cannot efficiently and successfully manage your finances when you do not have knowledge about it. One thing is for sure; you need to learn how to read the financial statements for you to be able to know all about your money – where it originated from, where it is, or how many hands it changed. Moreover, it is important for you to learn the balance sheets, which provides the information related to the assets, liabilities, and shareholder’s equity. With this, you can analyze the operating activities, investments, and financial in/outflow.

2. Re-assess your business budget

We all have big goals in life. However, if you think that you cannot afford to fund your goal as of the moment, then it is better to start where it is possible for you to manage. Having a well thought-out budget could be your most valuable asset in business.

3. Separate personal and business finances

As an entrepreneur, always keep in mind that personal and business finances are two different things. Your personal income and the income from your investments should be separated to keep track on your outlays and keep you in financial control. Moreover, opening a savings account dedicated to is recommendable, wherein you can transfer a certain amount of money for each payment that you receive and build a considerable corpus. With this, you can already use this for paying your taxes.

4. Cut costs

There’s nothing more effective than cutting your daily expenses. One way or another, there are things we do or buy every day that we can live without it. For instance, instead of buying your favorite drink from coffee shops, you can have your homemade coffee at home. With this, you are cutting unnecessary expenses. Also, it is important for every entrepreneur to stay tight-fisted, to keep their finances intact without hampering your client’s satisfaction.

5. Monitor and measure performance

When you intend to have an income generated property, it is crucial to monitor the movement of your money, especially when dealing with large amounts. You have to check if your income has increased from the previous month to the present. Make a comparison to past financial statements, expenses, and cash flow. On this point, you can determine which strategy is effective and which is not.

6. Practice anticipation skills

One way or another, entrepreneurs can experience problems in the long run – whether it’s from their clients or financially. However, you can solve this crisis when you anticipate and prepare for it. Although you might think that you already made a perfect strategy, you must be keen and find potential loopholes where your clients can use against you. When you anticipate, you should also provide a plan B for any cases Plan A will not work for that particular matter.

7. Hire professional help

Admittedly, entrepreneurs, especially for starters, need help in making a huge success of their investment. Hiring a professional can help you determine where your business is, where it is heading by using and analyzing the given data. Of course, make sure to hire someone you trust to ensure you will achieve a desirable outcome.

Handling finances are indeed tricky. But if you have the basic knowledge on what and what not to do, then it would be easier for you to manage your finances. And most importantly, do not let your business or investment suffer due to poor management. Make sure you know what you are doing and hire someone you trust.

August 10, 2016
Help Your Business Crawl out of Debt

Even if you pay attention to every little detail in your business, it will be possible that you go into debt. Nevertheless, it does not mean that you should panic, rather, it is a good chance to revise your business and make sure that it does not happen again. Keep in mind that simple solutions are often the best, meaning that with simple tricks you can help get your business get out of debt fast.

Revise Your Budget

First things first, if you do not know where your money is being squandered, it is imperative that you check your budget. Perhaps it is time to think about setting up differently in order to ensure that you do not go into the red once again. Moreover, look into whether or not you are spending too much or if you need to direct your focus on ensuring that you can make more money.

Cut Back on Business Costs

You should take a look at what you are spending your business’ money because it might be cheaper to cut back on some costs. However, before you try to do anything, be sure to inform your staff since they need to know what is going on, especially if you are really in the red. It is not advisable to cut back on expenses without a proper cause or reason because your workers might become enraged.. They deserve to know what is happening and how you can all work together to reduce the debt and get the business back on its feet as soon as possible.

Look for Investors

Although you cannot hope for anyone to come and pay back your debt, it is never a bad idea to attract new investors who might be able to help you out. Even then, try to avoid hiding the fact that you are not doing well financially because lying to your investors could end up badly. Nevertheless, if you have a good plan in mind, a bit of financial push can help you in the long run, and ensure that your business is back on track.

Time to Cash in Your Debts

Chances are that some of your customers are owing you money, which can turn ugly if they do not plan on paying any back. Forcing your clients to pay back what they owe might seem unorthodox and often it is best to hire a debt collection agency to deal with it. They will have enough expertise and precise knowledge to handle any situation and ensure that you see your money.

Time to Consolidate Some of Your Loans

There are no shortcuts to quickly resolve the financial problems of your business, and you cannot hope that they will work themselves out.. If you have a number of loans you have to pay back, it is not a bad idea to look into what consolidating them can bring to the table. After all, it will be easier to find a smaller interest rate which could help your business deal with debt faster and without going into bankruptcy.

Going into debt should not be considered as a failure for your business, rather, it will be a challenge you need to figure out how to overcome. Finding a solution will require careful planning and financial cutbacks, but be aware that it might cause some discomfort among your workers. Make sure that everyone in the company understands the risks of going into further debt and what needs to be done in order to crawl out of it as fast as possible. Sacrifices will need to be made, and unless everyone is willing to do so, your business might never recuperate.

August 6, 2016
5 Easy Tips to Avoid Getting In Debt

Keeping financially afloat can be increasingly difficult as wages remain stagnant and the cost of living continues to rise. Regardless of whether you’re supporting an entire family or just yourself, being fiscally responsible and staying out of debt can be tough. Since there will be always be payments to be met, avoid going into debt to ensure that the bills are paid on time. Read on for five simple tips to maximize your earnings and avoid falling into debt.

1. Learn the Rules of Personal Finance

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“Personal finance” covers a broad range of terms and topics that most people may not understand. Interest rates, service fees, overdraft protection, and a host of other terms used by creditors can be confusing without the proper education. To really get a handle on your finances and avoid the pitfalls of financing and loans, make sure to educate yourself by reading up online, seeking the advice of a debt settlement company, or taking local financial advisory classes.

2. Practice Better Budgeting

The recurring monthly expenses most adults are faced with include mortgages, car payments, utilities, insurance, and personal lines of credit, such as loans and credit cards. Drawing up a detailed budget of these expenses can help you determine how much money you are actually spending each month. It will also help you determine where you might be able to cut back in order to save money.

3. Stick to Payment Schedules

Nothing makes debt worse than missing a payment. Most companies hit you with stiff penalties and fees if you are even a few days behind. Consequently, interest rates are also likely to go up. Make sure to carefully plan out all of your recurring bills so you are aware of exactly when to make payments. Draw up a calendar, schedule email reminders, or create automatic payments to help you stick to your payment schedules effectively and efficiently.

4. Use Cash Over Credit

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One of the leading causes of debt is caused by a dependence on credit cards. With the “bill me later” philosophy that these cards offer, it can be easy to forget just how much you are spending until it accumulates into a mountain of debt. While it may be easier to use your credit card for small purchases at the coffee shop or other minor expenses, it’s best to avoid doing so if you’re the type of person who is unlikely to keep close track of your balance. Keeping even $40 in cash on-hand for such incidentals is useful, as it can encourage you to cut down on credit card use and help you to avoid high interest rate charges on your card.

5. Set Goals for Larger Purchases

Small, spontaneous purchases like food and entertainment are one thing, but when considering larger purchases like a car or computer, plan well in advance.

Taking just a small part of each paycheck and setting it aside can help you prepare for those large expected purchases. It can also help you create a reserve in case something unexpected happens. Just be sure to stick to your budget plans instead of splurging on a spontaneous purchase too early, which will only increase your debt woes.

If you’re already in debt, using these tips will help you rectify your spending habits and help you get out of debt. For further assistance with your debt, consult with a debt settlement company and seek professional financial advice.

By actively using these strategies to avoid getting in debt (or falling even deeper into a current debt), you can rest assured of your eventual financial freedom. Start planning today to maximize your earnings, get out of debt, and maintain a savings account that can be a buffer when you someday need it.

Article by:
Albert Krav is a financial consultant and a freelance finance writer from Nashville, Tennessee. With over 10 years of experience in the financial sector, he has helped countless clients overcome their debt and achieve financial freedom. When he is not busy with work, he enjoys tending to his garden and hiking with his dog.

August 4, 2016
Top Tips For Travelling The World On The Cheap

Do you want to travel the world but think it’s expensive? Would you like to find a way to make full-time travel more affordable?

Money is often the first issue on the agenda when it comes to travelling. How can I start travelling the world when I don’t have much money? This problem and how to overcome it is probably the most frequently asked travel related question.

If you often find yourself asking this question, you need to know that you don’t have to be rich to travel. In fact, you can travel full-time on less than $14,000 per year! Let’s repeat that: YOU CAN TRAVEL FULL-TIME FOR $14,000 A YEAR (or Less!).

1. Save on airfare

Shopping online for cheap flight tickets can be a boon to your budget, but only when you know where to look for the best deals. Don’t just rely on major airfare search engines to book your flights. Many of these sites actually don’t carry the best airfare deals.

To find the cheapest airline tickets, airfares and discount air tickets, you should carry out a series of internet searches to find the different airlines that fly to your proposed route. Start by finding the website for your proposed departing and/or arriving airport to identify the airlines it caters to, including all of the budget airlines. Try to find airfare deals being offered by these airlines.

Other ways to save on airfare include: ensuring you don’t exceed the limit you for checked bags that you’ve pre-paid for, making sure that you’re arriving at and departing from the same airport when booking connecting flights, being prepared to fly from other airports or terminals entirely, and ensuring that you have enough time to hustle for airfare deals to your new departure point.

2. Work for accommodation

Accommodation is, without a doubt, one of the main factors in determining the cost of your travel. To cut back on this expense, consider taking on work-trade gigs available in your destination. Working in trade for accommodation will not only help you save money, but also get a chance to meet like-minded people, work with locals and immerse the culture, and make friends for life. A number of online platforms exist that you can use to find such work-trade gigs. These include: WWOOFing, Work Away, Help Exchange, Organic Volunteers, House Carers, and Caretaker’s Gazette. Some of these have a membership fee, which is negligible when compared to possible cost savings.

3. Take advantage of free accommodation

Aside from working in trade for accommodation, you can make use of hospitality exchange or accommodation sharing programs that connect you with like-minded travellers and allow you to stay as a guest in somebody’s home free of charge. This can be a great way to make and meet an instant local friend, but you’ll need to observe common etiquette like bringing a gift for your host, helping out with household chores and so on.

Some online resources where you can find hospitality exchange or accommodation sharing programs include: Hospitality Club, Servas, Global Freeloaders, and Couch Surfing.

4. Consider taking on travel friendly jobs

Depending on your expertise and experience, you can take on a travel-friendly job to finance part of your travel expenses while meeting new people. Some of the jobs you can undertake while you travel include: online jobs, freelance writing, photography, travel nursing, cruise jobs, tutoring, etc.

5. Take advantage of travel-friendly volunteer opportunities

Volunteering may end up making your getaway more expensive, rather than helping you cut costs, if you’re not careful. But there’s no denying the fact that you can volunteer inexpensively (or even for free), and get a once in a lifetime experience meeting local communities and making friends.

Only consider volunteer opportunities that are travel-friendly or those that come with packages. You can find such opportunities in volunteer travel resources like Transitions Abroad, Idealist, Voluntourism, Compathos, Personal Overseas Development, Conservation Connect, and Continental Divide Trail Alliance.

6. Try to Integrate into the local community

Remember you are not a tourist, but a full-time traveller. Try to embrace the place you are visiting and be proactive in making new connections and friends who can help you have fun, explore the local culture, and plan the next stage of your trip. There are many places where you can find an opportunity to interact with locals and make important connections, including local stores, pubs and restaurants, libraries, sports stadiums, and headquarters of international organizations like Toastmasters and Rotary (it can be more helpful if you’re a member).

7. Avoid splurging on souvenirs

Don’t waste your money splurging on multiple souvenir pieces; but you can buy one to remind you of the place.

Remember you aren’t a tourist!

8. Save money on food while travelling

Food and drinks are the other main factors in determining the cost of your travel. While it’s not advisable to limit yourself (since it can compromise the quality of your travel experience), you need to determine what is important to you in terms of food and drinks and budget for it accordingly. Are you a foodie or a beer person? Or, do you prefer self-prepared meals? Scrimp on those food items you don’t really need and so you can have money to treat yourself to your favourite meal or drink. Avoid those overpriced meals found in hotel restaurants, and choose popular local eateries. Apart from getting affordable meals, it will give you an opportunity to meet locals and explore local cuisine.

9. Be flexible, open minded and ready to allow your travel plans to evolve with you

Be adaptable and try to go with the flow to save money. Opportunities of many ilk tend to crop up when travelling, including volunteering, work and free accommodation; and being flexible with your travel plans will allow you to take advantage of such opportunities.

10. Make use of travel planning tools and apps

Apart from using these tips, look at your possible expenses and budget carefully before finalizing your travel plans. Travel planning tools and websites, such as Trip Cost Calculator, Tripbase, CompareTravelMoney and others, can help you with budgeting, particularly when it comes to estimating the cost of accommodation and food.

11. Travel slow and see more

Since travelling is a part of your life (and not an occasional undertaking), travel slow so you can have enough time to make lasting connections that can come in handy in your future endeavours. Choose a few destinations and try to stay at each place for a while getting to know people, the language and the culture. The longer you stay, the more you’ll learn about surviving and travelling on a budget in that particular destination.

August 2, 2016
7 Signs You’re Ready to Buy Your First Home

For most people, purchasing a home is their first big investment. You likely haven’t bought anything as expensive or as big of a commitment as a house before you purchase your very first home. Which means, if you’re like most, you’ll be hesitant to do so. Maybe the purchase makes you slightly nervous, or you might be unsure if you are ready to transition from renter to homeowner.

However, everyone is different and has varying situations. There is no standard “right time” that one can use. But, if you’ve been pondering the idea of homeownership, there are several signs that tell us you might be ready.

Below you’ll find 7 telltale signs that you’re ready to take the leap and buy your first home.

1. You’re ready for the big commitment.
If you believe you’re ready to become a homeowner, consider if you’re ready to essentially be your own landlord. All home maintenance now falls in your lap, and, depending on what they are, they can be costly.

Also, with homeownership comes more financial responsibility in terms of paying property taxes, possible HOA fees, and mortgage and loan payments, not to mention the additional costs, such as inspections, moving fees and the time/money you’ll spend if you end up selling in the future.

If you’re ready to take on all of this, then you’re at least one step closer to buying your home. However, if you’re not ready for all this commitment, it’s not a great idea to buy a home.

2. You have adequate funds.
Secondly, while you might be ready for the commitment, you obviously need adequate funds to purchase a home. This means, at the very least, you need to have enough money for a down payment.

Oh, and an expert tip for your loan is to get pre-approved by a mortgage broker. Look for one with excellent reviews and try to stay away from banks, as independent brokers are more motivated to help you with all of your specific needs.

Let’s take a look at the big picture for a second. The less you owe on your house, the less you’ll have to pay off. Which, in return, means less interest will be added to your loan payment. But the loan is separate from your down payment.

If you can put a large amount of money toward a down payment on a home, you’re starting off on the right foot. While a lot of people find it hard to use a large lump sum for a down payment, rather than a nice car or fancy trip, think of it as an investment. That money will go toward your equity, and you’ll see it when/if you sell your house at some point in the future.

While a good starting point for your down payment is about 5 percent of the total cost of the home, ideally you’d like to have at least 20 percent of the total cost saved up for you down payment. This is because if you make a down payment of 10 percent or lower you will have to pay a monthly private mortgage insurance fee, which protects the lender in the event you default.

3. Owning could cost the same or less than renting.
In some cases, renting can cost just as much as a mortgage and associated fees. You may be tired of paying high rent and believe it’ll be more beneficial to own at the same costs. If you’re paying high rent prices, it is better for those payments to go toward your own home equity. Look up interest rates and the cost of mortgages, and talk to a financial advisor/bank to look at your options.

4. Low interest rates are available.
It’s a new homeowner’s dream to have a low interest rate on their mortgage loans. In the long run, it can save you a ton of money. If you’ve been considering buying a home and the interest rates are low – as they are currently – that’s a great time to take the plunge.

5. You’ve created a budget.
A budget is the number one way to keep track of your finances and clearly illustrate what you can and cannot afford. Even if you think or know that you have money for a down payment, be sure to take a good, hard look at your finances.

Then create a budget that you plan to stick to. Be sure you include the amount that the household brings in, and subtract all the bills and necessities. That number is where your down payment and housing expenses will come from.

6. You plan to stay in the area.
Perhaps you’re ready to commit, you have the funds for a down payment, and the price of renting is about the same as a mortgage payment would be. Great! But, if you don’t plan to stay in the area for about five to seven years, you might want to reconsider buying a home.

While you certainly can purchase a home for the short term, it’s not the best move financially. With the exception of a plan to keep the property and rent it out, that is. When you consider all the costs that go into the home – your down payment, mortgage payments, repairs, maintenance, and renovations – to turn around and sell it after just a couple of years doesn’t make much sense. You are very unlikely to break even.

7. It’s a buyer’s market.
Just as when interest rates are low, when the market you’re looking in is experiencing a buyer’s market, that is another great time to take advantage of. A buyer’s market refers to a time when the demand for houses is low, and there is plenty of inventory in the market. Homes in a buyer’s market don’t tend to move too fast and, while they are often priced high, buyers can usually negotiate a lower price.

Purchasing a home is a huge milestone in your life. As exciting as it is, it can also be nerve-wracking and confusing. There are many parts of the home buying process that aren’t as fun as shopping for the perfect property to call yours. For inexperienced buyers, it helps to have the professional help of an experienced real estate agent on their side.

If you’re looking to take a permanent residence in the Atlanta and surrounding metro areas, rely on Janet Elliot for all your first-time buying needs. With over 28 years of experience, she offers insider knowledge of the area and its neighborhoods. Plus, she uses her expertise to make the home buying process as stress-free as possible.

August 2, 2016
How to Protect Your Business From Security Threats?

Small businesses usually don’t include the problem of security in their immediate to-do lists. Perhaps because young entrepreneurs think that because they are still a small operation, they will not be targeted. However, this is not always true and safety measures should be taken into consideration. Smaller businesses are becoming more attractive targets because larger companies have their security rammed up. Also, security attacks can come from within a company, so threats are not limited only to attacks from the outside.

What can you do in order to protect your company from disastrous attacks?

Always Be Alert

Opening and closing hours are the periods when you need to be conscious about your surroundings the most. Always be vigilant and alert, and pay extra attention both to those outside and inside the company. It is during these times that people usually try to take advantage of any distractions in order to make a security bust.

Limit Access and Take Care of Your Data

Businesses should secure all of their information before any breach in security happens. The information you have about your business, as well as the information you get from your customers and associates should be well secured and protected, because mistakes may cost you time and money. What precautions should you take in order to prevent sensitive data leakage? Provide your employees with their own usernames to use when logging on to the company network and remind them not to share their passwords. Also, limit your employees’ internet access only to actions and websites they need in order to perform their tasks.

Use Firewalls

Firewalls should be activated on all computers connected to your business network. Their purpose is to disallow communication with other networks and contain communication within your company. Limiting unauthorized access will most certainly increase the security of your business.

Proper Lighting

In order to improve security for both the employees and the business, there should be bright lighting installed on all the doors and parking lots. Security guards, or the police, should be able to see the business area clearly, so make sure it is visible from the street. Businesses and offices not visible from the street are the ones that burglars often target.

Conduct Audits

Reduce security risks by performing audits of all the data and information stored in your employees’ computers or profiles. Besides the softcopies, do audits on the hardcopies of their files stored in their drawers. Set up a schedule for shredding all of the paper documents with business or client information. This protects your customers’ private information, as well as your company from liability.

Security Company Help

Hire a security company to install quality security monitoring in your business premises. Don’t consider this a waste of funds because it could pay for itself the first time it gets triggered (and is actually quite affordable). Choose an affordable security company you can be comfortable with, since there are a lot of them ready to provide security to your company.

Emergency Plans

Develop emergency plans so to be prepared for situations such as theft, floods, fire and such. Have the necessary documents outlining steps to follow in case of any eventualities of this kind. Performing emergency drills regularly is usually required by insurance agencies. Employees should familiarize themselves with evacuation plans, which should be displayed in areas where they will see them often. Include important telephone numbers for the emergency services and the police department.

Don’t let things happen just because you weren’t prepared. Even thought it might seem daunting, planning security measures from the beginning can save your business. Thus, being vigilant is the best way to protect your business. If you are unable to manage it by yourself, consult a professional for help.

August 1, 2016