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The Process of Factoring
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Factoring can be defined as the discounted selling of receivable accounts by the owner of the business to another party for the purpose of raising funds or to source capital. The third-party in the business transaction is the one termed as the factor. Factoring is among the oldest types of financing a business. It is used as a tool for cash management for several companies. It is widespread in some industries like the clothing sector and where the business cycle involves long receivables. Although it is considered an expensive method of financing, the method has still managed to become more...

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Practical Advice
Things To Keep In Mind When Choosing Accounting Software For Any Company
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There is an abundance of accounting software on the market, and they are all different in their own way, just as every company is different. Some of their aspects will be essential to certain types of businesses, but the structure of each company also dictates the needs of the accountant and the business. The best way to approach selecting the right software is to think broadly and narrow down from there. 


Cost – Start Up and Continuing

First, it is essential to look at the cost of the software, not just the start up costs, but keep an eye on the costs for additional...

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Practical Advice
Selecting a Policy in Cyber Liability Insurance Cover
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Modernisation has transformed business operations as a result of the future internet transactions, technology, and social media. It also creates loopholes for cyberattacks by hackers, nation states, insiders, and criminals. It can result in a severe loss to organisations hence a need for a risk management plan. The popular risk mitigation method is by insurance, and this is where cyber liability insurance cover (CLIC) comes in.

CLIC are interconnected and may seem similar with covers from existing products such as professional indemnity, coverage for business continuity and issues of a...

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The Adoption of Electronic Invoicing in Organisations
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In recent years, electronic invoicing, also known as e-invoicing, has gained momentum in businesses as well as governments all over the world. Consequently, not a single year in the last decade passed without being declared the year of electronic invoicing breakthrough. The technology has even been recognized as an important development in Europe.


Implementing e-invoicing 

E-invoicing is not a new concept as it has been implemented successfully in many countries. However, there is need to further develop the process to increase the volumes of electronic invoices. 


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The Increased Interest in Zero-Based Budgeting
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Zero-based budgeting is a detailed assessment of all expenses starting from a "zero base". Increasing in popularity it differs from traditional cost budgeting methods by not referring to previous period figures and by requiring managers to justify all expenditure, old and new. This style of budgeting is time-consuming, as all expenses must be analysed from scratch rather than given an incremental percentage increase or decrease depending on previous period analysis.


Pros and cons of Zero-based budgeting

One of the primary advantages of zero-based budgeting is the visibility...

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How Trump’s Unreasonable Tariffs on Steel and Aluminum Could Trigger International Trade Wars
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Could President Trump’s “America First” policy be shaping itself as the unexpected trigger for an international trade war? That seems a likely scenario, considering his recent plan to impose very strict and (according to many) unreasonable tariffs on all steel and aluminum imports, starting on the 23rd of March 2018. 

Why Experts Believe the New Tariffs Will Hurt Everyone In the Industry

Finance ministers from all over the world have been struggling vigorously to get their own countries exempted from these financially damaging tariffs. The United States...

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Rising Interest Rates and Their Possible Impact on Enterprises
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Interest rates have a great significance in the performance of businesses, and how well they are likely to operate after start-up. As an entrepreneur, you need to be keen on interest rate trends to get an idea of when to borrow and when to hold a little bit longer. With rising interest rates, various impacts are likely to be felt on enterprises. 


Interference in Business Planning

A rise in interest rates has a significant impact on the profitability of a business. When banks charge higher interest rates on loans given to enterprises, small businesses with loans set at a fixed...

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Cryptocurrency and its associated risks
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Security experts are warning that cryptocurrency is just as vulnerable to hackers as any of your regular digital devices. Virtual currencies such as Bitcoin, Ripple, Dash, Litecoin and Ethereum are increasingly becoming popular. However, the fact that they are unregulated and highly volatile makes them prime targets for criminals to exploit.


Risks associated with Cryptocurrency

This hugely limits its use as a currency for performing transactions. The cryptocurrency market is rife with manipulation and it is unknown who owns virtual currencies. The huge price swings make the holders...

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Practical Advise
Tips for Effective Dunning
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Many businesses, especially those in the initial stages of establishment, suffer a lot due to debts owned by clients. An occasional phone call or email to ask the customers to settle the debts may not be of much significance. For the best practice in reaching out to your clients to pay up, you should consider the following factors. 


Be Friendly

The goal of dunning is not to threaten your clients to pay up, but instead, remind them that their bill is overdue. You still want to retain your customer, and as a result, you should portray professionalism in your communication. A...

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Economy And Finance In The New German Coalition
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After four months of political deadlock, Germany's main political parties finally agreed to form a coalition government, after the inconclusive elections that were held in September last year. Despite the breakthrough, there were no sound cheers to the country's economy and finance. Germany's industry and finance experts argue that the deal agreed by the country's main political parties are much worse than initially expected as they do not make the economy fit in years to come.


Why are economists and industry experts worried?

In the deal agreed by CDU/CSU and SPD, a...

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