Finance Archives - Page 3 of 3

May 21, 2018May 21, 2018

Waking up to the new GST era and its influence on top 6 sectors

The implementation of one of the biggest tax reform in the country “GST” is likely to revolutionize the way India does business, setting organizations on a path to work in the worlds most evolved and business-friendly countries. The introduction of the GST system will metamorphose the country’s economy which was for long disrupted by complex taxation and ambiguities. It will make the system more transparent, paperless and welcome more foreign investments.

GST has received an equal share of praise and criticism since its inception. While the majority of the companies got in line with GST almost within 45 days of the application, there are many enterprises in every industry vertical still gearing up for the implementation.

While adding a significant edge to the economy by reducing costs for customers, applying one nation – one tax rule to bring equality, integrating taxes correctly, as well as reducing business transaction costs, GST, on the other hand, is also increasing business operational costs and the burden of compliance. There are pros and cons of everything and GST has both positive and negative influence on all the industry verticals. Let’s take a look GST influence on different sectors:

GST era

FMCG

The FMCG sector is one of the biggest contributors to the Indian economy and is expected to benefit the most from the new tax reform system. The sector could notice some significant savings in the in logistics and distribution costs as GST would eliminate the need for multiple sales depots. The sector comes under the slab of 18% to 20% which will be beneficial to the business holders, manufacturers and consumers directly.

Hospitality and Tourism

Hospitality and tourism sector is one of the highest tax generating sectors. The implementation of GST has helped to eliminate the tax-on-tax structure and streamline the complexity of tax procedures while making it transparent for consumers. But due to GST, the sector faces lack of competitiveness with other Asian countries as well as the business operational cost has increased due to investment in technology to calculate complex tax procedures.

Manufactures/ Distributors/ Retailers

GST is expected to accelerate the competitiveness and performance in the manufacturing domain. Few concerns like declining exports, high infrastructure cost, multiple indirect taxes as well as an increase in the administrative costs were faced by manufacturers and retailers before GST. With the implementation of this game-changer Goods and Service tax, the compliance burden is likely to ease down with the sector growing stronger.

BFSI

18% GST is levied on banking services and financial sector which in comparison to the earlier tax rate 15% is costly. The fund based, fee-based, as well as insurance services, will see major shifts owing to the nature and volume of operations as GST compliance will be quite difficult to implement in these verticals.

Start-ups

Start-ups in India is still a nascent industry, which expected to grow in the coming years. Earlier start-ups with a Pan-India presence, especially in the EComm sector had to face different VAT laws in different states, which will get eliminated under GST implementation along with the reduction in the excise limit. A win-win for start-ups.

All the companies under IT industry, as well as freelancers, are levied under 18% tax slab under GST. Overall this under has witnessed a positive impact with a reduction in the operational cost, removal of cascading effect and an increase in the profitability and change in the business process.

While various sectors have welcomed the most ambitious and significant reform and have taken relevant steps to move into the new regime with great enthusiasm, there are yet many verticals yet to cash in on the burgeoning advent. However, the long-term impact is yet to be seen by the country and only time will tell how GST accelerates growth.

March 21, 2018April 3, 2018

Unearth the best way to financial freedom in the 21st Century

The world is rapidly changing and it’s time for the financial planning advice to catch up with the pace. In this fast-paced life, most of us aim for achieving financial freedom and live a debt-free happy life. If you are planning to have one, you must work towards managing your finances well and clearing your loans.

We all have been in a situation where a panic sets into our stomach when we see the bill for unexpected car repairs. We all get apprehensive about paying our dues? But what if that car repair was just unnecessary, and instead of worrying about our other vital expenses, we pay the bill without thinking twice. That’s how little-unexpected expenses affect our daily financial situations. They are not an emergency, but barely a hiccup!

The path to financial independence isn’t easy, but once we learn to manage our expenses well, it brings new opportunities to build wealth, diversify our income streams, and invest for future security while gaining control over our finances. This may sound too good to be true, but you can achieve this! Here’s how you can begin your own journey to financial freedom:

Set your Life Goals

This step will require you to assess where you want to be in 10 and 20 years from now such as where you want to live in retirement and when you want to stop working. Write down how much you should have in your bank account by one particular age. The more specific your goals, the higher the likelihood of achieving them. Write it all down precisely, and place the goal sheet at the very beginning of your financial binder.

Set a Budget

Make a monthly household budget and stick to it, it is considered to be one of the best ways to ensure that all your bills are paid and savings are going on. It will also help you achieve your monthly goal and it’s a stress-free practice.

Limit the use of a Credit card

One of the basic habits is that we use our credit card thoughtlessly. Think twice before you spend money. It is important to get a credit report at regular intervals to make sure there are no erroneous black marks ruining your good name.

Investment in your Future

Take investment positively, as paying for your future. With today’s number of options investing has become easier than ever anyone can do it. Invest money in a different separate bucket such as Retirement Fund, House Fund, Real Estate Investment Fund, College savings, Taxable Investments, etc. starting investing today even if that means 1% of your income. Your future self will thank you.

Minimize your expenses

Minimalism is the key towards financial freedom. By clearing the clutter from our lives we will be able to focus on eliminating debt. Changing our habits and going for better decisions with fewer resources. Make small adjustments by sorting out the things you need rather than things you want is a financially helpful and healthy habit to put into practice.

The fun really starts when you realize you can meet the needs of others. Imagine being able to bless a struggling family by paying for their car repair! It’s not just about you anymore; it’s about leaving a legacy! If you live like no one else, later you can live and give like no one else. It’s worth all the hard work it takes to get there. You’ve got this!

June 1, 2017September 19, 2017

3 Financial Trends Every Business Owner Should Know in 2017

Are you a small business owner?

Are you looking for the new trends to stay updated?

It’s important to keep an eye on the market trends that can help to make your business a success.

About two-thirds of business survive 2 years in business, half of all businesses will survive 5 years, and one-third will survive 10. (Source)

It’s almost half the year gone and if you are still searching for the trends of 2017, then perhaps you are missing something.

In fact, today, every type of financial activity is being remodeled in some way or the other. Either it is the Banking sector or the lending sector along with the wealth management sector, everything has changed and will keep on changing in coming time, too.

The need of today is to know trends which are most prevalent as of now and will be applicable in the near future.

In this article, you’ll discover 3 financial trends which every business owner should know to maintain the supremacy/gain the supremacy in the competitive market.

Take a look:

Invest in Outsourcing to Save Time

The need of today is to outsource the work and save you enough time, which can be utilized for other more productive works.

Always keep a note that “Saving money is not making money”! You need to analyze the productivity of the work, which you are involved in.

Let’s take an example: when you are managing something which takes 2 hours and can save you 20 dollars or something. And if you outsource this work to some other person or agency can save you those 2 hours, which you can quite easily utilize in getting better productivity than 20 dollars and can figure out some ways to increase this amount to 10 times!

So, analyze the aspects of your working and figure out where you should invest your time!

Get a Cloud Accounting Software for Your Business

Do you want to work faster and smarter?

Today, you don’t have to keep a record book of all the business finances. Getting a cloud accounting software for your small business allows you to access the software through the internet. You can quite easily manage the financial transactions at anytime from anywhere.

This allows you to prevent your data and all important details; as the computers are these days, vulnerable to the virus attacks.

More than 70% of UK businesses are using cloud services.

With a Cloud accounting software, there is no risk of data stealing, which is always associated with the computers as our computers are at maximum secured by passwords, which can be quite easily be unlocked.

You don’t need to install any additional software and hardware, it’s an on-demand service. Cloud solution will make your business life easier and improve your productivity.

Cyber Security

With the rapidly progressing technology, the cyber security is one aspect, which the business owners must look at.

Since cyber attacks are becoming common, this year 2017 has always been a challenging one and several factors have been included to raise the standards of the cyber security.

The cyber security is a key issue even in this year and all business owners must integrate cyber security, anti-money laundering efforts, and anti-fraud.

Read this quote from Jeh Johnson, “Cybersecurity is a shared responsibility, and it boils down to this: In cyber security the more systems we secure, the more secure we all are.”

Finding the regulatory balance and getting a robust cyber security program will allow business owners to look this year with a greater success.

Keep pace with the changing scenario each year. Include new aspects in your working environment and keep processing ahead with time!

Category: Finance