Category Archives: Finance

Financial Management Tips for Small Businesses

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It doesn’t matter how big or small your business is because the work is never finished. Whether you’re a law firm, a financial manager or even into energy customer service. You always have something to do, a document to sign, an activity to supervise or simply you have to deal with all the administrative tasks that can appear.

One of the most difficult tasks of a business owner is to keep control of the financial side of the firm. One can have the needed experience to run a particular activity for a succeaccountingssful business, but this doesn’t always cover the experience required with the accounts and money.

We’re going to present you some additional tips that you can use in your business, especially if all seems to be in a fog.

The Budget

At the end of the fiscal year, you need to plan the budget for the year that comes. Don’t postpone it and don’t avoid it, because is essential for the activity of your firm. A proper planning of the budget will tell you exactly what you have to improve and what you have to cut, as it can indicate the income levels and the expenditures that you want to make.

Not everyone likes to lose some days and plan for the next year, but it will give you a real advantage in the future. The trick with preparing the budget is that you will know ahead of time what financial goals you have, and you will work for reaching your targets.

The Business Money

Even if you have income from your activity, don’t consider that the business is your personal bank. It’s better to wait a few years before you start investing in a new car or new components for your computer. A common mistake in young businesses is to spend more money than they produce or to overspend beyond the numbers set in the budget. If this happens, some people go to the banks or financial institutions for credits or business loans. According to our California personal injury lawyer, while they might help you out in the beginning, you might become the victim of a debt spiral, and you won’t be able to pay the credits.

Keep Everything Stored

No matter if it’s the invoice, the bank statement, the credit notes or any other financial document, you should know where all of them are. You can’t lose or have incomplete records because these can create major problems for your organization. If you want to have everything perfect, it’s better to choose digital solutions for keeping your files.

The Accounts

Even if it’s tempting to keep all the money in a single account, business advisors from ECS say that it’s better to keep separate accounts for your business and your personal use. The business account will let you manage and keep track of all transactions, and it will also avoid the confusion and the mess that can appear out of the mixture of these two accounts.

The Costs

If you want to keep the costs of your business under control, it’s better to hire fewer people or to outsource the activity, wherever it’s possible. The cost of an employee after you consider the payments made with salary and taxes, not to mention the furniture and other items can increase the indirect cost. It’s better to save money wherever you can, and outsourcing is one of the solutions.

Australian-Founded Bitcoin Exchange Set To Crumble?

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The collapse of MtGox was a wake-up call, revealing to cryptocurrency users the dangers that exchanges pose to the system, not only facing assault from hackers on a regular basis but routinely failing to stand up to these attacks. A lack of around-the-clock digital security and no implementation of the AS9100 Registration body causes loopholes in the MtGox system.

While the news coming out an Australian-founded Exchange, isn’t surprising, the idea that it might actually be on the verge of collapse has none the less sent shock waves reverberating throughout the industry. This may be tied to alleged involvements in scams and fraud. However, another, more stable and reliable Australian Exchange says not to worry.

Created by Rick Day, a New York-based entrepreneur, the fortunes of Igot are expected to have a lasting impact on the Bitcoin arena, with many in the digital currency industry now calling for the relevant authorities to create new regulations that can better manage Bitcoin transactions.

The Igot Scandal

The reports that Igot might be on the verge of collapse have become difficult to refute, with the voices of the many customers who are claiming that they are owed money in the hundreds of thousands of dollars painting a stark picture of Igot’s situation.

Rick Day has made an effort to deny claims that Igot is insolvent. Day, while speaking to the Australian Broadcasting Corporation said that he was aware of the plight of his customers, assuring them that exchange had not lost their money.

However, the rumors surrounding Igot paint a grim picture. Jesse Chenard, a former adviser of Rick Day and currently the CEO of a blockchain solutions provider for financial institutions claims that Igot has been undertaking shady deals since 2014. Supposedly Igot has been claiming to make purchases of currencies like Australian Dollars and Indian Rupees on behalf of its customers without actually making them.

According to Jesse, Rick was able to get away many of his fraudulent claims, especially regard his assets because of the murky nature of Bitcoin Exchanges. Sufficing to say, customers are not happy with any of the things they are hearing from Igot, and neither are they assured by Day’s claims.

The Question of Regulation

It is because of the confusion surrounding Igot’s current financial situation that people have begun calling for greater regulation of the cryptocurrency industry. According to the Australian Securities and Investment Commission (an organization that regulates financial products and services under the Corporations Act), while it has been hearing about these claims regarding Igot for some time now, the organization has been largely powerless to act because Bitcoin isn’t classified as a financial product or service.

None the less, the organization is in the position to investigate Igot now, the Corporations Act granting them powers to scrutinize companies that go into liquidation while facing claims of wrongdoing and breaches of the law.

People, both inside and outside the Bitcoin industry, do not think the Igot situation should have been allowed to escalate so drastically. According to David Temple, the co-founder of a Bitcoin firm in Melbourne, it would be in Australia’s best interests to create regulations to govern the cryptocurrency industry if only to allow the country to fall in line with other nations like the United States that are also working to regulate Bitcoin.

Temple agrees that crafting such regulations is bound to prove difficult. Indeed, even those voices in the Bitcoin industry calling for greater regulations have no idea what shape they would actually take.

They all agree, none the less, that the Igot case highlights a need for formal regulatory oversight in the cryptocurrency industry. Because of the lack of regulation, consumers are essentially left to fend for themselves every time they venture into the digital currency field, expected to do their own research to ensure that the companies they are working with a legitimate.

The fact that individuals who buy and sell digital currencies like Bitcoin do not need financial licenses of any sort is disturbing enough. A senate inquiry’s recommendation for governments to revise the definition of digital currencies suggests that the relevant parties are waking up to the problems that an unregulated financial industry of this kind presents.

Of course, calls for greater regulation are not without opposition. The Australian Digital Currency and Commerce Association, in particular, has been rather vocal about its opposite to the idea of regulation, instead highlighting a code of conduct it is preparing to release and which it believes will improve consumer protections.

There is no immediate end to this debate anywhere in sight. With so many people choosing to rethink their understanding of digital currencies, it is difficult to figure out what shape Bitcoin and other digital currencies will take in the future.