Kenneth Boyd's Blog, page 35

4 Ways to Make Better Financial Decisions

At various stages in our lives, we will be forced to make critical financial and investment decisions. Although some people may seem to have a better judgment regarding the kind of financial decisions they are required to make, it is not the same for everyone.

 

Many other people are currently finding themselves in different financial crises, due to decisions or mistakes they made. Are you struggling with making right and sound financial decisions? Then don’t fret. Take a look at the following steps to guide you in making sound choices.

 

Take responsibility

 

Before you can make any financial progress, you first need to take responsibility for your current situation. Take time to reflect on all the past decisions you made with your money and your spending habits. Acknowledge the poor choices you may have made and write them down to remind yourself.

 

After that is done, you should reflect on the lessons you have learned from this experience. Think of how you could have made better choices, especially if given a second chance. You may need some financial assistance to get you back on track, like 89 cash, which offers loans to help you get back on your feet.

 

Set realistic financial goals

 

After readdressing your mistakes, you need to set more inspiring yet, realistic financial goals for the future. But to achieve this, you need to set daily goals. While you need to create cautious and realistic financial goals, they should still inspire you enough to feel optimistic about your financial future.

 

Write down a list of the things you need to get in your life and how much they will cost you, then set up a financial plan on how to achieve those goals one after the other. For example, if you need a new home, plan how long you think it will take you and how much you will need.

 

Live on a strict budget

 

Now, this is where it gets a bit more uncomfortable. As difficult as living on a strict budget can be, it is crucial to ensure that you do not repeat past mistakes. Living on a strict budget also makes it less challenging to make financial decisions. If you can maintain the kind of discipline required to cut down on unnecessary spending, you will realize how much easier it is to save for the future. Your budget puts you in check and will guide you from going off your financial goals.

 

Say goodbye to debt

 

Debt hardly brings happiness or peace of mind. So, say bye to debt by focusing on building your net worth. Your net worth is simply the difference between the amount of money you owe and your total assets. Put differently, you can calculate your net worth by subtracting your liabilities from your investments.

 

Anything of monetary value that you own is part of your properties. These include money saved up, vehicles, buildings, etc. Your liabilities include any amount you owe. The difference between the two is your net worth.

 

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

 

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 300+ blog posts and 450+ You Tube videos on accounting and finance:

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

 

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Here’s Why You Can’t Afford To Travel Without Insurance

Can’t afford to travel without insurance? Yes I can! If anything, it’s cheaper to book a flight without paying for another costly expense. A vacation policy is always less affordable, since the insurer has to cover you for extreme events, such as medical care. Therefore, it’s cheaper to travel without insurance in the short-term.

 

From a long-term perspective, it’s a stupid move. Sure, lots of people don’t bother, and COVID-19 has only made it worse – 75% of travelers say they won’t invest unless it includes Coronavirus cover. Still, you don’t have to follow suit because it’s the status quo.

 

Instead, you should always make sure that you have adequate coverage before booking a trip abroad. The recent pandemic has taught us many things, and that is one of them. Here are four extra reasons why you can’t afford a trip without insurance that you should factor into your decision.

 

Dealing with travel uncertainty

 

When a flight is canceled for whatever reason, it’s down to the company to find a solution. 90% of airlines and travel operators are honest, but 10% won’t follow the rules. And, if you don’t know them yourself, you might end up on the losing side if you’re unlucky. Thankfully, insurance is an equalizer.

 

If an airline states that they won’t provide a refund or reschedule your booking, the only option is to pay for another ticket with a different firm. That way, you can sort out the details when you’re home rather than in an airport lobby. Without the security of insurance, it’s not nice to have to buy a ticket knowing you might never see the money again.

 

Not only is it the financial implications you should worry about, but the principle of the matter. You deserve what you pay for, and when a provider doesn’t give it to you, you don’t want to offer them the satisfaction of winning.

 

Considering the risk of theft

 

Being the victim of a crime- such as theft- can happen anywhere in the world. Depending on the circumstances, it could take place in your backyard, surrounded by friends and family without your knowledge. Cybercrime occurs daily, with the average cost setting individuals and businesses back a huge £13 million.

 

The difference is, when you’re at home, you’re usually covered. For example, most homeowner have contents insurance. An acts of fraud involving your bank account is covered by your bank. When you’re away, this isn’t the case- unless you have a specific policy. Losing something as small as your glasses is a big deal, too, as the costs rack up. Thankfully, regarding replacements, an insurer will find it easily and pick up the tab so that you can continue your trip.

 

The same goes for accessories, such as mobile phones and tablets, as well as clothes and money.

 

Addressing potential liabilities

 

Unfortunately, another person might not always be liable. In some cases, you’re the guilty party, even if you didn’t mean to cause harm or damage, as accidents happen. When they do, you want to be in a position to give back what you owe without fretting over the economics. Remember that the worst-case scenarios are expensive.

 

Almost every policy includes liability insurance in the general terms and conditions, so you have a level of liability coverage. Of course, you can tailor the package to suit the potential requirements. For example, it’s wise to include accidents to others if you’re on an extreme adventure weekend.

 

Alternatively, if you plan to rent a car, it could be worth adding it to your plan in case a crash results in harm to a motorist or pedestrian. You never think about these things until it’s too late.

 

One In A Million

 

The odds of getting into an accident could be one-in-a-million. How many times have you traveled without incident? How often do you end up in the ER when you’re abroad? According to the stats, it’s probably not worth the investment.

 

Yet, it’s not worth the risk. A flight might be canceled and lightning might strike, and if it does, you want to be in the best position to get home safely. If COVID-19 has highlighted anything, it’s the fragility of the world we live in. it looks stable on the outside, but all it takes is a virus to force everything to grind to a halt. When you think about it like that, a couple of hundred dollars for peace of mind isn’t expensive.

 

You can’t afford to travel without insurance, because the world is unpredictable.

 

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

 

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 300+ blog posts and 450+ You Tube videos on accounting and finance:

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

The post Here’s Why You Can’t Afford To Travel Without Insurance appeared first on Accounting Accidentally.

Keeping On Top Of Your Business Finances Isn’t Easy

Everyone knows that running a business is a tough task to do, especially if you’re trying to take on too many jobs yourself. We know it can be tempting, because you want to make sure everything is done right, but a lot of the time, all you end up doing is wearing yourself out.

In this article, we’re going to be taking a look at your finances, and how you can better manage them. Keep reading if you want to find out more.

 

Hire An Accountant

 

The first thing that you can do is hire an accountant. It’s not always an option if you’ve got limited funds, and you’re a small company, but the larger you get, the harder it’s going to be to do this yourself. You’re going to need some professional help from someone who knows what they are doing.

Having someone on your team who has trained with finances and numbers is invaluable. You don’t have to panic that things are going wrong, they will be able to give you advice about where you could save money if needed, and they do a whole other load of things too. Keeping your finances in order can be a tricky thing to manage if you’re not experienced, but an accountant will be able to take this burden off of you.

 

Use Helpful Tools

 

If you are going to be doing it yourself, then we highly recommend using online helpful tools such as Pigly.com to help keep track of everything. It’s essential that you can look back and see what you have done so that if a mistake is made at any point, it’s easy to find.

This is why accountants use a number of different types of software combined with spreadsheets to aid them in their tasks. Just because you’re not an accountant doesn’t mean that you can’t take advantage of the same kind of tools that they use.

Keep in mind that these things are there to help you and make your life easier. If you’re not sure how to use them, all you have to do is take the time to learn. Eventually, you will get the hang of it, and you’ll wonder how you ever managed your finances without the help of one of these tools or software.

 

Always Double Check

 

Finally, you should always be double-checking every single thing that you do when it comes to money. You don’t want any money disappearing, you don’t want to make a huge mistake that cripples your business because you forget to carry a zero or anything else like this. It’s essential that you are careful with finances, which is why you need to go over them and make sure you’ve done it correctly.

We’re not saying that you probably haven’t, but a clever person always checks to avoid an incident. It’s better to check now and prevent an issue than have to try and find a solution to the problem later.

We hope that you have found this article helpful, and now see that keeping on top of your business finances may not be easy, but these things will make it simpler. Good luck!

 

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

 

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 300+ blog posts and 450+ You Tube videos on accounting and finance:

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

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Key Investments In Your Life And Making The Right Choices

There will come a time in our lives where investments must be made. Not just into savings bonds, property and stocks and shares, but our investment into our lives as well. Of course, those things have much to do with it, however, there are investments into our lives that need consideration ahead of time, perhaps because of the financial implication but also because of the change and impact it will have on our lives. With that in mind, here are some of the key investments you may want to make when it comes to your life.

One of the biggest investments we can ever make in our live financially has to be to do with property. Your own home is a huge expense, not just initially, but also with the mortgage payment each month. You also have the consideration of a mortgage to decide upon, such as weighing up the options of fixed vs ARM mortgage deals.

Not to mention those pesky bills that are needed to keep your home in good working order. Property, however, is one of those investments that can really help you in the future. You may move on, values may increase, you may need more space or you might improve the home you have. But this is one life investment that doesn’t just affect you personally, but it can have a huge positive influence financially.

 

Repairing your credit score

 

Credit is one of those things that can be very handy when you need it. A mortgage on a home, for example, a car loan, maybe. But, credit can also be something that can get us into trouble financially. Spending on credit cards and not repaying them in full, only paying interest and small payments, could mean that you end up being in a financial mess. A financial investment, yes, a life investment, definitely. Repairing your credit score and paying off debt can have a big positive influence on your life and your relationship with money in the future.

 

Traveling and living abroad

 

Travel is possibly on everyone’s bucket lists for their lives. Seeing different places and experiencing different cultures and ways of life. However, living abroad is definitely a life investment to consider at some stage of your life. The chance to work in a different country, experience everyday life in new surroundings, it can be seen as a big adventure.

 

Saving and considering your future finances

 

Saving is something that we should all be doing. Perhaps you have been aware of the value of saving your money for some time, even as a child, being encouraged to save birthday money or parents having a bank account where your savings could grow.

However, saving for small things like holidays or life events like weddings, etc, is one thing. But we should all take the time to plan and save for our future. Pensions, long-term saving plans, and even property, are all great ways to invest in your future finances and start planning for the future. After all, when the wages are gone, how will you afford the lifestyle you have grown accustomed to?

Let’s hope this has got you thinking about some of the key investments you could make in your life.

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

Go to Accounting Accidentally for 300+ blog posts and 450+ You Tube videos on accounting and finance:

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

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5 Financial Benefits to Studying Later in Your Career

Many adults continue studying as their careers develop. This may include specific training courses relating to their field, university degrees, or masters. The main benefit of continuing education is that it increases your financial opportunities in the future. You’ll be more likely to get a promotion, earn a higher salary, and broaden your horizons in different fields.

With a higher salary and increased job security, you’ll also be able to afford a larger home and have a more comfortable way of life. Here are five financial benefits to studying later in your career.

 

More employment opportunities

 

If you’re interested in a career change or work in a different department, studying a further qualification can bring you more employment opportunities. Whether you choose to study a nursing degree or an MBA, you’ll have more options later in life. This means a lower risk of unemployment and more financial stability. You’ll be a better candidate, and be able to be more flexible when looking for new job opportunities.

 

Boost your salary

 

One of the main advantages of studying whether you find a new career or not is usually an increase in salary. Most higher-level job roles require more qualifications and tend to pay better. You’ll be able to earn the money you invested in your studies back in the form of higher salary. An advanced education can boost your salary, and bring income benefits.

 

Improve your image

 

Another way to boost your business is to develop your personal brand. Further education or expertise in a certain area will greatly help to improve your image. Many employers also respect those who can take on an extra challenge later in life, particularly while they’re working. You’ll instantly be able to improve your resume and increase your chances of success.

 

Increase your chance of promotion

 

If you study later in your career, you’ll also increase your chance of promotion. Your employer might even be willing to sponsor your studies in order to make you a more valuable asset to the company. Employers recognize the fact that you’ve invested time and sometimes a lot of money to bettering yourself. They will reward this and you will stand out above the rest compared to other internal candidates. A promotion also means a higher salary and more job security. Here is a step-by-step guide on how to get promoted at work.

 

Financial security for the future

 

Continuing to study later in your career increases your chances of reaching financial stability. You’ll be able to secure a higher role with more salary, and you’ll even have more opportunities in other sectors.

If you’re looking for a career change, studying is your best bet in securing financial security for the future. Learning new skills through studying is the first step in a career transition. If you have more opportunities for work you’re more likely to have job security. You’ll be able to have the quality of life you always wanted and save for the future.

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

 

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 300+ blog posts and 450+ You Tube videos on accounting and finance:

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

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How To Get The Best Selling Price For Your Home

Selling your home is a bit of an art. You have to make sure certain external factors are being met, as well as showing people your home and keeping it tidy for strangers. Selling your home can be an emotional experience, especially if this is your first time selling a home. The way the economy is going, you may be asking yourself, “how can I sell my home fast in Plano, Texas,” or wherever you are local? Here are some tips on how to get the best selling point for your home.

Avoid Getting Too Emotional

Make sure that you keep your emotions in check when you are selling your home. Although it is true that you have made many memories and you spent a lot of time looking for this home, but you will make more memories and you will find another home.

Remember that you are only selling property, not your dog. When it comes to selling your home you should also adopt the mindset that you are selling not just property but also an image and lifestyle. By adopting this mindset, you will be better off when it comes to staging your home and making some remodeling. This is one way to get the best selling price for your home.

Determine If Hiring A Real Estate Agent Is Right For You

If this is your first time selling your home, it is recommended that you sell it using a real estate agent. Even if this is not your first time selling your home, going through a real estate agent is more often than not the better option. A great real estate agent will help you sell your home at a great price, help curtail the emotional attachment by being the buffer between you and potential buyers.

A great real estate agent will also know how to negotiate to make sure that you are getting the best financial gain possible. They are also pros at filling out the paperwork required to sell a home, so they can handle all of that boring stuff for you. Overall, real estate agents can help the selling process easier and more streamlined.

That does not mean that selling your home without a real estate agent is impossible. If you choose to work on your own, make sure that you do sufficient research on the types of homes that recently sold in your area, and the homes that are currently on the market. Studying these things will help you determine a fair asking price for your home. You will also have to handle the marketing of getting your house listing out to potential buyers.

Avoid Setting An Unrealistic Price

This is a quick way to scare off the people who may actually want to buy your property. Remember that houses that are overpriced will not sell. Make sure that you do sufficient research to make sure you are asking for a fair price on your listing. Some sellers even underprice their homes as a negotiation strategy.

 

 

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

 

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 400+ blog posts and 450+ You Tube videos on accounting and finance:

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

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Do You Have Any Options With Bad Credit?

Short payday loans are probably one of the most viable ways to get cash. Authorized lending institutions are all over the country and can be accessed through the Internet. Because of this convenient set-up, a short payday loan is best for people who need immediate monetary support, including those with bad credit.

 

Keep in mind, however, that payday loans charge far higher interest rates than other creditors, and repaying a payday loan is expensive. To give you a heads up for your first payday loan, here are some things you can expect when you make your payday loan application.

 

Lenders understand your situation

 

Short payday loans from the likes of Viva Payday Loans can be considered commonplace these days. The loans are highly in demand for those who are going through financial difficulties.

 

To genuinely be of help, lenders transact with clients in the most personal way they can. You just have to be honest with the information that you provide and the areas that you need further explanation with. In terms of repayment difficulties, tell your side of the story. You have to disclose the exact reasons why you missed or will be missing a payment.

 

To avoid late charges and worsening your credit score, strive to make your payments on time.

 

Referrals to other payday loan providers

 

Institutions providing short payday loans are more or less affiliated with other lending agencies. With their vast network, there is a better probability that you will still be approved.

 

For example, suppose you have a bad credit score and your desired short payday loan provider cannot honor your request. Instead of merely rejecting your application, they may pass it to another company that they believe can provide you with the money you need.

 

Flexible options for loan settlement

 

Short payday loan companies know very well that you might want to consider dividing the repayment amount you have to settle. You don’t have to worry because a lot of these lending agencies offer different time lengths to pay off your loan. They have made their payment options flexible so that settling the entire amount would be convenient for you.

 

When you agree on a time frame, make sure you can adhere to this schedule. If not, you can always talk to your loan provider and get other options, based on your capacity to pay.

 

These lending companies can be equally strict and considerate, if you explain your situation to them. See to it that you understand the contract and settle the loan amount at the agreed time. Bear in mind the points discussed above, so your first payday loan experience will be productive.

 

 

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

 

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 400+ blog posts and 450+ You Tube videos on accounting and finance:

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

The post Do You Have Any Options With Bad Credit? appeared first on Accounting Accidentally.

4 Skills Every New Business Owner Should Learn

Discovering your niche as a new business owner and developing a useful service or product is a great feeling. Whether you built your business yourself, inherited it, or recently got hired to manage it, there are some essential skills you should learn as a new business owner.

 

The Bureau of Labor Statistics reports that about 20% of small businesses fail in the first year, while close to 50% crumble by the fifth year. By the tenth year, a mere third of new US businesses have survived. Want to be one of the successes? Use these four key skills to avoid failure and stay in business.

 

Financial Literacy

 

As a new business owner, it’s logical to keep an eye on how much you’re committing to operations and revenue coming in. How you do this depends on your budgeting skills. It is a must to keep a fair working balance between costs and earnings, which is why you need a firm grounding in financial literacy.

 

A lack of proper judgment and discipline could render your business unsustainable in the long term. Many start-ups in the United States go bankrupt due to deficiencies in this area, and you do not wish to add on to this growing statistic. Educate yourself on banking processes, accounting, investing, credit-debit cycles, and identity theft, among others.

 

Marketing Skills

 

Hiring a marketing team may be a considerable expense to your new business, but it can be worth it. Sometimes, the person responsible for the business is the reason for its success.

 

Personal branding is a necessary tool in marketing, and as a new business owner, you should learn this skill. Clients and potential customers have a habit of developing and maintaining business relationships with the face behind the entity. The reason is, people want to remain loyal to a brand they trust and feel comfortable dealing with on a regular basis.

 

Communication Skills

 

The foundation of effective communication is the ability to listen and offer solutions when needed. An excellent business owner knows how to speak well and present business products without sounding condescending or belligerent.

 

People tend to be put-off by personalities who try to talk in an overly-intellectual manner. Customer service relies heavily on excellent communication skills. Enroll in an online communication class or dedicate time to read books that address this topic.

 

In the event of legal complications in your operations, your communication may help disentangle your entity from further problems. Learn more about Bey & Associates, a US-based firm with experienced trial lawyers with over ten years of expertise in personal injury cases.

 

Smart Time Management

 

As a new business owner, time management is critical as you work towards your goals. Time management skills help you avoid getting stressed in your working week.

 

It is normal to work under pressure to meet deadlines, solve problems, complete paperwork, or attend to customer needs. You can do all these by adequately planning your day, week, or month. Schedule your activities in order of urgency and priority. Keep a daily planner where you record and make easy references to all activities.

 

These crucial skills are developed only through learning and constant practicing. Use them to their full potential and your new business will be a success in no time.

 

 

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

 

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 400+ blog posts and 450+ You Tube videos on accounting and finance:

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

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Why Small Businesses Struggle with Cash Flow

We’ve all heard the phrase “Cash is King”, and while we don’t want to sound a like broken record on repeat, this statement his very real. Nothing beats a business that can quickly liquidate cash to meet unexpected expenses, or to jump on once-in-a-lifetime opportunities.

Even if a rival company might have the upper hand on the overall net value, the competitor needs cash to operate.

Consequently, the significance of having cash on hand and general cash flow has an even more substantial impact on small businesses. In a ruthless competition to become prominent, all it takes is one slip-up to lose an edge or for someone else to take the lead.

On that note, today, we will be addressing the issue of cash flow and learn what you can do right now to resolve these struggles.

Stay Determined and Follow Through

Before anything else, we want to preface this guide with an important warning. Understand that for any business to addresses its weak areas, overnight solutions do not exist. And as much as we want things to work out magically, any industry demands the investment of hard work and time.

So take a page out of undergraduates’ books who work tirelessly through internships and training courses, and stay determined. Don’t stop halfway, but instead stick with your guns and follow through to see the change you want.

Do Away With Unnecessary Expenses

Cash flow works both ways in business, activities that generate an inflow of cash and expenses that create an outflow where money leaves the company. However, not all costs are made equal, and frankly, some are unnecessarily more expensive than others. So if you want to better cash flow, an excellent place to start is doing away with all the unnecessary expenses incurred through the normal operating cycle.

Try going through cash flow and income statements, and pinpoint areas that you can effectively limit without affecting your business. From your utilities down to transportation, leave no stone unturned, and you’ll thank us later.

Save Whenever You Can

Small businesses don’t have pockets as deep as prominent companies in the industry, which means you need to save whenever possible. You need to get the most out of your money’s worth, because every penny counts, and soon enough, you’ll see the savings stack up. Promptly pay for your supplies to get those purchase discounts, buy in bulk to get items at better prices, and build beneficial relationships with other businesses.

Modernize Your Operations

While small businesses can get away with traditional operations, you’re cutting yourself short and limiting your options. Use project management platforms to reduce the price of office supplies, implement social media marketing strategies to leverage advertising expenses, and outsource trivial tasks

Encourage Prompt Payments

Receivables and payables move the most money in and out of the business, which means they play an essential role in the overall cash flow. And to resolve the lack of cash on hand, you’ll want to create a business model that encourages your clients to make prompt payments. And as a result, you get your money quickly, and they get to reap equal benefits.

 

Offer Discounts: An excellent method of encouraging your clients to make prompt payments is by offering purchase discounts when they pay within a certain period. This method works best when you implement a level-up strategy, wherein the earlier they pay, the bigger the discount, and it decreases as time goes on. For example, the first ten days nets a 5% off the invoice price, within 15 days nets 3% off the invoice price, and 30 days offers no discount.


Penalize Late Payments: To compliment your discount offers, you can also work the other way around and penalize late payments. This method will discourage clients from making late payments as they incur interest on top of the invoice price – all the more reason to pay early.

 

Experiment With Pricing

Last but not least, if you want to generate more cash flow for your business, then it might be time for you to revisit the pricing for your products and services. The market is always susceptible to volatility and changes, and all it takes is for one major event to tip the scale in a particular industry. Take a good long look at your pricing and see if it is justifiable for the value your clients are receiving.

Match Your Competitors

A good way of gauging your prices is seeing if they are up to market standards alongside your competitors. If your price is set way below your competitors, then you might be low-balling yourself. So update your pricing, but don’t go too overboard that you run the risk of dissatisfying loyal customers.

Try A Different Pricing Model

While one-time payments work in most cases, if your product fits the description, you can also try a subscription model with added benefits. You can offer add-ons to give customers extra options and create an additional stream of cash inflow for the company.

Invest Long-Term

Cash flow plays a crucial role in reaching your business goals. However, always remember that you’re in this game for the long-term, so invest and think of the future. Take these practices and implement them into your business, and you are bound to see significant improvements in your cash flow.

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 300+ blog posts and 450+ You Tube videos on accounting and finance.

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

The post Why Small Businesses Struggle with Cash Flow appeared first on Accounting Accidentally.

The Team You’ll Need When Flipping Properties

Flipping properties can be a very lucrative career if you know what you’re doing. If you’re planning on doing it for a living, you need to make every cent count, so that you can make the maximum amount of money of every property sale.

 

Consult with a tax accountant and a real estate attorney regarding the risks of real estate investing.

 

Successful property flippers have a network of contractors and professionals that they rely on to help them get the job done. If you’re new to the world of property development, these are some of the people you’re going to need on your side.

Realtor

Developing a relationship with a good realtor in your city or state is a great way to find out about properties before they hit the open market. Your realtor will know exactly the type of properties you are seeking, and will have in-depth knowledge of the local property market and area.

Architect

Sometimes, you’ll buy a property, update the interiors and then simply sell it on for a profit. Other properties require substantial reconfiguration in order to bring them up to a high standard.  This is where an architect comes in. They can bring your vision to life on the page, creating options to expand and improve the property, in order to get the maximum value.

Plumber

Small plumbing tasks, such as changing a faucet or replacing a radiator can usually be done by someone with a bit of DIY knowledge. Picking up skills like this can save you a lot of money. But older, run-down properties will often need a full bathroom, kitchen and heating replacement. You’re going to need a plumbing company to complete these major jobs.

Electrician

Similarly to a plumber, an electrician is necessary for rewiring jobs on older properties. Make sure they are fully licensed and insured as there are many legal regulations surrounding the industry.

 

Builders

Structural work will need to be carried out by a licensed building contractor. Developing a relationship with a good builder will help you to get the best value as you work together on more projects.

General Contractor

For all those tasks that don’t require a high level of specialization, such as plumbing, but still require a lot of skill. General contractors will be able to pick up tasks such as fitting kitchens and doors, laying floors, plastering and any other general tasks that you need to be done.

Decorator

To put the finishing touches to your redeveloped property. Property developers will often take on a lot of the decorating tasks themselves in order to save money, but it is always good to have a reliable decorator on hand when you need them.

Do Your Homework

Flipping properties is really a team effort. Having talented professionals on hand that you trust is vital as you build your business. The more you work together, the more they will begin to understand the way you like to do things. A promise of consistent work will often result in reduced fees and preferential treatment too.

 

 

 

For live CPA exam prep and accounting classes, join Conference Room for free. Members will be notified of course dates, times, costs, and how to attend these courses.

 

Get your questions answered to pass the CPA exam, and to learn accounting concepts.

 

Go to Accounting Accidentally for 400+ blog posts and 450+ You Tube videos on accounting and finance:

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

The post The Team You’ll Need When Flipping Properties appeared first on Accounting Accidentally.