Category Archives: Business

Different Forms of Business Communication

Communication is a process which is a must for exchange of useful information between two individuals. In fact, it is the best way of learning new things that are important for business development in all kinds of organizations. It is possible to communicate with the other person in multiple ways and modern-day employees working in diverse sectors need to be fully aware of these ways of improving the overall way of functioning of their firm. Given in the next section are some of the different forms of communication in business which are globally used.

Main Types of Business Communication

Internal Communication
Internal communication is the type of communication in which interaction takes place within a corporate house. There are formal as well as informal channels of internal communication. Upward communication, downward communication and horizontal communication are considered to the major types of internal communication.

Upward communication
In upward communication, the information is passed on from the junior level employees to the management of the company. This enables the employees to participate in the company’s business and policies and give their valuable inputs. This kind of communication can help the employees gain confidence, and understand the functioning of the organization better.

Downward Communication
On the contrary, in downward communication, the flow of information is from the top-level management to the subordinates. This type of communication enables the organization benefit from the managerial expertise and experience of the top level management. However, the management should make sure that downward communication does not take away the employees freedom of expressing their views on certain aspects. So, giving some powers to the employees in spite of having downward communication is essential for growth of the organization.

Horizontal Communication
In the case of horizontal communication, we see an interaction and collaboration between people employed at the similar posts or communication between to departments or sections. This helps them get their queries solved and gain knowledge from their colleagues. Interaction between workers must be promoted by the top management for exchange of ideas and new concepts.

External communication
External communication is when the company employees or officials get in touch with people outside the organization for the purpose of business expansion. The main advantage of such type of communication is that the management gets to know what are the expectations of the customers/clients in the market, and what the competitors are offering. With this information, the existing product range can be improved and new products can be developed and introduced.

Communication by Letters
Letter communication is a widely used technique to communicate with the outsiders. This makes the outsiders understand the points which the company management wishes to convey easily. Moreover, the company can have a copy of the letters with them as a proof of communication with outsiders.

Smart Business Analytics

The growth of a business depends on the accounting profit earned in a financial year. That makes it imperative for any business to track and calculate it. Here, we have provided the formula for calculating accounting profit along with explanation about certain related accounting terminology.

TAGGED UNDER: Accounting

Advertisement

In mathematical terms, profit is defined as ‘the difference between the cost price and the selling price of a product where the selling price is greater than the cost price’. But in the bigger picture where business and investments are involved, account profit is best described as the surplus amount which remains after settling all the expenses incurred in the business growth and development.

Accounting profit does not include opportunity costs which is included in calculation of economic profits. If we consider areas of business, when there is a surplus earned on the amount that includes the secondary costs (inclusive of administration expenses, finance expenses, establishment expenses and salaries), the profit is termed as gross profit. Hence, accounting profit is the difference between income received and payable expenses within the defined accounting period.

Before we understand about how to calculate the formula for accounting profit, there are some terminologies that need to be understood.

Capital amount (CA) = Assets (Fixed + Current) – Liabilities (Current + Long term)

This capital amount is inclusive of the profit earned sans the drawings/expenses incurred from the capital. Now the calculation is done on basis of accruals or matching concept. The gross profit earned on a capital precisely includes all the costs which includes the amount indebted to trade creditors. The accruals or matching concept ensures that the expenses incurred in the profit calculated to earn the profit should match. Say, for instance, you have 10 pencils and sold 8 of them. So you cannot make a profit and loss account with the cost of all 10 pencils when you still have 2 in stock. If you do not follow this concept in business, the accounting profit earned will be lower than it actually would be.
So net profit/accounting profit is calculated as:

Accounting profit = Gross Profit (Gross sales/revenue) – Expenses incurred in earned gross profits (Operational + Miscellaneous costs).

Gross profit, which is reported on upper portion of income statement in balance sheets, is calculated by deducting the cost of sold products from the total sales revenue. The sales revenue also includes purchase discounts, and interest generated from investments. The second profit that follows up is the operational profit which can be calculated by deducting operational expenses from gross profit. Operational expenses include commissions, advertising expenses, hourly wages, equipment maintenance charges and freight loading charges. Net profit or the accounting profit forms the last section of the income statement.

Cash Audit Procedures

very organization must have checks and balances to ensure transparency and accountability in financial matters. The cash audit is one such procedure that every business puts in place. Read through this article to learn more about it.

Advertisement

Financial audits are carried out in an organization to check the accuracy of the records and to ascertain any discrepancies. It is also used to display transparency to investors, and to reaffirm that the organization is adhering to the generally accepted accounting principles and is devoid of any fraudulent activities. As the title suggests, cash audits are specifically related to transactions in which cash has changed hands. These audits cover a specified period of time, such as a month or a quarter, and is included in the annual report of the organization.

Types of Audit Procedures

There are three known types of audit procedures. Let us take a look at each one of them.

Data Selection: In this method, an auditor checks the numerical data to review the accuracy of the various financial transactions. It enables the auditor to look out for any variations in the proceedings over a fixed period of time. One of the disadvantages of this is that it is too rigid and on the basis of numbers, one cannot fully explain the inconsistency, if any, over a period of time.

Tests of Control: A control test is carried out by an auditor to verify if the organization is being managed efficiently and how the operational risks are being avoided. It also provides them an insight into the decision-making mechanism of the organization.

Account Details Tests: In this method, an organization’s bookkeeping practices are reviewed. During this review, the auditor checks for various journal entries and ensures that the bookkeeping is in accordance with GAAP or the IFRS.

Process of a Cash Audit
Check the summary of the period-end cash balances to ensure that there are no loopholes. The total should match with the ledger total and the previous audit’s working papers.
Check the list of bank accounts in the summary and compare this list with that of the previous year, to check for new additions and omissions.
Verify the organization’s disbursements by checking the bank statements.
Check how many people are involved in dealing with cash. Ideally, only employees with administrative powers and managers should be involved in this process. An auditor also needs to examine the outstanding checks, deposits, reconciling items, etc.
Review the receipt books, and ascertain the reason for any receipts not reflecting in the bank statement. If there are multiple banks in question, check all the interbank transfers, and verify their authenticity.

Meaning of Fixed Expenses

With increase in production, the total fixed cost remains constant, whereas the fixed cost per unit decreases. On the other hand, the total variable cost increases with increase in production, but the variable cost per unit remains constant.
Fixed costs are those costs that do not change in the short run, irrespective of the quantity of goods produced. They do not vary with the change in output or level of production. With the increase in production, the fixed cost per unit reduces and vice versa. You might have come across fixed costs in many instances in day-to-day life.

Let’s start with a household example. During a month, you incur various types of expenses―energy and telephone bills, groceries, utilities, car maintenance, fuel, house rent, etc. Now, if you try to classify these expenses, you’ll find that some expenses depend on use or consumption, while some remain independent of use or consumption. Electricity, telephone, fuel, etc., varies according to use. Hence, they’re variable expenses. On the other hand, if you’re living in a rented place, and you’ve been out on a business tour for a few days, you still need to pay the rent, in spite of not using the place for a few days. Thus, the monthly rent that you pay is a fixed cost.

However, there can be a mixture of fixed and variable expense. For example, your phone expenses might be inclusive of some fixed cost element, irrespective of its use. That part is fixed cost, and the remaining which depends on the usage is variable cost. Such costs are known as ‘semi-variable’ costs.
Similarly, for business organizations, it is very important to classify the costs into fixed and variable costs. Let’s see why, with the help of an example.

Company X has expansion plans. It estimates that the initial setup will require buying and installing heavy machinery. These expenses are fixed costs, since they have to be incurred, irrespective of whether goods or products are produced or not. After market research, it is revealed that the recovery of fixed costs will require a long tenure.

Considering the tenure for recovery of fixed costs, the management decides to drop their expansion plans. Initially, huge fixed costs are incurred, hence any business will take time to recover it; however, comparison of cost and benefit makes it easy for the management to take such decisions.

Factory/Office rent, deposits, machinery costs, depreciation, insurance, annual maintenance contract charges, salaries to office staff, etc., are all examples of fixed expenses. You can save your costs by controlling your variable costs. However, it is difficult to put a budgetary constraint on fixed costs, though they can be controlled, too. Given below are formulas for determining fixed cost.

Busineess with Cina

Surely everybody is thinking about how to find a good Chinese supplier.In order to be able to find the right one, we need to run for the exhibition?Must go to visit China?In addition to the use of the Internet and other good way to find good suppliers?The answer is as follows.

Part A:Four ways to find Chinese suppliers?
Surely everybody is thinking about how to find a good Chinese supplier.In order to be able to find the right one, we need to run for the exhibition?Must go to visit China?In addition to the use of the Internet and other good way to find good suppliers?The answer is as follows.

The people one the earth all know that China produced the world`s most of the products, any trademark supermarket and store goods, nine times out of ten are “Made inChina”.Countries buyers looking for a supplier to China, one of the most important reason is that the price is competitive.In fact it is for this reason, a large number of foreign manufacturers flocking to China.

No matter you are a businessman or purchaser, as long as you are on your products in the domestic price competitiveness, you will not be doing nothing, you will try to search for solutions to your business failures.Some of these solutions include:

1. Stop selling those who have borne the brunt of low-priced products.It is not a good way, unless you have a lot of other stock or you just want to spend a long vacation!

2, try to search their products more competitive manufacturer.

3, direct imports from low-cost countries.If we think this method is the best, there are many things waiting for us.For example: choose which country to purchase?How to find a vendor can understand our way?But you will find a circle, you will choose to China.The next question is how to find a Chinese supplier?How to choose?How to communicate to?You may decide to products of interest to you start a few enquiries give it a try, will also buy a sample, if so, then you may have to spend thousands of dollars on sample only for not making the wrong decision.

In fact, there are many excellent Chinese manufacturers did not appear on the B2B website.These excellent manufacturer in manufacturing is very severe, but unfortunately they do not know how to marketing effectively.

So you can go to a few large professional exhibition to find those in the B2B website to find suppliers, site and its participants to communicate and establish a preliminary cooperation intention, maintain a good relationship.

Advantages of Visual Marketing

There are so many websites all over the internet. Websites provides information and promotes products and services. It helps the products and services to connect to the larger mass and that is why websites have been so popular among the people.
Advantages of Visual Marketing Over Textual Content Marketing
There are so many websites allover the internet. Websites provides information and promotes products andservices. It helps the products and services to connect to the larger mass andthat is why websites have been so popular among the people. A website can earnmoney and one tool that is the best in this business is affiliate marketing.Visual Marketing is a type of marketing that is based on performance. There areone or more affiliates that get the profits when customers buy a product. Thistype of marketing has been very much successful in the recent times and hasbeen very popular. Since the inception of computers, the one thing that hasbeen in buzz is visual marketing.

Infographic Designing Agency helps one to achieve the same. Trails andtesting are very important part of any marketing plan and that is why go fordifferent trails and testing products and plans so that you can get an idea ofthe one that is getting the best response and will earn you the most. These aresome of the techniques that can be used for successful visual marketing. Whileon the other hand textual marketing also exists all over the globe. There is ahuge gap between the effectiveness of the textual marketing and visualmarketing. These are few of those differences:

· Youcan measure online: In the case of textual marketing, it is verytough to keep track of the ads that you have posted in the newspaper. But inthe case of visual marketing you can actually keep track of the views and thenumber of people reading the pages or the websites.

· Branddevelopment: Unlike the textual marketing, visual Marketingis a very good place for the industry. When you invest a bit in your digitalmarketing, you can achieve a lot from of websites.

· Exposureis excellent: There is a huge exposure in visual marketingcompared to the traditional marketing management. In visual platform, it isvery easy to reach to maximum customers and that is why in the current dayworld, people prefer visual marketing.

· Reachto qualified customers: There are two kinds of customers, one whowants to buy and the other who don’t. Visual platform is very effective inreaching qualified customers.

· Setsthe stage for customer engagement: In textual marketing, it is very possible toreach maximum consumers. The textual marketing plans are also an expensivemarketing plan, but with a Visual platform. It is less expensive and moreeffective.

Must-Haves” In Your Wardrobe

You should be always experimentingwith new fashion trends as they rightly say, “Life is too short to wear boringclothes.” One of the latest trends that have shaken the men’s fashion industryto quite an extent is the streetwear style. Although it has been there forquite some time, but recently all kinds of experimentations are going on inthis segment of men’s fashion. This style is not just about picking up casualand quirky items. It is about teaming up the right set of clothes, and not overor under-doing the entire get-up.

Luckily, you can get hold of these clothesby sitting at home as The Best Streetwear Shops in UK areavailable online and provide prompt home delivery. So, quickly browseonline to buy sixth june clothing or sinners attirecollection. Here are some of the items that should make a place in yourwardrobe, if you want to pull off this fusion style properly.

Pants
Distressed Joggers: A pair of distressed joggers can go well with everything starting from acasual t-shirt to a hoodie. And hence you need to invest in a comfortable pair. It is a major “musthave” in your closet.

Ripped Jeans: There is something extremely edgy about a pair of casual ripped jeans.As a fashion designer, I can say that these pairs are not going out of trendanytime soon. Hence, don’t compromise on the quality of this pair of pants.

T-shirts

You should invest in a few kinds of t-shirts. A black v-neckt-shirt, a few logo tees and a couple of shotgun tees will uplift yourcollection to a whole new level. Buy sons ofheroes clothing for gettinghold of the best collection of casual and smart tees.

Vests

The collection will be incomplete ifyou do not own a few colourful vests. Streetwear fashion is always about doingsomething different and edgy. There are actually no rules, but yes, make sureyour abs and arms are in shape before you go out there on the streets wearing avest with a distressed pair of pants.

Bomber jackets

Riding on that latest model of a sport bike with a bomber jacket on! Trust me,most of the girls would start swooning as soon as you will enter the collegecampus or the party destination. But keep in mind that the icing on the cakewould be the right kind of attitude and the right amount of confidence. So, buya brown or black leather jacket at the earliest.

Chelsea boots

A look gets completed only when youconcentrate equally on the footwear. When it is all about streetwear fashion,you should get a pair or two of Chelsea boots. They are available in a varietyof colours like Taupe, stone, onyx, etc. Take your pick and rock the looks!

Successful affiliate in the niche markets using web hosting

This is a great opportunity for web hosting affiliates and resellers alike. There would hundreds of web hosting and programs to choose from that the difficulty in finding the right one for them is not a problem anymore

How To Become A Super Affiliate In Niche Markets
Over the past years, web hosting has grown bigger than it used to be. With more companies getting into this business and finding the many benefits it can give them, the demand for web hosting has never been higher. These seem to be the trend of today.

58 million people have put up their very first websites online this year 2014 alone. It is estimated that by 2017, the internet sales industry will top then dollar bank. And to think, majority of those sites will be offering different affiliate programs for people to choose and participate into.

This only means one thing. It is easier now to find the right web host for your application. The possibility of quality web hosting companies separating themselves from the rest of the industry is anticipated. If this is done, the unprofessional and incompetent ones will suffer.

Support will be the number one consideration for people when choosing a web host. It will be obvious that traditional advertising will become less and less effective. Most people would rather opt for the web host based on things that they see and hear. Also based on the recommendations by those who have tried them and have proved to be a successful.

This is a great opportunity for web hosting affiliates and resellers alike. There would hundreds of web hosting and programs to choose from that the difficulty in finding the right one for them is not a problem anymore.

How does one become a successful affiliate in the niche markets using web hosting?

If you think about it, everyone who needs a website needs a web hosting company to host it for them. As of now, there is really no leading hosting industry so most people choose hosts based from recommendations. Usually, they get it from the ones that have already availed of a web hosting services.

With the many hosts offering affiliate programs, there is the tendency to find the one which you think will work best for you. Think of the product you will be promoting. Pattern them to the site and see if they are catering to the same things as you are.

When you have been with one host for quite some time and seem not to be making much despite all your effort, leave that one and look for another. There is no use in trying to stick to one when you would be before off in another one. Things will only have to get better from there because you already have been in worst situations.

Kickstart a Career in Organic Farm

Interested in beginning a career in organic farming? Thanks to the ongoing trend and customer’s increased interest in the organic produce you can take advantage of the outlying scenario. Choose from the farms for sale in Abbotsford, Chilliwack, Langley, Mission, Cloverdale and more areas to start on the path. Here are some significant benefits of getting involved in organic farming.

Interestedin beginning a career in organic farming? Thanks to the ongoing trend and customer’s increased interest in the organic produce you can take advantage ofthe outlying scenario. Choose from the farms for sale in Abbotsford,Chilliwack, Langley, Mission, Cloverdale and more areas to start on the path.Here are some significant benefits of getting involved in organic farming.

Organicfarming is a secure option: As per the present scenario organic farming isa better option than the traditional forms of farming. It is also among thefastest growing segments in the agriculture sector and thus will provide a moresecure career option to the pursuers.

Another major benefit of organic farming is thatyou will improve several skills and will be able to become more persistent toeveryday challenges of farming.

Itrequires less initial investment: Although not without incurring costs,organic farming requires low initial investments to begin the business. Youdon’t need huge capital like traditional farming and save a significant amountof money that would be spent on chemical fertilizers, genetically modifiedseeds, pesticides and more. Organic farming cuts down these costs making theprocess easier to follow.

Increasingsales of organic produce: The sector itself is showing awesome growth andthe organic produce has become extremely popular among the masses. Over 70% ofthe stores today are selling organic products. Therefore, if you are producingorganic goods then you are in for a premium as buyers are ready to pay more fororganic produce and you can easily withstand any major changes taking place inthe economy.

Gainecological benefits with organic farming: Although eco and organic doesn’tmean the same. But as an organic producer you can get the following advantages:

● Improvedmethods of water protection and conservations

● Optimizedinput costs in terms of fuels and natural fertilizers

● Meansto protect biodiversity

● Eliminationof toxic substances from farming processes

● Mitigatingthe chances of global warming

Higherresistance to drought: Crops raises organically have a higher resistance todraughts and they also consume less water due to the absence of water solublechemical fertilizers. In case of limited water supply the organic crops canstill flourish giving the farmers better produce to sell.

Havinghealthier soil at farm: The soil health deteriorates over repeatedproduction of crops. The chemical fertilizers also suck out the nutrients fromthe soil often leaving the land unfit for long use. Organic farming on theother hand prevents this from happening and the organically produced cropsmaintain the nutrient content in the soil for its overall health.

Bitcoin change the world’s Financial Structure

Bitcoin is a Digital Currency and a payment system which was created by a programmer name Satoshi Nakamoto. It was introduced in October 2008. Bitcoin is the first decentralize cryptocurrency where no physical paper and bank was required in order to make the transaction. This is what it makes so popular and robust itself which predicts it’s upcoming future. Most of the flaws which we currently have in our monetary system can control under bitcoins. For example like our current biggest problem in the economy is fake currency where we can print paper currency more than it’s actual value and we don’t have any control over it . In Bitcoins this is not possible because we already know there are 21 billion bitcoins we can ever produce. So we have open ledger to identify any fake transaction.

Since Bit coins numbers are already fixed so generating fake is not at all possible in this system. Now the question arises if numbers are fixed then how can it be possible for entire world to use this currency. Then solution is already available it has divided up to eight digit and lowest digit is called satoshi. This means as soon as the uses increases value of each Satoshi is going to be increase. That’s why we see lots of ups and downs in Bitcoin value on daily basis.
Now the next question is how to buy bitcoins ? There are lots of vendors available who provide wallets. Given link will provide you all details about bitcoin wallets.

Bitcoin
Every one has its own view but future is not certain for this digital currency. With numerous benefits it has some serious flaws. Due to decentralization tracking payment and its source of origin could be difficult task as we completely need a different management for this. Most of people finding this as a good finance system for illegal activities which is a raising alarm of its controlling and tracking. And due to this some of the countries have banned the bitcoins. But as per the experts this is the future currency which we are going to use and have unlimited benefits. It works 24*7 with less fee and peer to peer instant transfer as compare to bank where there is working time slot , transfer takes time and it cost lot of money as well.

So there is race of collecting bitcoins as many as we can. We never know how much rise it can take in future and how much profit we can earn with few numbers of bitcoin. In year 2009 1 Bitcoin was some where $6 and in 2017 it reached at $1100 by looking this it seems it has a great future.