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What’s Assets ?

It is a mandatory procedure for companies to keep a record of their financial dealings. A reflection of these is seen in the form of a balance sheet. A balance sheet has two sides, one which records all the liabilities of the company, and the other, which records the assets of the company. Liabilities are basically what the company ‘owes’ and assets are what the company ‘owns’. In the assets section, there is a division into tangible assets and intangible assets. Let us delve deeper into these concepts below.

Intangible Assets
Just like the general meaning of the term, even in the finance and accounting of a company, anything that cannot be seen or touched is considered intangible. Hence, assets that a company owns, but cannot be seen, touched or measured using physical scales and measurements is called an intangible asset. Examples of intangible assets are goodwill, copyrights, trademarks, royalties, patents, franchises, etc. Since these cannot be seen, but still contribute to the total monetary ‘value’ of the company, they are termed as intangible assets, but assets nonetheless.

Tangible Assets
As opposed to the above, anything

Financial Literacy

If we go by the dictionary meaning, then financial literacy is “the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.” Now, let us talk in simple words. Personal financial literacy is more than just being able to balance a checkbook, compare prices or get a job. It also includes skills like long-term vision and planning for the future, and the discipline to use those skills every day. We all make great efforts to teach children to read and write, but we don’t give their financial literacy the same attention. As a result, few young people know how to manage their personal financial lives. This problem is very widespread. You will see most of the teens who do are unable to answer basic financial questions or handle simple tasks, like understanding an invoice. However, there have been some improvements made in the past few years where the school curriculums have added personal finance classes. Now, just as students learn math and English, they learn financial literacy because it is also

Steps to Long-term Financial Planning

Step 1: Let us take the example of a coffee shop, where a financial planner has to find legitimate answers to 4 questions, namely:

  • Why should we produce a specific item on the menu card? (consider cost of production and sales price)
  • When should we produce such an item and for what time duration? (bear in mind, seasonal costs, inflation of raw material prices)
  • Where should we produce the item: right in the shop or some production center? (consider transport cost, nature of goods, and selling cost)
  • How should one produce the item, manually or mechanically? (consider equipment and personnel cost)

Step 2: The second step is to assess your business environment. In this step, surveying the competitors’ performance, pricing, and distribution is an absolute necessity. In such a scenario, you may also prepare a cost sheet of the financial features of production, namely the money that you would have to invest as a manufacturing cost, its sales cost, and the profit that it would yield. Logically, the sale price should be more than the cost price, and the return-over-asset ratio/return-over-investment ratio should be healthy. While finalizing

Types of Financial Markets

Stock Markets
A market in which shares of stock are bought and sold is called stock market. The word ‘stock’, in American usage, means equity or ownership in a corporation. A share is the basic unit of a company’s capital, which it tries to raise from the stock market. When you own a stock, you are referred to as a share or stockholder. A stock shows that you own a small fraction of a corporation; hence if you buy stock in the Pepsi Corporation and they come out with a ‘cool’ new drink that becomes a hit, then you get to share the profits. A stock also gives you the right to make decisions that may influence the company. Therefore, the more stocks you own, the more decision-making power you have.

FOREX Market
Foreign Exchange is the simultaneous buying of one currency and selling of another. The foreign exchange market is the largest financial market in the world. The world’s currencies are on a floating exchange rate and are always traded in pairs. Here, settlement is made for international purchases and sales, i.e., for exports and imports, as also for payments international purchases and sales of assets. Operating virtually

Fund Manager

Managing investments is not an easy job. Fund managers need to know the pulse of the market and ensure that clients get good returns on their investments. Engaging in extensive market research is an integral part of the job. Some individuals or firms specialize in certain kind of investments like equities, bonds, etc. Large private investors also hire fund managers and refer to them as wealth managers. The basic objective of these professionals is to invest money for the clients and make them a profit.


Fund managers are mostly employed by asset management companies, financial institutions, and specialist stock investing firms. Eligible candidates who have an educational background in business schools and have certification from the American Academy of Financial Management will be preferred. Fund managers are in demand, especially during these times of economic turmoil. The job description can vary a bit for the different specialties. Here are a few.

Hedge Fund Manager
Hedge funds are unregulated and therefore have large sums of money invested in low risk and high risk return options. Keen market acumen, an ability to predict market trends, and doing lots of research is the main task of the hedge fund manager.

The salary, according to

Facts About Gross Payment

The definition of gross payment says that, it is the total amount of salary or wages paid to any employee by the employer before any kind of deductions made. It is nothing but the total amount offered by the employer for the services being given by the employee in a full year. Your gross pay reflects how much amount is being paid to you by your employer in every pay period.

While trying to understand this concept, you need to be aware of two terms – hourly gross pay and salaried gross pay. For calculating the hourly gross pay, you need to multiply the fixed hourly pay rate with the number of hours served by the employee in the pay period under discussion. The technique of calculating gross pay for salaried employees of corporations is slightly different. Every employee working in a firm has a fixed total remuneration. If this amount is divided by the total number of pay periods, you will get the salary gross payment.

When some items are deducted from the gross pay, the amount which is left is the net pay or in-hand salary of the employee. The deductions are compulsory and are made from every

Steps to Set Financial Goals

  • Create a Plan

The best way to set your financial goals is to first set the plan you will need to achieve the goals. This includes understanding how much of an income you are getting per month which includes your regular job, other small incomes, where you are spending and how much etc. Once you are conscious of all these details, you will be more aware of how to go about your plan to achieve your financial goals. You can also set a time limit has to how long you will need to achieve these goals when needed.

  • Managing your Finances

Once you have set your plan, you must learn how to manage the finances for it. That means curbing on unnecessary spending, ensuring that you stay within budget every month and take measures to save with every opportunity. One way of managing your account is to divide your income into three parts where each part can be used for different purposes like spending, saving and investing. If you have a credit card, you can switch to a more advantageous debit card as this will not only allow you to reduce you’re spending, it will

Debtor Finance Services

Debtor finance services are those services that show as a point of convergence man between the transactions and the little business firms. Thusly it could be said that they are an astounding help to the individuals who are suspecting begin with little business either outside or at home itself. It is said that these affiliations are there since as long as the year 1700 and has seen and survived different scenes of emergency and subsidence. Despite the way that different sorts of business houses can use the services of such firm at any rate it is fitting and recommended for the most part for the affiliations that are financially powerless.

Nuts and bolts and need of these services

Affiliations who are more rotated around the headway in their benefit typically enlist some of these services. Of course they have imperativeness and need in some preferable places liberally all the more over these ones. There are sure associations that need suitably enhanced flow in cash so it gets to be less unpredictable for them to get rebates from the unique suppliers. There are different unique works that these affiliations that are in addition known Trade finance affiliations

Types of Finance Companies

Investment Banks
Investment banks would be rated as the most important in the world of finance. These banks act as middlemen in the execution of big transactions which involve exchange of securities/shares. So, whether it is helping common investors buy stocks, or helping giant or medium-sized corporations to issue fresh equity, investment banks always play a key role. Investment banks like JPMorgan Chase and Wells Fargo are well-known for their wealth management division which caters to retail as well as institutional investors.

Private Equity Firms
The private equity firms work in a professional way, and are known to execute several billion dollars of transactions in a year. These firms approach cash rich investors to invest their money in their firms and finally, they use this money to buy stakes in privately managed companies. Private equity firms have highly qualified analysts who study the fundamentals and growth prospects of the firms before investing the company’s money in them.

Hedge Funds
Hedge funds are those funds in which rich global investors invest their money for the purpose of wealth maximization. These hedge funds are managed by professional hedge fund managers who have vast experience in hedging, and have many clients with them.

Way to Get a Finance Job

Build a Strong Resume

A candidate’s resume is responsible for creating the first impression on the interviewer. Hence, a strong resume with no typos, proper formatting, and accurate information must be built. Candidates who are unable to build a good resume must not hesitate from taking the help of professional resume builders. With a perfect resume, the candidate’s chances of being shortlisted for the interview are highly increased.

Take up Internships

Candidates lacking full-time experience in finance face difficulty in obtaining jobs. Generally, only entry-level positions are open to such candidates. As most of the entry-level positions do not require experience, the number of candidates with no knowledge of the work involved will be substantially high. To stand apart from the group, candidates can gain some work-related knowledge by taking up internships in finance companies. Internship will help the candidate understand how the industry works, what are the various departments involved, and how the work flows through these departments to finally meet customer demands. When interviewers come to know that a particular candidate is well aware of the functioning of the industry, his chances of getting selected are more as compared to others.


Credit Card Benefits

Protection against price:

It is not uncommon for individuals to suffer from buyer’s remorse after purchasing items of great expense. The reasons for this remorse can vary, but one of the main reasons is better pricing. With the price protection feature, you can get a refund on the difference up to a certain amount. Additionally, you will need to make this application within a certain timeframe of the purchase.

Guarantee of returns

In some instances you may not be happy with your purchase. However, the retailer may not accept the item back. In this case, if you have paid with cash or a debit card, you may be out of luck. However, certain credit cards do offer a guarantee on such returns. You will need to file an application in order to get the refund you require, regardless of the store policy. However, you must ensure that you submit this claim within a certain timeframe of the purchase date.

Extended product warranty

Electronics and appliances are an expensive affair. Paying with your credit card for these items can help you collect reward points. In

How Asset Finance Works

Asset finance is one of the useful funding arms extended to individuals and businesses when they are in need of funds for renewing or promoting business. What is asset finance and how does it work? Balance sheet assets such as inventory accounts receivable and short-term investments are used to get loans or borrow a sum of money, and security is provided by the borrower on the assets to the lender. The loan acts in conjunction with the laws of traditional loans and institutions, and the company or the borrower simply pledges some assets in exchange for money.

Any kind of loan secured by pledging assets is known as asset-based lending, and the conditions usually imply that the asset is to be retained by the lender if the borrower fails to return the loan within the agreed period and terms. You could say that a mortgage is also a kind of asset-based loan. However, the term asset based lending is only applied to big and small businesses and individuals who take a loan by pledging assets to a bank or financial institution.

Individuals can also avail themselves of

Way to Get SME Finance

Many of us would love the idea of opening up our own business. With future prospects set, anyone body would love to handle their own company, be the boss and do business that will benefit them in the long run. But we all know that starting a business of your own is no cakewalk. Although there are many self-help books available today, they will not give you the knowledge or make you understand the current market. Business loans are a great way to kick-start that dream but you need to understand different aspects to make sure that you are not taking the wrong decision.

Even a layman will understand when the market position is low. At such times starting your company can prove to be very fatal for your financial state. It would be like investing all our hard earned and saved money into an open drain. Business loans will thus help you to solve the biggest problem, right here. Finance is the major concern for most people who want to start business. You need a certain amount of capital with you to go ahead and begin a business. While you may be having your own money,

What is Trade Finance ?

Banks offer trade finance products to traders in order to facilitate the smooth transaction of trading, and such trade finance products can be bought by a trader for an agreed fee. What is trade finance? Trade finance denotes the items used to finance a trade deal, and the term encompasses both domestic and international trading deals. It takes a seller and buyer to enact a trade transaction involving goods and services and intermediaries like banks facilitate them by financing them.

In a trade transaction, a seller (or exporter) would expect the buyer or importer to pay for the goods that are to be shipped to them, in advance. Likewise, the importer (or buyer) would want to receive the entire consignment in full before paying for it. Here a stalemate or standoff can take place, but the situation is avoided if a bank steps in between and assures the seller of their payment by providing them with a letter of credit which will empower them to draw the payment by producing documents such as a bill of loading after they have dispatched the goods to the buyer’s destination. The seller (or exporter) can also get a loan or

Way to Become a Finance Director

The finance department is one of the most important departments in any type of organization. This department has to handle financial transactions of the firm and plan on investments and raising of funds for funding ongoing projects. As no project can be completed without money, the job of a finance director assumes further importance. Finance directors work in the areas like resource management, strategic planning, preparation of a financial budget for the financial year, supervising company’s financial performance and preparing financial reports for outside agencies like creditors and shareholders. Ensuring that the firm’s asset quality is high and debt levels are comfortable, are also some of the responsibilities of this job. Being the leading person in the department of finance, the finance director has to form teams, assign work and help in planning as and when they need. In short, the ultimate aim is to make sure that the firm achieves its financial goals or objectives in a planned way.

High School Preparation
Sincere efforts taken during this stage of one’s educational career pays off greatly. So, take special effort on subjects like economics, finance, mathematics, English and computer science while you are in high school. Get excellent grades

Financial Management Analysis

This analysis deals with the calculated and predicted cash inflow and outgoings. The analysis is directed towards the study of the effect of existent funds on managerial objectives. It handles everything, right from procuring the funds to effective utilization of the same. Dedicated analysis handles procurement of funds from multiple sources, and since the funds are from different sources, they naturally need to be addressed, considering the difference with regards to the potential risk and control.


This management practice involves the optimum use of funds issued via equity, especially in the case of a business. This source is the best from the risk point of view since there is no involvement of any repayment. Management of business funds should ideally capitalize on equity capital, in spite of it being the most expensive source of funds. Furthermore, it should also involve calculation of risk, cost and control, and maintenance of the cost of funds at minimum. This is done with the intent of establishing a proper balance between the involved risk and optimized control.

Tapping Foreign Investments
In today’s competitive business world, mobilization of funds is very important. The implications play a very significant role in the overall growth of the

The Important Money Management Skills

Money. That which makes the world go round. It all boils down to the money that we have at the end of the day. Money determines the way we live, what we do, and basically every other decision of our lives. Without money, we are basically nothing. And that, I know, is something that no one will want to go through. So it becomes imperative that we earn well. But earning well is not the end all of everything. It actually begins from there. Money which is earned, needs to be managed well, so that we continue to benefit from it for a long time. And therein comes the part where we need to learn some basic money management skills. Because without these, we will not be able to develop effective methods of money management.

Most of us do not have the knowledge of what some of the most simple and effective money management skills are. So to help you out, this article shall provide you with just that.

Money management skills are not difficult to learn once you get the hang of how to go about it. Given below is a step by step plan that you can follow

Becoming a Financial Planner

It is not necessary to have a bachelor’s degree to get into this profession. However, it definitely adds points to the work profile and earning potential. It would be beneficial to complete your graduation in the field of finance, economics, mathematics, statistics, business, or law. Studying these subjects would help in understanding issues and intricacies of financial management. Graduating as a Chartered Financial Analyst or a Chartered Financial Consultant would also help. You can also enroll into courses related to estate planning, investments, risk management, and taxes.

To practice as a professional financial adviser, you need to have certification. Those who aspire to be certified, should have a graduate degree, and most importantly, at least three years of experience in the field. The three years of working is when you would receive the actual training for your career. You would be dealing with the practical aspects of the theories you have studied. During this time you would learn how to how to deal with customers. Your main job would be to guide them in planning their finances according to their individual needs. This would also help you in building business relationships with the clients.

Once you complete the experience requirement,

The Importance of Financial Planning

It is important to plan finances in order to reap long term benefits through the assets in hand. The investments that one makes are structured properly, and managed by professionals through financial planning. Every decision regarding our finances can be monitored if a proper plan is devised in advance. The following points explain why financial planning is important.

  1. Cash Flow: Financial planning helps in increasing cash flow as well as monitoring the spending pattern. The cash flow is increased by undertaking measures such as tax planning, prudent spending, and careful budgeting.
  2. Capital: A strong capital base can be built with the help of efficient financial planning. Thus, one can think about investments, and thereby improve his financial position.
  3. Income: It is possible to manage income effectively through planning. Managing income helps in segregating it into tax payments, other monthly expenditures, and savings.
  4. Family Security: Financial planning is necessary from the point of view of family security. The various policies available in the market serve the purpose of financially securing the family.
  5. Investment: A proper financial plan that considers the income and expenditure of a person, helps in choosing the right investment policy. It

Financial Planning for the Future

Well, there are many things one needs to consider while planning for the future in terms of finances. Given below are some of the factors you need to look into:

Current Economic Status: You must analyze your current economic status including your annual income. It will give you a direction towards financial planning for the future.

Expenses: You must also consider the expenses you make on a yearly basis. It is suggested to make a list of your ‘needs’ and ‘wants’ and determine how you decide your priorities and make expenditures accordingly.

Asset Analysis: Yes, this is one of the important aspects of financial planning. You must know and ascertain the number, or quality, of your assets before you start financial planning.

Liabilities: Liabilities are as good as expenses. So, you must pay attention regarding how you would deal with liabilities, and how you would manage and sustain them.

These were some of the crucial factors one has to consider when it comes to financial planning for the future. Now let’s take a look at some of the ways and ideas that can help you plan well for the future.

Financial Planning Ideas

Given below are some tips cum ideas that