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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. It 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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Why is it Sheer Brilliance to Invest in an E-commerce Store

Why is it Sheer Brilliance to Invest in an E-commerce Store
Why is it sheer brilliance to invest in an e-commerce store   Picture Courtesy : Pixels.com From Walmart and Target, the world has moved on to Amazon, eBay and Alibaba.  As the Internet conquers the world, people are ditching brick and mortar and are moving towards shopping on a click. During 2018, people shopped worth $2.86 trillion on the web, and this figure is expected to reach $4.8 trillion by 2021, which is huge. Brick-and-mortar, on the other hand, is losing its charm. This can be seen from the fact that Circuit City, Kmart and Radio Shack have all filed for bankruptcy. Moreover, whatever is left of the brick-and-mortar is also digitally influenced, which is why they are going mobile. JD.com, the world’s second-largest e-commerce business has partnered with Walmart to create a new retail concept, 7Fresh. At 7Fresh, you need an app installed on your phone because you need it to scan the products and make the payment. Given that the entire world is shifting towards e-commerce, it only makes sense to jump on the e-commerce bandwagon if you are looking to invest in a business. If you are not yet convinced why e-commerce is a good investment opportunity, then here are some reasons that might help. 1.    The world is shopping online The most convincing reason is perhaps that the world is now shifting towards online shopping. People now have a lot of options in terms of variety and pricing at the click of the button. Forecasts show that by 2021, around 2.14 billion people are expected to shop online, up from 1.66 billion in 2016. 2.    Easier to build Prada, Gucci, Louis Vuitton and all our favorite brands have been there in the market for many years. They have invested a lot of time and money to be where they are today. With e-commerce, however, the process is quicker; with the minimal investment, you can grow by leaps and bounds. The online retail giants are the living proof that the online world is full of possibilities. Amazon started as a mere bookseller, and today it has more than 12 million products. Moreover, e-commerce tools today are a lot better and less costly. The selling platforms and marketing tools have made it easier for an inexperienced person to start a business online. The only hurdle that you may face is deciding the product that you have to sell and whether you have to sell a range of products like Amazon or focus on a single category. Selling everything and anything may seem appealing. However, it comes with its own set of problems. Amazon did not get there in a day. Hence, we recommend you focus on a narrower range of products. 3.    Location doesn’t matter The biggest drawback of brick and mortar is that you need a good location to generate sales. Your store has to be located where your target market lives. If you are selling a premium product in a middle-class area, chances are your store will close down in a few days. Other than that, you have to keep several factors in mind, such as parking issues. With e-commerce, you do not need to worry about all of this. You can sell to anybody who wants your product. Moreover, it is easier to establish your sales internationally, as well. 4.    Easy to keep a tab on customers With an e-commerce store, you can easily see what your customers like and don’t like so you can update your offerings accordingly. You can see what they purchased, which makes it easier to cross and up-sell products. You can also use the heat maps to see where they...
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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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What is Equity and Why is it Important to Your Business

What is Equity and Why is it Important to Your Business
What is Equity and Why is it Important to Your Business?   So, you’ve finally started your own business. You are officially an entrepreneur. While you might feel a fleeting sense of accomplishment, it may not last forever. For many new business owners, the thrill of starting a business wears off quickly and is replaced, at least in part, by worry. Will your business be profitable? Have you taken every legal step possible to make it a legitimate endeavor? Did you borrow too much money to start your business? How long will it take to be profitable? While there are many notions to understand as a business owner, equity is a key concept and you should have a firm knowledge base of how it works. It is essentially what will drive your business and its profitability.   What is Equity? Equity is essentially the value of any asset, in this case your business, minus any liabilities on that asset. A liability may be a loan or debt that is owed against the business. Here is an example: If you bought your business’s physical building for $400,000 and the mortgage balance is $200,000, your equity is $200,000.   There is also the concept of owner’s equity. This is essentially the total amount of equity you, as the owner, have in your company. Let’s look at this in another example. If your company has $200,000 in total assets but also carries $50,000 in total debt, your total equity in the business is $150,000. A simpler way to think of owner’s equity is that it is the amount of money that would be left over if you sold all of your business assets and then paid off all of your business debts. The lower your debts, the likelier you are to have positive equity in your business and the higher the probability you would make a profit should you decide to sell it.   Negative Equity Negative equity, as its name suggests, is not a good thing for any business owner. It applies to the concept of when your ownership interest in your business is equal to less than your liabilities and debts. So, for example, if you purchased your business’s building for $300,000 and took out a loan for $250,000 to pay for it but the value drops to $200,000, you now have negative equity. That is because the value of the building is now less than the balance owed on it. You want to avoid negative equity as much as possible. You would not be able to sell your business for a profit if you had negative equity.   Types of Equity You can have both tangible and intangible assets in your business. Tangible assets are those that you can physical touch. If you run a business that keeps an inventory of product, that inventory is a tangible asset. An intangible asset cannot be touched but may even be more valuable than a tangible one. An intangible asset might be the reputation of your business. This can obviously bring you more customers. Another intangible asset might be brand identity. Everyone knows, for example, that golden arches represent McDonald’s. The more recognizable your brand, the better. If customers know you, they may use you for your services or goods.   Importance of Equity Equity is of the utmost importance when it comes to your business. As your owner’s equity increases as time goes on, you can potentially sell your business and turn a profit. So, if you want to eventually make a profitable business, you need to be consistently building equity in it. This means the value of your business should...
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Your Essential Guide to Starting a Small Business

Your Essential Guide to Starting a Small Business
Here’s to New Beginnings: Your Essential Guide to Starting a Small Business   When you have a great business idea and strive to achieve financial independence, you might be thinking about launching a small business. Every huge corporation started with a small business, so why not? While you can definitely achieve success in the business world, keeping your small business successful for at least 2 to 5 years is a huge work. This game is worth the candle, though. So, if you’re trying to start a small business, here’s your handy guide to help you out:   Start your journey with research Perhaps, you’ve already come up with a unique – or any – business idea, but is it going to bring you success? Does your business idea have many competitors? Before you take any step, do your own research. Consider running your idea through a simple validation process that will help you to figure out the future of that idea. First of all, your business idea should offer something – be it a service or a product – that the modern market needs these days.   There are many ways to find out if a business idea will be successful, such as focus groups, deep research, and in most cases, trial and error. But before you go through trial and error ask yourself:   Does the market need your product/service? Who are the people who will want to use your product/service? What are the companies that offer similar or the same product/service? Will you be able to compete with them? It’s important to ask confidently without any fear or disappointment.   Create a business plan Any business idea requires a powerful business plan, which will become your guide during the process of establishment and business growth. There are many types of business plans, so choose the one that will suit your idea.   If you’re looking for financial support from a financial institution or an investor, creating a basic business plan is essential. This business plan is usually thorough and long, and contains a set of sections that banks and investors check out when they’re validating a business idea. In case, you’re not looking for any financial support and you’re going to invest in your startup yourself, it may be enough to create a simple and short business plan just to give you the initial steps you should take. You can also come up with a working business plan on a piece of paper and change it as you start working on it.   Consider your finances Generally, a startup doesn’t need too many investments, yet you’ll need some money to cover a number of expenses during the first months or even a year before your business will earn a profit. Calculate the one-time startup expenses like property leases, permits and licenses, legal fees, equipment, branding, insurance, inventory, market research, opening events, trademarking, etc. Then, calculate how much money you will need to keep your startup running for a year (your own paycheck, employee paychecks, utilities, rent, advertising, marketing, travel expenses, supplies, etc.)   As soon as you find out an approximate amount of money, think about the ways to find them. You can either save money or borrow from family or friends. Many new entrepreneurs also apply for an SBA loan. Filling out an SBA personal financial statement may be tricky, but here’s a guide to help you out.   Select a business structure Whether it is a limited liability company (LLC), a partnership, a sole proprietorship, or even a corporation, your next step is to select a business structure. Your business structure will affect a lot...
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