Money Management By Owen Weaver Review Units 1

Money Management By: Owen Weaver Review Units 1 -4

The Basics of Money Management Getting paid and money management can be difficult sometimes because you might not get paid on time or you might get paid on time, but not even the full amount. You have to keep the business, or your business humming along. A well kept money management is a high priority, just like people hire accountants to organize their accounts or a librarian that keeps the books assorted. It is the same with money. You have to make sure you know where your money is, where it is going, and to keep track of it at all times. That is what money management is all about.

Opening a Bank Account When opening a bank account it is quite simple. You select what bank you would like to work with, open an account, and then there is not much more you need to do, but make sure your funds, papers, licenses are all up to date. That way it is much more safer for you and your business.

Bookkeeping When it comes time to set up your financial books, you have two options--do it yourself or hire an accountant or bookkeeper. You might want to do both by keeping your own books and hiring an accountant to prepare year-end financial statements and tax forms. If you opt to keep your own books, make sure you invest in accounting software. Making sure you pay your dues is very key.

Accepting Cash, Checks, and Debit Cards In today’s business world there is a very high competitive environment. In order to keep up with all the competitiveness, you must provide customers with many ways to pay, including cash, debit card, credit card and electronic cash. There is a cost to provide these silly payment options; account fees, transaction fees, equipment rental and merchant fees based on a percentage of the total sales value. You can, however, reduce fees by shopping for the best service with the best prices. This can make things a lot better and lighter on yourself.

Opening a Credit Card Merchant Account Many consumers have replaced paper money altogether in favor of plastic for buying goods and services. In fact, giving your customers the option to pay for purchases with a credit card is often crucial to success. This is also very true if you plan to do business on the web because credit cards and electronic cash are used to complete almost all website sales and financial transactions. To offer customers credit card payment options, you will need to open a credit card merchant account. If your credit is poor, than the chances of your business being as successful as others is very low.

Online Payment Services Online payment services allow people and businesses to exchange currency electronically over the internet. These services are very popular with consumers and merchants, therefore it is curtail to have a strong set up online payment option. All of these aspects so far are things that you learn during this unit, and you can see how important it is when it comes to money in this world. It is very easy to loose track of it.

Establishing Payment Terms Every small-business owner needs to establish a payment-terms policy. Although you certainly want to standardize the way you get paid, at the same time you will also have to be flexible enough to meet clients needs on an individual basis. Setting payment terms covers deposits, progress payments and extending credit. Your payment terms should be printed on your estimate forms, and printed on your final invoices and monthly account statements. Without establishing your payment terms you can end up loosing a lot of money that cannot be gained back.

Securing Deposits You have to get in the habit of asking clients for a deposit prior to providing services, especially if the work also involves product sales that have to be paid for by you in advance. In this case, the deposit should be for at least the value of the materials. If you are supplying labor, the supply deposits and work deposits totally differ from just a regular business.

Progress Payments Progress payments are also a way to ensure that you do not leave yourself open to financial risk. The key to successfully securing progress payments is to prearrange your contract and payment terms. That is the key to success when it comes to progress payments.

Extending Credit In most cases there's no need to extend credit to consumers unless you deliver a service such as pest control that's billed monthly or a major contract that is completed in stages. As a general rule, when a transaction is complete you should be paid in full. Extending credit should not take long and it is quite easy.

Debt Collection No matter how careful you are when it comes to extending credit privileges to customers, once in a while you will not be paid on time or at all. The first rule of getting paid is to keep the lines of communication open with your delinquent client, and keep the pressure on to get paid through the use of nonthreatening telephone calls, letters and personal visits. Debt collection can be a very scary thing because you really do not want to go into debt in a business situation.

Overall you can easily see how important money management can be in the business world any other life lesson. All of that is what I learned and soaked in from that money management article and it will be very useful when I am older and need to insert those things in my life.