Finance is a heart of every organization for successful business, personal finance management is most important in this business world, if a business man maintain proper finance management, he can keep track on his monthly expenses and debits.
Preparing expenses sheet and budget plan every month is mandatory for successful finance management, followings are best way to prepare expense sheet:
Calculation of income level: it helps to calculate income after advance tax, income from rent, income from investment and other incomes. Calculation of expenses: it includes expenses like provision expenses, medical, phone, mobile, transport, news paper, books, LIC premium, school fees, loans installment payment etc. For a successful business not only a personal finance management, but also personal debt management and financial net worthiness will play a vital role. Personal debt management nothing but maintain proper records of payments such as housing loan, vehicle loan, personal loans etc. at the end of the financial year, can keep a track on loan outstanding, due amount and interest paid. Financial net worth is nothing but the difference between assets and liabilities. Land, house, insurances, bonds, provident fund, mutual fund and other savings will come under assets. Loans and other expenses will come under liabilities.
For better personal finance, should follow following things
Educate children about importance of money to avoid irregular expenses. An opening a savings account. Avoid spending more money on unnecessary expenses. Apply for an insurance premium for future benefits. Legal formalities will also play a vital role for a successful business. Before starting a business the most important thing whether it is partnership or a proprietorship. World wide law will support a companies as a legal entity, opening a company helps a person to invest his personal and family assets. All organization has three important players, shareholders, the directories and the officers. The office can be set by its tax law, Limited Liability Corporation and an Inc will check taxes and the members in share holders, Limited Liability Corporation is not a public company because they can't exchange stocks.
Having a lawyer for the company is most valuable, some of the document to be recorded by the lawyer for first month of the company, such as
Maintain your business incorporate. Keeping track in board minutes and laws. Maintain Shareholder agreement. Employer's agreement. Getting stock plans. The organizations have an accountant and book keeper to have a contact with finance, the accountant deal with audit and review which held in ones in a time every year, the book keeper will help to do the service perfectly. The company needs to have a one bank account; mostly the company will have expense in giving salary and the insurance, these will take care by human resource team. The book keeper will handle the finance status of the company daily, they will play a major role in small organization. Before starting up the company the person should aware of personal finance management and legal formalities.
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