7 Important Benefits of Preparing your Personal/home Budget Using a Spreadsheet
Have you ever wished to make a start on setting up a home budget but were not sure how to start? Couldn't work out how to do the calculations and were not sure whether the answer would be correct? No more reason to stall. Use a pre-formatted spreadsheet that you only have to enter your financial income and expenses into. There are many of these available on the Internet. Ready to look at the benefits? Let’s go.
Benefit #1. A spreadsheet clearly shows your thinking and the calculations used to arrive at the answer. What's more, it allows you to add extra items quickly and see their impact on your financial position, or your free spending amount.
Benefit #2. A spreadsheet can be quickly and easily copied and the data changed to suit a friend or another member of the family. Maybe a teen's budget or a hobby budget could be started using the same initial template. You could also easily copy one month's budget and reproduce it 11 more times to last for a whole year.
Benefit #3. A spreadsheet can be printed and taken with you for further study, or passed on to members of the family for their input.
Benefit #4. A spreadsheet allows for "What If" questions to be asked of it. For instance, what if you were to reduce the spending on clothes and add some extra funds to credit card payments and/or holiday savings? The answer to this question could be instantly calculated by just changing 2 or 3 numbers.
Benefit #5. A spreadsheet can teach you a new, very marketable skill. You may find you pick up this skill really quickly and want to add more elements to the budget like graphs, personalized formatting and more calculations. A spreadsheet is really only a calculator, but with a lot more flexibility. Setting up a budget for yourself, is a good place to start, since this is an easy project. You could progress on to building a Savings Growth Calculator, a Retirement Goal Calculator or a hobby expense and income sheet, and the list goes on. Spreadsheets are used everywhere in the finance, marketing, teaching, manufacturing and sales functions in many businesses worldwide.
Benefit #6. A spreadsheet can improve your accuracy. If you have set up the spreadsheet correctly, you can be sure that the answers provided are correct, time after time. It's easy to see the formulae used and to check their correctness. Others can check these for you also, if you need some help in this area.
Benefit #7. A spreadsheet allows for easy changes to be made to your assumptions and data, as your circumstances change over time. Let's say you receive a substantial pay raise? No worries. Just adjust the income numbers and the new answer falls out. What if you wish to spend less on some item for a month and apply these savings to another expense item or save a little more? Not a problem. Just change the required data and the answer is immediately available.
If you want your budget preparation task to be as simple as possible don't waste your valuable time with scraps of paper and a calculator. Use the tool that will save you time and hassle, the spreadsheet.
Pros and Cons of a Small Business Credit Card
One of the major concerns of small businesses is cash flow and credit cards seem to be the ready answer to this problem. Try looking for one and you will be swamped by choices: both Visa and Mastercard offer four credit card choices for small businesses and credit card giant American Express has eight. There are also hundreds of partner banks to choose from.
Small businesses do not really need credit cards to operate smoothly, but these plastics can come in handy. With so many business credit cards to choose from, the decision really depends on one thing: actual need. Here, I examine why small business credit cards are a blessing from creditor heaven and why you probably will not need them.
A credit card should not be your only source of capital, but it can be a sensible means with which to purchase materials, goods and services during periods when cash is a little tight. And I really know a lot of small businesses go through some cash-flow squeeze.
Small business credit cards are also a practical means to make large purchases, provided your credit limit can accommodate the amount. They can also offer an effective financial transaction tracking system. Many credit cards are being offered with software that can record purchases and deals, even those made by your employees.
Another reason why you might want to use a small business credit card is that many creditors offer rewards for usage such as discounts, prizes and cash-back schemes on top of the usual flyer miles.
But your small business credit card will be signed by you and if ever you defaulted on your business credit card payments, the creditors or banks will not be coming after your business, they will be homing in on you. This is usually the case for small businesses just starting out, when the professional and personal finances of the owners are considered the same.
On that note, whatever record you have on your small business credit card will be included in your credit report. If you miss some payments in your business credit card, it might reflect badly on your personal credit history, making your finances look more unstable than it truly is.
For the first few years when your personal and professional finances are not yet treated as separate entities, your business credit card will not be enjoying the same protection for consumers that are provided with a personal credit card. An example, billing errors on your personal credit card may be disputed within a certain period so you cannot be labeled as a delinquent consumer. With your business credit card, that is not the case.
Also, personal credit card companies will assist you during instances when you purchase bad merchandise through credit. Many small business credit card companies will not.
Should you pack a plastic or not? If you are disciplined enough and willing to take on an added responsibility, then maybe small business credit cards are for you. Just be sure to choose and use them wisely because they can and will affect your credit record if you are not careful. Also, you should be able to pay off your balance as quickly as you can. This will score you a lot of points with your personal and professional creditors and it will also help you renegotiate your terms more convincingly later on.
Startup Business Loans – Loans For the Small Business and Credit Card Services
To achieve economic independence an expert encourages and presents employee individuals to consider the entrepreneurships. You have to set up your individual business. No matter how small it is, it still is one of the greatest ways to build the basis for wealth. Those who are considering the above need to build in a safety network to avoid plunging recklessly into an adventure. You have to start a small business with employees. Generally a small business means credit card services and small business loans.
The industrialist wants to know about how to gain of those tools and how to efficiently have them working for optimal business development.
Credit Card Services
DirectServices -- Typically the business would like to obtain direct card services to make the present business environment grow. The benefit of such services is being able to get both debit card and credit card payments. These are true for both internet basics of online businesses and mortar businesses. Use of Services -- Now days most of the people would like to use the debit card and credit card services for expense purpose only. Merchants are also ready to give the different types of credit card services for the purpose of debit card and credit card payment option.
Small Business Loans
Extra Capital -- Small business loans whether it is to start up a small or medium business or big business will need an infusion of extra capital sooner or later. Extra capital is always utilized for additional inventory, expansion, additional manpower, new equipments or new physical layout and new systems. Obtaining a Loan -- Generally getting a business loan is not very difficult. Small business loans are handed out easily and quickly. You will have to prepare some significant documentation and paperwork concerning your aim. While you are getting the loans, the proprietors on the one hand will ask you to get a personal credit account and on the other hand some references of this business. The detailed information of business loans will display your business projection and strategies, demonstrating the scope of your business penetration. By using these company credit card services a small business can gain a qualification for merchant cash advance.
Frequently Asked Questions About Business Credit Cards
Despite the popularity of this card, many entrepreneurs are still apprehensive about using them. Are you a business owner? Are you thinking about applying? Understanding the basic points about them may help you come up with a decision. Here are some of the most Frequently Asked Questions about business credit cards:
Do you need to own a large business in order to qualify?
In the past years, these cards are offered only to larger companies. These days, even small business entrepreneurs and home based business owners can apply for a this card. It doesn't matter whether you are managing a small business or a big one, as long as you meet the requirements of the card.
When applying this card, would your personal credit history count?
Yes. For new businesses who have not yet established a corporate credit, the business owner's personal credit history would be used as the basis for approval. The best cards in the market often require good to excellent credit so it's best to check the status of your account first before sending in your application. Still, there are also business credit cards for business owners with imperfect credit or with no credit at all.
What are the requirements for a secured credit?
You can get easily approved for a secured business credit card regardless of the status of your credit. However, you're expected to submit a security deposit in your account. This would be used in case you fail to keep up with your credit card payments. Thus, the amount of your security deposit would also determine the value of your credit limit.
Can a secured business credit card help rebuild bad credit?
Yes. You can apply for a this card not only to get the financing assistance you need but to have the chance to rebuild your damaged credit as well. However, it's important to choose cards that reports your payments to the credit bureaus. Take note that not all secured credit provide this service. By consistently submitting your payments on time and staying within your given credit limit, you are also improving your credit score. After a year, don't forget to request from your credit card company to upgrade your account to a non-secured account.
Are reward credit really worth it?
The answer to this question depends on how well you manage your business credit card. It is important to remember that reward credit have higher interest rates and costs than non-reward cards. If you make it a habit to carry over your balances from month to month, you may end up paying for more because of the additional interest rate charges. Thus, if you decide to get a business credit card with reward, make it a point to settle your balances in full each month. Also, reward credit cards impose expensive late penalty charges so you must make sure that you won't miss or delay with your payments.
Third Party Credit Card Processing For Small Businesses
If you have an online business, there are many advantages in giving your cardholders the means to pay for your products or services through a credit card. Customers expect a professional company to have this facility and since paying by credit card offers cardholders some protection on their purchases they may be less trusting if you do not. Paying by credit card is also seen as being instant and convenient, and potential customers may be tempted to take their business elsewhere without this option. Both of these factors mean that companies who allow credit card payments often have the greatest turnover and see the biggest profits.
Setting up the means to take credit card payments can be intimidating if you are a small business owner and are not sure what steps to take. Essentially, you have two main options.
The first option is to use a third party merchant such as CCBill and ClickBank. Some - but not all - third party merchants charge a small set up fee. But mostly you pay for their services through them taking a percentage of the profit on every purchase made via credit card. Using a third party merchant is best suited to very small or new business ventures as the set up fee is low or non-existent (essential for if you are unsure whether the products or services you offer will sell well). They also make it east to implement, as there is technical support on stand by to assist you if you encounter problems in setting up the system on your website. Once it is set up they handle everything, and you will receive your money at the end of each payment period. A third party merchant should also have excellent security procedures in place for preventing fraud and protecting your customer's details.
The downside of opting for a third party merchant is mainly that if your product does become successful, you may be paying out an awful lot in transaction fees. You also will need to spend a great deal of time initially sourcing out the best third party merchant to suit your needs. Third party merchants can vary widely in how they operate, and unfortunately some are less reputable than others.
For more established businesses, your best option is to set up your own merchant service by applying directly to the bank. Requirements for merchant accounts vary from bank to bank so you will need to speak directly to them to obtain their terms and conditions. The set up fee is much higher than if you were to use a third party merchant, but the transaction costs are much lower. Therefore, if you have a successful business you are saving money in the long term.
The negative aspect of setting up your own merchant service is that you are solely responsible for setting up fraud prevention measures and protecting your customer's credit card details. The importance of this should not be underestimated, and failing to do so can lead to your company being penalised under the Data Protection Act.