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Factors that affect the Gold rate in India

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Gold is one of the most trusted and revered investment avenues in India. It is one of the most auspicious metals considered imperative for festivals, weddings, and other occasions. Temples in the country are famous for their golden idols guarded against thefts while most Indians view gold as a form of future security and safety against financial emergencies. Gold has lived up to its high reputation for several decades now although there are periods when it starts losing some sheen. Prices of gold have often gone downwards and customers have bought gold in higher quantities with the hope of earning higher dividends when prices start rising once again.

Here are some of the key factors influencing the prices or rates of gold in India throughout the year. The prices of gold are substantially impacted by developments in global markets as well. India is one of the world’s biggest consumers of precious yellow metal and any movements in prices globally will naturally have a direct impact on prices in the country too.

Major Factors Driving Gold rates in India

Here are the factors worth noting in this regard:

  • Inflation- Gold has considerable value owing to its steady nature in comparison to currency and is deployed for hedging against inflation as a result. Be it purchasing online gold or physical gold, investors prefer holding onto gold in place of currency for the future. Hence, demand for gold goes up with rising inflation and vice versa. The prices of gold increase owing to huge demand from Indian customers. This is also applicable to global inflation.
  • Global Shifts- Global shifts in gold prices will naturally impact gold rates here in India as well. This happens since India is one of the world’s biggest gold importers. Global movements are thus reflected through gold prices in the domestic market. Gold is often subject to higher demand in times of turmoil since people see this as a safe haven than currency or other financial products. Gold buying usually goes up when the confidence of people comes down considerably in the Government and financial markets. It is thus often called the crisis commodity.
  • Gold Reserves of the Government– Central banks of almost all top countries hold onto gold and currency reserves alike. The Reserve Bank of India and also the U.S. Federal Reserve are two such examples. Whenever central banks in big countries start holding their gold reserves and acquiring even more gold, prices of the yellow metal naturally go upwards. This is because cash flow in the market is higher while the supply of gold comes down as a result.
  • Jewelry Market Trends– Indians have a special fascination and liking for yellow metal. Right from birthdays and festivals to weddings, gold jewelry is revered in most households in India. Prices of gold go up during festivals like Diwali and also during the wedding season in the country. This is because of higher consumer demand and a mismatch between supply and demand of gold, i.e. higher customer demand vis a vis lower supply of the commodity in question. Gold is also used in smaller quantities by various manufacturers of electronics for devices such as computers, televisions, GPS devices, and more. Gold is used for gifting in India along with jewelry and ornaments and also to hedge against future inflation. These contribute towards increasing domestic demand sizably for gold periodically and India has to then import sizable quantities of gold as well. Industrial demand for gold comprises roughly 12% of overall gold demand in India.
  • Rates of Interest– Interest rates levied on financial services and products are linked closely towards gold demand in India. Gold prices presently are excellent indicators for rates of interest in the country and their current trends. With higher rates of interest, customers usually tend to sell off gold for getting more cash in hand and an increased supply of gold will naturally lead to lower rates for the precious metal. At the same time, lower rates of interest will mean that there is more cash in the hands of customers and higher demand for gold will be witnessed likewise. This will lead to higher prices of the precious metal subsequently.

On a closing note

There are several other factors at play when it comes to influencing gold prices or rates. There are numerous aspects influencing gold production and future costs of production, thereby impacting prices directly. Yet, the core takeaway here is that in spite of multiple factors behind gold rates, it ultimately comes down to the relationship between demand and supply. The basic mismatch between these two factors is one of the key reasons behind the movements or shifts in prices of the precious metal. This mismatch may however take place owing to diverse scenarios which can be observed in a variety of market conditions.

The Pros and Cons of Working as an HR Manager

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HR managers perform a series of crucial functions. They help to administrate everything that concerns personnel, which might mean everything from payroll to individual performance reviews. They help to ensure that the organisation is meeting its legal obligations when it comes to working conditions. They help to foster dialogue within the company, ensuring that staff feel comfortable raising issues. Finally, they play an active role in shaping the broader culture of an organisation.

With all of that in mind, you might still be wondering whether the role will make a good fit for you and your skillset. Let’s take a look at some of the pros and cons.

Pros

Salary

If you work in HR, you can end up earning a great deal of money. This is because, as we’ll see, you’ll play a big role in shaping the success of the organisation.

Communication

If you’re looking for a role where you deal with people, and you’ve got decent communication skills, then HR will allow you to flourish.

Experience

Working in a Human Resources department is an excellent way to gather experience. You’ll be exposed to a range of different situations and challenges, and the overcoming of those challenges will equip you for future management roles. Often, the best way to gain this experience is through an interim job.

Authority

An HR manager is often among the most important decision-makers in a given organisation – rivalling even the nominal leaders of the entire business. The decisions they make are often enormously consequential. Thus, if you relish the opportunity to make a real difference, HR might provide a chance to do just that.

Satisfaction

You’ll be able to see the results of your contribution quickly. You’ll build a company culture that makes the organisation a great place to work, and for many this can be immensely satisfying.

Cons

Stiff Competition

Given all of the advantages we’ve listed above, it’s probably unsurprising that the competition for a place in this niche is fierce. You’ll need to excel if you’re to secure a foothold – and you’ll also need a little bit of luck.

Tough Conversations

If you’re working in HR, then you’ll occasionally have to hold a difficult conversation. This might be a disciplinary, or it might be notice of a firing decision. For this to be possible, you’ll need to maintain an emotional distance from the people you’re supervising, which can be tough.

Legal Liability

Decisions made by HR managers can sometimes land the firm in legal hot water – and thus you’ll need to know your stuff, and be able to pay attention to small details.

Blame Game

HR often finds itself blamed by other sections of the business when things start going wrong. You’ll therefore need thick skin, and to be able to fight your corner.

Stress

There’s always a new situation to manage when you’re in HR. Given the demands on your time, and the often-intense nature of the work, you might find yourself suffering from stress in the long-term.

Why Consumers Invest in the American Buffalo Gold Coin

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It shouldn’t surprise anyone to learn that consumers, particularly American consumers, have fallen in love with the American Buffalo Gold coin. What makes this gold coin so special? There are a few things that make the gold investment very special and important, but in particular, it provides big advantages to gold IRA and gold 401(k) account holders looking to invest in this commodity for their retirement.

But even more important, it’s extremely popular, the purity levels are nearly 100% pure, which is important for IRA approval, and it has beautiful images on the front and back which make it valuable to collectors as well. They love beautiful designs because gorgeous coins are prized by many collectors and investors alike.

Are you ready to find out more reasons why consumers flock to the American Buffalo Gold coin? Stick around a little longer to find out the truth.

Never Again Worry about IRS Approval with the American Buffalo Gold Coin

Gold IRA investors always have to worry about IRS approval when purchasing gold coins for their precious metals account. Why? They do not want to accidentally buy a nonapproved coin and get stuck with it without being able to own it as part of their retirement account for the future.

Buying coins that do not have gold IRA approval basically defeats the purpose of having this account, and it forces you to personally keep your gold at home in a safe instead of keeping it securely stored in a dedicated vault managed by a security company.

Why do you never have to worry about IRS approval? Well, the American Buffalo Gold coin meets the approval levels set forth by the IRS. This takes the guesswork out of trying to find the right precious metal to add to your retirement account to grow in value for the future.

So, you can successfully create a precious metals IRA account and begin buying American Buffalo Gold coins immediately, and reap the big benefits over the years when this valuable commodity continues to grow and gain additional value as time goes by. You can then cash it in once you become 59 ½ years old or older because that is the distribution retirement age for this specific account.

Think about this for a second…

Since the purity requirements are so strict, and I’ll talk about that more next, it isn’t always easy to find silver, palladium, gold, and platinum coins, rounds, and bars that have received IRA approval from the Internal Revenue Service.

That’s why investors like to stick to well-respected American coins that they know, like, and trust. And they know that they’ll have no trouble adding them to their retirement accounts because they’ve already been approved, they are very pure, and many investors seek them so they are valuable commodities as well.

Pro Tip: are you planning to open a precious metals IRA in the future? At a minimum, you’ll need $5000 to deposit when you first open your account with the most precious metals dealers. Some dealers asked for even more than $5000, but this is typically the smallest amount you can deposit with respectable brokers.

Afterward, whenever you need to make another purchase in this account, you’ll have to do so in $1000 increments. Please keep this in mind as you begin your gold IRA investing journey.

The American Buffalo Gold Coin Received Approval for Precious Metal IRA Accounts Because It Meets Purity Requirements

Another reason to consider buying the American Buffalo Gold bullion coin is that it’s pure enough to own in your precious metals IRA account according to the IRS.

Their purity requirements are as follows: all gold coins must be 0.995% pure, because otherwise it does not meet the purity levels of approval.

Do you know how pure the American Buffalo Gold coin is? It’s 24 karat gold, which means it has a .9999 level of purity. This is more than enough to surpass the needed levels to receive approval.

In fact, the West Point mint in the United States first created this coin in 2006. They made it this pure specifically so that it would be allowable in gold IRA accounts.

This is a great thing for precious metals IRA investors.

The Value of Gold Is Off the Charts

Another important reason to buy American Buffalo Gold coins is the value of gold is going through the roof lately. Believe it or not, in the past two years investors could have paid $1200 per ounce for gold in early 2020, and the same gold investment is now worth $1900 per ounce, or close enough to it.

Does this sound like a lucrative investment? It certainly is, and it’s the reason why so many retirement investors are beginning to open a precious metals IRA account. They have the opportunity to purchase a valuable commodity that has great interest and continues to steadily rise in value throughout the years.

Because remember, gold has amazing long-term prospects even though the price is moving up precipitously in the near term. In the past 50 years, as an example, gold has risen by more than 400%. This is nothing to sneeze at my friends!

And last but not least…

American Buffalo Gold Coins Are in Demand

More than anything else, when you purchase an investment, you need to make sure that it is in demand. And because the American Buffalo Gold coins are so pure and so valuable and have such beautiful pictures on the front and back, you can bet your bottom dollar that the investing world wants to get their hands on them.

So, you should feel good knowing that gold – and in particular American Gold Buffalo coins – are highly valued and they are in high demand.

Even more important, gold is becoming rarer throughout the years because gold miners are finding less of this precious metal each year. That makes gold more valuable than you could ever imagine.

It’s never a mistake to buy American Buffalo Gold coins. And when you do so, buy them for your retirement within a precious metals IRA to make the most of this investment and receive tremendous tax benefits at the same time.

4 Reasons You Should Build Your Own Computer

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Building a pc is deceptively simple. Plus, in an increasingly digital age, learning computing skills can greatly benefit your future career prospects.

With more people learning coding skills now, getting ahead of the curve and involved with building computers is a smart move.

We look at four reasons why you should build your own computer.

It is Cost Effective

The cost of personal computers and laptops has become astonishingly high over the last decade. Even more so if you need a powerful computer for gaming. Building your own computer can dramatically reduce costs.

Starting with a computer kit such as a Raspberry Pi can help you create your computer for less money. In addition, starting with a kit will provide you with some of the essential hardware you need in one easy project.

It Facilitates Learning

Whether you already know how to code, or you are just starting on your digital development journey, building your own computer can greatly improve your skills and help facilitate your ongoing computing education.

Many computer kit companies such as OKdo run workshops or have video content to help you learn the skills you need to build a computer. If you are planning a career in software or computer development, learning these skills will be essential.

It gives you more Choice

When building your own computer, you will have complete ownership over which parts to use. With a store-bought computer system, you will not have the same level of choice and might end up with a computer that has parts not powerful enough to perform the way you want them to.

Choosing your own parts is all part of building a powerful computer that is tailor-made to your requirements. Which is ultimately the point of creating your own computer in the first place.

It allows you greater Control

When you buy a ready-made computer, you may need help from tech support to troubleshoot any problems that occur. When you build your own computer, you effectively become your own tech support.

As you know your computer inside out you will know how to tackle any issues or fix any faults that might pop up as you use your computer. If you have built the operating system your computer runs on as well, you will also be able to create and fix any updates easily should they happen.

4 Ways on How you can Secure Your Sensitive Data

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Technology has completely changed most of our lives in recent years. Billions of people all around the globe have access to the web, and they use it for all different things. People rely on technology to work, socialize, communicate with others, play games, the list goes on. It is hard to imagine life without technology. 

Unfortunately, there are many downsides to the technology we use. One of the biggest issues internet users face is cybercrime. There are thousands of cybercriminals out there that are looking for new victims, and with many people working from remote locations since the outbreak of Covid-19, there has been a huge increase in the number of cyberattacks reported. 

Most of the time, hackers are looking to steal sensitive data. They are known to extort money from their victims, and to steal their identity. This can ruin a person’s life, and catching the culprits is often very difficult for authorities. Most of the time cybercriminals are located abroad, so there is very little local authorities can do to help. However, there are many things you can do to reduce the chances of becoming a victim.

Invest in a VPN Provider

Investing in a well-known, secure VPN service can boost your security settings. A VPN (Virtual Private Network) will mask your original IP address and replace it with a new one. Cybercriminals find it a lot harder to hack computers if the person is using a VPN. Without knowing their victim’s genuine IP address, gaining access to their computer is not going to be easy. 

There has been a huge increase in the number of people purchasing VPN services since the pandemic began. Because a lot of folks are working from home instead of in an office, it is not surprising that so many people have been wanting to increase their security. People worry about sending confidential files and folders through a network without having a VPN.

There are a lot of VPN providers looking for new customers, so you can really get good value for your money. Avoid running free VPN services. Although it might seem like a good idea to employ a free VPN, your genuine IP address is at risk of being leaked.

Use a Virtual Data Room

In the past, businesses all around the world used Physical Data Rooms to store sensitive files and folders. However, over the past couple of decades, Virtual Data Rooms (VDR) have become a popular alternative. 

A VDR is a highly secure repository on the web that allows users to store, review and edit sensitive files. It allows multiple users to store data, and administrators can set different permissions so they are in control of the data that is stored in the room. They can decide what documents are allowed to be edited, whether or not the users are allowed to “copy” and “paste” files if the users are allowed to take screenshots, and who is allowed to use the data room. 

Businesses have been employing this service for several years. Most business owners feel VDRs are more secure than Physical Data Room. Physical documents can get destroyed or damaged over time, and they are not as convenient as VDRs. An employee can access the VDR whenever, and wherever they want. They don’t have to physically go to the office to store or access files located in a VDR. For more information about Virtual Data Rooms, check out https://www.firmex.com/.  

Store your Files with an Encrypted Hard Drive


Encrypting your hard drives is another popular way to secure your sensitive data. There is a lot of software readily available online that allows you to do a Full Disk Encryption (FDE), which is one of the most popular encryption methods. Without using an FDE, cybercriminals will find it easy to access your files and folders stored on your drive. 

Consider buying an external hard drive, or flash drive to store highly secure data. They can be used for confidential files and you don’t have to have them connected to your computer all the time. Encrypting all your hard drives, internal and external drives will make it a lot harder for hackers to gain access. To access these drives, cybercriminals will have to show your password. 

A lot of people use smart devices to connect to the internet, and many assume that they are a lot safer than desktop computers or laptops, but cybercriminals attacking smart devices have been increasing in recent years. If you store sensitive data on a smart device, understand that you are vulnerable to becoming a victim of a cyber attack too. A lot of smart devices allow you to add a micro SD card. If you invest in a micro SD you can secure your private data by encrypting it with a highly secure password. 

Use a Strong Password

One of the easiest and one of the most effective ways of securing your sensitive data is by using strong passwords. If you want to improve your current passwords, follow these steps:

  1. Do not use the same password twice: Have a different password for your email address, social networking profiles, your online bank account, etc. Although it’s easier to remember the same password, it puts your device and the files stored on your device at serious risk. 
  2. When you are making your password, make sure nobody sees you: Avoid creating a new password in a public place. If someone looks over your shoulder, they will be able to access your account. 
  3. Log off: Once you are finished using a device, don’t forget to log out of any accounts you have opened. If a person uses the device after you, they will be able to access the accounts you forgot to log out of. This can be extremely dangerous, especially if you are using a computer in a public area like a WiFi cafe.
  4. Don’t tell anyone what your passwords are.
  5. Change your password: People have the same email address for decades without changing their password. Consider creating a new password periodically, and don’t use the same password that you have used in the past. 
  6. Consider using at least 8 different characters when creating a new password. Make it even harder for hackers to guess your password by using upper and lowercase letters. You can add symbols and numbers too.
  7. Don’t create a password that is difficult to remember, but don’t use one that is easy to guess either. 

If you find it difficult to remember all your passwords, you can write it down to remind you. However, be careful where you store it. Avoid storing it near your computer or your smart devices. Instead, consider storing it in the back of an old photograph inside a frame. 

There are strength analyzers online that will tell you if the password you have chosen is strong or not. 

Conclusion

In 2021, there will be around thirty thousand websites attacked each day. The majority of businesses around the world have experienced at least one cyber attack. Last year, ransomware cases increased by one hundred and fifty percent. People around the globe have lost vast sums of money, their private files and folders, and their identity to these criminals. Avoid being complacent, and make sure your security settings have been updated. 

How to Invest in Bitcoin With Your IRA

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Many people fail to realize this, but investing in Bitcoin for retirement is absolutely the best way to diversify your portfolio and experience much higher returns than you would if you invested for the short-term. But if there’s one thing that everyone needs to know about cryptocurrency it’s this – this investment is incredibly volatile and it certainly has its risks as well.

Are you looking to invest in Bitcoin? And are you looking to boost your retirement portfolio for the long-term? Keep reading to discover the truth about opening a Bitcoin IRA.

Bitcoin IRA: What Is It?

Ultimately, this type of retirement account is a self-directed IRA, but within it you are allowed to purchase alternative investments like cryptocurrencies and precious metals. Those types of investments are typically excluded from traditional IRA accounts.

The main reason why people consider investing in Bitcoin in their individual retirement account is because they need a way to diversify their portfolio. Besides that, it’s also a great investment that’s made massive returns over the years, even though it’s been on a downward trend of late.

Guess what? This downward trend is a massive opportunity for you. It’s one more way to get in on the ground floor of this investment vehicle before it takes off like a rocket once again.

And the interesting thing…

Believe it or not, so many individual investors are missing the boat on this huge opportunity. It’s estimated that roughly 2-5% of IRA investors purchase alternative assets, meaning roughly 95% of the rest of the country is only investing traditionally, which is a huge mistake in my opinion.

The Inner Workings of a Bitcoin IRA

Are you wondering how a Bitcoin IRA works? Yes, most people have no idea how to get started with this investment.

It’s pretty simple to understand the basic concept.

And to simplify it even further, it actually works almost nearly identical to the way that a normal and traditional IRA works. But in this case, you’re going to purchase cryptocurrency or you can even buy precious metals in your self-directed IRA as well.

Even better, you have a few options and opportunities to choose the style of self-directed IRA best suited to meet your needs. You can go with a traditional self-directed IRA or a Roth self-directed IRA.

Each of these account styles has their benefits, and these benefits typically come down to the type of tax advantage you’re looking to receive.

A traditional IRA is funded with pretax dollars, whereas a Roth IRA is funded with income that was already taxed, so with a Roth self-directed IRA you get to keep all of the proceeds, and a traditional self-directed IRA you must pay taxes when you take distributions upon reaching retirement age.

The contribution limits for each type of account are the same as well, just like a traditional or Roth IRA that isn’t self-directed. The contribution limits are $6000 for individuals below 50 years old, or $7000 if you are 50 years old or greater in 2021.

Bitcoin IRA Options for Self-Employed and Small Business Owners

If you own a small business or you’re self-employed, you have the opportunity to choose a simple IRA or SEP IRA, or even pick a solo 401(k).

Why would you want to deviate from a self-directed IRA? The beauty of these self-employed and small business focused accounts is that the contribution limit is substantially higher. And even more importantly, you could take your normal IRA and rollover funds into any one of these accounts to beef up your contribution limits even more.

It’s definitely worth it to take advantage of these options for self-employed and small business owners. As an example, with a SEP IRA, you can contribute 25% of your compensation, or $58,000 in 2021. That’s a much bigger difference than the $6000 that you’re allowed to contribute into a self-directed IRA.

With this style of account, you can grow your retirement funds much faster and invest much more, which will compound your wealth even further.

The Major Benefits of Opening a Bitcoin IRA

Are you still on the fence about investing in Bitcoin for retirement? I certainly understand, because this is a volatile investment and most people fear the wild ups and downs that Bitcoin could take.

Guess what? The advantages in my opinion far outweigh the downsides. As a matter of fact, the incredible tax benefits alone are reason enough to begin investing in cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Ripple.

What are the benefits? They are as follows:

  • Tax benefits – the biggest reason to open a Bitcoin IRA is the amazing tax advantages that so many people get to make the most of. As I alluded to earlier, you’ll either make tax-deferred or tax-free contributions to your cryptocurrency IRA, and you either pay the taxes upon taking distributions or your distributions remain tax-free, depending on how you set up your account. Investing in this account because of the tax advantages will help you grow your retirement wealth very quickly. And remember, you don’t have to pay taxes at all as long as the money is held in this account, so if you’re a young person investing in a cryptocurrency IRA, paying taxes isn’t going to happen until very far in the future.
  • High return potential – Bitcoin might be volatile, but it’s the one investment that is has quickly turned average and ordinary people into millionaires over the past 10 years. And rightfully so, because Bitcoin traded for $5200 in the middle of March 2020, and it’s currently trading for more than $32,000 a year and three months later, which is more than a 400% return.
  • Diversification – investing in stocks, bonds, mutual funds, T-bills, and other traditional assets is fine. But to further diversify your portfolio, you need to invest in cryptocurrencies like Bitcoin; precious metals, or other alternative investments.

Bottom Line

As you can see, investing in Bitcoin for retirement is definitely a smart idea. It has many wonderful advantages including huge tax breaks that you do not get outside of an individual retirement account. Do yourself a favor and begin investing now to help set up a healthy retirement in the future.

Tax Planning Tips for Small Businesses Looking to Expand

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Tax planning is an essential aspect of every business, both big and small. However, when you want to expand your business, it becomes necessary to plan your taxes properly. Taxes can take up a considerable chunk of your investment returns, and only through strategic planning can you save this substantial amount. When you are a small business, any savings are helpful as you can invest the money in other ventures or just improve your business.

Tax planning for small business is much more than managing your investment and affects every single aspect of your business, from salaries to income sources, expenditure, and financial decisions. It is bout analyzing your financial profile and creating a strategy to minimize your tax liabilities.

Many tax-saving benefits are legally available to small businesses. Consider the following points while planning your taxes.

Figure Out What Tax Deductions Your Business Qualifies For

You can deduct 20% of qualified business income while calculating your federal taxes under the Qualified Business Income (QBI) deduction in the Tax Cuts and Jobs Act (TCJA). But you qualify for this only when your business is a pass-through entity, a sole proprietorship, a partnership, or an S corporation. Ask a professional to help you determine the best classification for your business.

Take General Business Credits

With tax credits, the federal government encourages businesses and individuals to adopt certain policies that promote a larger good. For example, you can qualify for tax credits for going green, providing health coverage for employees, or promoting employment to the disabled. All these tax credits come under General Business Credit. It can help you lower your taxable income and save money.

Benefit on Deductions For Equipment

Section 179 deduction is a great thing as you can take deductions for the equipment or property you’re using as a service. You can get a federal tax deduction of an amount up to $1.04 million if you buy equipment and place it in service before the year-end.

In addition, you can take up to a 100 percent bonus deduction on specific equipment bought and put in use after Sept. 27, 2017. You can use this deduction to save money on your business tax return.

Set Up A Retirement Plan

You can save money by setting up a retirement plan for yourself and your employees.  Any contribution you make to these plans is tax-deductible. Besides, you can also get a tax credit to pay for certain retirement plans.

There are several retirement saving plans that can help get valuable tax benefits, including SEP-IRA, SIMPLE IRA, 401(k), and other profit-sharing plans. But remember, some plans need to be established before this year to get the tax deductions in 2022.

Understand Taxation On PPP Loans

The Paycheck Protection Program (PPP) enables you to cover employee salaries and other expenses through small business loans. In addition, under certain conditions, these loans can be forgiven too. Forgiven loans are not taxable, but the complete tax picture can be more complicated. The IRS states that deductible expenses like payroll costs are not tax-deductible if they are funded with PPP loan proceeds.

The sooner you plan your taxes for the year, the better prepared you’ll be to prevent any cash flow disruptions. With proper planning, you can distribute the tax burden throughout the year. So, instead of looking for full tax payment at the end of the year, you can pay off the estimated taxes to the IRS. This will help you avoid any penalties later.

Besides, you can delay the billing for work done and write off bad debts to lower your tax liability in the current year. So, practicing early tax planning for small businesses can reduce your taxable income and help keep more of your money in hand. This will enable future investment or expansion decisions.

Types of Bookkeeping

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What is Bookkeeping? Who would deny the importance of keeping financial transaction records? Businesses experience thousands of financial transactions daily, and keeping a record of it is important for financial analysis and determining a company’s financial position.

Bookkeeping refers to the recording of a business’s financial transactions on a daily basis. The process is one of the most crucial processes as a company’s decision-making, investment, and position are determined by bookkeeping results.

Broadly, bookkeeping is classified into two types depending upon the way the tasks are performed. Let’s find out what these types are:

Types of Bookkeeping

1. Single Entry Bookkeeping System

If you own a small business, then you might choose a single-entry bookkeeping system. There is only a  single entry recorded for every transaction in this type of bookkeeping, which means a transaction only affects a single account.

Single entry bookkeeping is the simplest way to record transactions and only maintains a record of cash disbursement, sales, receipt, and expenses. If you have accounts payable, accounts receivable, inventory, etc., the system will not record these transactions.

Single-entry bookkeeping only records the transactions when they have actually occurred. The system consists of a cash disbursement journal, cash sales journal, and your business’s bank statement. The entries in the journal should match the entries associated with your bank account.

Many businesses miss out on the advantages of automation because they pick the wrong technology, or take the wrong approach to deploy the technology. Using Yooz accounts payable automation can help relieve some of this bookkeeping stress.

Advantages

  • Recording transactions is easier and requires less time.
  • Profit and loss calculation for a defined period is easier.
  • Single entry bookkeeping is less expensive to maintain.

Disadvantages

  • No proper system for tracking the entries.
  • Higher chances of fraud.
  • The results do not generate an accurate prediction of a company’s financial position in the future.

2. Double Entry Bookkeeping System

For big companies with complex transactions, the appropriate bookkeeping method is a double entry bookkeeping system.

In this type of system, an accountant creates a single transaction and then creates a second entry to trace those transactions. This means the chances of fraud minimizes, and each entry can be easily traced.

If your company buys goods on credit and sells goods through account receivable, then the double entry bookkeeping system will record two entries to trace the transactions easily.

A double-entry bookkeeping system promotes complete information associated with a transaction. Suppose you sell a product in cash, then the accountant will record one entry as a debit in revenue and one in the customer’s account.

Debit and credit are the two concepts on which double-entry bookkeeping is done. A transaction associated with an increase in revenue is debited, whereas a transaction related to the rise in the cost of business is reported as a credit.

Advantages

  • This system helps in the accurate reporting of financial information.
  • It allows a business to understand financial systems more efficiently.
  • It eliminates the chances of fraud or any misleading information.

Disadvantages

  • The type of bookkeeping is harder to understand and maintain.
  • Double-entry bookkeeping requires more time to record a single transaction.
  • The cost of double-entry bookkeeping is generally high.

Importance of Bookkeeping

No one can deny the importance of bookkeeping in today’s complex world. A system that helps better understand financial data and improves strategies of a business is used by both small and large companies and is known for its proven importance.

Helps in Financial Management and Analysis

Having a detailed view of financial transactions in the form of financial statements will help companies track people who haven’t paid the amount or the position of revenue or cost of goods sold. The analysis will help a company better financial management by asking for payments and adopting strategies to minimize COGS and maximize revenue.

Helps in Creating a Budget

Bookkeeping majorly helps a business view its financial position, keep track of cash inflows and outflows, and take necessary actions based on the results. Therefore, by looking into the financial statements deeply and applying analysis tools, a company can easily determine its next step and the possible money that it can spend on it.

Helps in taxes

When you are doing bookkeeping of your business, you are not only keeping a record of financial transactions but calculating profit, assets, liabilities, income, expenses, and taxes. Therefore, when you have to pay taxes at the end of the year, your bookkeeper can quickly notify the amount to be paid for taxes based upon the yearly income.

Conclusion

No one can deny the importance of bookkeeping for a business. This article reflects how vital and crucial bookkeeping is and how it not only helps in financial management but analysis and strategy making.

Both Single Entry and Double Entry types of bookkeeping methods have some advantages, but the double-entry bookkeeping method is more secure and provides better insights and results.

Importance of Project Planning

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What do you think is the first step to take while initiating any project? All successful companies suggest proper planning before commencing a project. Sounds interesting! It is no less than a roller coaster of quick and complex processes. You might find one day of your project very hectic, but the other can be quite pleasant. It all depends on the working routine and how important is your project.

How Would You Describe Project Planning?

Project planning is a subject quoting the methods and essential steps to run a new order. It is very advantageous for sponsors, stakeholders, team members, and other staff to plan a project and then start acting on it. It is splitting a big scheme into different small tasks to assign to all group members. The relevant team analyzes the schedule every time they begin working and achieve their goals. Planning is something that will always lead an organization towards great success, no matter what! A company might be at stake without initiating a preplanned project. If you wisely start scheduling, there is no other way than to succeed.

Know the Importance of Thorough Project Planning

Planning is the most significant of all steps in project management as it sorts out almost all considerable hurdles that can appear in the working later on. We have assembled some points regarding the importance of project planning.

Let’s proceed further to know each one of them.

Recognizes and Eliminates Potential Threats

Starting a project is always risky as you’re stepping into it for the first time. Threats are always hiding under your work, no matter if they are minor or major. Sometimes you consider risk as a minority, but it can later be exposed as a significant threat to your project. An organization can alleviate the risks and create the best results with proper planning. Thus, it carries terrific importance in project management.

Helps You Meet Your Set Budget

Incomplete or unsuccessful projects result in more expenses. The lack of proper planning can end a project with needles and excess budget. Moreover, it can indeed interrupt your project management with unusual glitches and scope creep, leading to the dissatisfaction of your clients.

Obviously, who would want an order completion with gradual outputs and increased cost? That is why project planning holds immense importance. It not only genuinely sketches a deal but also assists in eradicating extra expenses. It is another reason why organizations chose planning in project management.

Lessens the Risk of Unsuccessful Projects

Planning is essential in reducing the percentage of unsuccessful projects in the market. It is that crucial part of management that eliminates all the potential risks to the maximum extent. Proper planning helps drawing a project timeline with details of the deliverables and total cost.

This way, the stakeholders can work with a clear sketch in their minds to achieve the desired goals. If you fail to plan your project and manage its insights, you are more likely going to face a failed project.

Helps in Aligning the Project Associates

Every time a company initiates a project, it should make sure to hire responsible associates. Project management demands the best teamwork at any cost. And it is only possible when everyone is well aware of his duties and functions, how to fit in the group, how to manage to work with the assigned schedule, and what the stakeholders could expect from them!

Did you find it challenging to see the questions all at once?

Here is where appropriate planning supports the organization. Rooted project planning is the key to all these problems & that is another critical reason it carries much importance.

When a company defines project planning, it helps all associates to work in alignment and keep themselves alert of all responsibilities. If you want to bring more advancements, you can go here to check, buy and install project management software and extract a plan to share with all. It will help everyone quickly go through the outlines and process accordingly.

Enhances Team Communication

Team communication is much vital while managing a project. It doesn’t matter if the stakeholders are just two or many people; what bothers them is to have mighty contact with one another. The organizations keep this point under consideration and create the best plan that effectively enhances team communication.

Preplanning also holds fundamental importance when the project is outsourced and the staff is working from different locations, acquiring separate times. Hence, the workers stay connected via group meetings, online chats, shared files, emails, and much more!

Final Verdict – Project Planning is the Key to Fantastic Outcomes

Know that preplanning is the key to success if you want to grab the best project management results. There is nothing new or challenging to plan a project. It is just another necessary phase while starting a new work. If you are rightly putting your efforts into project planning, it will cent percent promote your company, lessen expenses, boost team communication, present several working resources, and so on!

7 Reasons A Forklift Rental Can Benefit Your Business

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If you own a business that requires moving heavy materials from time to time, you might feel uncertain about whether you should buy a forklift or rent one instead. Although it wouldn’t hurt to have your own equipment, there are several cases where forklift rental is the better option.

When you rent a forklift, you get the convenience of flexibility with the make or model, hire type, length of rental, and maintenance package. You can also reduce your operational expenses if you take this route.

crane with luggage in a warehouse

Read on to find out why you should rent a forklift for your business:

1. Cost-Effectiveness

There’s a right time for you to buy large equipment, especially if it involves a high cost. A forklift, in particular, can have a price tag of tens of thousands of dollars. Thus, it would make sense to look into other more cost-effective options first before acquiring one.

Buying capital equipment may drain your funds if you don’t plan for it well. You can only compensate for the cost if you manage to keep the equipment for a long time and maximize its use.

On the other hand, forklift leasing in Toronto or anywhere else can spare you from spending a significant amount of money. Unless you’ll use the forklift for your day-to-day business operations, your investment may end up just sitting in a corner waiting to be utilized. Instead of letting that happen, you can use your capital for other aspects of your business that require financial attention.

2. Flexibility

Aside from saving money, you get to enjoy the flexibility of terms if you decide to rent a forklift. Since you can hire a forklift depending on the demand and needs of your business, you can rent it for a day, a month, a year, or an indefinite period.

Although there’ll be a hire contract when you rent a forklift, it shouldn’t be a big concern since it would contain your preferred terms.

crane operator discussing work plan

If you intend to use a forklift only for a short period, forklift rental is the better option. After all, there’s nothing practical about buying a new forklift for short-term use.

3. Maintenance

Even if you don’t use it every single day, the time will come when you’ll need to have your forklift repaired or maintained. Maintenance and repairs on any equipment can be costly, depending on the damage or amount of wear and tear on it.

When you own a forklift and it breaks down, you have to spend on the labor and parts and consider the amount of time the repairs would take. You cannot forget the possible losses for your business, too. When your forklift breaks down, downtime can occur in your business operations.

However, when you rent a forklift, expert technicians from the rental company can do immediate repair. Forklift rental is the most cost-efficient option should unit failure occur because you’ll get a backup if there are mechanical problems. The repair team can quickly address the issue, and if they can’t, the company can provide you with a replacement unit.

Moreover, renting a forklift can help you avoid the recurring expenses associated with the periodic maintenance of the vehicle. When you choose to own a forklift, one of your responsibilities is to regularly send it for servicing and maintenance to ensure that it’s in perfect condition and keep your forklift drivers safe.

4. Scalability

Aside from the length of the rental period, you can easily decide on the number of forklifts you’ll rent depending on your needs. There may be times when you have to get more vehicles to meet your operational demands. Renting allows you to use any number of forklifts without spending too much.

On the other hand, buying your own forklifts may be a waste if you won’t be using some of them on lean seasons. By renting, you can decrease or increase the number of forklifts you’re using anytime.

5. Trouble-Free Compliance

There’s another issue you may encounter once you own a forklift: passing strict air quality standards. You don’t want to lose your reputation if you’re found violating air quality standards since that can be inconvenient and costly to resolve.

If you rent a forklift, you can prevent yourself from taking on the burden of following the regulations. Since reliable rental companies would want to save themselves from the issue of noncompliance, you can be confident that the forklift you’re about to rent meets all safety standards.

6. Operational Efficiency

Besides complying with safety standards, most forklift rental companies offer forklifts that are not more than two years old. Thus, you’ll likely get relatively new equipment with the latest features when you rent a forklift. This gives your business the advantage of completing various tasks more quickly because you’re not using an outdated model or version of the forklift.

As mentioned, you have to keep up with maintenance when you own a forklift. If the vehicle you have is outdated, you may have to purchase a newer model to ensure employee efficiency and safety.

A forklift rental company can help you conquer those challenges as they provide some of the most recent forklift models. There’ll be no downtime due to the malfunctioning of older models, which means your operational efficiency will stay intact.

7. Improved Productivity

As mentioned, owning a forklift would be impractical in the long run if you don’t use it every day. If you familiarize yourself with your daily operations, you’ll know when the busiest time of the day is for your business. Once you obtain solid data determining the most hectic periods for your business within a year, you can determine when to work with a rental company for a short-term forklift rental.

For instance, the busiest periods of your business may be during holidays such as Black Friday and the Christmas season. You can arrange the forklift rental for those particular periods only. As a result, you can boost your business’ productivity during those peak seasons and make good use of the vehicle as well.

Conclusion

Now you know how beneficial forklift rental can be for your business. While this article doesn’t aim to discourage you from buying and owning a forklift, there’s a perfect time for acquiring that kind of vehicle. Before anything else, you have to figure out how often your business would need a forklift. If you want to use a forklift without the hassles mentioned above, go ahead and look for a credible rental company in your area.