Published on: 02 November 2018
Last Updated on: 30 October 2024
There is no magic button that can help you manage your finances. It takes time to learn how to manage your finances in the right way in order to avoid being stressed about money. Many people have a problem with managing finances and this is the reason why many people are always stressed about money. It is not about the amount of money you earn, it is how you manage it that counts.
Most of the people who are not able to finance correctly will always end up stressed and probably always broke. In such a case, it is important to ensure that you have a money coach, someone that can guide you through the process so that you learn.
3 Must-Know Accounting Tips To Help You Finance Correctly
There are firms like Marsh Tincknell Accountants that in addition to giving you accounting advice, can also help you in planning your finances. Here are the top 3 tips by Marsh Tincknell Accountants to help you manage your finances.
1. Write down your goals:
This is the first and most important tip when you want to plan your finances. Write down all your long-term and short-term goals that require you to spend money. Once you have your list of major goals, number them according to their priority and how soon you need to achieve them. Arrange them in order from the one you wish to achieve soonest to the one you want to achieve at a later date. For example, saving for retirement may be at the bottom of your list. This way, as you work on your short-term goals like reducing your spending, you are also able to work on your long-term goals slowly.
2. Create a financial plan:
This is one of the other important things to do to help you finance correctly. Your financial plan should have the steps to follow in order to achieve your short-term and long-term goals. For example, your plan may include steps like controlling your budget then coming up with a savings plan in order to get out of debt. This way, you are able to monitor how fast you achieve these steps towards reaching your long-term and short-term goals. When you see that you are taking too much time to conquer one step, you can then come up with strategies to ensure that you move faster toward your goal.
3. Create a budget and stick to it:
Having a budget is one of the most important tools to help you spend your finances wisely. This is because a budget acts as a boundary or restriction on the amount of money you are supposed to spend at a particular period of time. A budget also helps you to keep track of your spending. This helps you to evaluate and see where you are spending most of your money carelessly and cut down on that.
Conclusion:
Many people today have a problem with finances and how to manage them correctly. Three of the main problems that may lead to financial chaos is not having a list of the goals to be achieved, not having a financial plan and not having a budget. People who have these three things in place rarely experience stress due to the management of finances.
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Binance is currently known as one of the largest cryptocurrency exchange firms in the world. Changpeng Zhao heads the company, and he recently unveiled that the company will be focusing on a shift to trade cryptocurrencies for fiat money. According to Zhao, this move would make it possible for investors to perform an increased number in trading volume, an increased number of participants in the market, higher liquidity, and more speculators. He said that it would also boost the trading industry, and more people will be drawn to the world of cryptocurrency which will bring positive effects to the industry.
Changpeng Zhao’s idea was lauded by financial experts around the world, saying that his plans for the future of cryptocurrency exchange are one of the most plausible given the factors that affect the market today. Zhao has been a veteran in the financial industry, and he previously established several companies; one of them is Fusion Systems which was founded in 2005 and presently headquartered in Shanghai. It became his stepping stone to know more about trading and how the financial world works. As cryptocurrency started to develop and to draw in more investors, Zhao decided to learn more about this new mechanism in the financial industry. He chose to join Blockchain.info in 2013 to develop his skills in dealing with cryptocurrencies, and he successfully learned new tips and tricks on how to become successful by trading cryptocurrencies. He, later on, founded several other companies that relied on blockchain technology, and in 2017, he decided to establish Binance.
Initially establishing the company’s headquarters in China, Changpeng Zhao decided to move it in Japan after the government started pressuring him. He later opened offices in Taiwan, while at the same time looking at how his company grew tremendously. In 2018, Zhao expressed his idea of moving his company to Malta after he received several warning letters from the government of Japan and Taiwan. They are telling him that his company is not registered, and there can be legal consequences if he did not abide by the country’s financial rules and regulations. Despite these warnings, Binance continues to grow, and in 2018, it managed to gain a market capitalization worth more than $1.3 billion. It is more successful than traditional banks, and Zhao stated that the future is bright for their company as he sees that cryptocurrency will further increase in value.
Changpeng Zhao stated that after his company completed its transfer to Malta, he will enable their users to convert the digital tokens that they have in their wallets into various fiat currencies. He also added that Malta is one of the few countries on Earth that are supportive of cryptocurrency traders, just like him. He wanted to transfer his operations in Malta because he said that there would be fewer legal problems in the small European island state. The government of Malta is working hard to persuade cryptocurrency giants to transfer their operations to the tiny Mediterranean Island. Malta wants to become known as the Blockchain Island, and they are developing new legislation that would encourage cryptocurrency traders to transfer their operations.
One of the most important advantages of the idea proposed by Zhao would be the generation of new cryptocurrency traders and the balance to the world economy that it would bring. If the participants in the market increased, it would signal a rise in the demand for more cryptocurrencies, and it would transform the whole industry into one that could easily surpass traditional companies that are not keeping up with technology. Zhao wants to change how the world looks at the global economy, and he stated that his idea could become a reality.
According to Zhao, fiat money is one of the best materials to be traded for cryptocurrency because it has a designated value given by the government. He is optimistic about the effects of his decision on the future of trading, and he believes that more people will become aware of its advantages. He continues to inspire a lot of people because of his perseverance to create new mechanisms that would innovate the financial sector. The experts who are working with the largest financial companies are saying that Binance have really shaken up the competition in the industry, and they are hoping for more people like Changpeng Zhao to come out and increase the competition in the sector. Read more about Changpeng Zhao and Binance at the HybridBlock Blog.
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The ERC, employee retention tax credit, or employee retention credit, is a hot topic regarding business taxes.
However, it is often overlooked because it originated with the PPP or Paycheck Protection Program. Additionally, as more people are talking about it, it seems that many misunderstandings have caused business owners to believe that they don't qualify for it when they do.
Some of these misunderstandings stem from prior laws that have since changed, while others are based on the fact that some methods of getting ERC money are more popular than others. Additionally, there are other misunderstandings stemming from scams and confusion about the ERC.
Here Are Four Common Misunderstood Facts About The Employee Retention Tax Credit
Here are some frequent misconceptions regarding the ERC and the truth around them.
1. Two Eligibility Tests
The most notable misconception is that a business must have a decrease in revenue to be eligible for the ERTC. This stems from the eligibility facet that states that companies must have a gross receipts decline compared to their pre-pandemic numbers to be eligible. This is one of the tests used to determine ERC eligibility and is the more popular option. However, some areas of confusion within this test include:
An increase in revenue doesn't disqualify you if you still have a decrease in gross receipts.
This test is based on quarters, so failing to meet it in one quarter doesn't disqualify you from others.
There are multiple methods to apply a gross receipt test.
PPP loan money is not included in the amount you claim for the ERC.
While this is one test, there is also another. Although often overlooked, a full or partial suspension of operation due to government orders can also qualify your business without a decrease in gross receipts. Despite popular belief, you can still be eligible for the credit if you meet this requirement, even if you have an increase in revenue and do not have to shut down your business.
2. Credit Amount
Employers who qualify can receive up to $7,000 per quarter per employee for the first three quarters of the year. Small businesses that opened during the COVID-19 pandemic can receive an extra $7,000 per employee. However, most companies will cap out at $21,000 per employee per year. If you have 100 employees meeting the salary requirements, you could receive $2,100,000.
The ERC is refundable, which means it will be a refund credit for these employers. That means you can still write off other expenses on your taxes and get a return. That can make it more desirable than other tax credits, which must be taken immediately or forfeited.
3. PPP Loan Disqualification
Another common misconception is that receiving funds through the PPP disqualifies employers from ERC eligibility. While that was initially true, recent legislation has changed this.
You can now receive PPP loans and an ERC, but you cannot use the same wage money towards both programs. That means that if you take out a loan, the money from it doesn't count towards your ERC. Instead, the money that you spend on paychecks in addition to your PPP loan is what matters toward your ERC.
4. Third-Party Assistance
This is more of a warning about issues that have caused concern among business owners. Due to the potential for significant credits, many scams have been established to help business owners file for ERC money.
While some small businesses are qualified to help individuals analyze the ERC laws and apply them for you, there are still scams out there. If you file with third-party help, ensure your chosen company is appropriately qualified.
These misunderstandings have kept many small business owners from applying for the ERC when they were eligible—small business owners who have previously missed out need to consider whether they qualify for the ERC.
If you are eligible, you can receive thousands of dollars in tax credits. That can help your business recover from the recent pandemic and stay afloat amid future financially challenging times.
Read Also:
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The Role of Communication in Employee Retainment
The Best Ways To Successfully Fund Our Dreams
We all have plans and dreams. Nonetheless, to implement them we need financial resources. Todays’ advanced technologies offer a solution to collect the sum we need. So, we shall discuss how to design a great saving application to help people build their dreams into reality, and how you as an owner can succeed as well.
Interested? Let’s get down to business.
Functionalities a money-saving platform should provide
Let’s explore what parameters are critical for users.
# Profiles
It’s pretty obvious that, first of all, a person downloads an app and sets up a personal profile.
Try to keep those processes simple and straightforward. People shall fill in a certain form to specify some information, including the financial one. It’s okay if the account activation takes some time since all customers’ details must be processed and verified carefully. We’re dealing with money issues, thus, everything shall be checked adequately.
# Bank account involvement
A budget framework shall allow the audience to connect their bank accounts. Here the trick is for app owners to cooperate with multiple financial facilities to make such a feature available for every individual.
Moreover, it would be amazing if you also find some solutions for those persons who have no bank accounts and who choose other ways to manage their finances. That approach will enlarge your target audience.
# Possibility to set several goals
Setting goals is a pretty fascinating aspect of an online money resource.
Let’s assume that a person starts applying an online system to save some funds and enforce ceratin plans that demand specific monetary investments. It could be anything, say, university fees or vacations. Thus, a user takes advantage of a financial program and sets a goal to implement a particular plan he/she has. If you want to create a successful app, you shall allow your people to name that plan, put deadlines if it’s required, provide a brief description, etc. That’s how a saving procedure starts.
In most cases, customers have the following goal variants:
travel;
vacations;
gifts purchasing;
nest egg for a rainy day;
others.
Clients will appreciate not being limited to implement only one plan at a time, so individuals shall be free to set multiple goals to realize their desires.
Speaking about allocating funds to specific goals, you could provide a few options here. The thing is that some users would prefer to take the total withdrawing sum and divide it equally between all current plans, while others would rather specify how much money specifically shall be sent to each goal. Just remember to keep your money-saving application customizable.
And after a person manages to save the sum he/she put as a target, budget software shall stop allocating funds to that particular goal, however, the money shall still get sent to other ongoing plans, if any.
# Withdrawal options
Every decent money manager platform shall ensure that its customers can withdraw cash from their accounts when they need to. Moreover, no-fee and no-commission policy will be highly appreciated.
Additionally, it would be a brilliant idea to give your people several options to withdraw money. Let’s say, chatbots could be one of the tools.
Still, the audience needs to be patient, since the processing of such transactions is time-consuming, meaning, individuals will have to wait for the funds to get returned to their main accounts at their requests. However, you could offer specific options for those who can’t wait: say, you might impose a $1 charge to make transfers instant. It’s your call.
# Overdraft-proof
Your clients shall not worry about possible overdrafts, thus, think carefully about how you could protect their accounts. You could ask users to determine the amount of money that must remain on their accounts at any time. In such a way, an online financial service won’t be able to take the money, in case that indicated mark is already reached.
Nevertheless, if some technical issues occur and a money-saving framework withdraws too much, a specific algorithm shall be launched to refund the difference and reimburse all overdraft fees.
Make sure you discuss those options with the development team you hire.
# Unique features
Nowadays, you can find a great variety of diverse financial resources, thus, your objective is to come up with one-of-a-kind parameters to differ from others. Here’s an idea for you.
The reality is that many people have to pay off their debts. Of course, they can simply borrow the amount they need, but it’s better to have several options to deal with those issues. Besides bank loans, people can also resource to online money-saving systems.
Your program can help people deal with their debts. Clients can set specific debt settlement goals, attaching their credit cards to your platform. The process could be completely automated, and a specified amount will be allocated to pay creditors. If you impose special conditions, you can help your customers repay debts faster. Think about it.
Of course, you can brainstorm more to generate other great unique features to bring a wider audience.
# Smart notifications
Individuals will enjoy the possibility to communicate with an application they use, and text messages will do the magic.
Clients need to know their accounts’ statuses, moreover, the messaging notification system can update users on any important news. The audience might want to set the service to receive requests to write off funds, and more.
Additionally, people could use particular code words to launch certain activities. Just be creative, don’t limit yourself, and you’ll find multiple ways to assist your customers making them happy.
There’s one more aspect we’d like to discover this time.
Benefits a saving app shall provide
Every app shall serve to resolve certain problems people have. The below-mentioned ideas are for you to keep the audience pleased with your online solution:
Special bonuses. Why not offer your active users certain bonuses, say, a 2% annual bonus? That would be a nice touch of yours.
Chatbot assistance. A person might need some financial advice, so think about how chatbots could help with that.
Setting numerous goals. As we’ve mentioned earlier, that would be a great idea, since it’ll improve customers’ online experience.
Automatized processes. It’s in your hands to help clients enjoy the saving process: let them stipulate the amount to put aside and make your framework to take care of the rest.
Regular updates. Don’t allow your audience to feel lost, not knowing what’s happening with their accounts. Update them constantly.
Referral bonuses. You could be grateful to people who bring new users to your program by giving them, say, $10 or so.
Keep it simple. Individuals will really enjoy your application if it is user-oriented and appealing.
Web interface. Some people would rather prefer web resources, so consider developing it as well.
We believe our hints and tips will help you consider key aspects of money-saving system development to build a successful and credible service.
Read Also:
How to Become Financially Stable Before Age 30
How to use IT to Save Your Business Money
The Importance Of Saving: The Bedrock of a Bright Financial Future
