When the effects of inflation are ignored and it is believed that money has a fixed value, it is termed as money illusion. And due to this illusion at times of inflation, individuals may misconstrue that a higher welfare has been realised due to an increase in nominal income. This…
Budgeting and forecasting are important for the success of business as one is in a position to set targets for income and expenditure and they help him to meet those targets as time progresses. Most of the established businesses exercise this and usually have a specialised accountant who assists in…
Ensuring that the accounting administration is intact is the first step of running a business. Though accounting might sound a little monotonous yet it plays a pivotal role in monitoring and maintaining money productively so that the owner of a business can gain understanding on which section of business to…
Bookkeeping assists in maintaining precise and error-free financial documentation. It is only wise to apply this process in businesses as it is legally required to keep detailed books and records. Ineffective accounting is a major reason for the failure of many big and small businesses. Absence of bookkeeping is like…
Timely invoicing is vital to a good cash flow management and you should get into a habit of immediately invoicing after the product or service has been delivered. The sooner you invoice your client, the sooner you will get paid. Follow a well planned process to chase outstanding invoices. If…
