How to Improve your finance and accounting department’s efficiency?

Finance is a core function and the heart of a successful business. A well-functioning finance department will streamline business operations and help the business reach its objectives. Here are some tips on how to increase your finance and accounting department’s efficiency. Communicate to the team – Speak to your finance team and ask them what day-to-day activities can be improved to eliminate unnecessary work, to get things done faster and how collaborating teams can help efficiency. Training and development – Cross training your finance team will mean that everyone knows what their team members have to do and this means that if someone is not at the office, another person can fill in. Leverage technology – Cloud technology makes data safe and allows multiple people with access to data when they are not at work. Establish deadlines – Deadlines help to create a culture that work has to be presented on time. When financial information is on time, key decision makers will have the data they need to make informed decisions. Batch processing – Batch processing will help your finance department gather, consolidate and process invoices and receipts in one go. Utilize accounting systems – Accounting systems are easy and will help accountants manage their information and time. Utilize process metrics – Process metrics will help to create benchmarks and compare activity in previous periods. They can also be used to create accounting ratios, cycle time and the number of documents in process....

How to keep your financial resolutions for 2017

How to keep your financial resolutions for 2017

Jan 1, 2017

Article Written by : Business and Finance Net Many will make new years resolutions and then forget them by the end of January. However, a new years financial resolution could mean that you are free of debt and have savings that will improve your financial health. Resolution No. 1: Setting a monthly budget – Budgeting is a good way to build long-term wealth, but getting started can be a difficult process. Here are a few tips: Know how much you make – You should take your final figure after all deductions have been made. Calculate how much you spend – Use a spend tracking app or use an excel sheet and this will help you log every dollar spent over a 3 month period. Know where you can cut back- Fixed expenses like rent or your mortgages are areas that will remain the same. But you can look at other areas like grocery bills, dining out, shopping, utilities, subscriptions etc. Adjust your numbers – Every month will be different and you will have to adjust your figures to stay focused on your goals. Resolution No. 2: Building emergency savings – Your emergency fund will see you through if you loose your job. Ideally, this fund should cover your expenses for at least 3-6 months. Here are a few tips: Monthly savings goal – Take a percentage of your income and ask your bank to directly transfer this amount to another account each month. Save windfalls – If you get any extra money in the form of gifts, bonuses or rebates directly transfer this to your emergency account. Earn more. – Look for ways to make extra money, like engaging in freelance work or getting a second...

3 Simple personal finance advice that works miracles

3 Simple personal finance advice that works miracles

Dec 1, 2016

Artilce Written by : SNDA Online Here are 3 simple personal finance advice that is targeted at mid-income earners, who often struggle at making the most from their savings and spending habits. Cut down on things you dislike paying, ns not on the things you like– Most often people will ask you to cut down on things like your daily latte, your manicures or eating out. In most cases, these make people feel worse and cause them to splurge later during the month. Instead look at areas in which you spend a bulk of your annual earnings. For example, take your annual car insurance. Before you pay your premium, shop around and clearly understands what you will be covered for and what the cost comparisons are. Find a side income source – Instead of cutting down, look into earning more with the resources you have. For example, if you have an empty room or an annex, think of renting it out or putting it in Air BnB. Also, consider online work that will enable you to work from home and around your day job. Do not buy a house/real estate as an investment – Houses or real estate are not good investments as they can be very volatile to changes in economic conditions. However, if you want to purchase a home for you to live in, this can be a good investment. In this case, make sure that it is the house you can afford with your current income....

7 Financial tips for couples

7 Financial tips for couples

Nov 6, 2016

As a couple, it is important that your priorities are in sync, which will help maintain a happy, healthy relationship. Money is one of the main problems that can cause a divide between couples. Here are a few sound tips to help couples stay on the same financial page. Learn to have fun without a lot of money. – Everything should not involve spending. Learn to enjoy things like a bike ride, walk in the park, a home-cooked meal or free concert. Pay attention to your partner’s financial habits. – Before committing to a relationship, understand how your partner handles money in their life. Discuss your dreams and goals with your partner – Let your partner know your dreams for the future and ask them about theirs. Your goals should be compatible to your partners. Living together – Discuss living together and other issues like leases and household expenses before moving in. Plan carefully before you borrow from your partner – Be clear with your partner about any debts you currently have and ask them about theirs. Each person should be responsible for the debts they have incurred prior to the relationship. Review your investments – Look at each of your investments and identify areas that can be changed to suit your joint goals. Joining your financial lives – Keep a record of bills like utilities and who will be responsible for the payment. Creating a budget for the month is also a good idea, as it will give both of you a goal to save and spend on the things you...

Setting up an emergency fund

Setting up an emergency fund

Oct 6, 2016

Read any book on personal finance or managing your money and one common thread will the emergency fund. Almost every single one will tell you the first thing to do is to open and contribute to an emergency fund. The recommendation is to prioritize this above all other non-essential payments. Here are the basics of the emergency fund: The first is to decide how much you want to commit to the fund. The basic idea is that the fund will be able to handle all expenses in the event of unemployment or an emergency. When factoring the amount, the recommendations are for either three or six months of total expenses. Obviously, six months is better than three. However, if finding employment is not going to be an issue, then three months will suffice. The next is to open the account. Since the funds need to be liquid avoid term deposits or any form of long-term savings vehicle. Those are better suited for retirement. Ideally, we are looking at a high rate savings account that has a low number of withdrawals allowed. This way the interest will contribute to the fund itself. Finally, figure out how much of your income can be contributed to the fund. The sooner the fund hits the target; the sooner you can start contributing to retirement or something else. Remember that once you hit your target, you can sleep well knowing that you can survive for a few months without dipping into your savings....

Important financial terms small business owners should know

Important financial terms small business owners should know

Sep 6, 2016

Small business owners should have an understanding of financial terms, as they are the nuts and bolts of a business operation. If you have an accountant or are handling your own financials, knowing these financial terms will help you understand how well your business is functioning. Here are a few terms small business owners should be familiar with; P and L – This is a statement, usually completed every month, will give you an understanding of how your business is running. Balance Sheet – This is an indication of your businesses assets and liabilities. This statement will provide valuable information for decision-making. Assets – These are items such as cash, real estate, land, equipment, tools, computers, and furniture. Liabilities – These are loans outstanding and monthly bills your business owns. Equity – This is the money you and any other owners have invested in the business. Bottom Line – This is the net income or earnings that a company makes for the month. Markup – This is the additional price added to the cost price. Gross Margin – This is the difference between total sales revenues and total cost of goods sold. It can be stated on a per-unit basis, in dollars or as a percentage. Gross Profit – This figure is your “Cost of sales” minus your costs directly associated with sales, such as materials, labor, and delivery. Net Profit – This is your profit after costs such as overhead, materials, wages have been...