How Invoice Factoring Can Be Used To Handle Cash Shortage?

Cash shortage in a business can happen to any company and any point of time. It is not necessary that if a company is well settled or manages good planning will never have problems of cash shortage. If a company needs to get them protected from such cash shortage events, then there are a number of things that they should take care of. There have been a number of ways how the companies can manage such cash shortage issues. Some of the important ways that can be tried out by any company are mentioned below:

Building a Cash Reserve

It is important for a company to build a reserve since the starting of the business itself. If the cash reserve is always maintained, then the cash from the reserve can be used during the cases of cash shortage in the company in coming future.

Accelerating Client Payments

Even sometimes cash backup in the reserve may not be enough to match up with the cash shortage. This happens when the clients have not paid for a long time and the company needs to pay the employees on time. For this, the company can have a department that is responsible of accelerating regularly the payments from the clients. If payments from clients are on time, events like cash shortage generally do not occur.

Taking Financial Help

During such cash shortage incidents, there are a number of times when the companies can take help from various financial institutions such as banks. Also options like Iowa invoice factoring companies are of great use in such time as they offer financial help much faster than the bank loans.

How Does Invoice Factoring Company Help?

Cash shortage does happen suddenly when clients are not paying the invoice on time. If the company applies for a loan from a bank, it is a long process and it takes good amount of time for the company to get the help. In this case, Iowa invoice factoring companies are a better option as because they can offer you financial help much faster than the bank loans.

The factoring companies do work on a simple method, where they purchase the invoices from the company that has been not paid by the clients. Then when the clients pay the invoices, the company pays back the amount to the factoring company. The service is provided at a cost of a factoring fee that is minimal and quite affordable. Factoring can be of various types such as non-recourse invoice factoring, recourse invoice factoring, credit card invoice factoring, spot invoice factoring, payroll invoice factoring, small business invoice factoring and others. The factoring companies are also known to provide extended help of lowest factoring charges or other benefits to many startup companies too.

Factoring companies in places like Iowa has been of great relief to many of the companies during cases like cash shortage. With various benefits and great facilities, the factoring companies have become a necessary partner, henceforward for both small as well as big companies.

Company Budget Benefits of Building Great Online Presence

Many businesses have shifted their business strategies to the online world, and for a good reason. There are simply too many benefits that the online world offers to businesses that wish to expand without investing too much.

Let’s take a look at some of the benefits that the online world has offered to business, and why you should invest more time and money in building a great online presence.

Lower marketing costs

Traditional marketing is a very expensive way of advertising and it is also somewhat ineffective. Even though a high number of people sees the ad, the number of those who are seriously interested in your product is much lower. However, with the online marketing approach, there are many ways in which it is possible to save money.

Marketing directly affects the growth rate of a company, especially if its goal is to expand globally. However, achieving this with traditional marketing strategies requires a high marketing budget within a company. Luckily, advertising is completely different in the online world. Companies are now in a position to advertise strictly to those who are interested in the products and services they are selling.

This significantly improves ROI of marketing campaigns. Additionally, there are plenty of collected metrics which show how effective a marketing campaign is. With this kind of insight, companies can change parts of their marketing funnels to achieve better results, attracting more people to their brand and growing their customer base.

On the other hand, organic traffic comes free. By creating content related to the website’s niche is a great way of increasing flow of organic traffic to a business’s website. This allows businesses to appeal to high number of people while saving a lot of money in their marketing budget.

Decreased facility costs

In order to grow more effectively, a business has to pick a great location in the city, where a lot of people pass by and can stop and make their purchase. Being in this type of location causes quite high costs for the business, but with the expansion of the internet throughout the world, these types of costs can be avoided with a loss in revenue.

There are plenty of businesses that have no presence in high transit areas, such as shopping malls, yet, continually grow every single year. This is the case why many online shops are emerging every year, the expenses are only related to storing the goods, and all of the additional expenses are focused on the right marketing strategy which brings a much higher number of customers than are present in any shopping mall in the world.

Additionally, lower costs also dictate lower product prices, which is another important factor that brings a higher number of customers to a business.

Lower costs per new customer and per new sale

Every business faces a certain amount of cost for a new customer and for a new sale. Before the internet became popular, businesses could only grow by physically growing their presence. However, to achieve this, businesses had to resort to investing large amounts of money in acquiring new space, increasing the number of employees and finding a perfect location.

Thanks to the internet, these types of costs can now be avoided, as an increasing number of people are doing their shopping online nowadays. It is simply a much easier way to purchase a product in the busy schedule we all have every day. Additionally, with a single .com domain website, a business can reach out to the whole world, with the right marketing approach. To achieve this in the past, companies had to invest large sums of money.

These are some of the ways in which a strong online presence drives company costs lower. To appropriately grow your online presence, it is important to perform SEO for better ranking. Hiring a whole team of people to take care of SEO optimization is unnecessary, as there are many companies which offer this kind of service. However, to pick the right company, it is best to read reviews of the best SEO companies.

If you want to grow your business in 2017, put more efforts in improving your online presence, you will experience a drop in costs and an increase in the number of sales, thus improving your growth rates.

A Brief Insight to the basic tools for Capital budgeting

In an organization the investment part is the most crucial aspect which needs to be maintained properly. A proper investment plan can help the company in arranging every activity over a course of time.  In an organization every single element is a part of the investment that is made for a better return in the future.

According to Rick Ohlhaber one of the renowned investment specialist ‘An organization should always make a wise investment in order to get a maximum return in the future. Rick Ohlhaber has also a vast knowledge on capital budgeting.

Here we will be discussing about capital budgeting and the basic few steps involved in it. So, capital budgeting undertakes the entire budgeting in order to make the best decisions about utilizing its limited capital.  Capital budgeting is required mostly when a company invests on a new product or there is a chance of opening various distribution centers. Capital budgeting mainly helps an organization to decide if the project   is actually worthwhile or not.

Some of the basic capital budgeting strategies are

  • Identifying the potential opportunities– This is the most fundamental process of capital budgeting. This particular step helps to identify the various investment opportunities in the market.  At certain times, there is more than one option available for investment in the market. The capital budgeting process can give individual variable options for making an investment.  A proper capital budgeting enhances an individual’s focus over various investment platform.
  • Evaluation of various opportunities– Through this processes the organization can evaluate different types of opportunities in the market. Proper budgeting of the capital also makes investment process clear and better.  Another aspect which is also very crucial is to look at the best options available in the market.  By evaluating the capital an investor can get the chance to do a proper investment on various juncture which can give good return.
  • A proper cash flow– This is also very important in capital budgeting. An organization needs to decide the amount of cash flow on a particular project. Every project needs a certain amount of investment for further development which in turn is possible by a proper cash flow. Now this process of cash flow also needs to be maintained with proper accounts.  Here comes the work of capital budgeting. The entire expense is calculated under capital budgeting. Every organization capital budgeting in order to save the investment and use it in a proper way.
  • Proper selection of projects- Selecting the right project is the basic need for a company. Every organization needs to select a proper project in order to gain certain amount of profit from it.  Capital budgeting is also responsible for choosing a proper and beneficial project. The capital of the organization needs to be divided in a proper way and it should be invested in such project which will give a better return at the end.
  • Implementation- This is the final step that needs to be performed in order to start a project. Implementation can only be done if the entire pre planning is absolutely perfect for the company to start a new project. Here also capital budgeting plays an important role in relation with the investment.

The above mentioned points are some of the basic capital budgeting strategies.Rick Ohlhaber one of the renowned financial experts is available for various tips on subjects related to investment. Rick also has got an immense experience in doing Capital budgeting for various organizations.

The Importance of a Professional Advisor in Business

A business advisor is a consultant who provides business owners with information that will enable their organisation to run more effectively. This consultancy might take place on a single occasion, when a particular problem needs to be addressed, or it may be on a regular basis, offering recurrent advice sessions for a client.

Business assessment

When hiring the services of a business advisor, he or she will want to evaluate your business before offering any advice. This would involve reviewing records, visiting the premises, and meeting with employees, giving the consultant a clear overall picture of the performance and status of the business. If you require the services of such a company, ACCRU Chartered Accountants offer a comprehensive range of services for all types of business.

Legal issues

This is an area where most of us are at a loss, with complicated legal jargon that the average layperson would not comprehend. For this reason, many companies call in the experts who can offer the right advice, making sure you stay within the confines of current laws and regulations.


Another essential business area where the experts can be of assistance, tax is something we all have to pay. By using the services of a professional company, you can significantly lower your tax bill, and be aware of the many tax concessions that are available to small businesses.

Business turnaround

If your company has problems, they must be addressed promptly and efficiently. A professional business advisor will be able to identify the issues and recommend strategies to solve the problem. Here are just a few areas where a business advisor can help,

  • Corporate restructuring
  • Debt restructuring
  • Business divestment
  • Asset management

Business planning

The success of any business lies in the planning, so enlist the help of the experts who can plan each stage of your business development, ensuring sustainable growth by maximising effectiveness.

Business start up

This is an ideal time to bring in the experts, who can make sure you follow the best practices, while taking full advantage of government support and tax concessions. Here are just some of the services on offer,

  • Strategic planning and implementation
  • Cash flow analysis
  • Budget variance analysis
  • Business performance evaluation

Commercial finance

A growing business will require financing at some point, and this is another area where a business advisor can be of assistance. Financial experts can tailor a lending option to suit your business by identifying your specific borrowing needs, and help you to make an informed decision after presenting you with the alternatives that work best for you. There are many reasons why a business might need extra capital, such as,

  • Plant and equipment acquisition
  • Commercial property purchase
  • Vehicle purchase

An essential partner in today’s commercial world

An experienced business advisor can help you in so many ways, from initial startup to continued expansion and troubleshooting, the list is endless. By using the services of a professional organisation, your company will reap the benefits of many years of practical experience in helping businesses grow.

How To Budget With Irregular Income

Budgeting personal finances is one of the most important elements to establishing and maintaining independence. Financial security involves knowing income and expenses and distributing the money accordingly. In addition to monthly expenses, people want to allot money for savings and build an emergency fund. A regular income will go a long way to making this plan run much more smoothly. Paydays for some people do not arrive on a regular schedule, and those people need a plan to spread out their irregular income evenly.


Irregular Income Professionals
Workers who earn commission can have huge swings in earnings from one paycheck to the next. One month can reap a big paycheck while the next month brings little or nothing. Restaurant servers and bartenders work on tips and learn very quickly that certain nights of the week yield a higher profit than others. Freelance workers also have large swings in income, and income is not always guaranteed. Business owners are another group of people who know that swings in the economy can directly affect the success of their business. Some business owners work from home while others have overhead expenses and employees to pay each month.

Know The Necessities
Learning how to manage spending is the first key to turning an irregular income into a steady income. The first step is to prioritize the expenses. The very first thing to be paid should always be the absolute necessities. This usually includes housing costs, utilities, and grocery costs. All of these can vary from one household to the next so calculating personal bills is important. A family of four will obviously have higher grocery and utility costs than a single person living alone.

Important Expenses
After the bare essentials, priority expenses need to be paid. Priority expenses are those bills or items that may not be an absolute necessity, but they are fairly important to productivity. People who work from home will likely place their internet bill higher on the list than someone who only uses their internet for entertainment.

Savings And Luxury Spending
After the priority bills come savings and luxury spending. The reasonable and sensible thing to do is to place the savings higher on the list than the luxury spending. In the case of a complete loss of income, the savings will be the only source of money for survival. How much money to contribute to the savings account is a personal decision that will vary from one person to the next?

Spend Wisely
The second most important piece of advice is to regulate spending evenly. There will be times that a large paycheck arrives. The temptation to splurge will be strong, but anyone on an irregular income should try to resist. Splurging during a high period will lead to living like a pauper during a low period.

Create A Regular Income
Since irregular incomes can be hard to live off of, turning it into a steady paycheck is the best option. The best system to do this is to have two different checking accounts. The first account should be the collection account. This is where all earned money gets deposited. The second account will be a personal account that all expenses are paid out of. The best method is to set up regular transfers from the first account to the second account. How often the transfer occur can vary depending on personal preference. It can be a monthly, bi-weekly, or weekly transfer.

Learning The Numbers
The big unknown for most people is how much to transfer into their spending account. Calculate the necessities and priority expenses. These two categories should be covered by the regular transfers each month. Then a person living on an irregular income can contribute to money into the savings account, and if they are lucky, they can give themselves an allowance for luxury spending.

Living off of an irregular income successfully is definitely possible, but it needs to be managed carefully. If not handled carefully, it can have disastrous results.

3 Steps to Overcome Financial Obstacles That Lead to Successful Budgeting

It is not how much income you earn, but how good you are when it comes to budgeting your money. A lot of people encounter financial difficulties not because they earn a little, but because they spend more than what they can afford. If you think or feel that you are stuck into neck-deep debt and your financial condition is unstable. There are several ways on how to overcome financial obstacles.


Successful budgeting is necessary because without it, you tend to overspend and you will eventually find yourself drowning in debt. When in it comes to creating a budget, make sure that you evaluate your finances. You should know how much you make and create a list of your expenses. You should also create another list on how to spend your money and which bill to pay first. Using that list, you can identify which expenses are less important. Once you have identified the less important, you can cut down your spending on this aspect. Successful budgeting can help you overcome financial obstacles, but there are other ways to do it such as:

Invest your money – Although there could be some risks involved when it comes to investing your money, you would not worry too much if you work with reputable and established companies. Your investments allow you to increase your income to help you eliminate your debt. Investing your money is also a good way to prepare for your retirement. Be brave enough to take the risks and wise enough not to put all eggs in one basket.
Ask for help – If you feel that budgeting your money is not helping you in terms of overcoming your financial obstacles, you may want to seek help from other people. Initially, you may want to ask help from people that you trust; this person can be a friend or family member. When it comes to making important decisions where to put your money, you have someone by your side to help you come up with a sound decision. If your trusted friend or family member cannot help you achieve your goal, you may also want to seek help from financial counseling companies. Financial agents or consultants will evaluate your current situation and provide specific advice to help you overcome financial obstacles.
Stop using credit cards – The plastic money has its own advantages and disadvantages. Credit cards are considered as one of the major culprits of debts. If you want to overcome financial obstacles, you have to stop using your credit cards until you have settled your financial difficulties. If you don’t want to put yourself into deeper debt, make sure that you handle your credit card very well. People are more likely to spend more if they use credit cards instead of cash or debit cards.

These steps are quite easy to follow, but you lack self-discipline and determination to get out of debt then you will not achieve your goals. Nobody wants to live a life filled with debts because it will cause you sleepless nights and a lot of stress. Following these three simple steps to overcome financial obstacles will eventually lead you to successful budgeting. You will get back on track in terms of finances and live a life free of debts.

Actionable Tips in Budgeting

Our financial responsibilities increase as we age. Suddenly we have utilities to pay for, children’s school tuition to save for, home and car payments to think of, and credit card bills to settle. Aside from these, we also need to set aside money we can use for sudden expenses such as house repairs, family sickness, and so forth. To help you manage your finances, here are some actionable tips in budgeting ideal for the average person:

Monitor your transactions.

Make sure to check your receipts with every transaction or purchase you make. Save all your invoices and billing proofs and check your bank account and credit card statements for any errors. If possible, activate your account online so you can check it easily. Keeping track of your transactions will enable you to be more conscious of every money spent, and push you to become more frugal with your spending habits.
Opt for less whenever you can.

Good budgeting means you should value every penny. Opt to be more economical by changing your lifestyle habit to maximise your budget. For instance, opt not to have add-on syrup shots for your coffee. You can also stop upgrading the size of your drinks or fries when you eat out, or refuse to buy a soda altogether and choose to drink water instead.
Check all your subscriptions and scrap out those you don’t use.

Make a list of all your monthly and yearly subscriptions, and how much you pay for each every month, then assess if you really use it or if the service is important to you—it can be anything from your magazine subscriptions to cable TV to all other subscriptions you’re paying monthly fees for when you’re not even browsing these magazines or you spend most of your time outside rather than at home watching TV.
Spend less than what you earn.

Some people who are self-confessed big spenders motivate themselves to earn more by taking on side jobs and establishing a business in order to keep up with their spending habits. However, if you don’t see yourself earning money apart from the job you currently hold, then control your finances by spending less than what you earn. Manage this by following the formula: income – savings = expenses, and watch how your savings grow in a couple of months’ time when you stick to that formula.
Weigh out the value of each purchase.

Another tip for budgeting your money properly is to consider the value of each item you’re about to purchase before you get it. How long will the item last, for instance? In general, purchase items that will still be valuable and useful after 6 months of use or longer. This doesn’t apply to your food, of course.
Invest your money.

You may spend time setting aside money and saving, but unless you sock away your money in an investment, you won’t see your funds grow huge profits. To get returns and profits from your savings, try investing your money in shares so you may get 50-100% compounded interest. The benefit of compounded interest in investments is that the longer you keep your funds without touching it, the bigger your money grows, as opposed to saving your money in a bank account or a piggy bank where your money does nothing, or in the case of a savings account, it can only provide you with 1 to 2% interest rate. However, you should also keep in mind those bigger investments also mean pose bigger risks for you.
Practice proper use of credit cards.

Finally, a good way to budget your finances well is by practicing proper use of your credit cards. This means you should use your credit cards only when absolutely necessary and don’t use it just because you feel too tired to go around the block to withdraw cash from your ATM. Neither should you use your credit card just to collect reward points, as collecting points can turn out to be even more costly than if you just pay for the freebie yourself. You should also ensure that your monthly dues are paid every month so you won’t need to pay additional fees that could eat away at your budget if neglected.

Make sure to use one of these budget tips every day to significantly reduce all your debt. This way, you could start your way towards financial freedom just in time for the Chinese New Year!

5 Tips To Managing Your Family’s Entertainment Budget

You may not consider the finer points of finance when it comes to family entertainment. Taking some time to simply have fun with the entire family can appear frivolous to some. However, entertainment is very important for families, so you should consider ways to include low cost entertainment options available. Whether you have a small family of two or three or a larger group to accommodate, you have options that will allow you to have fun with your family on a night on the town or during family night right at home.


Family Night Events

Many businesses and establishments make special offers for families. For instance, some movie theaters try to attract families during the summer with discount offers such as huge discounts on Tuesday matinees for children. Families can see older films together for just a fraction of the cost of a regular movie night. Museums also offer special discounts such as these during various times of the year. Parents can find out if there are family deals for special exhibits as well as look at regularly scheduled programs for children. Sometimes local establishments also hold seasonal events at little or no cost to families, so it helps to keep an eye out.


Libraries have plenty of free events for children and families throughout the year. For example, many libraries hold movie nights on the weekend for films newly released on DVD and Blu-Ray. There are other events such as author signings and book readings that families can enjoy together. Many local libraries will also hold holiday programs including Valentine’s Day events. If you have school age children, you should ask your local library if it holds any summer programs such as reading contests or other family events.

Local Events

Many towns and cities have local annual events exclusive to the region. Many cities have summer street festivals where residents can hear live music or see other local attractions. You can save funds by packing lunch for the family rather than buying food from the food trucks from local restaurants. There may also be city events such as firework displays on the Fourth of July. One local event that continues to grow in popularity in cities all across the country are restaurant events in which diners can buy tickets to sample cuisine from participating local restaurants, so you can begin putting away money in the budget.

Community Programs and Organizations

Of course, there are also many kinds of community organizations with the express purpose of helping families with all their needs including entertainment. For instance, many community centers sponsor city basketball games. There are other kinds of events such as poetry readings and pot luck dinners in which community members can get to know each other. Families can organize day trips to malls or amusement parks, which often have group discounts for larger groups. You can also look for other organizations or simply get together with other families to find opportunities for fun events with discounts for larger groups.

Family Game Night

Your family does not even have to leave home in order to find good family entertainment on a budget. Many families have turned to old-fashioned family game nights as a way to get closer together and have fun with the whole family. A small investment in popular board games can fit right into the budget. Add a few snacks and perhaps prizes for winners to keep the games interesting and you can create a family event everyone will anticipate. There are many ways to keep the family entertained even when you have to work with a limited budget.

7 Tips to Help You Keep Better Track of Your Finances and Budget

Learning to manage your money effectively can create positive consequences in your life. Not only will you be more financially confident, you will be able to save more money for the future. Here are seven tips that will help you keep better track of your finances.
Track Your Daily Expenses

Your daily expenses can add up to a lot of money at the end of the month. A daily coffee and lunch from the diner around the corner can wreak havoc on your budget. In order to curtail excessive expenditures, track everything you spend each day. You will be surprised at how many little things you buy each day. After you do this simple task, it becomes much easier to know where you can cut back, and where you can’t budge on your budget.

Develop a Monthly Budget

A monthly budget can keep you from developing uncontrollable spending habits. This tip will enable you to stay in control of your finances. People who do not have monthly budgets usually waste a lot of money on unnecessary expenditures. To make it easier, start by making a daily, then weekly, then monthly budget.
Pay Bills on Time

keep better track of your finances and budgetLate charges are hidden budget busters. Develop a habit of paying bills on time to avoid any late fees that can deplete your finances. If you pay one late payment of $3 each month, you will have spent $36 in one year on an avoidable expense. This adds up with more credit cards, as well as interest rates for not paying the full amount on time.
Use Online Banking

If you have a smart phone or computer, you can have instant access to your bank account. Using online banking enables you to check your balances and transfer funds from one account to another. Online banking systems are easy to use and can help you keep track of your finances more effectively.
Create a Savings Plan

Saving your money is the best way to be prepared for emergencies. Each time you get paid, designate a percentage of the money to go into your savings account. Be sure to choose an account you don’t withdraw from nor everyday expenses. Money put into a savings account should not be taken out unless an emergency arises or it is time to use the funds, like for education.
Track Your Money With an Expense Tracker

For people who are computer savvy, there are expense trackers that are available to help you control your spending. Many of the programs have monthly reports so you can analyze how you spent your money. This will make it even easier for you to understand your strengths and weaknesses when it comes to finances.
Use the Envelope System

If you are not a fan of computerized programs, you can put your weekly expenditure cash into envelopes. For instance, your lunch expenses can be put in a separate envelope for the week. This will encourage you to spend your weekly lunch allotment wisely.
Keep Better Track of Your Finances and Budget

Keeping track of your finances puts you in control of your money. Follow these tips and watch your savings grow and financial situation improve.