Categories
Finance Services

Financial Accounting and Management Accounting – An Overview

This article deals with a brief overview of some of the differences between financial accounting and management accounting systems. But at first let us understand what accounting is.

What is accounting? Accounting may be defined as a system of collecting, summerising, analysing, and reporting in financial terms, information about a business organisation. The business accounting as understood today, comprises of, financial accounting, and management accounting. These two parts of the business system have something in common and there are differences as well.

As a part of the accounting system of business enterprises, these two differ from each other in many respects.

The first difference is in its structure or formats of its presentation of information. Financial accounting has a single unified structure of presentation, which means, that the information relating to enterprise business system is presented more or less on a uniform basis. The end products of financial accounting are its three basic financial statements, and these are:

 

– The balance sheet.

– The profit and loss account/income statement.

– The statement of changes in financial position.

The balance sheet presents the financial position of an organisation at any point of time. The profit and loss statement would contain the organisation’s financial performance over a specified period of time, which is usually one year. The inflow and outflow of financial resources of an organisation during a period of time is reported in the statement of changes.

The financial statements prepared are based upon an equation or model, which implies, that all organisations present their financial statements on basis of a uniform structure. This would mean that financial accounting has a unified structure.

Primarily, financial statements are usually meant for people outside the organisation, such as, shareholders, creditors, government, the general public, and like others. These people also get such reports from other organisations, and to maintain uniformity in these statements, financial accounting system uses a unified structure system.

On the other hand, management accounting is mainly concerned with the in-house management. Since the accounting statements are used internally, it varies in structure from organisation to organisation, depending upon the circumstances and requirements of individual use. Therefore, management accounting is tailored to meet the needs of the management of the particular organisation.

The next difference is in the generally accepted accounting principles. Financial accounting is prepared in accordance with the Generally Accepted Accounting Principles, which in short is known as GAAP. Preparation of financial statements following GAAP ensures that the account presentations have been prepared on basis of a norm, as per the general guidelines issued by law.

On the other hand, management accounting is an in-house requirement, and is for the exclusive use of the management of the organisation. These management accounting statements are never made available to the outsiders, and hence could be formulated in the manner as wanted by the in-house management.

The third difference between financial accounting and management accounting is the statutory requirement of preparation of accounts. As discussed above, financial statements are prepared solely for the people outside the organisation, who have interests in the business operation of the organisation. There are shareholders, who would use the information contained in the financial statements, to decide whether or not to invest in the organisation. By law it is mandatory to prepare such statements, and it is a statutory obligation. In fact, the company law not only makes it mandatory to prepare such accounts, it also has laid down the structures, based on which such financial statements need to be prepared.

The fourth difference is the reflection of historical accounts. As mentioned above, there are three types of financial accounting statements that are prepared. Within these three, while the balance sheet and the profit and loss account, report the financial position on a particular date, and the results of operation of the organisation during a specific period of time respectively, the statement of changes of the financial position reports the inflow and outflow of resources during a particular period of time. Therefore, financial statements record historical data. On the other hand, management accounting does not record any financial history of the organisation.

The fourth difference relates to segment reporting. Financial accounting pertains to the business as a whole, though some organisations segment such accounting for its different operating centres. But, as and when the financial statements are presented, it shows the business as a whole. Contrary to this, the management accounting system may present statements in segmented fashion.

Finally, the financial accounting and management accounting differs in respect of their ultimate objectives. Financial accounting is prepared specifically for external reporting, where-as, management accounts are solely for in-house use.

In this brief presentation, it has become quite clear how financial accounting differs with management account preparation. Both of the accounting systems are vital to any business scenario, and are mandatory requirements in a corporate environment.

Categories
Business Networking

Equipment Financing and Business Networking – Both Go Hand in Hand

To work in the finance services industry, whether its financial or estate planning or business financing, requires an individual to establish a great deal of trust with their client. The type of trust which necessitates a person to disclose all their worldly possessions to someone else, follow their advice and allow them to make key personal and business changes for them. Not only is personal and business information disclosed but decisions are made which can affect each area on a long term basis, and in some cases, for a lifetime.

Successful financial professionals traditionally have been required to invest years and years in establishing themselves and building their brand and trust factor. In the past, you didn’t get into the industry unless you were prepared to devote a good portion of your life. After time, people simply figured if you were around for twenty years then you must be doing something right.

So how does this relate to business networking with regards to services like equipment financing? To become highly successful in financial services it requires that you learn, understand and follow the core values of networking. Every business can truly benefit from building a strong network but since trust is so keenly vital to financial services, I feel it’s most relevant in this case.

Professional networking organizations like Business Networking International (BNI) base their foundation on the concept of “givers gain”; I give you business and you will reciprocate. But at the heart of that belief is the fact that it is primarily built on trust. Each person must trust the other to do the right thing, both with their intentions and capabilities. Business networking can accelerate the development of trust amongst our peers and networks because by following a system like BNI, you will learn to develop targeted skills in this pursuit. Skills which guide you in how to act, dress, what to say and to do the key things which will elevate the trust factor and your reputation much more quickly than if you waited for it to happen on its own.

A financial planner told me once he didn’t need to network because he had regular business referred to him by his old friends. I asked him how long did it take to develop his business and contacts and he replied, “30 years.” Who has that much time? Why not build the same devoted network on a much faster pace with highly predictable results.

A finance specialist or broker or any person in the financial industry can build their name and reputation with a consistent dedicated effort in few short years as opposed to the decades it used to take. This is a key consideration for any profession which requires a high trust factor to be successful. Build a diversified network, develop trust amongst them, follow-up with them on a regular basis and you can establish a foundation for long term success. Business networking and equipment financing are indeed on the same side of success.

Categories
Investments

Financial Investment Planning Process to Get Started

Investing your money is probably the best use of funds you own. However, if it is invested in various financial products without proper research, you can lose every thing you owe. Hence, the process of financial investment starts with effective planning and research.

But you cannot start with financial investment planning if you don’t have a specific goal in mind. Hence, one of the foremost requirements is ascertaining a goal. It can be either of the two goals mentioned below:

– Conservation of existing funds
– Growth of existing funds
– Or both of them

What you do with the money you conserved or grew depends on your personal preferences. Unfortunately, not many people have goals in their mind before investing their money. Hence, they money they create or conserve is misused often. Financial investment planning involves going through a step-by-step process. Let us have a look at it.

 

– Setting goals
– Analyze your risk taking ability
– Asset Allocation or portfolio designing
– Select investment products that suits your needs
– Regular monitoring of your investment
– Redesigning your portfolio when necessary

This is one of the money processes to go about investing your funds. You can alter this process according to your needs. This is, however, a very broad one and may be applicable to every individual.

Just knowing the process isn’t important. You must know about all the available investment options and know which one to invest in.

If you don’t intend to take much of risk, you can invest your money in cash products or cash equivalent products like currency, bank balances, money orders, coins, GIC, commercial papers, T-Bills, money market accounts, saving accounts, Certificate of Deposits, and so on. These are comparatively safe investment products.

If your risk appetite is a bit higher, you can invest in products like mutual funds, stocks, and real estate. It must be noted that there are various ways to invest in each of these products. For instance, you can invest in real estate by investing in REIT (Real estate Investment Trust), Real Estate Funds, Property, Rental Property, and so on.

For people who want to seek high profit and are ready to take bigger risk, products like stocks and derivatives are probably the best options. Specialized knowledge, however, is required to gain from these products. Stock may be further divided into aggressive growth stocks, common stocks, and American Depository Receipts. Derivatives too can be divided into futures and options.

Financial Investment Planning wouldn’t happen just by itself. It requires enormous planning, proper implementation, efficient follow-up, and essential redesigning. There is, however, a popular myth that investment is for rich people. Rich or poor, every one wants a secured future. Every individual is vulnerable to financial emergencies, and one must always be prepared to face it. And there is no right age to start investment planning. Even if you are nearing retirement, you must start investing. However, the early you start, the better it would be for you.

Categories
Entrepreneurs

Having teamed Success Road Alone

KH Muhammad Zakki always stressed the importance of trust in a business to santri. In addition, the remains resilient and good at looking for opportunities. While there are opportunities to be captured by the risk. Do not be afraid to fail.
Successful coffee business is not as easy as turning the palm of the hand. Muhammad Zakki winding road. Initially, he teamed up with others in the management of coffee plantations in Tulungagung.

“Now it exports itself to a number of countries, an average of 75 tons a month. Most of the robusta species,” he said to Surya.

Business was initially just to process the raw coffee beans processed coffee. When the partnership dissolved manages 400 hectares of land, he bought himself a land area of ​​650 hectares in the same location. Muhammad Zakki not directly sell the coffee harvest. But it is processed before entering the workshop in East Java market.

Over time, called fluttering. Order flows from abroad in 1999. One container is sent to Japan via Jakarta. “Coffee robusta easier fit with the foreign tongue. We, too,” he explained.

Through the flag of PT Mutiara Dewi Jayanti, Muhammad Zakki exporting hundreds of tons of raw coffee beans processed by the King and Pendowo Makhota brand Limo. Currently, export markets are Japan and China, and was exploring Dubai.

After all, from the business he had lost also because of the hundreds of world coffee prices plummeted. “Thank God, I can survive. Stock I was not too much compared to other coffee entrepreneurs,” said Muhammad Zakki. (Surabaya, Indonesia)

Categories
Small Business

How Do You Get A Loan For Your Small Business?

Whеrе саn I gеt loans fοr mу small business?

Funding fοr small businesses іѕ οftеn done through loans аnd equity. Equity іѕ thаt раrt οf thе capital οr money required fοr thе business thаt уου рυt up frοm уουr οwn pockets аnd thе rest уου take frοm outsiders іn thе form οf loans. Thеrе аrе various sources lіkе banks, venture capitalists, insurance companies, private individuals аnd organizations lіkе US Small Business Administration thаt provides уου loans fοr уουr small business.

Whаt аrе thе banks going tο аѕk mе?

 

Getting loans іѕ nοt always easy аnd thеrе аrе a host οf qυеѕtіοnѕ tο whісh уου mυѕt provide аnѕwеrѕ before being considered bу a bank οr аnу οthеr financial institution fοr a loan.

10 qυеѕtіοnѕ thаt thе banks wіll аѕk before lending уου money:

1.Cаn thе business thаt уου аrе considering tο enter іntο generate enough money tο pay οff thе interest οn thе loan?

2.If thе business fails thеn dο уου hаνе thе capacity tο pay οff thе interest yourself?

3.Whаt іѕ thе history οf thе business? Thе lending institutions wіll bе interested іn hοw thе business hаѕ evolved over thе years аnd hοw well іt hаѕ bееn performing іn thе past. Thе past іѕ considered tο bе a gοοd indicator οf thе future аnd chances аrе thаt іf уουr business hаѕ done well іn thе past уου wіll find іt easier tο obtain thе loan.

4.Whаt іѕ thе background аnd history οf thе managers аnd hοw committed аrе thеу tο thе business? Thе one criteria thаt mаkеѕ οr brеаkѕ a business іѕ whether thе management іѕ committed аnd capable enough tο steer thе business іn thе rіght direction.

5.Arе thе sales growing? It іѕ іmрοrtаnt fοr аnу business tο grow іtѕ sales аnd especially a small business whеrе thе base іѕ smaller аnd thе lenders аrе сеrtаіnlу going tο pay attention tο thе growth rate οf thе past few years аnd thе future outlook.

6.Hοw profitable іѕ thе business? Whіlе уου mау thіnk thаt thе lenders аrе οnlу interested іn getting thеіr repayments thеіr success іѕ dependent upon уουr success аnd tο thаt extent thе profitability οf уουr business іѕ crucial.

7.Whаt іѕ thе competition lіkе? Lenders wουld nοt lіkе tο loan out tο a small business whісh hаѕ bіggеr аnd more intense competitors wіth deeper pockets.

8.Iѕ thе industry itself growing? If уου аrе operating іn a profitable аnd growing industry thеn thе chances οf уουr getting a loan аlѕο increase thаt much.

9.Iѕ thе cash flow smooth? Cash flow іѕ tο business whаt blood іѕ tο thе body аnd уου ѕhουld hаνе a smooth cash flow tο pay аll уουr bills οn time, pay уουr employees аnd keep thе ball rolling.

10.Thе banks wіll аlѕο look аt уουr past credit history аnd hοw уου hаνе performed wіth thе loans thаt уου mау hаνе taken іn thе past.

Whаt аrе thе things fοr whісh I wіll gеt thе loan?

Thеrе аrе many aspects tο a business even a small one аnd уου gеt different types οf loans tailored tο suit each kind οf need. Fοr instance уου gеt loans fοr working capital, buying capital equipment, expansion programs, installing nеw machinery аnd computerization etc. Yου gеt loans fοr аlmοѕt аnу type οf needs thаt arise provided уου hаνе a gοοd case fοr іt.

Whаt іѕ thе amount аnd rate οf interest οf thе loan?

Different institutions hаνе different ways οf evaluating thе amount thаt thеу wіll pay уου. Indeed іn cases οf venture capitalists entire 100% іѕ аlѕο funded fοr уουr small business. If possible іt іѕ always better tο hаνе аѕ much equity аѕ possible іn уουr business fοr two reasons. One іѕ whеn thе prospective lenders themselves see thаt уου аrе putting уουr money іn thе business thеіr confidence іn уου increases аnd secondly уουr interest outgo аlѕο reduces mаkіng уουr profitability thаt much more аѕ уουr interest expense іѕ lowered. Thе interest rate hovers bυt іf уου take thе loan frοm thе US Small Business Administration іt wіll range somewhere between 8 аnd 13%.

Thеrе аrе various means аnd ways οf getting loans fοr уουr small business аnd уου mυѕt persevere аt getting thе rіght loans thаt suits уουr needs аnd gives уου thе best interest rates аnd repayment terms.

Categories
Franchises

Athlete’s Foot

Athlete’s Foot provides Franchise business opportunity in Indonesia in Sportwear industry, especially in athletic footwear. As a franchisee, you can choose your own footwear and apparel inventory.

Franchise Investment Requirements
– Liquid assets of at least US $80,000 and net worth over US $200,000
– Total Investment : $196,000 – $446,000
– Fee : $39,900
– Marketing Support Fund are paid monthly and are currently one percent (1%) of net sales

Steps To Becoming A Franchisee
– Completes Franchise Application
– Phone Interview
– Uniform Franchise Offering Circular (UFOC) to candidate
– Signs the Acknowledgement of Receipt
– Reviews Uniform Franchise Offering Circular (UFOC) with business advisors
– Contacts existing franchisees to learn more about The Athlete’s Foot
– Begins to build preliminary business plan
– Discuss requirements and options for financing
– Discuss requirements and options
– Schedule a Discovery Day at The Athlete’s Foot World Headquarters in Atlanta
– Attends a Discovery Day at The Athlete’s Foot World Headquarters
– Reviews candidate’s application and notifies candidate of results
– Sign Franchise Agreement and pays Initial Franchise Fee
– Secure real estate
– Franchisee enrolls in New Owner Training course

Address : 1412 Oakbrook Drive, Suite 100

Categories
Marketing Strategies

Live Your Personal Brand

Selection of candidates for Governor of Jakarta had become a topic of conversation was warm enough in the community. The term personal branding was often conceived in various articles.

This makes me want to peel a bit about personal branding. I will not discuss politics even further as I am not an expert in that field, but there are interesting things about personal branding can be discussed here. First of all I want to discuss whether it is personal branding. If you imagine all this applies only to goods brand the product or service, it is time to change the mindset.

Everyone has a personal brand assets, where assets that are unique nature of each individual. Personal branding is the image you perceive to communities and delivered consistently and effectively.

That image may be obtained from the experience, reputation, or your career. Be yourself. Personal brand not means you create a new character that is not the real you, but more of an effort highlight the uniqueness and strengths you already have and convey your unique value proposition in the eyes of the public.

Examples of personal branding physical attributes are most clearly seen in the campaign this time example of the clothing worn by the candidates. There is a candidate who wears a batik shirt, white shirt, plaid shirt, or other types of clothing. All candidates are trying to create a personal identity that distinguishes one another.

Personal branding on the campaign itself is closely linked with the fulfillment of his personal brand. The promise of what can be offered every candidate and value do you have from the owner of that promise, so that the public will choose one among the many candidates. The promise of personal brand must be delivered in sustainable and consistent.

For example, you promised to be personally honest, brave, and free from corruption, then it would be a pledge of your personal brand as well as a benchmark if you promise to be fulfilled or not for a long time into the future. An example of a successful personal brand to maintain consistency delivery promise is Oprah Winfrey.

Personal brand reflects the inspiration of his life and promise Oprah for women with its mission “Live Your Best Life”, where Oprah wants to help all women to see their experiences and challenges in their lives as an opportunity to grow and become a better person than before .

This can be seen from his talk show rich in aspiration, optimism and values ​​that can enrich women in different parts of world. Not limited to only talk show, but the personality and spirit to all lines extended to his brand, for example, the magazine O: The Oprah Magazine or on her website Oprah.com.

Besides Oprah Winfrey still there Nelson Mandela, Sir Richard Branson, and other figures. We can learn a lot about the personal brand consistent from the leaders. In forming a strong personal brand it takes practice, patience, competence, charisma and creativity and it all usually does not happen instantaneously.

It takes a long time to form a strong perception in the eyes and minds of the public. The most important thing is consistency. Consistency is the fulfillment of a personal brand is closely related to the development of a positive image of the personal brand. Your promise is the essence of your personal brand.

The more you can keep the promise, then you will get a positive value in the eyes of the public. Every man is a walking brand, consistency fulfillment that will make your personal brand will be seen Standout other than personal brand.

Categories
Franchises

Sinergi Fitness

Sinergi Fitness provides franchise opportunity in Indonesia. Here you can find any information about various fitness equipment sale, such as weightlifting machine, various bench, static bike, treadmill, dumbbell, barbell and iron plate for personal use, office facilities, or commercial purpose. And the most interesting thing is you can obtain those things by cash and carry or up to 12 times monthly payment.

Beside, you can get any information regarding Sinergi Fitness Gym branches to assist you to the nearest Sinergi Gym..
To whom interested in building up their own Aerobic & Fitness business, it is your golden opportunity. Because we will assist to make your wish come true.

With affordable number of investment, you could start your favourite fitness center business, supported with equipment, Standard Operational Procedures, System and management, Marketing Program, also instructors recruitment.

Categories
Franchises

E-Plus Ion Cleanse

E-Plus Ion Cleanse provides Franchise / business opportunity in Indonesia in Health and Beauty Industry. Their main product is e-plus Ion Cleanse foot spa, any many other health products.

Advantages of Ion Cleanse
– Remove Poison and Toxic
– Eliminating pimple & thirsty of husk
– Improve & Repairing liver function & kidney
– Launching blood stream & body network
– Losing weight body & fat
– Lessening excess of dilution
– Overcoming rheumatism & chafe joint
– Lessening muscle pain in bone & stiff
– Lessening blood-vessel acid
– Overcoming sleepless trouble
– Improving concentration & recall
– Improving vitality and energy
– Looking after system impenetrability of body
– Lessening to swell

Estimated Franchise Investment : Under Rp. 100 Million

Categories
Finance Services

Workplace Financial Education and the Positive Impact on Organisations

Personal finance can be a scary issue for many people. It can be confusing and overwhelming. To make matters worse, most Australians are so busy juggling work and life that they lack the time to give their personal finances the attention it deserves – which is the reason why most employees are requesting workplace financial education, tools and resources to help them make the right financial decisions, so they can achieve real LIFE outcomes outside of work.

Workplace financial education and advice is now the most sought after employee benefit employees want and leading employers are lining up to align themselves with organisations that can provide a trusted source of education and unbiased advice.

And don’t be fooled. Financial education isn’t designed for employees struggling to pay the bills. It’s designed for employees that have the financial capabilities to get more out of their income and investments. So we’re talking about employees ranging from the CEO down to middle management.

 

Investing in employee’s financial well-being makes good business sense. Why? Because personal finances impact basically every aspect of your life – from your lifestyle, relationships, attitude to your physical and mental wellbeing. So when employees lack the time or expertise to make the most of their personal finances, it affects their life inside and outside of work.

Employees who are distracted with their finances often find it difficult to focus on their work and spend valuable work time searching for solutions which directly affects their productivity and their employer’s bottom line.

What is Workplace Financial Education?

Financial education isn’t just about providing employees with information about money, taxes, investments, superannuation and so on, because information alone does not produce financial outcomes.

Employees still have to take financial information away and then apply it to their own personal circumstances which can also be very challenging. So workplace financial education won’t mean much to your busy executive if they don’t have the tools and support to help them take action, so financial coaching is also a big part of a financial education program – having quick access to a team of experts at their finger tips.

The upside will far exceed your organisations expectations

Many employers now include financial education as part of their employee benefits program. There’s a growing awareness that such programs give organisations a competitive edge whilst increasing their reputation as an employer of choice.

Workplace financial education gives employees the tools, information and confidence to make better financial decisions that can help them achieve positive financial outcomes which directly impact their personal and professional lives. It can be a roadmap to a better future.