Life insurance

This may be one of the first types of insurance many people think of when it comes to taking care of the lifestyle you strive to ensure for your family and loved ones. In its most common form – standard term life insurance – it guarantees a single, lump sum payment in the event of your death before an agreed date (the “term” of the cover).

If you die before the end of the term, therefore, the insurer agrees to pay out the previously agreed and guaranteed benefit that may help your surviving beneficiaries continue to enjoy the lifestyle you were once able to provide.

In addition to the standard term, there are also policies that offer a death benefit that reduces as you grow older, perhaps because your family’s financial commitments are also likely to become less onerous over time. In that case, a decreasing term life policy may be appropriate. If, on the other hand, you wish to take into account the likely ravages of inflation over time, you may instead opt for an increasing term policy – where the monetary value of any pay out increases over the years.

If you survive the insured term, of course, the insurer is obliged to make no pay out at all, but you have enjoyed the comfort and reassurance of knowing that the established lifestyles of your dependents may have been suitably protected.

Mortgage protection

Indeed, if you have a mortgage, you may find that your mortgage lender insists on a particular type of life insurance – mortgage insurance . Just as the name suggests, this is also a policy written against the risk of your untimely death. In this particular case, however, the term is typically set to coincide with the maturity of your mortgage and the guaranteed benefit is typically equated to the outstanding balance of your mortgage.

In the event of your dying before the mortgage is repaid, therefore, the lender may be reassured that the outstanding balance is nevertheless settled, whilst your dependents may enjoy the protection of knowing that their roof remains over their heads, without the need to find the continuing mortgage instalments each month.

If you have a standard repayment mortgage, the mortgage insurance to protect it might be the (typically cheaper) decreasing term life insurance policy – since the outstanding balance of your mortgage debt is also diminishing over time.

A further type of lifestyle protection, moreover, is afforded by mortgage payment protection insurance (MPPI). This type of cover typically provides help in meeting your monthly mortgage repayments if you are unable to work because of an accident, sickness or involuntary unemployment. The insured benefits are paid out monthly – until you are able to resume normal working or have found a new job – up to a typical maximum of 12 or 24 months (depending on the term of the cover you choose when commencing the policy and also the provider).

Private health insurance

With sometimes widespread questions raised about the standard of care provided by the National Health Service alone, an increasing number of people appear to be investing in their own forms of private health insurance.

The range of available health care plans is huge – with levels and scope of cover designed to meet practically any pocket. Whatever the particular options you may choose, however, this type of insurance once again represents a way of helping to safeguard your own, individual lifestyle choices.

If you have been successful so far in your career, and already purchased your first home, you may well be considering your next move up the proverbial property ladder. One thing to bear in mind when you’re looking to upsize isn’t just the higher value of the new property and the possibility of spending more on mortgage payments. What a lot of people forget to factor in when they are planning a budget for a bigger home are the associated costs of selling the current property they live in. Unless you are lucky enough to be able to afford to rent out your current property as well as purchasing a bigger one, then in order to raise funds for your new home you’ll need to sell the old one.

If you’ve been successful in life thus far, it’s likely that you have a certain amount of entrepreneurial spirit. This should be put to good use when you’re selling your home too. Having a good understanding of negotiation processes will help you to achieve the best possible sale price for your property, as will seeking out the right professional advice and support. You may be tempted to search out how to ‘sell my house online’ to go it alone and save money, but this can be a slow and painful process. It is possible to cut out traditional, expensive and irritating high street estate agents by opting for an online agency like HouseSimple.co.uk who will do everything from taking the photos and creating a write up on the property to arranging viewings and bargaining with potential buyers. Also have access to all of the professional property marketing services and can send out details of your home to their mailing list as soon as your property hits the market. An added bonus is that online estate agents are generally hugely cheaper than traditional agents too as they have less over-heads thanks to the lack of swanky, premium location high street offices.

If you don’t mind dealing with your estate agent and solicitor remotely, then you can opt for the full package to include a conveyancing service. If you’re internet savvy, using an online estate agency can provide you with valuable insights into feedback and interest in your property. Online estate agents usually provide a log in to their website that allows you access to visitor statistics. This is a lot more comprehensive than the feedback from most high street agencies, who are often too busy to provide such a detailed overview of why your home may or may not sell quickly.

1. Desk and Chair.
   Sounds obvious but you need a good desk and chair. Working from home affords you the chance to have a desk and chair that you want and will be able to sit at for 8 hours a day. By using online auction sites in conjunction with shipping sites you can find cheap courier services, Therefore, making finding that ideal desk at a cheap price and shipping it your home office, easy and at a very inexpensive price
2. Define your spaces.
   Separate work from home. Have a room dedicated to working. Don’t just work where you happen to be. Set aside some space, preferably a room (it doesn’t have to be a large space) to be your workspace. That way, when you enter it, you know intentionally what you’re there to do: and that’s to work. It changes your state of mind from “I’m at home” to “I’m at work”.
3. Get showered and dressed.
   It’s all too alluring to slob about in pyjamas all day without having a shower or getting properly dressed but this will only leave you feeling sluggish and lazy. Dress like you’re going to work and you’ll feel professional and ready for the working day.
4. Take a break! Having all that quiet time to get your head stuck into some serious work is great, but your body, eyes and mind need a rest several times during the day. Take a walk outside; make a call or a cup of coffee, if the kids are at home, spend some time with them. Especially if you are on the PC
5. Set Deadlines.
   Ever wonder why you’re ultra productive when facing a tight deadline, while a simple task can take hours to complete. This could be explained by working well under pressure, but it could also be the fact that as you have longer, you will take a longer amount of time. Combat this phenomenon by imposing your own deadlines for specific tasks. These can be as complicated as finishing a proposal or as simple as responding to a client email.
6. Get the right tech.
   Most notably if you are working from home, you need to make sure you have the right technology, both in terms of hardware and software. If you are connecting to your corporate network, this means setting up a VPN network, which can be difficult. It might be wise to take the machine you will be using at home to your I.T. department and get it properly set-up. You also need to make sure that you are easily reachable, so ensuring your internet connection can handle video-conferencing is important.

Advertising

One of the most important aspects of any business is its advertising strategy.  Raising the profile of your business within competitive markets is crucial in increasing interest and potential sales.  An eye-catching and persuasive advertising campaign that is efficiently targeted and that increases awareness of the goods and services on offer is vital to a company’s growth.  It is likely that there are numerous similar businesses within your locality and this increases the need to develop a unique, standout advertising campaign that sets your business apart.

Advertising in local press and producing attention-grabbing flyers is still a worthwhile exercise; posting them in coffee shops, on notice boards and in stores will increase your local exposure.  The main focus for advertising at the present time however is online, and constructing a comprehensive, striking and interactive site can reap great rewards.  Researching similar businesses online will give you a thorough idea of the market-leading sites and allow you to shape yours more aggressively.  It may be that it is most pertinent to commission the services of a dedicated website design company to provide you with the most professional, informative and easy to use site.  This sort of umbrella company strategy for your internet services is a particularly useful way of freeing up your time to concentrate on the day-to-day needs of your business, leaving the potentially time consuming issues of website updates, technical problems and search engine optimisation to a specialist company that will work to increase site traffic and ensuring navigation is simple and responsive.

Using the social media sites such as Facebook and Twitter is also an incredibly powerful marketing tool, and one that is easier and less time consuming to manage.  Posting hyperlinks and business information throughout your homepage is a fantastic opportunity to provide detailed information to promote your business within a friendly, widely viewed media.

Use your time to the best advantage

Dedicating all of your time and efforts to your business is the ideal scenario for all company owners and the best way to facilitate such an outcome is to use an umbrella company

to manage the administrative side of your business.  Freeing up your time by using an umbrella company is not restricted to the large amounts of paperwork that are inevitably involved in running a business, but also is an effective and time-saving facility to produce and implement comprehensive staff training strategies.  Devising, implementing and evaluating staff induction and training initiatives is a time-consuming, detailed and crucial facet of your business.

Outsourcing the training elements of your business ensures that employees gain the requisite knowledge of your goods and services and develop exemplary customer service skills relating to your line of business.  The beauty of outsourcing to an umbrella company is that all the work is produced for you, to agreed guidelines and principles and, most importantly, to the standards that you stipulate.

To ensure that your business thrives it is important that you concentrate on what you do best – running your business on a day-to-day basis.  The easiest and most efficient way to ensure this occurs is to use outsourcing as a form of delegation to free up your valuable time.

Claims made by third parties can vary in the specifics. However, generally they are due to some kind of negligence on the part of the small business. The claim may be initiated due to either damage to a third party’s property, or an injury sustained. Usually these claims end up costing a great deal. Of course, there is a large settlement or claim to be paid in most situations. This is why it is a good idea to take out pub insurance for example if that is your business. Also, lawyers are often used in these cases. Legal representation comes with a hefty price tag. Often, this can be financially overwhelming for the small business owner. However, with public liability insurance the rewards and legal expenses are reimbursed. Even with such important reasons to obtain a public liability insurance policy, sadly, many still do not have coverage.

While some business owners decide to forgo taking out public liability insurance, citing the expense, this can prove to be a disastrous decision. For most small businesses, all it takes is going through one claim to ruin their business. Most courts today can award astronomical amounts in regards to damages. Small business owners usually do not have enough capital built into their businesses to withstand this hit. If they would have enough capital to use to pay off the third party, this would severely affect their business and the manner in which they conduct it. In some situations without public liability insurance, a small business owner may be more apt to quickly settle a claim without going to court to save on legal fees.

Much financial record keeping is a result of the need to make sure you fulfil your obligations to the Inland Revenue, so it is of particular importance that your records are correct and kept up to date as you do not want to incur fines for late tax payments or inaccurate returns.

Another side to running your own business is an often erratic pattern of income. One month you could be in receipt of large sums of money, but the next you may not have an income stream. You will need to learn how to manage your cash flow and ensure you have a long-term financial plan.

Record Keeping

As soon as you invest some capital and start trading make sure you keep accurate records of every transaction, showing all incomings and outgoings and categorising them so you can easily track your spending in different areas. The best way to do this is with an accounts software package, as it can help you maintain accuracy and create meaningful and useful reports on your financial position at any time. Of course, you should remember that any accounts software you use will only be as accurate as the figures you input so it still requires care and attention to detail.

You can keep your records throughout the year and then hand them over to accountants who can produce a set of audited accounts for you. Depending on the type of company you have set up, you may need to submit a set of audited accounts to Companies House.

Maintaining a Reserves Policy

As a freelancer you cannot always expect a steady income so it is prudent to set aside some money for emergencies. A good rule of thumb is to save enough to see you through at least six months while maintaining your current standard of living. Being prepared in this way will save you from running up debts in leaner times as you can fall back on a healthy reserve.

Unfortunately, taxes are one of life’s certainties. You can definitely anticipate the need to pay your VAT and tax bills each quarter or year. In order to be prepared, you should set aside a percentage of your income every month to cover them. You should also always maintain separate accounts for business and personal use.

Insurance and Retirement

As a freelancer or small business owner you are not entitled to the same benefits, such as sick pay, as an employee so you should consider getting a health and life insurance policy. Similarly, you will have to think about planning for your retirement and setting aside a portion of your income to safeguard your future retirement needs. The best way to maintain a good control over your finances as a small business owner or freelancer is to maintain an accurate and realistic system from the very start and plan well for any contingencies.

Our guest blogger is Rob, an avid freelance writer and blogger for brookson accountants who has a wealth of experience with content writing. Rob loves to share his wealth of knowledge through topical content on various websites and blogs.

The Benefits of a Balanced Budget

A budget consists of far more than figures scribbled on a sheet of paper. It lets you have complete control over your money and how it’s being spent. Balancing this budget helps you to avoid confusion regarding financial burdens, bounced checks, overdraft fees, penalties for late payments, and excess stress when it comes time to file taxes. It’s also a great way to avoid ever having to depend on loans and credit to afford monthly bills or tide you over until your next paycheck.

By working regularly to balance your budget, you have a greater chance to notice any mistakes like overcharges, surprise bank fees and suspicious credit card charges. By finding these things early on, you’re better able to fix the errors and are more likely to have your money refunded to you.

Another reason to keep your monthly budget balanced is that it presents a chance to take a closer look at how you’re spending your money and what needs to be changed. Doing this can even reveal a number of ways that you can take advantage of deals and save some significant cash!

Eventually, the benefits of maintaining a balanced budget leads to having little or no debt. The best part about this is that it saves you stress.

Balancing Your Budget

A balanced budget means that your spending and earning are arranged in such a way that you’re making more than you spend. There are all sorts of computer programs available to help, but all that’s needed is a calculator, pencil and paper. Take these supplies, your bills, receipts, statements and other financial info, sit down and take the time to break down and list each expense.

After you’re finished, create separate columns on your paper. At the top of each, write the names for different expense categories like insurance, groceries and bills. All of the little or unusual expenses can go in a section called miscellaneous. After this, you’ll have a better idea of where your money’s going.

The next step is to pick out the luxuries and necessities. Genuine needs are shelter, food, utilities, clothing and transportation. However, these don’t include things like meals out, designer wear or movie rentals. It’s essential that your true needs take priority in your spending habits. Add up the total for these expenses.

Now add up your regular income sources like a job, social security or interest. Deduct the cost of your basic requirements from your total income. If it’s in the red, you need to reassess your spending and possibly cut back on luxuries.

If you’ve got more than you spend, the congratulations. Your budget is balanced! However, don’t be so quick to spend the extra money. It’s better to save it or invest it into something like stocks or a college fund. You could also use it to clear any debts, which can take up a lot of your monthly budget.

Traditional, standalone financial systems automate only a single business function and not an entire, cross-functional business process; they demand manual, labour-intensive processes, such as re-keying data into separate systems. Legacy systems are also inflexible as they don’t permit organizations to change their business processes to adapt to changing business requirements nor do they provide visibility across the organization—let alone across the extended supply chain.

If your finance organization faces any of the following issues, then next-generation ERP system can help:

• Are you planning on adding new businesses by growth or acquisition?
• Are you subject to generally accepted accounting principles (GAAP), International Financial Reporting Standards (IFRS), Sarbanes-Oxley, or any other national or international financial oversight?
• Do you need financial transparency across all of your business units or is your organization still using spreadsheets to manage its financial health?
• Are your processes manual or require large amounts of manual intervention for complex or repetitive transactions?

Transparency and Visibility through Enterprise Performance Management

Today’s enterprise-level financial systems should also come standard with embedded executive dashboards and graphical KPIs designed to give executives and line of business managers alike the strategic financial data required to make critical short- and long-term decisions. Strategic use of these resources allows you to manage your company by exception, as opposed to micromanaging the increasing number of financial variables and demands being placed on your company. Some examples of standard financial dashboards and KPIs that you should include in your evaluation of vendors include calculation of days sales outstanding (DSO) and days payable outstanding (DPO) to determine your organization’s cash flow position, supplier performance metrics, sales order backlog and scheduled shipments, and so on.

Integrated Governance, Risk, and Compliance (GRC)

Next-generation ERP delivers GRC functionality through a combination of embedded capabilities, modules and related services. Compliance is at the heart of the applications and is consistent with published international standards and best practices. These include published standards in corporate and financial governance such as IFRS and GAAP while also incorporating support for international trade standards such as restriction of the use of certain hazardous substances in electrical and electronic equipment (RoHS), Waste Electrical and Electronic Equipment (WEEE) directive, and the North American Free Trade Agreement (NAFTA).

However, as with any banking products, there are several aspects you need to consider. How high will your APR (annual percentage rate, or per annum interest) be? Will the bank issue a debit card for you? Will you benefit from a bonus interest rate whenever your deposits go over a certain threshold? What will the interest rate be for the first few months, also known as the introductory period?

Once you’ve worked out the answers to all these questions, you will still need to bear a few aspects in mind, in order to best manage your high interest savings account. After all, if you can benefit from the best the market has to offer in terms of savings, why not make the absolute most of it?

Clear Your Debt

The first logical step before starting to save is to clear off all your debt, be it to private individuals or to a lending institution. If you hold credit card debt, it will definitely continue to take a heavy toll on your already strained budget, since the interest rate on your credit line is definitely much higher than the return you’ll be getting out of the savings account APR.

Credit interest rates are in the 20% area, while savings interest rates run in the 10% range. You can maintain your debt while you save, but the truth is you will not actually be saving, but simply living with a false impression of security and foresight.

Deposit, Don’t Withdraw

We Google searched good guides on savings accounts and stumbled upon www.SavingUp.com.au, a website which offers comprehensive information on the matter, with everything you need to know (such as features and benefits) listed for your convenience.

The number one commonsensical piece of advice we found listed there is not to make any withdrawals from your high interest account, while you are trying to save. While this seems absolutely obvious, you should also remember that this is not a term-deposit.

Unlike such an account, your high-interest savings account is completely accessible. As such, you might often find yourself tempted to dip into your savings long before you’ve reached your savings goal. Our piece of advice is to try and avoid this, save for those unavoidable emergency situations, when you find yourself strapped for cash.

How Much Can You Save?

An equally logical, yet highly important step is to aptly budget your savings. Don’t over-stretch your financial means, or you might soon find yourself in debt, instead of happily stashing away your cash. Make sure that what you are saving will still allow you to pay your bills and make all the monthly purchases on which your livelihood depends.

Review Your Investment

Regular reviews of the situation of your account will, on the one hand, allow you to understand the strides you’ve been making to reach your goal. On the other hand, you will also have a clear picture of your savings account’s financial health. By running regular reviews you will also be reminded to check for similar offers from competing banks, simply to make sure that you couldn’t be getting a better interest rate elsewhere.

Never let an opportunity to earn more from your interest rate pass you by. If another bank is willing to offer you better interest, take advantage of the offer.

We also believe that primary needs, such as food, schooling and shelter should not be infringed upon by one’s need to save, no matter how dire that need may be. In case you have credit, insurance or can afford to save just a little, every here and there, there are three sure-fire ways for you to make better money choices. Read on to find out what we mean when we say ‘smarter’ choices.

Open a Savings Account

Saving money might seem like a hard-to-attain desideratum nowadays, but if you can afford to set aside as little as 3% of your monthly income, then a savings account might just work wonders for your family’s overall revenue.

The cool thing about savings accounts, as you may already know, is that the money just sits there, in the bank or savings fund, and multiplies. It does not do so by magic, of course, but via the per annum interest rate, which you will want to be as high as possible. We found out that there are far more savings plans with good interest rates out there than we ever imagined, as we stumbled upon MoneyChoices.com.au online.

Depending on the goal you’re saving towards, you might just qualify for various interest rates, so do check it out, if you can afford the financial effort.

Compare Per Annum Interest Rates on Credit Cards

While many might berate you for having taken out credit and not having repaid it all, in such tough financial times, we understand the need for credit in a healthy economy. As a matter of fact, the lending and repaying process is a pivotal element of a well-functioning financial system.

So, while you might not afford to fully repay your credit, you can still save up. Online research and a bit of comparing is the key in this scenario, too, as lots of banks have been offering good interest rates on their credit lines.

If you have been paying through the nose for your credit cards, now’s the time for you to know that this can all stop. Just check to see what kind of credit refinancing you qualify for and possibly opt for a balance transfer card. With the money you save on interest, you can actually start repaying the bulk of your lent some and work your way back to financial stability.

Research Your Insurance

Research, research, research is the key concept when you want to save, and if it applies to savings and credit cards, it definitely applies to insurance as well. Don’t even think of canceling your life or private health insurance, as you may be inadvertently doing yourself a bigger disservice than you ever intended. Instead, re-analyze your healthcare needs and apply for a more suitable type of medical insurance.

Several privately-held health funds out there will offer you good rates as a new client, even if you’re a student, or, quite the opposite, a married couple of retired senior citizens. The point in the case of health insurance (but of any type of insurance, really) is that you needn’t pay for benefits that you will never use.