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Know How The Trade Creditors And the Contingent Liabilities Connected With Business Are Handled By The Auditors

Know How The Trade Creditors And the Contingent Liabilities Connected With Business Are Handled By The Auditors

While dealing with the trade creditors, the Auditor should

  • Check with the list and schedule of the creditors and also with the purchase ledger that has been already examined by him.
  • Assure if all the items purchased during the year from the beginning to the end are also included in the corresponding accounts of the creditors.
  • If the Auditor feels for any misinterpretation of false play from the side of any creditors, he or she should immediately opt for the respective client’s consent seeking for the corresponding account statements to be mailed and cross check the same by studying the ledger accounts.
  • Also, if the creditors allow for any discounts for the goods returned due to some issue, the Auditor should check with this and must confirm whether the reported matter is genuine or not.
  • If the Auditor sees any matter that has a payment pending with the overdue creditors, then he must immediately ask for the concerned reason for the same.

The case of contingent liabilities

Contingent liabilities include those type of liabilities that may or may not occur in the future of payments.

When the contingent liabilities are evaluated by the Auditor, he must ensure that all the variety liabilities are brought into the accounts as per that detailed separately on the balance sheet. Moreover, the specific balance sheet must be surely checked with respect to the entries made on it.

  • If any case arises like a discount is made on the bill receivable from a bank and the cash so obtained is already made use of, then the entire amount must be refunded to the corresponding bank once the acceptor fails to make the real payment on its date of maturity. This is the main reason why such a liability is separately detailed in the Balance sheet by way of a footnote.
  • Any money called on the share names must be paid on time and should be verified by means of the cash book and all those that include the uncalled liability must be determined.
  • Further, the Auditor must also analyze the liability granted by the client on some security for a loan to his friend or a partner. If later any issue falls due to non-payment of this loan, then the corresponding liability should be ascertained.
  • While considering the disputed cases where the damages have to be made by the company on the part that is not acknowledged as debts, then that should be immediately ascertained on the foot of the balance sheet and the Auditor must check with this.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How An Auditor Verify The Fund Reserves Liabilities Associated With A Business Company?

How An Auditor Verify The Fund Reserves Liabilities Associated With A Business Company?

Usually, reserves can be categorized into two different domain which includes the generic and specific type. Examples of specific funds include

  • Sinking Capital,
  • Capital Redemption type of Reserve,
  • And the Reserve Contingencies.

An Auditor’s duty is to

  • Check out if appropriate profit and loss account transfer is properly done to reserves while complying with all the provisions linked with the transfer.
  • Further, he should verify the board’s consent with the plan of relocating the profit to the corresponding reserves.
  • Also, the Auditor should see whether the allocations or exchanges made in the reserve accounts like the additions to and deductions from the earlier year’s balance are decently handled as per the legal terms and conditions.
  • The Auditor also requires to analyze if the use of these reserves occurs in accordance with the law principles.
  • It is also important to note if the reserve utilization is immediately recorded in the balance sheet of the business company that complies to the law policies.

While dealing with the case of loans taken by the company, the Auditor should

  • Recognize the true power of the company to borrow money from others by understanding the Organization’s Memorandum and Articles.
  • Moreover, the bond made in correspondence with the loan should be thoroughly examined by the Auditor.
  • Also, he must verify with every cash receipt on account of the loan issued along with the registered entries in the respective cash book.
  • Further, he must check with the certificate of registration approval given by the Registrar of Companies which recognizes if the loan has been fortified by mortgaging any property.
  • Along with this, the auditor should assure if the interest payment is timely made to the vendors and the Auditor must vouch for the counterfoils of receipts to make sure of this. He can also compare this with the corresponding entries made in the cash book of the company.
  • Additionally, the Auditor should evaluate whether loan repayment is made in a periodic manner as per the agreement and the respective counterfoils of the checkbook, the passbook issued from the banks and the corresponding cash book stating this should be verified.

It would also be an appropriate step to seek for a confirmatory letter from the agent who has sanctioned the loan to the company so that the Auditor can cross check if the interest on the loan is not due and the repayments of loans documented in the record books of account are correct.

 

 

 

 

Trading Came To Me As Second Nature

Trading Came To Me As Second Nature

 

I have been scammed also!

Before I go on to tell you how I made the thousands of dollars that I made from online trading, let me make it crystal clear that everyone starts with being scammed at first. A very few and by that I mean probably a couple of them in a thousand who get off with a wonderful start and a legit trading software in the very first time. The rest of us have to be scammed and duped till we search and find that one perfect software that is not just legit and professional but that which works for us.

When I began my trading journey, I had thought that I had read enough on it. I had no background in trading at all. Yet when I started I lost a lot of my money. I kept hopping from one software to another in the hope that maybe I would find one too and that I can be unlucky for only this many times.

Trading per se is easy but dealing with fraudsters can take a toll:

Just like how one bad fish can pollute the entire lake, so also a few fraudsters are hell-bent on spoiling the name of the entire field. A handful of fraudsters can make it seem like they populate the entire online trading industry.

A little discretion is all that we need:

Of course, we all know that everything found on the internet is not true. The honest testimonials and the rave reviews re after all never really honest or there is nothing rave about them. Most of the software that makes so much noise there are perhaps the frauds who want to attract eyeballs and increase footfalls to their pages.

But you don’t have to worry because not all of them are like that. There is at least a hundred legit software where you can open a trading account and begin by saving your earnings. The best part about trading online is the convenience.

The online markets never sleep!

The markets are open 24/7/365 and that presents immense scope for a good inning. A trader can have his day job and trade a few hours before he retires for the day. The profits to be made may be subjective but at the end of the day, one must not forget that trading is something that is inherently risky. There are chances that he may make a windfall profit on one day and then not make much during the following few days and they lose all the money in one shot on one of the days. This will not make it a fake or a fraud.

At the end of the day, trading also gives a lot of satisfaction. My journey so far has been good and I would love to hear yours!

All That You Need To Know About Online Trading!

All That You Need To Know About Online Trading!

 

People who have tried trading online have always come back to tell me that their fears were so misplaced. Most of them also came to me with grievances of losing chunks of their hard earned money but then they returned back smarter.

You only dispel the darkness of ignorance by reading:

Like everything else, a trader why desires to enter online trading and want to do well here must begin with a thorough study of what options are available to him in the first place.

The internet is resourceful; however, you will need discretion:

Not everything that is there on the World Wide Web is resourceful and completely true. No surprise there. There are people who write positive and negative reviews and testimonials just for the heck of it even without trying the software out for themselves. There are also people who sell their fake reviews and testimonials and there is a high chance that at least five out of ten testimonials across the internet are not genuine but doctored.

Having said that we cannot undermine the fact that to become a trader who has the complete knowledge about what trading is. That will come with reading extensively about it. There are chances that a naïve trader may get scammed even but the best approach is to treat it as a learning curve.

Trading is definitely supplementary in nature:

If you are someone who has adopted online trading because you want to earn big time, log off immediately. It is common knowledge that the earnings from trading on such a medium can best be termed as supplementary in nature. It cannot give you so much for so little that is expected from you.

It is beneficial in the long run:

Consistent profits on a daily basis can mean that at the end of a particular period you can expect to see a good balance sheet. Every drop an ocean makes. Do not underestimate the power of daily earnings however small they be. The cumulative effect can create ripples.

Perhaps you can save and afford to buy something that you wished you could from the salary that you draw from your day job but just could not because we all know how the salary almost vanishes even when we enter the month’s third week!

This will help you make your ends meet. Believe me, at one time I may have been a skeptic too. Today I help people overcome their past bad experiences and encourage them to give it one more try and on a known legit platform. It, not the winning that matters always but never giving up does!

Importance Of Internet For Business

Importance Of Internet For Business

As the world has become technologized, everything has become online and without an internet connection, nothing can be done. For business use, the internet is a very essential one because there will be a lot of things to do like emailing, video calling with the online clients and much more. So, the internet plays a vital role in the business field and it is very important to make use of it in a proper way as there are many chances of misusing it. We should be very careful while using it. Let us discuss how important the internet for a business and in what are all the ways it helps to bring up the business.

  1. Marketing:

As we all know marketing and advertising is the most important things for the development of a business. This can be done with the internet by giving some digital advertisements in the familiar websites and so the people when they use those websites, they will be seeing our ads on that page. This will help us to get more and more clients for businesses. Because when we give marketing for our business, the reach among the people will be very high and obviously they will come forward to know about us. This will make to enhance our business in an easy way.

  1. Communication:

In earlier days there were no phones at all and so there were many possibilities for miscommunication. But now there will never occur any miscommunication as we are in a trending technology world. When we have a stable internet connection, we can easily send emails to our colleagues or employees regarding our work and we can even talk to our onsite clients through the video calls applications like Skype. So, if we have any queries or doubts, we can immediately solve it by making an internet call to them. So, we can easily reduce the mistakes and grow up our business easily.

  1. Storage:

The information storage has become so easy with the internet. There is an electronic storage device which will save all the needed important records in it and we can retrieve it whenever and wherever we want to. This is really an excellent advantage for us because as we were using papers to record everything, we would have missed many important files and folders. But here, the chance of missing is very less and the files will miss only when we do not save it properly.

Conclusion:

Thus conclude that internet plays a great role in the life of many businessmen and I can say it is really a boon for all of us.

 

How To Fulfil The Customer Expectations

How To Fulfil The Customer Expectations

The customers are the main pillars of support to make our business a great success. So, the customer satisfaction is a very essential thing to run the business without any distractions. Every customer will have some expectations in their minds and they want us to fulfill it by delivering their products on time without any delay in the exact way they wanted. It is in the hands of the customers to make the businessmen reach the top level in the market among the other businessmen. Though the businessmen have much experience, sometimes we ourselves do not know how to fulfill their needs. So, let us have some tips on how to fulfill their needs and make them happy and satisfied.

Know about them:

The first main thing needed for it is to gather the information about the customers like what actually want to purchase with us and how regularly they will reach us. So that we can be ready with their products on time and we can also make ourselves to do based on their lifestyle and ideas. So, better try to collect more details from the customers.

Understand the needs:

We need to enquire their actual needs and try to understand it in a proper way so that we can make it more accurately without any mistake. If we have any doubts about their needs, we should clarify with them so that it will be very useful for us to start working on it.

Meet the needs:

Once we understand their needs, we can start giving out our best and it is our duty to meet their actual needs so that they will approach us next time for the other products or services. We should offer them more than what they expected and they should feel wow for what we have given them.

In case if we are unable to provide them with what they needed, we cannot leave it easily. We have to verify where we have done wrong and what should be changed in ourselves. So that we will not do the same blunder again and again for all the times.

Follow up:

Follow up is the most important thing needed to fulfill their needs because the customers expect the businessmen to have perfect communication with them to know the date and time of delivery and much more.

Conclusion:

Thus conclude that we should always try to fulfill and meet the expectations of the customers. Then only we will get a brand name in the market and we will have the chances of getting more and more clients.

 

Information On Mutual Funds

Information On Mutual Funds

A professionally-managed fund which helps in pooling the savings of investors and investing that money in various securities like bonds, shares, commodities and short-term instruments in the money market is known as a mutual fund. All the investors in the mutual fund have the same financial goals and their money gets invested in varied asset classes depending on the investment objective of the fund. The biggest advantage of the mutual fund investments is that it promotes a small amount of money and investors gain from it as their money gets managed by finance professionals.

You can earn some extra money to invest in mutual funds through trading of cryptocurrencies. All you want to learn about it can be viewed here.

The mutual fund investments are managed actively by professional fund managers. The funds get diversified to offset the potential losses.  They are one of the best options for investing your money as it does not require your constant attention or there is no high fees attached to it.  It is the best choice for people who do not have the knowledge or time to make complex and traditional investment decisions.  Once you put the money in the mutual fund, you will be permitting the fund manager to make the decisions for you.

Different types of schemes available

Close-ended fund- These funds have a specific maturity period of 3-6 years.  When it gets launched initially, these funds will be open for a particular period for a subscription.  All the funds will be listed on the recognized stock exchange.

Open-ended funds- These funds are available for subscription on a continuous basis and also can be redeemed any time.  Throughout the year, it would be available and the investors could sell or buy the units at their NAV related prices.  There will be no fixed maturity date for these funds. The main feature of the open-ended fund is its liquidity.

Interval funds- These funds combine the close-ended and open-ended funds.  The interval funds get traded on the stock exchanges. They are open for redemption or sale on prevailing NAV price at pre-determined intervals.

Based on investment objectives, the different types of mutual funds available are:

  • Fixed income funds- Invests in fixed income securities
  • Growth or equity funds- Invests in equities like stocks
  • Balanced funds-Mix of fixed income securities and equities
  • Gift funds- Invests in government securities
  • Liquid or money market funds- Short-term securities like treasury bills

 

 

Cold Emailing Potential Clients? Avoid These Actions

Cold Emailing Potential Clients? Avoid These Actions

Whenever we start a business, we always reach out to different people who can be potential clients for us in time to come. Some of them are placed locally while others reside in different countries on the globe. Your main idea here is to bring together all these people belonging to different geographical areas and sell them one single concept of your business for your and their own betterment. Now how you would go about doing this and achieving your objective would be the main question and it will only be answered through the strategies you formulate for the same.

When speaking of marketing, email marketing is one of the ideas that have proven to be very beneficial for all kinds of upcoming as well as existing businesses. No matter the person you are sending an email to is already your client or you are targeting them to join your team as a loyal client, you create your emails in such a way that they are bound to fall for the products and services you are offering them. Since this method holds a lot of power to attract the attention of buyers, experts say that there are several things one must try to avoid while sending cold emails to potential clients. Want to know what they are? Keep reading.

Things to avoid while cold emailing

Here are some of the factors and actions that you must not include or implement while sending a cold email to your target clients.

  • Do not keep it too lengthy: It is very important for you to ensure that your email is short, sweet and informative. If the email would have way too much information, the reader would get irritated and thus disinterested in reaching you out to avail your services.

 

  • Don’t be just a salesperson: Ensure to be yourself instead of just being a salesperson trying to sell a commodity. Try to touch the sensitive side of your clients and make them realize how your products and services can improve their quality of life.

 

  • Add value: Make sure there is some useful value added to the email. The clients should understand how the upcoming products and services can become an integral part of their life.

 

  • Keep the main hook in mind: Remember to not beat around the bush and stick to the main point. Stay hooked to your prime idea and ensure that the reader also understands your emotion behind it.

In addition to these, you can also gather some useful information online on how to get the best cold emailing techniques by approaching reliable cyber mentors for perfect guidance.

 

More Information On Commodity Market

More Information On Commodity Market

Commodity futures contracts are the contracts that are committed to accept or make delivery of a pre-determined quality and quantity of a commodity on a specific date at a pre-determined price. The commodities that are traded in the exchange are supposed to deliver the goods at contract price and will not take into consideration the current prices that are prevailing in the market.  Other than this market, you can also explore the cryptocurrency market to diversify your funds so that the risk and return get balanced. Read more about the cryptocurrency trading here.

An efficient and effective market for commodity trading futures requires:

  • A large number of sellers and buyer with different risk profiles such as speculators, arbitrageurs, and hedgers
  • Price volatility in underlying commodities
  • Underlying physical commodities should be exchangeable

Features

Organized- Always the commodity futures contracts are traded on the organized exchange.

Eliminates counterparty risk- The commodity future exchange uses the service of clearinghouse to ensure that all the terms and conditions are fulfilled. These clearinghouses help in eliminating any risk that arises when any one of the party defaults.

Standardized- The commodity futures contracts are standardized with quantity, quality, and delivery date as they are all pre-determined.

Facilitates the margin trading- In these contracts, you don’t have to mention the entire contract value. You are required only to mention the margin which will be roughly about 5 to 8% of the total contract value. The margin will be different for commodities and exchanges.

Regulates the market environment- The future contracts help in regulating the market and it ensures that all follow the rules set by the exchange. Also, the government closely regulates this market.

Physical delivery- The actual delivery of commodity will be made only on the expiry of the contract. The members are required to provide the exchange with delivery information.

Participants in the commodity market

Hedgers- They are the consumers and producers of the commercially traded commodities. They take part in trading by managing the risk of the sports market.

Arbitrageurs- They are the traders who make money taking advantage of the differential pricing across different markets.

Speculators- They take part in trading with the sole intention of earning money by speculating the future price movement.   They do not prefer to accept or make actual deliveries of commodities.  They liquidate their trading positions before the contract expires.

In order to take part in commodity trading, you need to have a thorough knowledge of the market

 

 

 

 

 

Innovation In Business

Innovation In Business

Consumers, today, have become much more technologically advanced than they were a decade back. This is why your usual business scenario has become way more competitive and you are required to upgrade yourself and your business with changing times. Innovation in business is, thus, the need of the hour. In the midst of a million other entrepreneurs, you need to have an edge to stand out and make a difference. Innovation helps you attain that difference and boosts your productivity and efficiency.

However, not many business owners invest in innovation because they are apprehensive of the consequences. Innovation in business does not have to be a huge change but could also be small and simple differences that benefit your company in the longer run.

Here are 4 reasons to invest in innovation today.

  1. Boost sales and relationship with customers

If you have been selling the same products and services for the last ten years, then it is likely that your sales have dropped or will start dropping very soon. Everyone is innovating and upgrading and you ought to do the same. Investing time and money in modifying your services will make new and existing clients notice the change and take interest in your work. One example could be to introduce a survey of sorts that would involve your customers in the process of reviewing your work and suggesting improvements.

  1. Cut down costs

When you cut down waste, you eventually cut down costs. This holds true in almost all forms of businesses. There are few areas that you could focus on like cutting down on too many machines, improving work productivity by utilizing the time of the employees, getting rid of bottleneck situations and improving your margin of profit. You can hire an expert in efficiency to inform you of new ways to cut down costs in your company.

  1. Improve your position in the market

When you are innovative, you are naturally better placed in the market. The difference between you and 10 other entrepreneurs selling the same thing will make people want to buy your product. When you are innovative, you also study market trends more efficiently. If you are looking for innovation ideas then you can study market trends in other countries.

  1. Happier employees

Your employees will love their work if their workplace is innovative. Innovation will keep your employers boosted and will eventually reduce workplace attrition. In turn, you could expect more innovation since rejuvenated minds host the most creative ideas.