How I Made $49,664.14 in 20 Days: A Step-by-Step Guide to Financial Success
How I Made $49,664.14 in 20 Days: A Step-by-Step Guide to Financial Success Table of Contents Introduction Whether you’re looking to start your own business, dive into real estate, or explore other avenues of financial success, this blog is designed to provide you with valuable information and guidance. Breakdown of Income Sources Now let’s dive into the breakdown of my income sources and how each one contributes to my overall financial success. Earnings from YouTube From YouTube alone, I have earned $4,799 so far this month. This comes from ad revenue generated by the views on my videos. Know more: How to earn money in simple way Income from Amazon Through various avenues on Amazon, I have earned a total of $823.65. This includes earnings from the KDP program, which is the Kindle Direct Publishing platform for ebooks, as well as sales of physical books, Audible audiobooks, and the Amazon Associates program. Profit from own Publishing Company My own Publishing Company has been a profitable venture, bringing in $1,302.00 this month. This includes earnings from the sales of books published under the company’s name. Revenue from Marketing Agency As the owner of a Marketing Agency, I have worked with multiple clients to promote their products and services. So far this month, I have earned a total of $3,170.70 from these partnerships. Earnings from Private Lending Company My Private Lending Company has been my most lucrative source of income, bringing in $26,000 this month. This involves lending money to investors for real estate purposes. How to Make $2,000 per Month Online Selling Low Content Books on Amazon Other small investments and earnings from Airbnb In addition to my main income sources, I have also made smaller investments that have generated some income. Last month, my earnings from Airbnb amounted to $253. I also utilize cashback apps, which have generated a few dollars here and there. Income from Instagram While my Instagram account may not generate a significant amount of money, it still brings in some income. So far this month, I have earned $309.45 from sponsored posts and collaborations on Instagram. These are just a few of the income sources that have contributed to my overall financial success. By diversifying my income streams and exploring different avenues, I have been able to generate a substantial amount of money in a short period of time. Remember, with the right knowledge, determination, and willingness to take action, you too can achieve your financial goals. How to Achieve Financial Success If you’re looking to achieve financial success, there are several steps you can take to reach your goals. Here are some key strategies: Learning from free content creators One way to gain valuable knowledge is by learning from free content creators. Many entrepreneurs and experts share their insights and strategies through videos, blogs, podcasts, and social media platforms. Take advantage of these resources to learn new skills and gain inspiration. Becoming a content creator Consider becoming a content creator yourself. Share your expertise, experiences, and insights with others through videos, blogs, or podcasts. By creating valuable content, you can build a following, establish yourself as an authority in your niche, and potentially monetize your content through ads, sponsorships, or product sales. Publishing books and starting your own Publishing Company If you have valuable knowledge or a compelling story to share, consider publishing a book. Self-publishing platforms like Kindle Direct Publishing make it easier than ever to get your book out into the world. You can also start your own Publishing Company to publish and sell books from other authors. Creating and running a marketing agency If you have skills in marketing, consider starting your own marketing agency. You can offer services such as social media management, digital advertising, or content creation to help businesses promote their products or services. With the right clients and strategies, a marketing agency can be a lucrative venture. Venturing into private lending Private lending involves lending money to individuals or businesses for various purposes, such as real estate investments. If you have capital to invest, private lending can provide a steady stream of income through interest payments. However, it’s important to understand the risks and work with qualified borrowers. Importance of mindset and belief in oneself Having the right mindset and belief in oneself is crucial for achieving financial success. Believe that you have the potential to succeed, regardless of your background or education. Cultivate a positive mindset, embrace challenges as opportunities for growth, and stay motivated even in the face of setbacks. Effort and hustle required for success Achieving financial success requires effort and hustle. It’s important to put in the necessary work, stay committed to your goals, and persist despite obstacles. Success rarely comes overnight, so be prepared to work hard, make sacrifices, and stay dedicated to your journey. By learning from free content creators, becoming a content creator yourself, publishing books, starting your own publishing company, creating and running a marketing agency, venturing into private lending, and maintaining the right mindset and work ethic, you can increase your chances of achieving financial success. Remember, success is within your reach if you’re willing to put in the effort and believe in yourself. Starting with the Consumer in Mind When it comes to building a successful business, it’s crucial to start with the consumer in mind. By identifying your target customer, you can tailor your products or services to meet their specific needs and preferences. This not only increases the likelihood of attracting customers, but also encourages repeat business. Identifying the target customer Take the time to understand who your ideal customer is. What are their demographics, interests, and pain points? By creating a customer avatar, you can pinpoint the specific characteristics of your target audience and tailor your marketing efforts towards them. Determining if the product/service is repetitive or one-time Consider whether your product or service is something that customers will need repeatedly or if it’s a one-time purchase. Repetitive products or services, such as subscription-based
Read MorePharmacy/Chemist POS and Invoicing Software
The Future of Medical Shop Business: Combining Online and Offline Operations Table of Contents Introduction Welcome to the exciting era of technology where conducting both online and offline businesses has become essential for success. In today’s market, simply relying on offline operations is no longer sufficient. With the advancements in artificial intelligence technology, Intex Software Limited is revolutionizing the medical shop business with its breakthrough product. Intex Software Limited understands the challenges faced by medical store owners. Some patients are unable to visit a physical store due to various reasons, such as being bedridden or having a busy schedule. Additionally, some patients struggle to find certain medicines in the market. This is where our product shines. Introducing Raindeck Medical Shop Billing Software, a comprehensive solution that combines offline and online operations seamlessly. With a database of over 2.5 million medicines, you can provide accurate and alternative medicines to your customers even if you don’t have the exact medicine in stock. The database contains essential information about each medicine, including its chemical makeup and application. By utilizing Raindeck Medical Shop Billing Software, you not only have access to a vast amount of data but also the ability to conduct both offline and online business. The software incorporates artificial intelligence technology to automate tasks such as updating medicine photos from the Google Pixel Gallery, saving significant time. With APA integration technology, you can effortlessly sync your products between the billing software and your online platform. This allows customers to make purchases online while notifying you via WhatsApp. The purchase data is also transmitted to the offline billing software, streamlining your operations. Managing your service area and specifying delivery charges based on pin codes becomes effortless with Raindeck. You can set minimum order amounts and charge extra for longer distances. Our specialized customer service staff is available to offer demos and answer any questions you may have. Intex Software Limited goes beyond just providing software. Our dedicated teams, including installation, training, database engineers, and e-commerce application engineers, ensure that you receive the best service and support for your medical store business. Join us in embracing this exciting era of technology, where you can conduct both online and offline business simultaneously. With Raindeck Medical Shop Billing Software, you can significantly boost your medical shop business and establish a great presence in the market. Intex Software Limited is here to ensure your satisfaction every step of the way. Challenges of Offline-only Medical Shop Business While offline businesses have their advantages, there are several limitations that medical shop owners face when operating solely offline. These challenges can affect the overall success and customer satisfaction of the business. Limitations of offline businesses Offline businesses are limited by their physical presence, meaning they can only serve customers who visit the store in person. This can exclude individuals who are unable to leave their homes due to illness or other circumstances, resulting in a loss of potential customers. Inability to serve patients at home As an offline medical shop, it can be difficult to provide services to patients who require medication but cannot visit the store. This can leave these individuals without access to the necessary medicines they need for their treatment. Lack of time for some customers to visit a medical shop Many people lead busy lives and may not have the time to visit a medical shop during operating hours. This can prevent them from obtaining the medications they need promptly, causing inconvenience and potential health risks. Difficulty in finding certain medicines in the market There are cases where certain medicines may be difficult to find in the market. In an offline-only medical shop, customers may face challenges in locating these specific medications, resulting in frustration and a negative customer experience. Addressing these challenges is crucial for the success of a medical shop business. By incorporating online operations and utilizing technology such as Raindeck Medical Shop Billing Software, these limitations can be overcome, allowing for a more efficient and customer-friendly experience. Introducing Raindex Medical Shop Billing Software With Raindex Medical Shop Billing Software, your medical store business can reach new heights by combining online and offline operations seamlessly. We understand the challenges faced by medical store owners, and our comprehensive solution is here to revolutionize your business. Our software goes beyond just providing access to a vast amount of data. It also allows you to conduct both offline and online business, giving you the flexibility to serve a wider range of customers. One of the standout features of Raindex Medical Shop Billing Software is its integration of artificial intelligence technology. Say goodbye to the tedious task of manually updating medicine photos. With our software, you can simply upload your medicine list and click a single button to automatically update all the medicine photos from the Google Pixel Gallery. This significant time-saving feature will streamline your operations and allow you to focus on serving your customers. Additionally, our software offers APA integration technology, enabling you to effortlessly sync your products between the billing software and your online platform. This means that while customers are making purchases online, you will receive a WhatsApp notification, keeping you informed in real-time. The purchase data is also transmitted to the offline billing software, ensuring your operations are streamlined and efficient. Managing your service area and specifying delivery charges based on pin codes becomes effortless with Raindex. You can set minimum order amounts and charge extra for longer distances, giving you full control over your delivery operations. At Raindex Software Limited, we believe in providing comprehensive support to our customers. Our specialized customer service staff is available to offer demos and answer any questions you may have. Additionally, our dedicated teams, including installation, training, database engineers, and e-commerce application engineers, ensure that you receive the best service and support for your medical store business. Embrace this exciting era of technology and unlock the full potential of your medical shop business with Raindex Medical Shop Billing Software. Boost your business, establish a great
Read MoreSimple cloud invoicing software for teams and small businesses
Simple cloud invoicing software for teams and small businesses Table of Contents Introduction Welcome to my blog on accounting software for small businesses! In this blog, I will be discussing the importance of choosing the right software for your business and reviewing the top 5 accounting software options available. As a small business owner, it is crucial to have reliable and efficient accounting software in place. This software can help you manage your finances, track expenses, generate invoices, and streamline your overall financial processes. Choosing the right software can save you time, and money, and provide valuable insights into the financial health of your business. In this blog, I will be discussing the features, advantages, and disadvantages of each software, allowing you to make an informed decision based on your specific business needs. It’s important to note that while accounting software can handle many financial tasks, it’s always a good idea to let an accountant handle the technical aspects and focus on your core business processes. So, whether you are a sole proprietor, a freelancer, or a small business owner, this blog will provide you with the information you need to choose the best accounting software for your business. Let’s dive in and explore the top 5 accounting software options! Wave Wave is a popular accounting software option for small businesses, and it offers several key features and advantages. One of the biggest advantages of Wave is that it is completely free to use. Unlike many other accounting software options that require a monthly or yearly subscription fee, Wave allows you to access all of its features without any cost. Wave makes money through payment processing and payroll services. If you choose to use Wave to process payments from your customers or to handle your payroll, Wave will charge a fee for those services. However, if you don’t require these additional features, you can still enjoy the full functionality of Wave for free. The Wave dashboard is designed to be simple and user-friendly. It provides an overview of your cash flow, profit and loss, payable and owing amounts, and net income. This allows you to quickly assess the financial health of your business at a glance. The dashboard also provides easy access to other key features, such as creating and sending invoices. Creating and sending invoices in Wave is a straightforward process. You can easily add customers, select items or services to include in the invoice, and set the invoice status. Wave also allows you to save invoices as drafts, approve them, send them to customers, or export them as PDFs. This makes it easy to manage your invoicing process and ensure timely payment from your customers. While Wave offers many useful features for small businesses, it does have some limitations. For example, Wave does not have built-in project management or time-tracking capabilities. If you require these features, you may need to integrate Wave with a separate project management or time-tracking app. Additionally, Wave’s reporting capabilities are more limited compared to some other accounting software options. Overall, Wave is a competitive accounting software option for small businesses, especially for those on a tight budget. Its free pricing, user-friendly dashboard, and invoicing capabilities make it a valuable tool for managing your business finances. However, if you have more complex needs, such as project management or extensive reporting requirements, you may need to explore other options. FreshBooks FreshBooks is another popular accounting software option for small businesses, offering a range of features and advantages. Unlike Wave, however, FreshBooks requires a subscription to access its full functionality. This means that while there is a cost associated with using FreshBooks, the benefits it provides may outweigh the expense. When it comes to pricing, FreshBooks offers different subscription options to suit various business needs. The pricing starts at $15 per month for the Lite plan, which allows for unlimited invoices and up to five clients. For more extensive requirements, there is the Plus plan at $25 per month, which supports up to 50 clients. Choosing the annual subscription option can also result in cost savings. One of the key advantages of FreshBooks is its inclusion of projects and time-tracking capabilities. This feature allows you to manage and track the time spent on different projects, ensuring accurate invoicing and efficient project management. Unlike Wave, which requires integration with separate apps for time tracking, FreshBooks provides this functionality within the software itself. In terms of intuitiveness, FreshBooks offers a user-friendly interface that is easy to navigate. While personal preferences may vary, many users find FreshBooks to be more intuitive compared to other accounting software options. The straightforward process of creating and managing invoices, as well as the inclusion of projects and time tracking, contributes to the overall ease of use. Although FreshBooks has its advantages, it is important to note that it may not be the best fit for every business. If you require more advanced features or extensive reporting capabilities, you may need to explore other options. However, for small businesses looking for an intuitive and efficient accounting software solution with project and time-tracking capabilities, FreshBooks is worth considering. Zoho Books Zoho Books is a comprehensive accounting software that offers a range of features and advantages for small businesses. One of the key advantages of Zoho Books is its integration with other Zoho ecosystem products. This means that if you are already using other Zoho products like Zoho CRM or Zoho Mail, you can seamlessly integrate Zoho Books with them to create a complete business management system. Zoho Books is known for its simplicity and ease of use. The user interface is intuitive and straightforward, making it easy for even non-accountants to navigate and manage their finances. The dashboard provides a quick overview of your financial health, including cash flow, profit and loss, and payable and owing amounts. This allows you to stay on top of your business finances at all times. When it comes to sales and purchase features, Zoho Books has you covered.
Read MoreBest Invoicing Software for Contractors and Construction Companies.
Best Invoicing Software for Contractors and Construction Companies. Table of Contents Introduction Choosing the right accounting software for a construction company can be a challenging task. With so many options available, it can be overwhelming to determine which software will best meet the needs of your business. However, we are here to help by narrowing down the search and providing you with the top four accounting software options specifically designed for the construction industry. One important factor to consider when selecting accounting software is the integration feature. All four of the software options we will discuss integrate seamlessly with other systems, making it easier for you to manage your construction business efficiently. Accounting software plays a crucial role in the success of construction businesses. It allows contractors to track financials, report critical construction-related information, and manage payroll services. From job cost accounting to project management, these software options provide comprehensive solutions to help you run the business side of construction effectively. Foundation Software When it comes to choosing the best accounting software for your construction company, Foundation Software stands out as the top choice. With its comprehensive features and seamless integration capabilities, Foundation Software offers everything you need to efficiently manage the business side of construction. Key Features Foundation Software provides a range of key features that are essential for construction contractors. These features include: Payroll Services In addition to its accounting and project management features, Foundation Software also offers payroll services specifically designed for contractors. This ensures that your payroll processes are streamlined and compliant with industry regulations. Extensive Tracking and Reporting Foundation Software excels in its tracking and reporting capabilities for construction-related information. Whether it’s prevailing wage rates, certified payroll, or union deductions, Foundation Software provides comprehensive solutions to help you stay organized and compliant. With Foundation Software, you can easily generate reports and gain valuable insights into your construction projects, enabling you to make informed decisions and maximize profitability. Investing in Foundation Software is a smart choice for construction companies looking for an all-in-one accounting solution. From job cost accounting to project management and payroll services, Foundation Software has you covered. Intuit Quickbooks Intuit Quickbooks is one of the most widely used accounting software options available, and it is particularly beneficial for construction companies. With its comprehensive features and user-friendly interface, Quickbooks offers everything you need to manage the financial side of your construction business efficiently. Automating Book Balancing and Tax Preparation One of the key benefits of using Quickbooks is the ability to automate book balancing and tax preparation processes. Quickbooks automatically organize your income and expenses, ensuring that your books are balanced at tax time and year-round. This automation saves you time and effort, allowing you to focus on other important aspects of running your construction business. Tools for Accounting, Payroll, Inventory Management, and Time Tracking Quickbooks provides various tools specifically designed for accounting, payroll, inventory management, and time tracking. With Quickbooks, you can easily track your expenses, generate invoices, and manage your cash flow. The payroll feature allows you to streamline your payroll processes, ensuring that your employees are paid accurately and on time. Furthermore, Quickbooks offers inventory management tools that help you keep track of your construction materials and supplies. This ensures that you have the right materials on hand when you need them, minimizing delays in your construction projects. Additionally, the time tracking feature allows you to keep track of employee hours and project time, helping you accurately calculate project costs and stay on budget. Integration with CRM for Centralized Data Management Quickbooks integrates seamlessly with customer relationship management (CRM) software, providing you with centralized data management. This integration allows you to easily access and manage customer information, project details, and financial data all in one place. By centralizing your data, you can improve efficiency, streamline processes, and make more informed business decisions. Overall, Intuit Quickbooks is an excellent accounting software choice for construction companies. Its automation features, tools for accounting and payroll, inventory management capabilities, and integration with CRM software make it a comprehensive solution for managing the financial side of your construction business. Viewpoint Vista When it comes to industry-leading ERP solutions for the construction industry, Viewpoint Vista stands out as a top choice. With its scalability and configurability, Vista is designed to meet the unique needs of construction companies of all sizes. Highlighting Vista Construction Software Viewpoint Vista is known for its comprehensive features and seamless integration capabilities. It offers a wide range of functionalities that are essential for construction contractors, including job cost accounting, project management, and payroll services. Scalability and Configurability One of the key advantages of Vista is its scalability and configurability. Whether you’re a small contractor or a large construction firm, Vista can be tailored to meet your specific needs. With its flexible design, Vista allows you to add or remove modules as your business grows or changes, ensuring that you have a system that adapts to your evolving requirements. Timely Reporting of Critical Financial Data Vista provides timely reporting of critical financial data, giving you real-time insights into your construction projects. With unrivalled visibility and control, you can easily track financials, generate reports, and make informed decisions to keep your projects on track and within budget. Enhanced Collaboration, Efficiency, and Profitability By integrating Vista into your construction operations, you can enhance collaboration, efficiency, and profitability. Vista’s comprehensive project management capabilities allow you to effectively manage multiple trades, equipment usage, and subcontractor information. Its mobile applications also enable you to stay connected and manage your construction business on the go. Vista’s enhanced collaboration features streamline communication between team members, subcontractors, and other stakeholders, promoting better coordination and smoother projects. With improved efficiency, you can reduce delays and costly errors, ultimately maximizing profitability. Investing in Vista Construction Software is a smart choice for construction companies looking for an industry-leading ERP solution. With its scalability, configurability, timely reporting, and enhanced collaboration, Vista can help you streamline your construction operations and drive success in your business. Sage
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Top 5 High-Ticket Fitness Affiliate Programs to Earn Big Money
Top 5 High-Ticket Fitness Affiliate Programs to Earn Big Money Table of Contents Introduction Greetings and welcome to my blog post about expensive fitness affiliate schemes! We’ll look at how these programs can enable you to earn money online or anywhere in the world in this post. These programs provide a great opportunity for anyone looking to supplement their income, with the potential to earn over $3000 per month. Many people find affiliate marketing to be intimidating. But it’s very easy to get going. To promote the right product and reach your audience through the appropriate channels, all you have to do is research. High-priced fitness affiliate programs can help with that. ClickBank is among the greatest resources for locating these programs. You can access a large selection of expensive products in the health and fitness niche through free registration and login. You can make good money with these products; some pay as much as $537.64 for each sale. I’ll guide you through the steps of locating and promoting these expensive affiliate products in this blog post. In addition, even if you don’t have a lot of money for paid advertisements, I will offer advice on how to market them successfully. Additionally, stay tuned for a unique giveaway opportunity at the very end! What is Affiliate Marketing? You can promote other people’s products and earn money online for free with affiliate marketing. It entails receiving payment as a commission for each lead or sale brought about by your special affiliate link. This makes starting an online business low-risk and accessible because you don’t have to make your product or manage customer service. Know more : High-Ticket Fitness Affiliate Programs Selecting the appropriate product to promote is one of the most crucial elements of affiliate marketing. Choosing a product that is in high demand and has the potential to bring in a sizable profit is essential. Numerous expensive affiliate programs in the health and fitness niche give out sizable commissions on every sale. For anyone wishing to work from home and make a good living, these programs can be a very profitable option. I suggest using ClickBank to locate high-paying affiliate programs in the health and fitness industry. One well-known affiliate marketplace where you can find a lot of different products to promote is ClickBank. Through a free registration and login, you can access a range of expensive products in the health and fitness niche. You can make good money with these products; some pay as much as $537.64 for each sale. There is another website you can use if you are unable to access ClickBank or if it is not supported in your country. Even though ClickBank is a fantastic platform, there are some limitations. If readers are unable to access ClickBank, I recommend looking into alternative affiliate marketplaces like ShareASale or Commission Junction. These platforms also provide a large selection of affiliate products across a number of niches, such as fitness and health. Finding High Ticket Fitness Affiliate Programs on ClickBank ClickBank is a great place to start if you want to promote expensive fitness affiliate programs and make large commissions. Here’s how to locate these programs and get going, step-by-step instructions are provided: Step-by-step instructions on signing up and logging in to ClickBank: Demonstration of how to filter products by health and fitness: Explanation of filtering options based on average money or conversion: Showcasing examples of high-paying affiliate products in the niche: Following your product filter, a list of expensive fitness affiliate programs will appear. Here are some instances: Highlighting the potential commissions for each product: As you can see, there are significant commissions available for each sale of these expensive affiliate products. You could be able to work from home or anywhere in the world and make a sizable income by marketing them well. If you are unable to access ClickBank or it is not available in your country, there are other affiliate marketplaces that provide a large selection of health and fitness products, such as Commission Junction or ShareASale. In order to optimize your profits, it is crucial to select products with strong demand and advertise them via appropriate channels. With the correct approach, you can start making a lot of money as a high-ticket fitness affiliate marketer, whether it’s through paid advertisements or free sites like Pinterest. Top 5 High-Ticket Fitness Affiliate Programs Here are five high-ticket fitness affiliate programs that you can promote if you want to become a successful fitness affiliate marketer: 1. Membership in Ebooks for Losing Weight This item is an ebook membership that provides monthly updates on methods for losing weight. This is a fantastic opportunity for anyone looking to make a lot of money in the weight loss niche, with commissions of up to $537.64 per sale. 2. The Adonis Golden Ratio Fat Loss System Adonis Golden Ratio System is a fat-loss and fitness-maintenance tutorial written by a fitness coach. For fitness affiliates, this program offers a lucrative opportunity with commissions of up to $493.18 per sale. 3. Secrets to Gaining Muscle and Building Strength A course called Muscle Gaining Secrets is intended for slender people who want to gain muscle. This program gives fitness affiliates the opportunity to earn a substantial commission of $394.51 per sale. 4. Sobriety Success for Addiction Recovery One program that helps people overcome addiction from home is called Sobriety Success. For those looking to recover from addiction, this program is a great resource because it offers commissions of up to $347.58 per sale. 5. Fitness Professional Product for Staying Fit This professional fitness product is a video presentation that teaches individuals how to maintain their fitness. With commissions of up to $319.63 per sale, this program presents a fantastic chance for fitness affiliates to make a sizable income. These expensive fitness affiliate schemes pay out large commissions on every sale. You could be able to work from home or anywhere in the world and make a sizable income by marketing these products well.
Read MoreBookkeeping – Definition, Importance, Types & Methods
[et_pb_section fb_built=”1″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] What is bookkeeping and why is it important? Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily basis. It can also refer to the different recording techniques businesses can use. Bookkeeping is an essential part of your accounting process for a few reasons. When you keep transaction records updated, you can generate accurate financial reports that help measure business performance. Detailed records will also be handy in the event of a tax audit. This guide will walk you through the different methods of bookkeeping, how entries are recorded, and the major financial statements involved. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/Zoho-Invoice-a-one-stop-solution-to-all-your-invoicing-requirements.png” alt=”bookkeeping” title_text=”Zoho Invoice – a one-stop solution to all your invoicing requirements” url=”https://go.zoho.com/KwD” url_new_window=”on” align=”center” _builder_version=”4.9.10″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Methods of bookkeeping Before you begin bookkeeping, your business must decide what method you are going to follow. When choosing, consider the volume of daily transactions your business has and the amount of revenue you earn. If you are a small business, a complex bookkeeping method designed for enterprises may cause unnecessary complications. Conversely, less robust methods of bookkeeping will not suffice for large corporations. With this in mind, let’s break these methods down so you can find the right one for your business. Single-entry bookkeeping Single-entry bookkeeping is a straightforward method where one entry is made for each transaction in your books. These transactions are usually maintained in a cash book to track incoming revenue and outgoing expenses. You do not need formal accounting training for the single-entry system. The single-entry method will suit small private companies and sole proprietorships that do not buy or sell on credit, own little to no physical assets, and hold small amounts of inventory. Double-entry bookkeeping Double-entry bookkeeping is more robust. It follows the principle that every transaction affects at least two accounts, and they are recorded as debits and credits. For example, if you make a sale for $10, your cash account will be debited for $10 and your sales account will be credited by the same amount. In the double-entry system, the total credits must always equal the total debits. When this happens, your books are “balanced.” Using the double-entry method for bookkeeping makes more sense if your business is large, public, or buys and sells on credit. Enterprises often choose the double-entry system because it leaves less room for error. In a way, it ‘double-checks’ your books because each transaction is recorded as two matching but offsetting accounts. Cash-based or accrual-based The next step is choosing between a cash or accrual basis for your bookkeeping. This decision will depend on when your business recognizes its revenue and expenses. In cash-based, you recognize revenue when you receive cash into your business. Expenses are recognized when they are paid for. In other words, any time cash enters or exits your accounts, they are recognized in the books. This means that purchases or sales made on credit will not go into your books until the cash exchanges. In the accrual method, revenue is recognized when it is earned. Similarly, expenses are recorded when they are incurred, usually along with corresponding revenues. The actual cash does not have to enter or exit for the transaction to be recorded. You can mark your sales and purchases made on credit right away. Both a cash and accrual basis can work with single- or double-entry bookkeeping. In general however, the single-entry method is the foundation for cash-based bookkeeping. Transactions are recorded as single entries which are either cash coming in or going out. The accrual basis works better with the double-entry system. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_video src=”https://youtu.be/4g9T20wRdio” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_video][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] How to record entries in bookkeeping Generating financial statements like balance sheets, income statements, and cash flow statements helps you understand where your business stands and gauge its performance. For these reports to portray your business accurately, you must have properly documented records of your transactions. Keeping these records as current as possible is also helpful when reconciling your accounts. Recording transactions begins with source documents like purchase and sales orders, bills, invoices, and cash register tapes. Once you gather these documents, you can record the transactions using journals, ledgers, and the trial balance. If you are a very small company, you may only need a cash register. The information can then be consolidated and turned into financial statements. Cash registers A cash register is an electronic machine that is used to calculate and register transactions. Usually, cash registers are used to record cash flow in stores. The cashier collects the cash for a sale and returns a balance amount to the customer. Both the collected cash and balance returned are recorded in the register as single-entry cash accounts. Cash registers also store transaction receipts, so you can easily record them in your sales journal. Cash registers are commonly found in businesses of all sizes. However, they aren’t usually the primary method of recording transactions because they use the single-entry, cash-based system of bookkeeping. This makes them convenient for very small businesses but too simplistic for enterprises. The journal The journal is called the book of original entry. It is the place where a business chronologically records its transactions for the first time. A journal can be either physical (in the form of a book or diary), or digital (stored as spreadsheets, or data in accounting software). It specifies the date of each transaction, the accounts credited or debited, and the amount involved. While the journal is not usually checked for balance at the end of the fiscal year, each journal entry affects the ledger. As we’ll learn, it is imperative that the ledger is balanced, so keeping an accurate journal is a good habit to keep. This form is useful for double-entry bookkeeping. The ledger A ledger is a book or a compilation of accounts. It is also called the book of second entry. After you enter transactions in a journal, they are classified into separate accounts and then transferred into the ledger. These records are transcribed by accounts in the order: assets, liabilities, equity, income, and expenses. Like the journal, the ledger can also be physical or electronic spreadsheets. A ledger contains a chart of accounts, which is a list of all the names and number of accounts in the ledger. The chart usually occurs in the same order of accounts as the transcribed records. Unlike the journal, ledgers are investigated by auditors, so they must always be balanced at the end of
Read MoreOSS FAQ: All about the One Stop Shop
[et_pb_section fb_built=”1″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Q. What is the One Stop Shop? The One Stop Shop (OSS) is an optional quarterly VAT reporting and payment system that’ll be live from July 1, 2021, as part of the EU VAT e-commerce package. This means that you can use the OSS to report and pay VAT on non-domestic B2C sales of the following types across the EU: a) cross-border supplies of services b) online intra-community distance sales of goods (selling VAT-applicable goods located in one EU country to a customer in another EU country) Using the OSS, you can account and pay for VAT across EU with just one return. This is an extension of the Mini One Stop Shop (MOSS) that previously allowed you to file a single EU return for B2C sales of TBE (telecommunication, broadcast, and electronic) services. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/Make-payment-collection-a-breeze-with-Zoho-Invoice.png” alt=”How can I convert an estimate into an invoice?” title_text=”Make payment collection a breeze with Zoho Invoice” url=”https://go.zoho.com/HzZ%20https://go.zoho.com/KwD” url_new_window=”on” align=”center” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Q. What’s the purpose of the OSS? The OSS has been introduced to ease the seller’s burden of having to register for VAT returns in each EU member state where there are customers. With the OSS, there’ll be a single EU VAT return for ecommerce distance selling which the seller can file from their home country. Q. Who can use the OSS? The OSS applies to any business making B2C sales in the EU (including charities and NGOs). Q. What are the different kinds of OSS? There are 2 kinds of OSS: a) Union OSS If your business is established in the EU, you can use the Union OSS to report VAT on intra-community distance sales and non-domestic sales of services to EU customers. If you’re established outside the EU, you can use the Union OSS, but only to report intra-community distance sales of goods. b) Non-Union OSS If your business is not established in the EU, you can use the non-Union OSS to report VAT only on sales of services to EU customers. To do this, you’ll have to register with the tax authority in an EU country of your choice. Note: The pan-European threshold of €10,000 (£8,600) will apply only if you have a fixed establishment (a permanent address from which to make supplies) in an EU state. If you only have a VAT number in an EU country, that won’t be considered a fixed establishment. Q. Is it mandatory to use the OSS or IOSS? Neither is mandatory. However, once you register, you should use the OSS or IOSS (Import One Stop Shop) for all applicable sales to EU customers. If you don’t want to use it, you’ll have to register for, account for, and pay VAT in each EU country you sell to. UK sellers who don’t use the OSS or IOSS will have to zero-rate their exports for domestic VAT (the goods will still be taxable under VAT, but the rate charged will be 0%) and apply VAT for imports. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_video src=”https://youtu.be/4g9T20wRdio” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_video][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Q. How is OSS going to affect me as a seller? Starting July 1, 2021, if you’re shipping goods from your home country to customers across the EU, you can use the OSS to report your sales across the EU. When you move from MOSS to the OSS, you can now use it to report any B2C service sale that’s subject to destination VAT, not just telecommunications, broadcasting, and electronic services. If you’re an ecommerce seller, you can close your foreign VAT registrations and, instead, file a quarterly OSS return for your home country’s tax authority. The existing country-specific EU distance selling thresholds will be removed and replaced with a single pan-European threshold of €10,000 (£8,600). Q. What should online marketplaces do about the OSS? Under the VAT e-commerce package, online marketplaces become deemed suppliers. This means that a marketplace can opt to use the OSS to report VAT for intra-community supplies between EU countries. If the marketplace facilitates a domestic supply of goods by a non-EU seller, it can use the Union OSS to report and pay VAT. Q. Which state should I register in? If you want to register for the OSS, you can do so in any EU member state or in the UK, as long as: You’ve registered for VAT in that EU member state, or You’re trading with the EU under the Northern Ireland protocol If you cross the new pan-European threshold of €10,000 (£8,600) and want to use the UK’s OSS, you’ll have to register for VAT in the UK if you haven’t already. Note that if you’re using the OSS, you’ll have to register for VAT even if your overall turnover falls below the the usual UK VAT registration threshold of £85,000. If you don’t want to use the OSS, you don’t need to register for UK VAT, as long as you register and account for VAT in each EU member state to which you’re dispatching goods. Q. When can I register for the OSS? To register for the Union or non-Union OSS, you’ll have to apply and wait until the following quarter for your registration to become effective. So, for instance, if you register after July 1, 2021, your registration will become effective in October 2021 when the next quarter begins. After you’ve applied, you may make supplies before your registration has become effective. If you do so, you’ll have to inform this to the tax authority in the relevant EU member state where you’ve registered. This should be done by the 10th of the month that follows the first supply you made after applying. This supply and the rest that follow will be counted together. For example, if you applied on July 15 for your registration to become effective in October, and you make a supply on July 30, you should inform the tax authority
Read MoreIOSS FAQ: Your guide to the Import One Stop Shop
[et_pb_section fb_built=”1″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Q. What is the Import One Stop Shop? The Import One Stop Shop (IOSS) is an online portal that businesses can use from 1 July, 2021 to file VAT returns for imports. This has been introduced as part of the EU VAT e-commerce package, where the import of low value goods that don’t exceed €150 (£135) will be subject to VAT. Low value goods are those that are in consignments with an intrinsic value (the price of the supplies, excluding discrete packaging and postal charges) of €150 (£135), imported into the EU or Northern Ireland. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/Zoho-Invoice-a-one-stop-solution-to-all-your-invoicing-requirements.png” alt=”ioss” title_text=”Zoho Invoice – a one-stop solution to all your invoicing requirements” url=”https://go.zoho.com/KwD” url_new_window=”on” align=”center” _builder_version=”4.9.10″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Q. What is the purpose of IOSS and how does it help? The IOSS was introduced to allow suppliers and marketplaces selling imported goods to EU buyers to collect and pay VAT in a simpler way. With this option, you don’t need to register in each EU member state to keep up with your VAT obligations, and you can simply use the portal to file your monthly VAT. The buyer is charged VAT at the point of sale, and doesn’t have to face any unexpected fees when the goods are delivered. Previously, VAT would be applied at the very end, and the customer would have to pay an unexpected amount. With the IOSS, the process of customs clearance is much faster, because by then, VAT would have already been calculated and applied. This gives the customer complete knowledge of the exact amount they’d have to pay. Q. What changes does IOSS bring? a) No more low-value consignment relief (LVCR) The previous VAT exemption, where imports valuing less than €22 (£20), is removed with the introduction of the IOSS. From July 2021, VAT will apply to all goods. You can file your VAT for imports falling under the threshold of €150 using the IOSS. This portal can be used by businesses outside the EU, including the UK. Goods that cross €150 will continue to be charged with VAT, as per the existing rules. b) Marketplaces will become deemed suppliers From July 1, 2021, online sellers and marketplaces will become deemed suppliers. In other words, they will be in charge of collecting and paying VAT on behalf of the seller. Marketplaces that facilitate the sale of imported goods can opt to use the IOSS to file monthly VAT returns. Note that the IOSS won’t be applied to goods that are subject to excise duties (like alcohol or tobacco products). c) Customs clearance becomes easier If you’ve registered for the IOSS, you don’t need to pay import VAT at the customs clearance. However, if the value of your items crosses the threshold amount, you’ll have to pay import VAT to customs. Q. Who can use the IOSS? Any business (including charities and non-profit organisations) that imports goods falling under the threshold amount of €150, even if the order contains more than one item, into the EU or Northern Ireland, can use the IOSS. These goods, when sold, must be transported from outside the EU and must not be subject to excise duty. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_video src=”https://youtu.be/4g9T20wRdio” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_video][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Q. Is IOSS mandatory? IOSS is optional. However, once you register, you should use the portal for all applicable sales. If you don’t want to opt for this, you’ll have to register and pay VAT in each of the EU countries in which you sell to customers, and will have to apply VAT upon imports. Q. How does IOSS affect me as a seller? If you’re a non-EU seller, you’ll have to charge VAT on imported goods and can register for the IOSS in just one EU state to declare and pay the amount. The VAT rate that you’ll have to apply will be the rate in the destination state (the EU member state where your goods will be delivered). If these goods cross the threshold amount, they will be taxed at importation in the respective EU Member State. In the case of marketplaces, since they facilitate sales on behalf of other sellers, they’ll become a deemed supplier, and can register for the IOSS as well. If so, they’ll be in charge of collecting and paying VAT that’s due on sale, instead of the seller having to take care of it. Q. How can I register for IOSS? From April 1, 2021, you can register on the IOSS portal of any EU Member State of your choice. If you’re a non-EU business, you should appoint an EU-based intermediary to act on your behalf and fulfil your VAT obligations under the IOSS. In case you already have an agreement with the EU, related to mutual aid in VAT recovery, then you don’t have to appoint an intermediary. When you register for the IOSS, remember to continue following your regular VAT requirements in your own country. If you don’t opt for IOSS and don’t select an intermediary, you can continue your business as it is, and import VAT will be applied at customs. If you haven’t registered with the IOSS, your buyer will have to pay VAT. The transporter will also charge a customs clearance fee. Q. What should I do once I’ve registered for IOSS? Once you ensure that the value of the consignment doesn’t exceed the threshold, you (as the supplier or the deemed supplier) have to display the VAT amount to be paid to the buyer. After this, you’ll have to submit a monthly VAT return via the IOSS portal of the EU member state you’ve registered in, and keep records of these sales. Marketplaces that facilitate sales will have to be in contact with the sellers, and have to pass on details like the IOSS VAT identification number to the EU customs for customs clearance. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″
Read MoreWhat is the use of client portal
[et_pb_section fb_built=”1″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] What is the use of the client portal? The client portal is an organized way to view the invoices, estimates and retainer invoices sent to your customer. If you’ve enabled the client portal for your business in Zoho Invoice and configured it for your customers, they can view their transactions with you by logging into the portal. This includes viewing and accepting/declining their documents, adding comments to the document and making online payments. Read more on how this works. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/Zoho-Invoice-a-one-stop-solution-to-all-your-invoicing-requirements.png” alt=”How can I convert an estimate into an invoice?” title_text=”Zoho Invoice – a one-stop solution to all your invoicing requirements” url=”https://go.zoho.com/KwD” url_new_window=”on” align=”center” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_image][et_pb_button button_url=”https://go.zoho.com/KwD” url_new_window=”on” button_text=”Access Free Invoicing Software” button_alignment=”center” _builder_version=”4.9.3″ _module_preset=”default” custom_button=”on” button_text_color=”#FFFFFF” button_bg_color=”#0C71C3″ button_border_width=”0px” button_border_radius=”22px” button_use_icon=”off” filter_saturate=”74%” button_text_shadow_style=”preset2″ box_shadow_style=”preset3″][/et_pb_button][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Can I customize the portal invitation mail content? Yes, you can. Here’s how: Go to Settings icon on the top right and select Email Templates. Navigate to Client Portal Invitation and select Show Mail Content . Now you can edit the text and click Save after you’re done. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/Make-payment-collection-a-breeze-with-Zoho-Invoice.png” alt=”How can I convert an estimate into an invoice?” title_text=”Make payment collection a breeze with Zoho Invoice” url=”https://go.zoho.com/HzZ%20https://go.zoho.com/KwD” url_new_window=”on” align=”center” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_image][et_pb_button button_url=”https://go.zoho.com/KwD” url_new_window=”on” button_text=”Access Free Invoicing Software” button_alignment=”center” _builder_version=”4.9.3″ _module_preset=”default” custom_button=”on” button_text_color=”#FFFFFF” button_bg_color=”#0C71C3″ button_border_width=”0px” button_border_radius=”22px” button_use_icon=”off” filter_saturate=”74%” button_text_shadow_style=”preset2″ box_shadow_style=”preset3″][/et_pb_button][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] I am getting a “Portal name already taken” message. This is because the name that you have specified for your client portal is already taken by another Zoho Invoice user. Since portal name has to be unique, you need to specify another name for your client portal. [/et_pb_text][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Can I change my portal name? Will this cause any impact? Yes, you can change your portal name. To do this, Go to Settings – Organization Profile Click on Change Portal Settings Make the necessary changes and click on Save. Now, the portal URL is modified accordingly. You will have to invite each of your customers again in order to enable them to view transactions and make payments through the portal. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/08/Invoicing-made-easy-with-Zoho-Invoice.png” alt=”how do we create recurring invoice” title_text=”Invoicing made easy, with Zoho Invoice” url=”https://go.zoho.com/HzZ” url_new_window=”on” align=”center” _builder_version=”4.9.10″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Can I set a password for the client portal? If yes, how do I do it? Yes, you can. Here’s how you can do it: Open the contact for whom you wish to set the portal password. Click on Configure Client Portal, if you have already enabled it for the customer. If not, click on Enable Client Portal. In the pop-up that follows, you can set the password by clicking on the Set Password option. Note: Using this option, you can set passwords for the contact as well as the contact person associated with the contact, by checking the box next to the contact or contact person. [/et_pb_text][et_pb_button button_url=”https://go.zoho.com/KwD” url_new_window=”on” button_text=”Access Free Invoicing Software” button_alignment=”center” _builder_version=”4.9.3″ _module_preset=”default” custom_button=”on” button_text_color=”#FFFFFF” button_bg_color=”#0C71C3″ button_border_width=”0px” button_border_radius=”22px” button_use_icon=”off” filter_saturate=”74%” button_text_shadow_style=”preset2″ box_shadow_style=”preset3″][/et_pb_button][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] An alternate method for setting portal password for the contact person is by opening the gear icon beside the contact person’s name, clicking on Edit and typing in the password (provided you have checked the box Enable portal access). [/et_pb_text][et_pb_video src=”https://youtu.be/4g9T20wRdio” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_video][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Once the password is set, the contact and/or the contact person will receive an email with the username and the password. Note: If you haven’t set up a password, the contact will be asked to set a password of their choice. Also, once your client logs into the client portal with the password you have set for them, they will have an option to Reset Password anytime later. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_post_slider posts_number=”5″ include_categories=”139,138″ bg_overlay_color=”#0C71C3″ _builder_version=”4.9.10″ _module_preset=”default”][/et_pb_post_slider][et_pb_social_media_follow _builder_version=”4.9.3″ _module_preset=”default” text_orientation=”center”][et_pb_social_media_follow_network social_network=”facebook” url=”https://www.facebook.com/zoho” _builder_version=”4.9.3″ _module_preset=”default” background_color=”#3b5998″ follow_button=”off” url_new_window=”on”]facebook[/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”twitter” url=”https://www.twitter.com/zoho” _builder_version=”4.9.3″ _module_preset=”default” background_color=”#00aced” follow_button=”off” url_new_window=”on”]twitter[/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”linkedin” url=”https://www.linkedin.com/company/zoho” _builder_version=”4.9.3″ _module_preset=”default” background_color=”#007bb6″ follow_button=”off” url_new_window=”on”]linkedin[/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”instagram” url=”https://www.instagram.com/business_tools_online/” _builder_version=”4.9.3″ _module_preset=”default” background_color=”#ea2c59″ follow_button=”off” url_new_window=”on”]instagram[/et_pb_social_media_follow_network][/et_pb_social_media_follow][/et_pb_column][/et_pb_row][/et_pb_section]
Read MoreHere’s How You Can Manage Cash Flow at Different Stages of Business Growth
[et_pb_section fb_built=”1″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] The life cycle of any business can be divided into four phases: launch, growth, maturity, and decline or renewal. Far too often, businesses fail to identify the actual stage their business is in, and miss opportunities for effective management. To take one common mistake as an example, a gradual increase in sales does not indicate your business is in a growth phase. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://finance.zohocorp.com/wp-content/uploads/2021/05/article.png” alt=”cash flow” _builder_version=”4.9.10″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Having a proper understanding of each phase of the business life cycle will help you prepare for the opportunities and challenges in each phase. The characteristics of each stage may vary based on business type, but if there’s one common feature that affects business at all stages, it’s the cash flow. In this article, you will read about the effects of cash in different phases as your business moves through its growth curve. The different phases of business Phase 1: Launch This stage is the beginning of the business life cycle. The goal of this phase is to establish your business concept to your audience in order to achieve a positive cash flow. If you look at the graph for this stage, the sales are usually low in the beginning and then there’s a gradual increase. Businesses often concentrate on marketing their ideas to a targeted audience in order to boost their revenue. Phase 2: Growth The slope for the growth phase is a little steeper than the previous phase. This phase of a business is defined by a rapid increase in sales leading to an increase in profits, as your business gets more popular amongst a wider customer base. In order to be competitive in this phase, you will need to focus on building and promoting your brand and invest in activities that increase your brand value. Phase 3: Maturity If your business has reached this stage, you have a devoted set of customers but the competition is still cutthroat. This is why the slope on the graph is a flat line that represents your steady turnover. Your sales revenue will be somewhat constant because you are selling roughly the same products, year after year, at the same cost. Businesses in this phase focus on maintaining ground with respect to the economy, competitors, and the changing requirements of the customers. Keeping an eye on the bigger picture will help you focus on improvement and productivity in order to compete with other businesses. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Phase 4: Decline or renewal In this phase, also called the post-maturity phase, businesses may find it difficult to cope with the new challenges posed by competitors. At this stage businesses can take several courses, depending on how their leadership responds. They may continue at a steady state, find a way to renew the business to fuel further growth, or eventually decline if there is no scope for sustained business and no successful attempt at renewal. How to cope with the effects of cash flow in a business lifecycle Launch phase When your business is at this stage, your big needs are likely for money and time to establish your idea in the market. You may spend extra to establish your business and your sales might also be low, leading to a sluggish cash flow. The challenge is not to spend away the little cash that you have saved for your business. To use your cash judiciously, invest in budgeting and forecasting in order to monitor your spending. Make sure to establish strict payment terms so that your receivables reach you on time. Using this discipline, you can build cash reserves that will keep your business on track during lean times. An important parameter to understand for your business is the break-even point. This is defined as the point below which your business will need to source additional finances or liquidate some of its assets to meet your fixed costs. Knowing about the break-even point may not change your cash flow, but it will help you estimate how much you can spend to reach your goals. Financially, it might be tough to hire an accountant at this stage, but their advice could help you set realistic goals for the next phase of your business. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Growth phase The acquisition of new customers leads to consistency in revenue and increased profit. The extra inflow of cash that comes along with this phase is called positive cash flow, which must be used thoughtfully to move your business forward. In this stage, suppliers will be reluctant to grant your business credit because you don’t yet have a long track record with their company. You will need to hire more people to work for your business, which means you need to spend more on wages. Most of your money will be spent on payments to suppliers and employees before it comes back into the cash cycle in the form of payments for the sales you’ve made to your customers. You may experience a time lag in receiving those payments, though, as customers (especially retailers) will take full advantage of the credit terms that you offer. Other factors like working capital, debt, and the cash cycle can also influence your cash flow at this stage. To keep your business healthy, your cash must be planned, monitored and measured, and put to judicious use. Forecast your business goals and plan the cash required to achieve your growth objectives. If your payments still don’t turn up on time, your business should not come to a standstill. You can explore several financing options like revolving credit lines to keep your business operations going. Maturity phase At this stage, the cash flow does not change dramatically. Your mature business is likely to have stable sales due to market acceptance of your products. Operations will become profitable early in this stage, leading to net positive cash flow. This excess cash is usually used to pay off debts
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