Outsourcing Bookkeeping Services The Right Way

Efficient financial management is every businesses’ top priority. Capital is of the essence to businesses. And the Bookkeeping process is one of the initial stages of Accounting and financial management that every business needs.

In its most basic sense, bookkeeping refers to the recording of all the financial transactions of a business that includes both income as well as expenses. But one question that usually troubles business owners( mostly small business owners) is that who’s going to handle all the bookkeeping tasks for them? And while many small business owners do their own books, there are many who prefer outsourcing bookkeeping services. And the good part about outsourcing online bookkeeping services from well-known firms can even give you the benefit of outsourcing accounting services as well as a part of the package.

Here’s how you can outsource your books the right way:

Identify your top Priorities
The first step towards outsourcing bookkeeping services is that you’ll need to list down the top priorities you need to outsource for. While you can outsource accounting services too, it becomes a difficult decision to doso and especially for businesses that are just getting started. Therefore, it is very important to know your priorities and what you expect from your bookkeeper since most bookkeepers won’t handle your accounting tasks and you’ll need to outsource accountants for that.

Central Data Storage
Whenever you are looking out for outsourced bookkeeping services, make sure that there is a well-organized central data storage system that can be accessed easily in case you or your CPA needs any financial data. Bookkeeping isn’t just about recording financial transactions, it is more about how you can use this data efficiently to grow your business.Imagine having all that data and still failing to utilise it.

Consider outsourcing online bookkeeping services/virtual bookkeeping services
Gone are the days when recording financial transactions involved a lot of paperwork where your bookkeeper needed to tag along with you all day to keep note of all the transactions. We are now in the tech-age where most of the tasks can be done online without the need of physical presence. So, if you are tech savvy and enjoy leveraging technology, go for online bookkeeping services as it will not only reduce the costs of hiring an in-house bookkeeper on the company payroll but also make all the recording and accessing data easier for all.

Do proper research before outsourcing
While technology has made our lives easier, it has also made it easier for scammers and cheaters to masquerade as specialists online. Therefore, it is very important that before you hand over access to your financial data to any of the online bookkeeping services available, make sure to scrutinize their authenticity and only then proceed further.

Have an Effective Training Session
Once you have finalised your preferred outsource bookkeeping services, have an effective onboarding and training session with them wherein you make sure that they are well-aware with your business processes. This is also where you’ll be letting them know about your priorities and what you expect from them. Also, if you are already using a cloud-accounting service, give your outsourced online bookkeeping services access to what’s crucial for them. This will make the management of financial data easier and as discussed above, all the data will be present at a central data storage system.

Understanding Debt Funds and Their Investment Appeal

A Primer on Debt Funds
Debt funds, also known as fixed-income funds, allocate their assets to a variety of debt instruments issued by governments and corporations. These instruments include corporate bonds, government securities (g-secs), treasury bills (T-bills), money market instruments, and other debt securities. Unlike equity investments, which involve buying a share of a company’s growth potential, investing in a debt fund is akin to lending money to the issuer in exchange for interest income.

The interest income from debt securities is predetermined, along with their maturity period, which is why they are referred to as ‘fixed income’ securities. While the returns from debt funds are not guaranteed, they can be estimated with a reasonable degree of accuracy, making them appealing to conservative investors or those with a lower risk tolerance.

The Spectrum of Debt Securities
Debt funds invest in a range of securities with varying credit ratings. A security’s credit rating is an indicator of the issuing entity’s risk of default. Securities with higher credit ratings are considered safer investments as they are more likely to meet their interest and principal obligations upon maturity. Consequently, debt funds that invest in high-rated securities tend to exhibit less volatility compared to those holding lower-rated securities.

The maturity period of the securities is another critical factor. Debt funds may invest in instruments with varying maturities, and generally, the shorter the maturity, the lower the risk of loss.

Diverse Types of Debt Mutual Funds
Debt mutual funds come in various forms, each with its own maturity focus:

Dynamic Bond Funds: These funds adjust their portfolios in response to changing interest rates, with no fixed maturity strategy.
Income Funds: Typically investing in securities with longer maturities, income funds aim for stability and have average maturity periods of around 5-6 years.
Short-Term and Ultra Short-Term Debt Funds: With maturities up to 3 years, these funds are less sensitive to interest rate fluctuations and are suitable for the average investor.
Liquid Funds: These funds invest in instruments maturing in 91 days or less, offering low risk and high liquidity, making them an alternative to savings accounts.
Gilt Funds: Investing exclusively in government securities, gilt funds carry low credit risk and are suitable for investors seeking fixed income without significant risk.
Fixed Maturity Plans (FMPs): Similar to fixed deposits, FMPs are closed-end debt funds with a predetermined lock-in period for capital, offering tax advantages but without guaranteed returns.
Interest Rates and Their Impact on Debt Funds

Interest rates, such as the repo and reverse repo rates set by the Reserve Bank of India (RBI), influence the performance of debt funds. When the RBI adjusts these rates, it affects the cost of borrowing for banks and the yield on newly issued bonds and debt securities. Generally, bond prices are inversely related to interest rates; when rates rise, bond prices fall, and vice versa. This inverse relationship means that debt funds can realize capital gains when interest rates decline, as the value of their holdings increases.

The Investment Case for Debt Funds
Debt funds offer several advantages for investors, particularly those looking for alternatives to fixed deposits. While the interest rates on debt funds are comparable to those of fixed deposits, they offer more favorable tax treatment. Interest from fixed deposits is taxed according to one’s income tax slab, whereas long-term gains from debt funds held for over 3 years are taxed at 20% with indexation benefits.

Moreover, debt funds provide greater liquidity than fixed deposits. Investors can withdraw their capital at any time, partially or in full, which is not typically possible with fixed deposits. Despite these benefits, it’s important to remember that debt funds do not guarantee capital protection or fixed returns, unlike fixed deposits.

Conclusion
Debt funds are a versatile investment option for those seeking to balance returns with risk management. They cater to a range of investment horizons and risk profiles, offering a more predictable income stream than equities. As with any investment, it’s crucial to understand the specific characteristics and risks associated with different types of debt funds before making an investment decision.

Truth to Own Career In Stock Market

In India, the job and salary are limited for monthly income. Private job bonds to get a fixed amount. Therefore, this is one of the reasons why most people switch to choose stock trading and earn a good amount in the stock market.

But starting with a little bit of knowledge will not help you to fulfill your goal. A shortage of trained traders in the financial market has offered the need for professional traders in various verticals ranging from stock traders to venture capital analysts.

In India, the financial market is in a growth phase, and there is a need for trained professionals, the industry is lacking for brilliant traders and young minds, also the requirement of talent traders increases than what it has. The traders nowadays do not have a specialization or proper understanding of the capital market and this gap needs to be filled.

How the stock market improves the opportunity in the stock market?

The stock market has opened its wings and growing everything resulting in creating hug opportunities for employment. This is the trading system which brings enormous opportunity and people from all the background including science, commerce or humanities are showing a lot of interest in pursuing their career in the stock market.

The career in the stock market could start from entry-level positions like equity advisory or relationship manager to set up an entrepreneurial venture through offering services like registered investment advisors, market intermediaries, useful platforms that provide key information for market participants, etc.

Youngsters refrain themselves from any investing decisions:

In, India many the youngsters hold back themselves from any investing decision until their financial situation become, at least theoretically, more stable and therefore, the very low population is exposed to the equity investment compared to other developing countries and we see immense opportunities lying out there in the stock market considering the phenomenal growth in last decade or so.

Many of us think that the stock market is only meant for people with finance or business background. But this Is not all, we must not stop ourselves from entering into the exciting world of the stock market as we have no financial degree.

As per nowadays, most of the financial companies hire individuals who are not from any of the trading backgrounds, and in this era of technology new-age finances are looking for the skills and the aptitude of the applicants rather than the qualification or degree. Therefore having or not having any financial degree is just the starting point while entering into stock trading.
To become a stock trader is one of the good starts towards a career if you are well versed with the complete stock market ecosystem and proper trad positioning. There is a good example of prominent traders who quit their full-time jobs and pursued trading successfully.

What is the qualification required for the stock market?

Holing any of the degrees with short term certification in stock trading allows exploring different avenues.

There are many stock market training institutes and training centers to offer trading concepts apart with courses like NISM/NCFM/STOCKPRO are nationally recognized certification mandatory for various professionals in the capital market in India. Anyone interested to know the fundamental of companies and want to become a stock trader can go for the pocket-friendly courses.
While choosing the courses you can have different derivatives, investment advice, risk management, and other wide-ranging knowledge. If you are having certification before entering the stock market industry you have good chances of and better prospects in the stock market.

Also, the degree of MBA in finance or capital markets is generic and essentially a study in financial markets, corporate finance, and portfolio managem3nt. This will act as a better on the cake which helps in charting a rewarding career path in the world of stocks and investments. Also, the MBA is not particularly useful as it touches upon the surface and does not have enough depth that is required to pursue a career.

Can you become an analyst?

If you are planning to become an analyst, you apply for reputed charter financial courses including CFA or CA, where CFA is considered as a gold standard for the investment industry and charter holders enjoy a mark of distinction throughout the world.

It provides a deep and fundamental understanding to be able to analyze companies and practical skills related to investment decision-making. Whereas, niche courses like CMT, FRM for those who are more inclined towards trading, technical analysis, risk management, and quantitative finance.

To be successful in the stock market, an applicant should focus on enhancing his/her skills and practice and grab knowledge which helps to build a dream career life than chasing over degrees.

Rent Deposit Loan – Apply and Pay Your Owner the Security Deposit

Worried about security deposit for renting a home? Instead of exhausting your savings, just apply for a rent deposit loan, which can help you pay your security deposit to the owner while renting a new home or a flat. Relocating to a new abode is very common. Especially salaried professional move from place to place when they move to a new company. They either relocate to a new city or else they stay far away from their workplace and commute for longer distances.

Security deposit is the amount that a tenant has to pay to his landlord which is usually a sum of 3-12 months rents in advance. This deposit differs from one metropolitan city to another, but the possibility of arranging such a big amount is less, even after meticulously saving. Hence, in such situations, a rent deposit loan comes to your rescue.

What is a Rent Deposit Loan?

A rent deposit loan amount ranges anywhere from a minimum of INR 1,00,000 to a maximum of INR 5,00,000. Depending on your lease/rental agreement, the loan tenure varies from 11 months to 33 months (values differ from one lender to another).

How does a rent deposit loan work?

The security deposit will be given directly to your landlord. You will pay the interest amount till the termination of the lease. Once the lease period gets completed / you vacate the house in advance, your landlord will return you the security deposit. In this case, your landlord expects you to offer a declaration regarding the complete procedure.

With a rental deposit loan, you will be offered with the flexibility to manage your expenses in a better and in an efficient way.

When can you use a rent deposit loan?

In the following cases, a rental deposit loan can be used:

When you have recently shifted to a new city or a new location in the same city, but low on savings.
Short of emergency funds to pay rents and embarrassed to borrow money from family and friends.
Who is the best lender for getting a rent deposit loan?

You can get a rent deposit loan from many lenders such as traditional banks, credit unions, NBFCs (non-banking finance companies) or other online lending institutions. But, applying for a loan from NBFC is the best solution as they swiftly approve your loan and instantly disburses your money.

There is an NBFC called Vivifi India Finance Private Limited with its loan offering product called Loan Granted. They provide exceptional loan lending services and are also registered with the Reserve Bank of India (RBI).

The best part about Loan Granted is it easy to apply for a loan with them and your loan gets approved on the same day you have applied.