Published on: 27 October 2020
Last Updated on: 30 July 2024
Are you searching for the best car insurance for your vehicle? Do you wish to save money on your car insurance premium? It would be in your best interest to look forward to comparing different car insurance quotes offered by different companies in the region. However, it would be pertinent to look for the best platform to compare different car insurance quotes online.
Rest assured that searching for the best car insurance quotes could be a daunting task for most people. It implies that you have to research a lot and request quotes from insurers to find a suitable car insurance coverage meeting your specific needs and budget. The online car insurance rate comparison sites would be a boon for you. They would offer you the best price for all kinds of car insurance quotes offered by different insurers in your region. A good option to get the best quote would be by exploring www.illinoisautoinsurance.com. They would cater to your specific needs at an affordable price.
Let us delve into a few essential reasons for using car insurance comparison websites.
Reason #1: Comparing several insurers
You would be able to compare several insurers simultaneously. It would be something deemed highly time-consuming when you inquire quotes from different insurers separately. Therefore, it would be ideal to compare different companies and their quotes simultaneously on a single platform.
Reason #2: Saving time
You would be required to save plenty of time using a comparison website. You would need to fill a short online form and the site would compare the different quotes online. They would offer you the best results suitable for your need in minutes.
Reason #3: Saving money
A comparison of different insurers on a single platform would save your money. You would get the lowest price for your car insurance needs. However, it may be difficult with a few insurers you come across online. However, with the comparison website at your behest, you would be able to compare various quotes from nearly all insurers in your region.
Reason #4: Free to use
Online comparison websites are free to use. You do not have to pay them anything for comparing different quotes on car insurance. You would not be charged for making a comparison.
Reason #5: No obligation to purchase insurance
You would not be under any obligation to take out any insurance from the insurer from the comparison site. However, a majority of people would take out insurance, if they get a quote they agree to, due to its low cost. Therefore, if you find a quote that you like, you could purchase the insurance.
With the aforementioned reasons to use car insurance comparison websites, you would be keen to try one. It would be important for you to go online, provide the required details, and compare the different quotes offered by different insurance companies online. If you were looking for low-cost insurance for your car, comparing different quotes online would help you save time and money in the best possible way.
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One of the common reasons why small businesses fail is the lack of working capital. Poor financial decision-making can be detrimental to your small business.
This will not scare you or put you off the idea of starting your very first business. However, it is to convince you how important it is to draft a financial plan for your small business.
The importance of predicting your financial health is not just to maintain a steady cash flow but also...
Understand how lucrative your business is in the long run.
How long will your business be at break-even (no profit, no loss)?
When can your business start making a profit?
Most importantly, what is the contingency plan of any financial hurdle?
In this blog post below, we will be discussing the following:
Importance of a financial plan for your small business.
Elements of a financial plan for your small business.
A template to create a small business plan (for any business).
Importance Of A Financial Plan
Here is why you should begin creating your very first-ever financial plan for your small business.
1. A Business GPS?
Imagine yourself driving to a new destination without knowing where you are or in which direction you should proceed.
This is what it is like to open a business without having a financial plan.
A financial plan will give you a clear roadmap to your business journey, and determine how much to spend on each destination.
2. Where Is The Goal Post?
We all have a vague idea of what a startup goal should be. However, getting overwhelmed is common without a clear picture.
A financial plan will provide you with a clear goalpost. I am talking about tangible, measurable, and achievable goals.
Whether you want to expand your business, increase profits, or reduce costs, a financial plan gives you a clear path.
3. What Ifs & Risks!
It is given that your business won’t be smooth sailing forever!
Businesses often face unexpected expenses. It could be something as simple as equipment breakdowns or sudden major market changes!
As a business owner, being financially ready is a crucial step!
A financial plan can help you set aside emergency funds, so you're prepared for these surprises.
4. A Long-Lasting Impression
Want investors early on for your business? Then, it would help if you offered them a steady financial plan.
Remember, lenders and investors want to see a well-thought-out financial plan before they commit their money.
Therefore, having a solid plan shows them that you understand your business's financial health, its cash flow, and the potential profit opportunity. Hence, we are serious about making your business a success.
5. Improves Financial Decision-Making
With a financial plan, you better understand your cash flow, revenue, and expenses.
This knowledge helps you make informed decisions, like when to invest in new equipment or whether to cut costs.
Important Elements Of The Financial Plan Of A Small Business
Before you begin your financial planning, you should be aware of the different financial jargon for a business.
1. Cash Flow Projection
This includes predicting the market, what effect your product will have on the market, and how much you can earn from it.
Now, taking the potential amount you create capital expenditure for each month. The function of a cash flow projection is to ensure you have enough (at the end of the month) in terms of expansion.
It is common for a business to live month by month with no profit for the first six to eight months of the business. Essentially you are establishing your business.
However, if it crosses the one-year mark with just a break-evens, the following could be the reason:
Your business is not making money because of the lack of demand.
The expenditure is way over your income. You must start some cost-cutting methods.
There is a lack of marketing, and your small business is not reaching the target audience.
You do not have enough investment for the small business you are starting.
Keep these points in mind when starting your cash flow!
2. Balance Sheet
A balance sheet is a financial estimation of your small business’s current state. Here are some of the important items your balance sheet will have:
Income & Expenditure
Total owning & total owing (personal debts or small business loans).
Assets that are currently under collateral.
Upon reading it might sound simple. However, when it comes to a balanced business sheet, you will require a finance professional to craft one.
3. Personnel Expense
This brings us to the next point in any financial plan for a small business. The personnel expense, or the amount you are spending on hired personnel.
It doesn’t always have to be your employees. In fact, the number of employees for a small business will hardly reach 15 in the very first year.
A personnel expense includes individuals working as consultants for the business, and the different professionals you hire to help with the internal work (e.g. Finance officer to create the balance sheet).
Some of the common elements of a personnel expense are:
Cost is based on the positions each professional is holding.
Personal insurance plans for your workers (at least medical insurance).
Expenses are spared for other professionals working externally with the business.
4. Assets
The tangible assets that your small business owns:
Current Assets: What the business currently owns. These include inventories, machinery & tech devices, prepaid expenses (for example, digital tools), and other office supplies.
Tangible Assets: The one that physically exists under the name of your small business. Real estate (This will not include rented warehouses or offices. These will go under the expenditure section), land inventory, tangible investment (gold & bonds), and saleable merchandise.
Non-Tangible Assets: These are assets that are not in a physical form. Intellectual property, pre-paid tools, investments (stocks, Cryptocurrency, mutual funds).
Non-Operable Asset: Assets under your small business but from which you are not getting any income. For example, land you have an investment in but not yet open for any business-related functions.
Operable Asset: Assets that your business owns currently, and that are bringing some income. For example: produced goods, factory space, warehouses, and office space.
5. Products & Services
The products and services you are planning to offer will also come into the financial planning for small businesses.
These include the following:
The raw materials are required to create the goods.
Factory costing.
Warehouse costing.
Transport & Drop shipping costing.
Worker’s salary & insurance.
Contingency management funding. (In case of any accident or unpredictable situation).
The summation will give you the total cost of production. With which you can create and understand the market value of your product.
This step is very important to assess the profit and loss of each item.
6. Income Projections
Another crucial part of small business finance planning is prediction. This is how you can predict whether your income will have any substantial income.
Here is how you can protect your business income (before starting it):
Check business income projections of competitors through several data analyses.
Is your small business subject matter trending in the market? What is the current market share of such companies?
Are investors willing to invest in a business venture as such? In fact, check some of the Shark Tank successes, and analyze which business venture seems more profiting by investors themselves.
The inflation rate of the past decade regarding the product or service you are about to sell also matters.
7. Marketing
You cannot spend everything on logistics and not worry about marketing.
One cannot ignore this matter, especially in today’s day and age when small businesses are reaching new milestones by a simple influencer shoutout, or social media virality!
Here are some of the factors in which you will need to spend in marketing:
Social media marketing tools.
Influencer marketing.
Small ad-films over YouTube.
Website building and digital marketing (Website domain and SEO tools).
8. Risk Management
No business is protected from the risks that come to every business in its lifespan. However, the contingency plan is not getting ambushed by a sudden change.
Here are some of the financial risks/uncertainties your new business could face:
Market Risk: The ups and downs of the current & dynamic economy. In fact, after the pandemic, things have become a little less predictable.
Reputation Risk: Social media is indeed bringing customers and businesses closer. However, the downside of such connectivity is the risk of a tampered reputation, especially when audiences jump to conclusions upon hearing anything on the internet.
Competition Risk: This is a common risk every business faces. When your competitors launch something new & exciting, there could be a significant shift in sales numbers for you.
Environmental Risk: One good example of environmental risk that has previously impacted businesses majorly is the pandemic.
Political Risks: The political scenario of your country can have a considerable effect on your business, especially in terms of export-import & business expansion.
This is one of the reasons why having a financial contingency plan for managing sudden risk is one of the crucial components of a business financial plan.
Business Template For A Startup
As promised, we have a business template that will help you take that very first step for your startup.
Financial Plan For Startup (Template)
Table of Contents
1. Financial Overview: A Financial Overview will consist of a financial overview of your business’s current state. Also, please provide the key points and takeaways of the financial data that you will provide.
4. Assumptions – Market Research: This is the step for market research and predicting the business’s profit potential.
5. Break-Even Analysis: A table or graph which provides information on the number of units your business needs, and how much you need to sell to make a profit.
6. Financial Statements: This will include the following charts.
- Profit & Loss (Optional if you have a startup)
- Cash Flow Statement (How the monthly cash flow will look)
- Balance Sheet (Monthly/Quarterly/Yearly Income & Expenditure)
Elements For Your Balance Sheet
The following is what your balance sheets should include based on items required: monthly, quarterly, and yearly income & expenditure.
Operational Financial Plan
Business Location and Facilities
Technology and Equipment
Key Operational Processes
Supply Chain and Inventory Management
Management and Organization Financial Plan
Organizational Structure
Key Management Team
Roles and Responsibilities
Hiring and Training Plan
Financial Plan
Start-up Costs (for new businesses like loans, downpayment; collateral, and personal investments)
Revenue Projections
Expense Projections
Cash Flow Statement
Profit and Loss Statement
Break-even Analysis
Funding Requirements and Strategy
Funding Needed
Purpose of Funds
Potential Funding Sources
Funding Timeline
Key Risks
Risk Mitigation Strategies
Financial Tools to Ease Your Job
In the modern age of technology, you can always lean on tools to automate some of the financial tasks.
So, if you need that digital assistance when
Begin Your Journey!
This is a sign for you to begin your journey as a first-time business owner. Yes, it is overwhelming, and yes it can be intimidating (hence the long procrastinating period!).
Creating a financial plan for even a startup can be intimidating. Here is how you can make this journey a little easier.
Start with defining your business first. The executive plan is a must. You should know what your business is all about.
Then, move through the basic income and expenditures.
Take help from professionals in tax advice and create a detailed balance sheet.
Finally, consider seeing your whole financial plan in a timely manner. It is important to take one step at a time.
Hopefully, we can give you enough answers about a business financial plan. How is your journey going? Please let us know in the comment section below.
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When opening an eatery, there is some basic restaurant equipment you'll want to invest in financially. Restaurant equipment financing, in particular, is a loan that is used to purchase business-related equipment. If you're starting a business, you will want to find a lender who will allow you to finance your new equipment to pay the total sum off in monthly installments and perhaps add a warranty that will then protect your purchase in case of emergencies. Most business owners, even those that aren't restaurant-related, have utilized the benefit of restaurant equipment financing.
Purchasing equipment outright can put a substantial strain on your savings, which then, in turn, can impact your cash flow. This is one reason why it's always good to have a great credit score because, during times like these, you'll need it to get financial support, such as a loan, for equipment. Being a restaurant owner takes hard work and dedication. Here are some of the basics that you will need to know about restaurant equipment financing.
How does it all work?
As a customer, you've probably never wondered how much a pizza oven costs or how the pizzeria even paid for the grill when you go to a hibachi. Well, 9 times out of 10, that equipment purchase came from a lease payment. When a lender pays a monthly payment for their piece of equipment rather than the full purchase price, this is considered a lease payment.
If you have a successful restaurant, then you'll have no problem with your equipment finance loan. Some businesses even make an account with relevant companies for equipment leases because they're thriving that much. The only downside is if you have bad credit, the chances of opening your dream restaurant are slim to none unless you're able to afford a down payment large enough to show the financial institution that you're financially reliable and stable. Don't forget, it takes a lot of money to open a restaurant, and you can always be in search of a borrower, who is someone you can either partner up with or payback in the future after your business begins to boom.
You can consider it a business loan if you don't have good credit. When you finance your kitchen equipment, don't forget that they will perform a credit check. If you have good credit, then you're in the clear; your credit report will come back, allowing you to choose the best options you'll need for your new restaurant. However, if you have bad credit, you can try to find a lender willing to partner with you. When you have a good idea and believe that your new business may make a lot of money, your potential partner will be more apt to go into business.
What type of equipment will I need?
You can either hire specialists who know the industry or if you have enough experience, you should already know what you'll need. You will need to purchase some startup items for your new restaurant. You'll want to buy products such as refrigerators, freezers, pots, pans, an oven, stove, deep fryer, plates, silverware, and more. You will want to shop around a restaurant equipment finance company or two to determine the exact amount you will need to take out for a bank loan. Also, if you want to save on delivery, you can hire your own food trucks to deliver your groceries or livestock, depending on what type of restaurant you plan on opening.
Qualifying for the Equipment Loan:
Every lender is going to vary depending on the amount needed for your equipment loan. Since a lender will check your long-term credit history and see if you're capable of making affordable monthly payments, you can check to see if you qualify on your own by checking your own credit history online. Many companies apply for loans for restaurant equipment financing in the restaurant industry because opening businesses cost so much money.
The leasing company will look at your business plan, and if they decide to move forward, you will then need to sign a lease agreement for your startup business. They will also charge an interest rate, and most of the time, there will be a section in your lease contract noting the interest rate that is decided upon.
Research the Best Financing Options
When it comes to securing the right loan, you shouldn’t just settle for the first option that comes your way. Researching the best financing options for your restaurant equipment is essential.
Lenders will vary, so take the time to compare interest rates, repayment terms, and any hidden fees that might sneak into your contract. Some lenders specialize in helping startups and offer more flexible terms, while others cater to restaurants with much established credit.
Ask around!
Networking with other business owners can give you insider information on the best lenders in your area.
Remember, signing on the dotted line locks you into a long-term commitment, so make sure it’s one you’re comfortable with.
Boost Your Credit Before Applying
If your credit score isn’t quite where you want it to be, don’t panic. You can take steps to improve your credit before applying for restaurant equipment financing. Start by paying off any existing debt and ensure you pay every bill towards a better score.
Also, check your credit report for errors and dispute them if needed. Raising your credit score may take some time.
However, doing so will open the door for better loans with lower interest rates. Therefore, saving you money in the long run. Improving your financial health now can set your restaurant up for future success.
Take Advantage of Tax Deductions
One aspect many new business owners overlook is the potential tax deductions available for restaurant equipment. The IRS allows businesses to deduct the cost of major equipment purchases like ovens, refrigerators, and other kitchen appliances.
By writing off these expenses, you can significantly lower your tax liability at the end of the year. Consult with a tax professional to ensure you’re fully utilizing the deductions.
These deductions can provide a much-needed financial boost, especially in the early stages of your business, keeping more money in your pocket when you need it most.
Plan for the Unexpected
While no one wants to see that their restaurant is not thriving, it’s always a smart move to plan for the unexpected. Therefore, read the fine print on your equipment leases and loans to understand what happens if business slows down or, in the worst case, you must close.
What happens then, if your business is your loan collateral?
Some lenders offer equipment return policies or flexible options for resale. Knowing your options in advance will prepare you to handle any bumps in the road.
Having a backup plan doesn’t mean you’re expecting failure! No!
It simply means protecting your investment and planning for a sustainable business future.
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In the realm of business, reliance on accurate and reliable financial reports is more critical than ever. They provide a backbone to corporate strategy and investor confidence, serving as a navigational tool that would assist businesses in steering stormy markets in today’s economic landscape.
This significance is even more prominent given the fact that the global financial system keeps negotiating a phase of heightened vulnerabilities. This is underscored both by the turbulence in March 2023 and the protracted challenges posed by elevated interest rates and an indeterminate growth outlook, as revealed by the Financial Stability Board's Annual Report for the year 2023.
In this context, financial reporting mirrors a corporation's fiscal health and its ability to adapt while thriving amid the changes in global economics. To sail in these turbulent waters, businesses have to follow best practices in financial reporting.
In this post, we’ll discuss five practices that can guide you in the stormy seas of global finance, ensuring the accuracy and reliability of financial reports.
Use of Specialized Accounting Software
The first approach to attaining precision in financial reporting is to embrace the use of technology, particularly specialized accounting software. In today's market, there’s software that’s able to fit the peculiar needs of various businesses.
For instance, if you just launched your business, this software comes as an invaluable tool for accounting for startups. It provides customization tailored to their financial processes, scalability to grow with the business, and automation capabilities to reduce human error and improve efficiency.
The software has to have comprehensive functionalities that allow real-time financial tracking and startup data. As well as other business systems integration with only a minimal amount of effort and wide reporting abilities.
By automating these routine tasks, startups will be able to focus their efforts as much as possible on strategic financial planning and analysis so that the resultant reports are not only accurate but also provide invaluable insights for business performance improvement.
COSO Internal Control Framework Implementation
However, accurate financial reporting is not just about being armed with the right tools – strong internal controls are also equally necessary. This is exactly where the role of the framework provided by the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control Framework becomes relevant.
The COSO internal control framework is a worldwide accepted framework that provides a structured approach to managing business risks and enhancing the reliability of financial reports. The implementation of the COSO framework involves evaluation and enhancements in the internal control systems within the organization.
It underscores features such as the control environment, risk assessment, control activities, information, and communication, as well as monitoring activities. Incorporation of this framework into financial reporting processes helps organizations to identify and even address financial risks effectively so that the final financial data is accurate and reliable.
Regular Financial Audit and Review
Regular financial audits and reviews are a different pillar to ensure the integrity of financial reports. The process is paramount in the identification of discrepancies as well as areas for improvement in the process of financial reporting.
For financial audits to be effective, they have to be comprehensive, have to be conducted by independent and qualified auditors, and should cover all the areas of financial reporting, from the recording of transactions to the preparation of the final report.
For continuous monitoring, there are also necessary informal checks, known as reviews. The essence here is to make use of whatever the audits and reviews reveal in a constructive light by using them as opportunities for fine-tuning and improving financial reporting practices. This incessant process builds on findings that not only achieve compliance with accounting standards but also develop stakeholders' confidence in the financial health of the company.
Staff Financials Training and Development
The accuracy of financial reports heavily relies on the capabilities of those who prepare them. Therefore, the training of your financial staff is an investment that every business should put its resources into.
From this viewpoint, companies are to maintain a continuous learning environment in which the members of the staff are updated with current accounting standards and technologies and know how to work and report best. Such things could be taken care of through training programs, workshop sessions, and professional development courses.
Furthermore, a culture that encourages knowledge sharing and teamwork among the finance staff will produce more innovative and efficient reporting practices. An informed and well-trained member of staff will come up with accurate and comprehensive reports more often, following the regulatory requirements.
Embracing Transparency and Ethical Practices
The final practice, not least important, is the maintenance of ethical standards and transparency in financial reporting. Ethical practices refer to any behavior considered honest and having substantiated integrity. They go beyond simple compliance with the laws and regulations, involving a commitment to honesty, integrity, and responsibility in all financial disclosures.
Companies have the duty of creating and implementing a sturdy ethical framework to regulate all processes and decision-making that pertain to finances. When that frame is in order, it needs to be explicitly communicated to all employees throughout the organization and led from the top.
Transparency in financial reporting not only builds trust among investors, stakeholders, and the public but also reinforces the company's reputation and credibility in the market. In the long run, ethical and transparent practices eventually pay off by nurturing a good corporate culture and resulting in sustained business growth.
Final Thoughts
In summary, precise and dependable financial reporting is essential for effective business management and maintaining investor trust. Implementing key practices such as using advanced accounting software, adopting the COSO internal control framework, conducting consistent audits and reviews, providing thorough training, and enforcing ethical standards are crucial for enhancing the quality and reliability of an organization's financial reports.
While this is an ongoing process, it yields significant improvements in business integrity, operational efficiency, and sustained performance.
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