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Here Are 4 Ways to Pay Your Employees  

Here Are 4 Ways to Pay Your Employees   
Starting a Small Business? Here Are 4 Ways to Pay Your Employees Hiring employees is a major milestone for any business owner who has previously done it alone. Even if the help is quite welcome, some important related decisions will almost always need to be made. This is true even of the most basic issues, such as how workers will be paid. Fortunately, business owners who are armed with a bit of knowledge will always be equipped to choose appropriately. Taking the Next Step Toward Long-Term Success  Sole proprietors who have no workers to worry about, deal with what are generally among the simplest of all possible business arrangements. As soon as employees enter the picture, issues like employment taxes need to be accounted for, lest the government’s wrath descend upon a business owner. Many entrepreneurs find it worthwhile to make use of small business payroll services that virtually rule such problems out. Being able to rely on the expertise of specialists makes potentially costly mistakes a lot less likely and provides a firm foundation for future growth.     Determining the Best Way to Pay Any Company’s Workers  Even with payroll being handled by an expert, though, business owners still face an important choice. Pay can actually be issued in any of at least the following four common ways, each of which comes with certain benefits and drawbacks. Choosing the means most appropriate to a particular company and its workers will always make things easier, in general. The four options that are available to most business owners when it comes to paying workers are: Checks. Bank drafts authorized by means of check are traceable, accessible, and well-established. The paper trail that writing and depositing or cashing a check creates can prove useful if any issues arise later on. On the other hand, not everyone today has access to an account that can be used to convert a check into a balance. Workers who are forced to cash their checks by other means sometimes end up paying a fair amount for the privilege.     Direct deposit. As the more modern relative of the old-fashioned check, direct deposit is an increasingly appealing option. In this case, things are even more restrictive, though, as only employees who have accounts in good standing will be able to make use of this approach. Unfortunately, about 1.7 billion adults worldwide still lack such resources entirely. Prepaid cards. Certain cards associated with networks like those operated by Visa and Mastercard can also be loaded with paychecks on demand. Particularly where some workers might not have checking accounts, this is an increasingly popular choice. Some payroll cards, however, impose maintenance fees and the like, so business owners will always do well to put in plenty of research. Cash. Although it might sometimes seem a bit crude, cash is still very much a valid way to pay wages. Relatively few business owners opt for this approach, though, because of the exposure and hassles it tends to create. The Right Choice is Usually Clear  Business owners who wish to do the most they can for their employees will always put some thought into choosing a means of payment. In many cases, it will even make sense to offer at least a couple of choices, from which each worker can select the most personally appropriate. In practice, it tends to be fairly straight forward to figure out how best to pay any small business’s employees....
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An Introduction to Contracts With Customers

An Introduction to Contracts With Customers
Do you remember the first sale that you ever booked or made on your own? It was probably pretty exciting — that feeling of elation and top-of-the-mountain. You suddenly realize that you might understand how this whole business thing works and you might be able to do this. But of course there are practicalities to consider when you make a sale. It can be tempting to recognize revenue right away, but there’s always a risk. What if the sale cancels, for example? What if it costs more to create the product or service than you’ve booked? It just can be a difficult process to learn the ins and outs of recognizing revenue. Standards to Recognize Revenue Fortunately there are standards to use that others have figured out. These standards are a great way for companies to make sure that people understand what they are doing is on the up and up. Non-accountants must be aware of the concept of recognizing revenue from contracts with customers. Because payments are often not a straightforward affair, accountants have to allocate revenue using specific standards set by national and international accounting boards. While this information doesn’t seem important for non-accountants to understand, it is. Knowing when revenue can be recognized in your company’s financials affects everyone, from the salesperson’s commission to the marketing budget next quarter. What are those standards and what are the takeaways from them? This graphic explains it.   To understand and accomplish the new revenue recognition standards, businesses should complete the following five steps:  1. Identify the contract with your customers Clearly identify the goods or services provided and describe each party’s right to them   2. Identify your performance obligations Specify exactly what you owe your customers and explain what defines “good performance.”   3. Determine the price of your products or services When doing so, don’t forget to consider promotions and other discounts.   4. Allocate a transaction price to the obligations specified in the contract Align the price of your services with your compnay’s performance obligations   5. Recognize revenue as performance obligations are satisfied   Sales people also must understand the difference between booking and revenue. A booking is when the customer makes a commitment via a contract to buy your services or product. Revenue is when the revenue “counts” on the books – When accounting can account for the revenue as being...
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How to Avoid Cash Flow Problems as a Small Business

How to Avoid Cash Flow Problems as a Small Business
If you own a small business, then you’re probably no stranger to cash flow issues. In fact, 21% of businesses claim that cash flow problems were significant issues, potentially leading to closing down. One of the best ways business owners can ensure success is by carefully managing cash flow. Because no matter how great your business plan is, your business won’t survive if you run out of money. What Causes Cash Flow Problems? Before you can get a handle of your cash flow issues, you have to understand why they occur. Here are three common reasons why cash flow problems may arise: Unnecessary Spending Many business owners have head the old adage that you have to spend money to make money. Unfortunately, this belief has caused many ambitious business owners to overspend. Not all business expenses equally as important to your operations. Consider the cost-benefit of each expense. Overestimating Future Earnings Optimism is a great trait but it needs to be paired with a healthy dose of objectivity. It’s important to forecast your sales based on previous earnings and data. By not counting on future earnings that may never show up, you can prevent overspending. Inconsistent Sales Some businesses have occasional spikes in sales followed by months where they sell next to nothing. Trends like these cause problems with budgeting and makes it difficult for business owners to make operational decisions, often choosing to survive off of their “good” months. Get started with Flexible Funding today! Flexible Funding provides payroll-funding solutions in addition to back and front office support services as well. Flexible Funding works with staffing companies to implement the right staffing-industry software solutions for each client’s unique needs to create the best solutions and to save you time and money -from off-the-shelf accounting packages like QuickBooks and Sage 50 Accounting to in-house custom-built financial accounting software tools. Whether you are a start-up or an established staffing agency looking for best business practices, Flexible Funding will find the right solution for you– from payroll and invoice processing to W-2 preparation and filing, background checks, custom reporting, and so much more.   Tips for Avoiding Cash Flow Problems Cash flow problems are a reality for nearly all business owners but there are ways to manage them. Here are five ways to mitigate your cash flow issues: 1) Take Out a Short-Term or P2P Business Loan A short-term business loan can provide the capital you need to run your business and pay for any expense, from inventory to office furniture. Short-term business loans have a high rate of approval even for businesses with limited credit history. You’ll receive the money faster than you would if you took out a traditional bank loan, which can be extremely helpful if you have immediate needs. Sometimes the application process can take as little as 24 hours. One of the first places to check for business loans as a business owner would be Small Business Administration. Or, if you prefer to bypass the government, you can try a peer-to-peer business loan. These loans are funded by individual investors through a lending platform. However, these loans usually require more frequent payments, and you will likely end up with a higher interest rate. 2) Use a Working Capital Loan Working capital loans can give you the cash flow to cover crucial operational costs like rent and payroll. This gives you the flexibility to invest in your company’s growth and still cover day-to-day expenses. Unlike other business loans, working capital loans don’t require that you state your reasons for taking out the loan. However, you will have to repay this loan quickly and your loan may have a...
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Facts You Should Know about Income Tax and PAN Card

Facts You Should Know about Income Tax and PAN Card
Income Tax and PAN Card Info What is meant by Income Tax? A percentage of income earned by an individual or a company (complying to Indian laws) is paid in the form of tax to the government. This is called Income Tax. This comes under Income Tax Act constituted by Parliament of India. Department of income tax operates under Department of Revenue, Ministry of Finance, Government of India. This is responsible for checking and collecting tax. Where should I pay Income Tax? Income tax should be paid to the I.T deparment. This is called income tax filing which is done at the end of July every year. What is the period for which a person’s income is taken into account for purpose of Income Tax? The income earned from April 1st to March 31st is considered for calculating income tax. This period is called a financial year. For example April 1, 2015 to March 31, 2016 is a financial year. This is also called previous year. What is an assessment year? The 12 month period that comes after the previous year is called an assessment year. This is the period to file income tax return for the previous year. For example, for the financial year 2015-16, the assessment year is 2016-17. During this period, a person files his return for the income earned in the previous year. How to file income-tax returns online What is PAN Number or Permanent Acount Number? PAN is a ten digit number issued by the Income Tax deparment. It also serves as a valid identity proof for an Indian citizen. PAN number is demanded at many places now-a-days. When you file income tax returns When you open a bank account or Demat account It is useful in applying telephone connection and credit card When you want to register for service tax and sales tax When you buy or sell a vehicle When you deposit or withdraw money to the tune of Rs.50,000 in the bank or post office, PAN is a must If you want to invest in mutual funds If you are buying a property worth more than 5 Lakhs When you exchange large volume of foreign currency (over and above Rs.25,000), you need to submit your PAN CARD. Even when you buy GOLD , giving your PAN number has become mandatory after the DEMONETIZATION EFFORTS taken by the government recently on November 8, 2016. PAN card Dont’s… Same person having more than one PAN card is an offence. You have to submit any one card to the income tax department and update your info. You can be charged a fine of upto Rs.10,000 if you are found to have more than one PAN card. If somebody puts the PAN card to mis-use he might be fined and subject to imprisonment too. You can view your PAN card details in their website. If you apply for PAN card through private agents, kindly check whether your details are updated in the government website. Issue of PAN card PAN card issuing has been made very simple. You will be asked to fill up  FORM 49-A and attach your address proof (Aadhar card or Ration card). The form can be downloaded from the following addresses online: www.tin-nsdl.com http://www.incometaxindia.gov.in/Pages/form-pan.aspx Also you get these forms issued by the IT PAN and TIN service centres. Having a PAN card doesn’t mean that you have to pay Income Tax. It is to facilitate people to pay Income Tax when their income levels warrants for paying tax. A Complete Tutorial on Financial Markets and...
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Functions of A Finance Manager

Functions of A Finance Manager
The Key Functions of A Finance Manager Finance manager is one of the important role-players in the domain of finance function. He must have a complete know-how on the areas of accounting, finance, economics and management. His position calls for judicious capability and analytical approach to solve various problems related to finance. A person who deals with finance related activities may be called finance manager. “Focus on a few key objectives … I only have three things to do. I have to choose the right people, allocate the right number of dollars, and transmit ideas from one division to another with the speed of light. So I’m really in the business of being the gatekeeper and the transmitter of ideas.” – Jack Welch Finance manager performs the following major functions: Forecasting Financial Requirements It is the principal function of the Finance Manager where he is required to estimate the financial obligations of the business concern. He should evaluate how much finances are required to procure fixed assets and forecast the amount needed to meet the working capital requirements in future. 10 Ways to Become Financially Stable Acquiring Necessary Capital The next step of a finance manager is to focus on how the finance is deployed and where it will be available.  The Beginner’s Guide to Budgeting Investment Decision Best investment alternatives have to be considered to assure reasonable and stable return from the investment. He must be competent in the field of capital budgeting techniques to govern the effective utilization of investment. The finance manager must attach more importance to the principles of safety, liquidity and profitability while investing capital. 9 Personal Finance Milestones Everyone Should Reach Before 30  Cash Management Cash management plays a major role in the area of finance because proper cash management also helps to meet the short-term liquidity position of the concern.  5 Ways to Combine Finances with Your Spouse Interrelation with Other Departments Finance manager handles various functional departments such as marketing, production, personnel, system, research, development, etc. He must maintain a good rapport with all the functional departments of the business organization. “Rule No. 1 : Never lose money. Rule No. 2 : Never forget Rule No. 1.” ― Warren Buffett Follow ManagementGuru Net’s board FINANCIAL MANAGEMENT on...
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