Business In Public Finance

Finance is a term related to Idn Sports finance, when discussing finance, it will not be separated from the words material and economy, right? Finance can also be said to be a field in business economics that focuses on finance.

So that you better understand the topic of finance, try to understand and listen to some of the definitions as well as their functions and benefits that you can get.

If you notice that in this world now everything is money. Without having money, you can’t do something right. So you really have to pay attention to a process to manage all of your finances so that no traffic jams occur so that it complicates your financial life.

Surely many of you already understand how important finance is for your daily life. Usually people understand, they will be smarter in managing all matters related to their finances in order to have a more prosperous life.

Let’s just start getting into a discussion about the meaning of finance.

Financial Definition

When viewed from a financial science point of view and talking about financial matters, it means that you will discuss how to study and manage the financial condition of an individual, business and an organization. Starting from managing, increasing, empowering funding sources, allocating funds according to goals to calculating a risk and a prospect for the future.

Even financial itself can also be viewed from an administrative aspect, so in this context finance is how to manage the finances that will enter and exit in a business and for several other things so that you can maximize a profit in each economy.

There is also what you can learn, namely financial management which is a series of company activities and begins with getting funds, using funds and managing company finances as a whole so as not to experience a problem.

To see the good or bad of a person’s or company financial condition. Therefore, it must use a proper financial management so that it can account for a mistake to certain parties. If all aspects of financial management run smoothly and optimally, financial freedom can be achieved.

A meaning of financial freedom which means that in every individual, business, company or other organization that is free from the words debt and loans. That way, you will have a steady income and have reserves that can be used for unexpected needs.

Financial Functions

There are several functions of this financial word. As one of the productive age workforce, you need to know what financial function is in your personal life. If you have the view that financial management only needs to be applied in a business and company, then this view can be said to be wrong. So when you want to go further, try to better understand first what functions of finance you can get in your daily life.

• Planning Function

Everything to run smoothly requires a plan right? So the same as this financial, if you want to get an convenience then you have to make a plan so you can minimize something you don’t want. So you try to focus on the main needs that must be fulfilled. Not only that, you also have to balance an input and expense from finance. And avoid planning that is purely wishful in nature. For the better, you must really hold fast so that the funds you manage can get optimal results.

• Control Function

The control function is a tool for controlling the budget so that we do not do or compile everything that has been determined as a financial one. If you don’t use this function properly, all your expenses can swell, making your financial condition unhealthy.

• Inspection Function

So each of your finances needs to check regularly. That way you can manage all the inflows and outflows of your finances. So that it can help you find mistakes from the start, including the use of funds that are not excessive.

• Reporting Function

This one function is very suitable to be implemented in the company section so that all the money that goes in and out can be monitored so that you can find out what the wrong impact is. If you already know, you can reduce all expenses so that your financial condition can be stable.

Financial Benefits

To get financial benefits, there are a number of things that you must avoid in order to be free from pressure or losses in the future.

• Save Life

Save money does not mean stingy. But here what is meant by frugal is when you go shopping, but the thing that is bought is not a basic necessity but the item is a complementary need. So don’t do this too often. If you can take care of this then you will benefit from frugality.

• Discipline And Order

If financial management is carried out on a routine, orderly and disciplined scale, there is no need to doubt that the benefits of this will be enormous. So all your needs or finances will be managed properly so that there will be no damage to your finances.

• Avoiding Debt

Usually, entrepreneurs or other individuals, if they do not have adequate finance, then they will use debt to make them financially sufficient. But this is wrong, it’s better to use minimal finances so you don’t have to think about other things. The benefit is that you can focus more on yourself.

Managing finances will help you plan for a more optimal future. The logic is this, you can save money, live well and debt free. From there, you can plan for future needs and act now by starting to develop funds.

Now you know that finance is everything that has to do with finance, from funding, obtaining, and managing funds to being able to produce something. So, if you have more funds, immediately develop funds starting from small capital on the Akseleran peer to peer lending platform. Begin to implement various types of financial functions and get various types of financial benefits.

When starting a small business, there are indeed many challenges and trials in the early stages. This is a test so that we can maintain the business or not. If anyone has never experienced this then it is a lie.

This can be in the form of a challenge to capital, so beginner entrepreneurs keep paying attention and managing your business finances well. Even more so if this is your first time in running this business. Keeping a complete record of finances starting from cash flow, daily turnover records, weekly to monthly turnover along with business purchase records is also an important thing for you to do.

However, not a few beginner business people often make mistakes by ignoring important aspects as we are currently discussing. According to CB Insights research, one of the main factors that cause a startup to fail is a lack of funding. That way, we need a strategy to manage business finances for every new entrepreneur.

If you already have this, it can help you to keep trying and keep going smoothly and stably. Here are some smart tips for managing your business finances so that your business can continue to grow.

Managing Business Financial

• Separating Personal Money And Business Money

This is an important problem that you must do in order to maintain the financial stability of your business. Until now, there are still many cases of business people who still mix their personal finances with their business finances. So that they can’t manage their finances properly.

Some business people are also known to use their business finances to meet their personal and family needs in large numbers, making it difficult to know or calculate. If this is done continuously, this can trigger losses that will be experienced by the businessman.

Of course this can make your business capital decrease and decrease. Even the benefits will not be seen. If this is allowed, it does not rule out the possibility of the business being bankrupt.

• Separating The Accounting And Cashier Sections

This is no less important than the previous explanation, because separating the accounting section from the cashier section can be useful to minimize the risk of fraud (Fraud). In this discussion, the cashier can function as the party who receives money from the sale of products, be it other goods or services.

For the accounting department itself, it should not be handled by the cashier, but should be given to someone else who already understands this part of accounting. Because if the cashier and accounting are held by one person, there will be a greater risk of loss. This happens because this person can manipulate financial statements in your business. So to prevent this, do the separation between the two parts.

• Make General Planning

All of you who are currently owning a business or business, then you can make a general plan that can or contains any program that must be done for a long period. Then the program can be divided into several short periods such as weekly and monthly periods as well as quarterly.

For this you also have to need careful and detailed calculations of the programs that you have created. This is like calculating the amount of funds needed and equipment and determining the time to run the program.

• Make Financial Targets

How to manage business finances for beginners, it will not be too late. Because you really want to try, it will not be in vain and can be done at any time. Even though the business has been running for a long time, but your financial targets are decreasing or increasing, it is useful for you to differentiate or find out which business you are running is successful or failed.

Maybe this is still unknown to all new business entrepreneurs. Your first step needs to determine how much income and expenses you get during the year. This must be well structured then you can immediately make a target that you want to achieve more efficiently in the form of a simple scheme.

• Develop Business With Profits

Profits are a form of income that is proof that a business is developing and is able to provide satisfactory results. You can use these advantages to meet your personal needs, but it would be better if some of these benefits were used as additional capital for your business. That way, the capital or business that you are living can increase in size and can increase profits from before.

If you are able to do things like the above and are able to practice them, then it’s no wonder you will be able to manage your business well so that you can make the business successful and profitable. This will bring pride to all of you.

In essence, every entrepreneur must have ambition and must have the conditions to have better business targets. Thanks You.

Back again with us discussing articles about finances in everyday life. Financial planning or financial planning is an important aspect of developing a business. Especially for those of you who are just starting to build a business.

If you have a clear and regular financial plan, you can avoid losses and reduce the risks of experiencing enormous losses.

Not only that, a financial plan can also be a focus for investors who might be eyeing your business. So when you have a detailed and clear financial plan, it’s no wonder that it can help you to get additional capital to develop the business you are running.

Maybe you are curious about what financial plans should be in or when you are running a business. Here are some components and a little explanation that will make it easier for you to make your business financial planning.

Business Financial Plan

• Sales Projections

Create a spreadsheet or database to project sales of your business over the next few years. Create several different columns on the sales form for each month in the first year. So you can be wrong for the following years. So you can do one of them quarterly.

What are the items in the projection spreadsheet when running sales projections? The projection is easy, you just give 5 columns which are said to be:

1. Potential units sales
2. Price units
3. Potential sales revenue = Total sales units x price
4. Cost units
5. Cost of goods sold = Number of units sold x cost units

By calculating things like the one above, you can estimate gross profit, which is the total potential sales revenue subtracted from the cost of goods sold.

• Create an Expenditure Budget

Want to have something like a successful or successful financial plan? You also need to make various estimates of how much it will cost to generate a sale. So you can divide it between fixed costs and variable costs.

Fixed costs are expenses that are incurred constantly such as rent, employee salaries and other expenses in your business. Meanwhile, variable costs are unpredictable expenses such as costs for advertising and promotion.

So the technique or method can also be divided into between setup costs and operational costs. Setup fees are costs that you need upfront to build a business such as registration and business licensing fees, property and other costs. Meanwhile operational costs, which include all the things needed to keep your business running and running, such as logistics costs, internet costs and promotional costs and so on.

• Income Report

Making a statement of income, expenses and profits in the business that you are running for a certain period is very important and very good. Moreover, you are owners or investors who are interested in business to find out whether your business is profitable or has suffered losses so far.

If you have a financial statement then you can calculate all net profits by subtracting gross profit from interest and taxes. If the company makes a quarterly income report, those of you who are just starting to do business should make a monthly income report for 1 full year.

• Cash Flow Estimates

In this report, you can see the flow of cash in and out of the business or business that you are running. Cash is very important to ensure a business or business can keep going and will not be short of funds. So all basic cash flow forecasts can determine cash from inputs as well as expenses.

To make a cash flow forecast report, you can do it in a matter of per year so that you don’t have too much. So this is very important in various invoice payment processes which are paid in cash within a period of 30-60 days and so on you will not be confused in managing business finances.

• Balance Sheet

The balance sheet is basically a statement of wealth or assets in a business. If viewed from the balance sheet, entrepreneurs and investors can assess the financial health of their business. Estimates from the balance sheet can be seen from:

1. Assets: financial value owned by a company such as property, cash, online selling web, and so on.
2. Liabilities: Payable to creditors of the company.
3. Equity: The difference between assets and liabilities.

• Break Even Point Analysis

In the main component of the financial plan is a Break Even Point Analysis. Break Even Point Analysis or what is often referred to as BEP is a point where expenses can be with the level of sales. If your business or business is worthy of the total business income at a certain time and can exceed the total expenses. This section is important for entrepreneurs to assess whether a business can grow and be profitable and even harm entrepreneurs.

Judging from the financial plan, you can compare the performance of the business in a certain period. That way you can determine a step or the right action to organize your business.

This can affect especially those of you who are in the marketplace section, now there is an easier online business way that allows you to manage inventory, orders to access transaction reports. Making business financial reports can be easier and more practical so that you can focus more on running your business on a successful path.

So as explained earlier. You must have several things or demands for a process to run well so that it can achieve an extraordinary advantage. Thank you and hope it is useful.

Tips for Achieving Financial Freedom – Finance is one thing or an important aspect of everyday life. Because of the importance of this, sometimes there is an assumption that good finances will lead to a good life too. We cannot completely deny this kind of thing, because seeing from the conditions like today, almost all things in life need money in order to meet our needs.

Therefore, a lot of people are scrambling to get a good job so that they can fulfill their financial needs. In the end everyone would expect to be able to get free finance.

What is Financial Freedom?

Financial Freedom is a condition where a person has wealth that is sufficient for everything such as daily needs and living expenses in the future. Usually, people who have the financial freedom do not need to work too hard to meet the demands and costs of daily living even for life in the future.

For some people, money has reached financial freedom, so the assets they have can generate money that is worth more than their daily expenses. That way, people can be free to do whatever they want.

For example, an entrepreneur who has the freedom finance has a total monthly expense of $ 3,000, but for a month he can make $ 5,000. Then they do not have to bear these expenses. Because their expenses are smaller than their input.

Here are some tips that you can try to get financial freedom:

• Understand Current Financial Conditions

If you are able to calculate all your income correctly then it will be very easy for you to get financial freedom. Are you able to manage all expenses and inputs so that they are balanced and there are no mistakes.

Understand your financial condition starting from how much you spend and how much you earn each day. Then whether this number can be balanced or can even compensate for. If not, then you have to worry about your financial freedom.

So in essence, you have to be diligent about counting and estimating all the amounts that can compensate for each other. That way you can set a financial goal for you in the future.

• Determine Financial Goals

Try to pay attention to what direction your financial goals are used, whether it is correct, good or according to your individual needs. That way you will get a solid strategy in managing all of your finances.

For example, this month you saved about 20% of the total expenses in the previous month, then in the next few months you can increase it to 30% from the previous expenses. Then you can determine a goal precisely and accordingly.

• Find Other Sources of Income

To increase your financial strength, you must have extra energy, right? So that you are able to generate multiple income. This can be made one of the important steps to achieve financial freedom in your own life.

After getting these assets, try to let the income from these assets cover all your expenses or needs. While your basic income is used to create other assets and to meet other needs.

• Investation

If you have more financial or more wealth then try to invest a little of your assets into something like that. As you know for yourself, investment is an investment so that when it is harvested, you will get a bigger result than the initial capital invested.

You can learn about the investment in various references from close people and on the internet. In times like today property investment and investment in gold are currently popular in the world. Because these two things always have statistics that continue to increase every year.

So it is not surprising that people who have more assets or more wealth choose to invest so that their capital can increase and not suffer losses. It is different if the assets you have are only stored and saved. Because if it is only stored, the value will be the same in five years.

• Avoid All Debt

If you have more savings or money then you should use it and manage it well. Don’t let you experience debt problems which will ruin all of your financial life. This is something you should absolutely avoid.

If you are in debt, it is certain that you will not be able to get financial freedom. Because every time money comes in, you will use it to cover the debt.

There are still lots of tips to get financial freedom. If you think it’s still lacking then you can ask the closest people or your family. Even for references there are also very many on the internet.

So try to learn all things related to finance then you can use that knowledge so that you can get a better financial life than before. Hopefully the little explanation above can help all of you. Thanks for stopping by to read.

Entrepreneurship is an activity that encourages job creation and innovation that can support economic growth. Inter-country data from the Global Entrepreneurship Monitor (GEM) shows that countries with a high level of entrepreneurship, thus the average economic growth rate will also be high. At the individual entrepreneur level, it tends to be more rapid to rise to a better level of welfare (Bradford, 2003).

This is one of the important aspects in entrepreneurship utilizing business opportunities which are often translated into the form of opening new businesses (Aldrich and Cliff, 2003). With this progress, the GEM survey measures entrepreneurship using 2 methods, namely the number of new company openings and the number of companies that are able to survive after being established.

Even though it has an important role, entrepreneurship must be prepared to face various challenges. The most serious challenge that must be faced is the problem of financial limitations. When viewed from the point of view of credit provision, for example, credit restrictions are caused by asymmetric information (Stiglitz and Weiz, 1981) and this problem is bigger for newly established businesses.

If you start a new business, you will need initial capital. If there are no obstacles in the financial market, the decision to open a business is not related to the individual’s financial situation. If access to financial markets is limited, only individuals with sufficient assets are able to start new businesses (Holtz-Eakin et al, 1992).

According to Caner and Saridakis et al, who argue that financial limitations can cause the growth of new companies to be less vulnerable so that they are unable to survive (low survival rate).

Financial Market Constraint

If you want to analyze the financial market constraint hypothesis, Evan and Leighton and Evan and Jovanovich. If you look at the second relationship between a newly opened business or self-empyoment with individual asset ownership. However, there is another study, namely from Hurst and Lusardi using the same strategy to analyze this hypothesis at the household level and the results show that the business opening and wealth of these entrepreneurs are positively associated both at the individual level and at the household level. Or it can be called the Financial Market Constraint, which is very suitable for individual and household entrepreneurs.

To test financial market constraints is still a polemic or is still a conspiracy. Cancer argues that a positive relationship between wealth or assets and the opening of new businesses in the rich can occur due to differences in tax rates between workers and entrepreneurs. And according to Cressy, the positive relationship between wealth and the opening of new businesses can be related because individuals are increasingly willing to take risks if their wealth increases, not because of financial market constraints.

Individuals who are less risk averse will prefer to open new businesses, while those who are more risk averse will prefer permanent jobs. As time goes by and wealth increases, individuals will be increasingly willing to take big risks and will choose to become entrepreneurs.

Buera shows that the relationship between assets and wealth of new ventures is not so monotonous, this relationship is positive for poor households (low assets) and the negative for rich households is that this rich individual does not open a new business which may be a bad entrepreneur.

The effect of assets on the opening of a household business can also be analyzed for different asset distributions using five asset quintiles. The first quin-tile comprises 20% of low-wealth households. So that the fifth quintile is households with higher asset holding.

From the results of buera analysis which supports that assets have a very negative effect on households with a lot of assets or wealth. However, there was not found a relationship between wealth between new business openings and the other four quintiles. Rich households will have higher entrepreneurial skills that are able to open new businesses and other people will choose their jobs.

An IFLS data can also help or allow us to analyze a financial market constraint on the opening of a new business directly. There are two types of questions in the IFLS survey that are used as a tool or to see the function of financial market constraints, namely “Do you know where to borrow money?” For the second one is “During the last 12 months, did you know where to borrow money? / Have you been successful in getting a loan? “. These two results show that knowing where to get a loan and the results of getting that loan can increase the probability of opening a new household business.

Financial Market Constraints according to or which have been explained by Evan and Leighton are not found in some countries. Countries that are still developing or are still weak will usually rely more on relationships with relatives to meet their business capital needs. However, developed countries always depend on the formal financial system.

The development of increasingly sophisticated technology also affects various developments in all fields and types of community needs. One of them is financial needs, now people have the convenience of the Financial Technology (Fintech) industry. Because this field has progress very rapidly.

The presence of various types of Fintech companies is a service innovation in the field of financial services that aims to help people and reach their consumers to make transactions easier without having to make face-to-face meetings.

According to Fintech reports in the world, in collaboration with well-known companies in Europe, the fintech industry in Europe in 2017 received transactions of 182 million US dollars. Of these, Fintech is dominated by loans.

Types Of Financial Technology

Fintech technology can be divided into business fields, applications, and products related to providing open financial services.

There are so many financial needs of the community which of course encourage and provide space for companies to emerge to help those needs. Fintech also has a variety of different services.

Fintech companies must have passed or have a license from the International Financial Supervisory Agency and have a Global Financial Stability (FSB) recommendation. Fintech is also divided into 4 types or categories.

Anything ? You can read these reviews as below:

• Payment, Clearing and Settlement.
  This category is a service with an online payment system through electronic wallets or digital media payments (Digital Money). With this category, this system has been updated very well by banks and non-bank financial companies. Surely you are already familiar with the types of Fintech in Europe. Because almost all residents in Europe have used digital payment methods in the form of cards or applications.

• Deposits, Loans and Capital Raising.
  In the field of fintech, the most commonly used fields are crowdfunding, P2P Lending platforms and Payday Loans. Fintech in the P2P Lending type connects borrowers or lenders (Investors) with borrowers (loan seekers) on one platform. This loan system must have been funded by investors to borrowers, so the advantage of investors is to get the loan interest that is given to the borrower. There are so many investors that you can find in your everyday life. There are even salespeople who offer these loans to your respective homes.

• Market Provisioning (Aggregators).
  Aggregators have a function to collect various market information that can be used by companies with the aim of facilitating people’s daily needs. This information can also be used by consumers according to their individual needs. This type of fintech provides product comparisons starting from price, usability, quality and benefits of course. This service certainly makes it very easy for you to make a good decision compared to having to look for each of these products one by one.

• Risk Management And Investment.
  This fintech service is one of the areas that will help and create a plan or financial advisor for you, such as online platforms and insurance. If you are planning finances, this can be of interest as educational advice. Then you will explain the things that you have to pay attention to so you don’t experience losses and mistakes during the process. For example, helping you pay more attention to your strengths, weaknesses, quality and investment model that suits you so you don’t experience losses. You can also easily find risk management and investment fintech companies in various references such as on the internet.

Those are the four types of fintech that you should know in the financial business.

Understand The Different Types Of Financial Rules

From an industry regulatory perspective, all types of fintech must be registered and monitored by all types of international financial agencies in their respective countries to avoid fraud. If it is registered, of course, it will have or the company implements several policies and actions including the closure of unregistered or illegal fintechs so that consumers have protection.

Smart legal Consulting is a corporate legal service agency in the financial business industry. This institution has helped many clients in handling matters related to investment law. Foreign company establishments and representative offices also help clients deal with corporate legal compliance and services.

Contact various investment law institutions with the aim of getting legal solutions and your business goals in order to comply with the laws and regulations that apply in this financial business.