How to start a real estate business: the overview

How to start a real estate business

How to start a real estate business: the overview

It is the era of capitalization in which earning money is easier than one can ever think because you can decide your own value according to the competition and market. But, what makes it even better? Growing demands in every business which force people to buy products at any cost. It all depends on the availability. One such kind of line of business is Real Estate. As we know population is increasing today with an exponential rate and the most demanding product is land. If you have land then you have an excellent future investment in which you will never face loss. Yes, it is something which will always give you profit. That is the main reason a Real Estate business is the first choice of those who want to become rich as soon as possible. There are other investment businesses as well in which you can become rich with god speed but if you face loss you will end up as a bank corrupt, like Capital or share market. Here one good day can take you on the top of the world but the opposite is also possible. That is the main reason why beginners are attracted towards real estate. As we know that for starting a business we need some investment to do. And when it comes to real estate making the investment is not the cup of tea for everyone who dream about it. But, as I said it is the era of capitalism, you can easily find a way to make an investment and this is the first step for starting a real estate business. When we are talking about investment we should know for what the investment is required. As it is a real estate business you should at least have one land property on your name and that requires most of the investment. There are other things as well on which we have to focus and these are logo, website, office and an idea which is out of the box. These four things are basic for any business because these are the ones which are required to attract customers. There are two ways you can start your career in a real estate business, either you become an owner or a broker. Both the ways you can earn huge money. Let us first talk in terms of an owner. If you are an owner, it becomes necessary to make an initial investment on a land so that you can earn some profit from that and then give your business a good start or if you are able to make a big initial investment then you can fix your income for a very long time. You must be thinking that how you will do that? Make a basic infrastructure and give it on rent to someone and by doing this you are securing a source of income and can grow yourself in real estate quickly. For the investment it demands a huge amount of money because we know that on the daily basis the prices are rising for lands. There is a huge demand in market and fulfilling these demands is really a challenge which gives birth to competition. But, don’t have to get tensed because there is a solution for every problem in this world and that is why there are banks. You can approach an investment banker with an out of the box approach towards the business or you can ask for loan from the bank. If you cannot afford such an investment then in that case also you don’t have to worry because there is another solution for that. You can start your career as a broker and after sometime when you can afford to invest you can give your real estate career a new start. Let us see how it is going to work. If you start your career as a broker then in that case also you will need some investment to make but it is not exactly money. Money is required but more than that you need contacts. Now, we have to understand what a broker does. It is a job in which you have to be active and alert always. If you don’t do so then there are others waiting for the opportunity. It is all about who grabs the opportunity first and offers the best price. As we all know what a broker does and it is same for the real estate. Let say someone has 3000 square feet of land and he wants to sell that land at the best price. There are two ways he can do that, either he can give an ad in a newspaper or can approach a real estate agent/broker. In exchange a broker will take his own share or you can say brokerage fee. It is as simple as that. But due to large competition sometimes the business goes dirty and that makes us learn another lesson that always be calm, never get frustrated and always use your brain. For a broker the main aim is making his/her own name in the industry quickly and for that as I said you need something out of the box and I will leave it up to you. Once you are done with all of these arrangements then there are few secondary things which you have to take care as well. Like office, better promotional plan and the most important legal papers for the business. The business should be authorized legally. You have to fill few legal forms to do that and you can get these forms easily from an online website i.e.  http://forms.findlaw.com. Once it is done, you have to think about the promotion because without advertising your business you cannot attract customers. For that you can hire any advertising firm and can be part of their business. Generally people use pamphlets and take help of newspapers to do that but as it is the generation of digital marketing promoting the business becomes easy as there are social networking websites offering their users to post ads on their websites. In the end I would say, to make any business successful start think in a different way, don’t follow others.

Importance of accounting for business and industries

Importance of accounting for business and industries

Importance of accounting for business and industries

 

Finance today has become a very important topic of business. Various job opportunities are available in this section of the business. Today a major group of students are looking forward to business and accounting as their aim in life. They either aspire to become an established businessman or they want to experiment something in finance and accounts. Thus, accounting today has become one of the most important subjects. People are opting for accounts and thus it has also resulted in the increasing scope of this subject. Before talking about what job opportunities and fields are available in this subject, let us first understand what accounting basically means?

 

Accounting also known as book-keeping is simply the process of keeping financial accounts of a company, bank, firm or any business enterprise etc. Account is a major subject whenever business or related topics are considered and looked upon

It refers to the process of summarizing, analyzing, and reporting all the transactions belonging to a business enterprise. Accounting is considered as a key-function of every business. Where there is a business going on, an accounting of that particular business is a must. A business without a fine accounting is just like a human body without a soul. Accounting is that instrument in the hands of a businessman that accelerates the growth of his business. A business maintaining its fine and precise accounts is always considered ahead of the business that doesn’t maintain a proper account. Accounting is, therefore, considered as the soul of a business since it provides the minutest of details about the financial position of that business. Accounting is an information science that collects and manipulates all the financial data of business. Every business, company, firm, bank, etc., keeps its financial account in order to calculate all the profits and losses, the investments and returns it has made and achieved. Accounting is also necessary, as a result, of paying the income tax to the government. The income tax department always looks into the accounts of a business enterprise and then dictates the tax to be paid. Any person who keeps an account of a business is called as an accountant. The accountant thus keeps all the information regarding the accounts of the company and maintains it at equal intervals of time. He is responsible for determining all the transactions related to a business like overall wealth of an organization, its liquidity, profits and losses, etc. the work of the accountants is, therefore, responsible in the marketing activities, budgets, re-investments, profits and research and development of the organization.

 

Accounting is one of the oldest and the respected jobs of the world. It has been looked forward since early time and now the scope in this field is increasing day by day. Students are opting for accounts as a major subject for study and are looking forward to accounting and similar jobs of financing. Accounting has been divided into various fields as financial accounting, management accounting and auditing and taxing.

 

The Financial accounting is part of the accounts that deal with reporting of an organization’s financial information. It also includes the preparation of the financial statements of the company. The recording of such financial transactions is known as book-keeping. The financial accounting includes preparation of statements for its external users such as the investors, suppliers or regulators. Today, many people look upon financial accounting as a successful profession.

 

Management accounting handles the future oriented reports of the organization. It thus focuses on the analysis, measurement and the reporting of information that helps the managers of an organization in making decisions and further in fulfilling the goals of that organization. The said reports include both financial as well as nonfinancial information in it.

 

Auditing and taxing are simply the verifications of assertions made by the people in regard to pay off in an organization. It aims to express or disclaim an opinion so formed on the financial statements. The auditor audits the account of the enterprise to remove all the discrepancies on the part of the accountants and thus rectifies the mistakes so made.

 

Thus, these fields provided by the accounting also enhance the scope of accounting. Accounting is also associated somewhere with banking. The banks also tend to maintain their accounts in a very proper and precise manner. Thus, accounting simply leaves no field untouched. It covers all the aspects of the business and help in maintaining proper business accounts, which accelerate the growth of the business. Accounting is thus very important in any and every business organization.

 

 

Tips and tricks of merchandising operations

Tips and tricks of merchandising operations

Tips and tricks of merchandising operations

Before going in detail about merchandising business accounting one must be aware of Merchandising Business, what it is? Merchandising Business is a business where a commercial firm is solely dedicated to purchase of finished products and sell them at a higher price to make profit. A merchandising business company usually buys finished products either from manufacturer or from distributors. Merchandising business sells the products to local or international markets depending upon the product’s quality and demand. Merchandising business runs on a very simple theory. In this business – an inventory is purchased at a price and sold to a customer at a higher price. The accounting process of a merchandising company is quite different from other companies. Other companies usually sell a service in return of money. Merchandising businesses are commonly familiar with accounting processes that are rarely used by other businesses. We will discuss on the accounting process of Merchandising Companies here.

Cost of Goods sold – A company whose motto is to purchase products to resell must keep an acquisition of the products. Cost of Goods sold is the term used in merchandising operations to denote the costs related to purchase of these products. The cost of goods sold includes various elements; like – employee payroll, freight charges and merchandise inventory purchases. The net profit is calculated after subtracting the cost of goods sold from total sales figure. The net profit is also termed as the bottom line profit. Now we will look into details of how to calculate Cost of Goods sold. At first, start by determining the beginning inventory value. This process takes place at the end of previous reporting period’s inventory value. As a seller, the number will be the total amount of all merchandise in your stock. Consider only the stock you have planned to sell to your customers. In other words, it will reflect the total amount of money invested in inventory at the beginning of a reporting period. Now comes the second step, accumulate all the inventory purchases into one account. You can do this by adding all the invoices of products purchased. Simply add all the values and you will have the amount at your hand. As a seller, you will be adding up all products – including received, yet to be received. Now, you should calculate the labor cost. Though this step is important for manufacturer, but merchandising companies also may include the labor charges faced during the storage and warehousing process of the products. Now comes the accounting part of adding up the costs for supplies, materials and other costs. Merchandising Companies should include the costs of freight, carrying containers, warehouse rent, electricity bill and other miscellaneous costs here. Determining the end inventory value is another important step. Determining the ending inventory value depends upon the inventory tracking method used by a particular company. Now, you are almost done to see the Cost of Goods Sold value – just add all the values you got from previous steps together. Now you can subtract the ending inventory from the determined value to determine the cost of goods sold.

Merchandise Inventory – Merchandising inventory means the items, which are sold by a merchandising company. Merchandising companies buy these products from suppliers or manufacturers. If these purchases are made on a trade account, will appear on the sub ledger of accounts payable. These are kept in that sub ledger of accounts payable until they are paid.

Purchase Returns and Allowances – At times, merchandising companies may receive merchandising inventory that are defective from their suppliers. These items are also placed for sale. When a customer buy these defective merchandise from a merchandising company and return the product to the company for refund of the price it was purchased for, the merchandising company receives the product back. But the merchandising company does not put the item back into inventory rather the company returns it to the supplier it was purchased from. The supplier takes this product back and issues a debit memo on future invoices to that company. The debit memo reduces the value of future invoice due to that defective product.

Free on Board – Free on Board is the factor to determine the party responsible for shipping charges and also contains the location where the merchandise inventory gets its ownership transferred from the seller to the buyer. Four types of Free on Board are there: Free on Board Destination, Free on Board Origin, Freight Prepaid and Free on Board Shipping Point. Free on Board Destination is used when the seller of a particular item pays the shipping cost of the product. Free on Board Shipping Point and Free on Board Origin is used when the buyer or the merchandise company pay for the shipping cost of a particular product. In Free on Board Shipping Point and Freight Prepaid the seller who is selling the product to the merchandise company pays for the shipping charges but the shipping charges are billed to the buyer along with the cost of the original product.

Free on Board is also the factor that determines the ownership of a product – from seller to buyer. Free on Board Destination is used when the ownership of a particular product is transferred when the particular product is delivered to the buyer’s location. The term Free on Board Destination is used to denote that the ownership of the product will be changed at the destination or when it reaches the buyers premises. In Free on Board Origin and Free on Board Shipping Point the ownership of that particular product is transferred at the point where the product is loaded on to the carrier from the seller. The terms Free on Board Origin and Free on Board Shipping Point is used to denote the point of transfer of ownership at the origin point or the shipping of that particular business transaction. Free on Board is very important in merchandising business accounting as it is the main factor to determine the location of transferring the ownership along with the cost of shipping.

 

Tips for starting accounting public practice

Tips for starting accounting public practice

Tips for starting accounting public practiceCPA-Public-Practice-RGB-logo

Accounting is one of the stable and growing industries. If Accountant Sydney based have decided to leave the job of employment from an established firm and start your own accounting school online, and then it is important for them to increase their client. Entrepreneur must assure their customer with satisfaction, for this he, or she must have a proper business plan, website and accounting information system. To reveal some insides on what it takes to start accounting practice we spoke with the Director of not long established City Tax Accountants  - reputable accountant Sydney CBD. It is very difficult to start a business from stretch, the businesspersons have to give full attention to this and also to account practice and these are:

•    Creation of a business plan: If capitalist going to start an account practices, then he should firstly create a proper business plan. Entrepreneur must be sure of getting financial support from job or any other place as it would take around 5 years to get funding from this practice. For financial support, it is better to find a partner. If entrepreneur is opting for the partnership, then there are some terms and conditions which entrepreneur have to follow and also some documents that need to be consider.

•    Choosing a name: After business plan, it’s time to choose the name. The name must be attractive and related to the services, which are provided by entrepreneur, so that any client can easily find that. And after all this, investor has to register their name with some business licenses, which are required by entrepreneur of that state or country.

•    Start a website: There are many businesses that cannot be survive without a website. For putting up a website, entrepreneurs have to add their details like contact information, description of service and schedule information so that any client can find information easily. Businessperson can also choose perfect accounting software as it will help the clients for bookkeeping.

•    Entrepreneur first client: first entrepreneur have created its website, now it is the turn of take on his first client. By contacting with their friends and family members, entrepreneur can find client base. Entrepreneurs need a lot of time to spend on this, so the base of client is necessary.

Now, there are many things entrepreneur have to keep in the mind while building their client base as it will prove beneficial for their business.

•    Entrepreneur must meet personally with a client to discuss about new things. Entrepreneur must consider their idea as this would help in improving the condition business.

•    Keep in touch with the client through emails or telephone. Entrepreneur must prefer to communicate directly with the client, instead of secretaries.

•    Entrepreneur can also give some offers to new clients. Make sure before offering whether it’s suitable for the company in the long time.

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Businessperson has to pay attention in increment of the business. He has to hire professional accountants or assistants for handling the things before it gets difficult to handle by him. If entrepreneur has started home-base business, then it would be necessary to shift it to some physical location as this will increase the output of the business. Also, after becoming the part of some local network, it would be easy for capitalist to find new clients. He has to spend a lot of money for marketing purpose. Entrepreneurs can do print advertising, radio advertising and online advertising as this would also help in getting new clients.

There are some tips also which would help financier after setting up accounting practices statically.

•    There must be a proper accounting information system, through which it would be easy for client to get the information.

•    Entrepreneurs have to wait for a strong client base before hiring and choosing the location. If he or she can alone handle some work and does not need a group of experts, then he can save thousands of dollars. All new businessman needs is to give full attention and time to this business.

Marketing is one of the main things, through which his can get more clients and business can also increase its strength. Investment in marketing will be a good choice. They should spend money as much as they for this purpose. With some devotion and motivation, they can be successful in their new business. Following certain guidelines will sure help in achieving their goals.

Today’s world is moving in a fast pace. Keeping track of all the movement in the firm manually is a big task. Sometimes the supplier makes a mistake in the account, and same can be the case with the buyers. Tracking such mistakes can take a lot of effort and time. Teaching all the labor is also part of the process. Sometimes they are workers who can grasp fast and others have slow grasping power. Again a lot of time, energy, money and skills are required.  No one is ready to spend so much of the time on it. It’s much more complicated than it looks. Implementation of all the process takes a good amount of time. For financial support, it is better to find a partner. Many times the accountant does not even realize the mistakes in the accounts. They discover it at the end of the financial year, which means checking the account of the entire year once again. Moreover, the manual labors are costly and cause a lot of tension. In this scenario, the best option available is to use organized and systematic form of accounting. It fully automatic and any mistake any in between can be seen easily. At the same time, the mistakes can be amended. It is less time consuming and easy to learn. With the help of such a system, it reduces the dependence on the accountant. It also helps in avoiding any fraud, as all the inputs are automatic. Everyday account can be checked just with a glance. No need of paper and pen or even carrying heavy files. All the information can be saved in just small pen drive or any other hard drive. Using new or updated accounting information system makes the life of a businessman easy and comfortable. One had to use it in order to understand the drastic difference because of this system.