The reasons behind the need to record business transactions

Cash Basis accounting is simple and may be sufficient for some small businesses.

The reasons behind the need to record business transactions

Credential Investments Ten reasons why financial planning is important Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals. Here are ten powerful reasons why financial planning — with the help of an expert financial advisor — will get you where you want to be.

It's possible to manage income more effectively through planning.

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Managing income helps you understand how much money you'll need for tax payments, other monthly expenditures and savings. Increase cash flows by carefully monitoring your spending patterns and expenses.

Tax planning, prudent spending and careful budgeting will help you keep more of your hard earned cash. An increase in cash flow, can lead to an increase in capital.

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Allowing you to consider investments to improve your overall financial well-being. Providing for your family's financial security is an important part of the financial planning process.

Having the proper insurance coverage and policies in place can provide peace of mind for you and your loved ones. A proper financial plan considers your personal circumstances, objectives and risk tolerance. It acts as a guide in helping choose the right types of investments to fit your needs, personality, and goals.

The savings created from good planning can prove beneficial in difficult times. For example, you can make sure there is enough insurance coverage to replace any lost income should a family bread winner become unable to work.

Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. Giving you a whole new approach to your budget and improving control over your financial lifestyle.

A nice 'cushion' in the form of assets is desirable. But many assets come with liabilities attached. So, it becomes important to determine the real value of an asset.

The knowledge of settling or canceling the liabilities, comes with the understanding of your finances. The overall process helps build assets that don't become a burden in the future. It used to be called saving for a rainy day.

But sudden financial changes can still throw you off track.

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It is good to have some investments with high liquidity. These investments can be utilized in times of emergency or for educational purposes. Establishing a relationship with a financial advisor you can trust is critical to achieving your goals. Your financial advisor will meet with you to assess your current financial circumstances and develop a comprehensive plan customized for you.

The first step in developing your financial plan is to meet with an advisor. This complimentary process begins with a review of your current financial circumstances, anticipated changes, future goals, and results in your customized plan.

Call us today to book your assessment. Click "contact us" below to use our secure online contact form, visit a branch near you or call us at Contact us This article is provided as a general source of information and should not be considered personal financial or investment advice or solicitation.

The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete.May 31,  · The secure distributed ledger technology behind Bitcoin, blockchain has exploded out of the realm of the dubious cryptocurrency into a hype-driven category of its own.

The Fair and Accurate Credit Transactions Act, or FACT Act, is an amendment to the Fair Credit Reporting Act introduced back in It’s the law that grants you access to one free credit report every 12 months from each nationwide consumer credit reporting agency. As a business goes through the normal day-to-day operations, many transactions are recorded.

When work is done and the company is paid, revenue is recorded. Revenue is also recorded when invoices (accounts receivable) are created. ACCOUNTING is the recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties with the information they need to .

Remember, having to balance a checkbook and record your transactions is not really as daunting of a task as you may think.

The reasons behind the need to record business transactions

The most important area where youll want to record transactions is in relation to your banking. With the introduction of the ATM and check cards, recording each and every transaction is often overlooked.

However, banks do make mistakes and they are not often known for correcting them on their own.

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