Banking & finance Archives

How to Get the Most Money Out of Your Business During Tax Season

Running a small business and ensuring its consistent growth is a difficult task. As a small business owner, your plate is already filled with several significant jobs, including daily operations, strategic planning, and the occasional spill of coffee. Therefore, it is normal to feel a little more pressure when tax season arrives. Plus, who does not get stressed at the thought of giving the government a sizable portion of their hard-earned money?

There is a bright side, though: taxes don’t have to be the deadly enemy we frequently portray them as. You can handle tax season like it’s any other day at work if you have the proper planning, along with the best practices and tools for managing your spending.

Fortunately, many small business tax deductions are available, designed specifically for the corporate world’s self-employed warriors, prepared to lessen the financial hit that comes with operating a firm. By utilizing these deductions, you can save a larger portion of your earnings.

Before we talk about how to save your business tax, get a quick go-through on the basic definition of tax deductions.

What are Tax Deductions?

A tax deduction is a legally allowed amount that is deducted from one’s income to reduce their taxable income and, consequently, their overall tax liability.

For example, you earned $70,000 this year, and you reduced your taxable income to $50,000 by taking all the permitted deductions. That way, you would only pay taxes on that $50,000, as opposed to the full $70,000.

Generally speaking, your business expenses have to be “ordinary” and “necessary” according to the rules set forth by your local tax authority in order to be eligible for such write-offs. In other words, they must be typical and essential for your field of employment.

For example, buying a camera makes sense for a photographer’s firm, but the same expenditure wouldn’t have much of an impact on a software agency.

Now that we’ve covered small business tax deductions, let’s look at some of the finest strategies for increasing your income while lowering your tax liability.

An Effective Way to Get the Most Money

Deduct travel expenses.

There may be tax savings available to you if you travel for work. While personal travel is not included for the same benefit, business travel is fully deductible. However, small business owners can combine personal travel with a legitimate business objective to optimize their business travel deductions.

You can later use the frequent flyer miles you accrue from work travel on your credit cards to book personal travel. Since personal travel is not deductible and business travel is, you might as well utilize them for your individual trips.

Invest in the retirement plan.

Increasing your retirement account balance benefits your tax rate in addition to being an investment in your future. Because 401(k) contributions are made with pre-tax income, your monthly income drops each pay period, resulting in a lower tax rate.

In a retirement plan, if you do things smartly, you can save a significant amount of money in taxes by

Bank Charges

Keeping your business’s credit cards and bank accounts distinct is usually a good idea. The annual or monthly service costs, transfer fees, and overdraft fees assessed by your bank or credit card issuer are all deductible. Additionally, you can deduct transaction or merchant costs that you have paid to a third-party payment processor like Stripe or PayPal. Fees associated with your individual credit cards or bank accounts are not deductible.

Deduction for home offices

One little but welcome relief is the home office deduction for businesses running out of one’s residence. If you operate your business out of your house, most tax codes permit you to deduct a certain amount of your rent or mortgage, utilities, and other associated costs.

However, in order for the home office deduction to be valid, your workplace needs to meet certain requirements: “Daily and exclusive utilization.” The use of the facility for conducting business must be limited to that purpose. A room has two uses, such as a guest room that occasionally doubles as an office or your child’s playroom, which usually doesn’t qualify for the deduction.

The principal place where work is done should be the workstation. For example, you probably wouldn’t be able to claim the deduction if you work out of a co-working space most of the time and use the kitchen table just sometimes.

Reduce your debt.

Many small business owners borrow money in order to fund their expansion. Although you might be taxed on interest payments, a loan won’t be taxed in the same manner as company income. Consult an accountant or CPA to determine if you can afford the loan.

Many small business owners borrow money in order to fund their expansion. Although you might be taxed on interest payments, a loan won’t be taxed in the same manner as company income. To find out if you may make your loan as tax-efficient as feasible, speak with a CPA or accountant.

Make sure to write off any uncollectible debts you may have accrued throughout the year at the same time. Debts that a consumer owes your company but that you, the owner, or a creditor have not been able to collect are known as uncollectible or bad debts.

Hire a family member.

Hiring a family member is one of the finest strategies to lower your small business’s taxes. Many options are available through the Internal Revenue Service (IRS), all of which have the ability to shield income from taxes.

If your company is a sole proprietorship, for instance, you are able to employ your spouse and give them a salary. As long as they are a real employee and not a partner in the business, their income will be subject to federal income tax as well as Federal Insurance Contributions Act (FICA) taxes for Social Security and Medicare, but not federal unemployment tax (FUTA).

Save money on medical expenses.

Setting aside money for your future medical expenses is another smart strategy to lower your small business taxes. Even though you may be healthy right now, having some extra cash on hand for medical bills could be a lifesaver if medical costs continue to rise. If you have a qualified high-deductible health plan, you can do this through a Health Savings Account (HSA).

Furthermore, you can frequently deduct the cost of your health insurance premiums for yourself, your spouse, if you have one, and your children up to the age of 27 if you work for yourself.

Use the Surlus Funds for marketing.

Compared to traditional approaches, digital marketing reaches a much larger audience. Digital marketing-related costs are all tax-deductible. Any extra money you have at the end of the year can be used toward tax savings by using it for startup marketing and advertising. Additionally, as digital marketing reaches out to a new consumer base more quickly, it is done through these channels.

Inventory Valuation.

Stock is normally valued at cost, but if it has a short shelf life, it must be evaluated using the less expensive of the two principles: cost or net present value. By keeping the stock from being overvalued, NRV lowers taxes. To prevent drawing the unwanted notice of income tax authorities, this practice must be maintained.

Donation.

Giving money away has tax advantages in addition to the satisfaction of performing a good deed. Donations to recognized charities and funds are required to deduct taxes. In order to receive tax benefits, you can also donate to recognized NGOs and charities.

Summing Up.

For small business owners who file, prepare, and pay their own taxes, tax season is a difficult time of year. Follow these tax-saving strategies to get ready for tax season. The best time to begin planning is right now.

Hiring Overqualified Employees: Helpful or Harmful?

Hiring overqualified employees doesn’t seem an ideal decision for many employers. They believe that these candidates aren’t a good fit for the position because they don’t truly want the job or that they’ll quit as soon as they find a better opportunity.

Although these concerns might come true for some candidates, these are assumptions based on past experiences. Sometimes, companies reject applicants because they find them overqualified and thus lose the significant advantages that they can bring to the team.

The concept that highly qualified candidates are not ideal has existed for a long time. As per The Harvard Business Review reports, an Israeli scientist’s study revealed that overqualified employees are less satisfied with their jobs and leave more often than those who are a perfect fit for their jobs; the study supports the idea that hiring less qualified candidates is a good idea. However, as the labor market continues to evolve, employers have started embracing the concept of hiring overqualified candidates.

What does an Overqualified Employee Mean?

In simple terms, if a candidate has more qualifications than required or has worked in positions with a higher salary, he is seen as overqualified.

Each job role you are offering and every career opportunity you get come with a unique definition of what that means, but in general, recruiters can discern quickly whether a candidate is a good fit for the position, even if they are overqualified or have little to no experience.

Why do Overqualified Candidates Apply?

In a stable economic environment, overqualified candidates apply for varied reasons, like changing their work/life balance, using their experience as a springboard for reentering the workforce, switching industries or professions, or pursuing a humanitarian objective.

With time, the candidate will prove whether he is a wonderful fit for the company or if he serves as the ideal reason to reject a candidate, depending on how he performs and behaves at the workplace.

In this tough time, mainly after COVID, candidates mainly need a job since the great majority of people looking for work right now are probably doing so as a result of the severe economic impact and these widespread job losses.

Is Hiring an Overqualified Candidate a Good Idea?

There is no right or wrong answer since the outcome depends on candidate to candidate and company to company. To get some clarity on this, we have listed below the advantages and disadvantages of hiring overqualified employees.

Overqualified Employees can be Helpful: What are the Major Benefits?

Fresh Insights and Ideas: Candidates who hold higher positions and are overqualified for the job may see their present role differently or have knowledge of the company’s various structures. It helps to bring improvements to the organization.

Mentoring Skills: Highly qualified employees with great expertise may impart their knowledge to other team members. While not all skills require formal teaching, the presence of a highly experienced person can improve the performance of other team members.

Cost Reduction in Training: Several times, the overqualified individual doesn’t need to get training. They may be able to train others themselves, but they need a proper brief on how the business operates.

Qualified Enough: When it comes to hiring someone, the biggest concern is whether or not they will be able to perform the job requirements perfectly. An overqualified candidate eliminates this uncertainty since they have probably performed this exact work earlier. Employees still need to screen candidates for other factors like personality, but they are sure that the particular applicant is capable of carrying out the fundamental duties of the position.

The Interesting Motive: When companies reject overqualified applicants, it implies they make assumptions about their motivation for applying for the job. It’s possible to find out that the applicant was previously employed by a huge company but would want to be more hands-on in a smaller structure. Or, the candidate is specifically looking for a position that can provide him with a better work-life balance.

Better Output: Experienced candidates accept the job fast and perform exceptionally well. So in comparison to those perfect-fit workers, you get a better outcome from overqualified ones. Besides, they might inspire other team members to perform better.

Maturity: Workers with extensive experience and high qualifications will be more mature and can come in handy in an emergency. When the situation arises, they might support their bosses and apply their abilities to the company’s advantage.

Overall, overqualified employees might have a lot to contribute if you can get past your old ideas and hire them. They can provide fresh ideas to your company, as well as leadership potential, mentorship, and knowledge in other areas. These employees have a wealth of experience that your company has never leveraged before.

Overqualified Employees can be Harmful: Why do Companies Reject Them?

Employers generally reject overqualified candidates or are hesitant to hire them due to varied reasons. Here is a list:

Disinterest: Most of the research shows that a clear and substantial link between overqualification and work discontent is disinterested. When overqualified workers are poorly managed, they appear to be more prone to developing bad attitudes toward their jobs. All of this provides a simple explanation for the common practice among HR managers of rejecting overqualified job applicants.
Weak Outcome: Some overqualified employees seem to be approaching their new positions negatively; they could get complacent, bored, or lazy. Employees who believe a task is too easy for them may even attempt to assign it to a different employee. The first step toward poor work performance and carelessness is a mental rejection of the assigned work.
Negative Impact: Any new employee brings with them a change in the dynamics of the company. Overqualified employees could be harmful to other team members’ aspirations for future growth. Some employees may even choose to quit if they experience intimidation.
Outdated Information: Not all knowledge acquired earlier is effective today in this rapidly evolving business world. Overqualified employees may have knowledge that has become obsolete. Additionally, they might continue with activities that could harm the company. It will cost money to implement some specialized unlearning techniques to lessen the potential harm that outdated knowledge could do.

Suggestions for Hiring Overqualified Candidates

An employee may be overqualified for a post, for which there are several possible explanations. It’s advisable to find out why they want to work in a certain position before you hire them. By doing this, companies can determine whether the hire will fit in well and won’t hinder output or instill insecurity among coworkers.

Startups should make extra effort to ascertain the motivations behind an overqualified candidate’s desire to work for them. If such an employee is sincere, they can be a huge help; if they are not, they could cause problems for the firm.

Companies must keep in mind that not everyone values money above all else. For a variety of reasons, an individual who is overqualified for a position may decide to work in it. They might prefer a less demanding profession, for example, or they might be less driven by status or money.

An employer may hire wisely and create a productive work environment by finding out why people who are overqualified for a position want to work there.

Last Verdicts

It is a fact that not every overqualified employee will work well for your business. During the interview process, you should be careful with warning signs, just like you would with any other candidate. For example:

Do they lack moral values?
Are they serious about the duties of the job?
Do their salary requirements go well beyond what the position entails?
Do they have valid reasons for joining a low-paying job?

Evaluating the candidates around these questions will help you determine whether the applicant you have is genuinely excited and could add a lot of value to your company. All you need to do is offer them an opportunity.

Transforming Banking with AI: Enhancing Customer Experiences and Operational Efficiency

In the dynamic world of banking and finance, artificial intelligence (AI) integration has emerged as a driving force. It is transforming traditional models and restructuring how financial institutions engage with customers. From strengthening cybersecurity to revolutionizing customer service, AI applications in banking demonstrate diverse capabilities. They enable remarkable advancements in operational efficiency and customer-focused approaches. This discussion explores how AI is transforming the banking sector. It sheds light on various ways AI is improving customer experiences and operational processes.

The Evolution of AI in Banking

Artificial intelligence has deeply entered the core operations of banking institutions, giving them advanced abilities to strengthen security measures and simplify complex processes. Additionally, AI allows banks to offer personalized services suited to individual preferences more efficiently and accurately.

The range of AI applications in banking includes a variety of functions:

Cybersecurity and Fraud Detection: With increased digital transactions, AI-driven systems are crucial in strengthening cybersecurity measures. They quickly detect and reduce fraudulent activities in real time. Using complex algorithms, banks can spot unusual patterns, track potentially harmful behavior, and prevent cyber threats with great success.
Chatbots: AI-powered chatbots act as virtual assistants, providing customers with 24/7 support and personalized recommendations. They streamline assistance for various banking queries. By using the power of Natural Language Processing (NLP), these chatbots effectively understand and respond to customer inquiries. This significantly improves the overall user experience.
Loan and Credit Decisions: AI algorithms carefully analyze large sets of information to evaluate whether someone is likely to repay a loan. This helps banks make informed lending decisions based on factors beyond regular credit scores. By closely examining behavioral patterns and transaction records, AI-driven systems reduce risks and improve the loan approval process with unmatched accuracy.
Predictive Analytics: AI enables predictive analytics, allowing banks to forecast market trends and identify profitable investment opportunities. It also helps them navigate risks wisely. By carefully analyzing large volumes of data, AI algorithms provide valuable insights that support strategic decision-making efforts. This enhances profitability and resilience in an unpredictable landscape.
Process Automation: Robotic Process Automation (RPA) is essential for achieving operational efficiency. It streamlines repetitive tasks like data entry and document processing through automation. It simplifies work processes and improves productivity within organizations. By using AI-powered automation, banks simplify work processes and improve resource allocation. This leads to a new operating approach with increased effectiveness and fewer errors.

Examples of AI Implementation in Banking

Leading banking institutions worldwide have eagerly taken up AI technologies, igniting a transformative wave beyond traditional boundaries and encouraging innovation. This enthusiastic acceptance of AI is driving the banking industry into a new era of efficiency and creativity.

Notable examples include:

JPMorgan Chase: JPMorgan Chase leads in AI integration, using advanced deep learning techniques to detect cyber threats early. Their proactive strategy helps predict and prevent potential security problems effectively.
Capital One: Capital One leads in innovation in customer engagement with Eno, an AI-powered virtual assistant. Eno enhances customer interactions and fights credit card fraud with innovative solutions like virtual card numbers.
European Bank (Anonymous): This European bank has experienced a significant increase in customer retention and satisfaction by implementing an AI-based chatbot assistant. Real-time query resolution enhances the overall banking experience tremendously.

Navigating Challenges in AI Adoption

Even though AI can change banking significantly, banks face many challenges when using it smoothly. Some of these challenges include:

Data Security Concerns: Protecting sensitive customer data from breaches and cyber threats is a top priority, requiring strong security measures. This involves implementing robust security protocols and strict compliance measures.
Challenges with Data Quality: Access to organized, high-quality data is necessary for effectively training AI models. However, many banks face challenges such as data systems and differences in data that slow down their progress.
Transparency Imperatives: Ensuring transparency and explainability in AI-driven decision-making is crucial. It builds trust and reduces risks linked to unfair algorithms.

What Banks Need to Do

In the search for sustainable growth and competitive advantage, banking institutions must adopt an AI-first mindset. This approach is crucial for guiding through the challenges of the digital era. Several strong reasons support the reason for this important decision:

Unlocking Value: The potential of AI to unlock value for banks is huge. McKinsey suggests that AI technologies could add up to $1 trillion of extra value each year for the global banking sector. AI empowers banks across various uses to increase revenues, cut costs, and discover new opportunities through data-driven insights. This helps them enhance their operations and stay competitive in the market.
Meeting Customer Expectations: In today’s highly digitalized era, consumers expect seamless, personalized experiences from their service providers. These expectations are rising as technology advances. Using AI, banks can provide personalized services and predict customer needs, offering timely support. This enhances customer satisfaction and loyalty.
Overcoming Competitive Threats: The banking world is changing a lot because of new companies using AI in finance. This includes both small fintech startups and big tech companies. To stay important and competitive, banks need to prioritize using AI. They can do this by using advanced technologies to encourage innovation and stand out from others.
Addressing Operational Challenges: Despite AI’s transformative power, banks face various operational challenges. These challenges cover strategic, technological, and cultural aspects. To overcome these obstacles, institutions need to coordinate a comprehensive transformation effort. This involves creating a clear vision, improving technological infrastructure, and fostering a culture of innovation and collaboration.

In conclusion, for banks to move towards a future where AI comes first, they need to focus on being innovative, adaptable, and forward-thinking. By using AI to its full potential, banks can go beyond normal limits, strengthen customer relationships, and keep growing steadily in a changing world. As AI becomes more important, the banking industry is ready to change itself, leading to a new era of innovation, effectiveness, and putting customers first.

What Are the Best Compound Interest Investments?

If you are interested in learning more about the best compound interest investments, you have come to the right place. You can learn about various investments, from savings accounts to stocks.

What is compound interest?

Compound interest can be a beneficial tool for saving and investing, and knowing how it works can help you make better decisions for your money. The formula for compound interest is quite simple, but the amount of interest you earn can vary.

The most apparent benefit of compounding is that it can be leveraged to make you more money. Compounding is the process of adding more and more interest to a deposit or loan. You can also find accounts that allow you to compound the interest every day, such as a 401(k) or savings account.

The amount of interest you will earn depends on how much you deposit and how frequently you compound the interest. Generally, your investment grows more rapidly as you increase the time you leave the money in the account.

Certificates of deposit CDs

Certificates of deposit (CDs) are safe investments that offer higher interest rates than savings accounts. They also provide a guarantee of receiving a certain amount of interest for a specified period.

When deciding which accounts are best for your needs, make sure to consider the following:

A CD is a certificate of deposit issued by a bank that guarantees the investor a specific interest rate and duration for a set amount of money. However, the actual APY, or Annual Percentage Yield, will vary.

The higher the APY, the more return you will earn on your money. This can make a big difference for more significant amounts of money. Online banks and credit unions offer the best rates for most people.

Another advantage of a CD is keeping money out of your reach for a long time. Most have a minimum opening deposit of $500.

Individual stocks

Investing in individual stocks can be challenging. You must understand your risk tolerance, research the companies, and manage your portfolio. It can also be expensive to diversify. But the benefits of compounding interest can pay off.

One advantage of investing in individual stocks is tax control. This means you can avoid paying capital gains taxes on your investment gains. However, it would help if you kept an eye on the overall economy. For example, suppose you have a portfolio with a high concentration of individual stocks. In that case, you may need to sell some to keep it properly diversified.

You need to have a strategy for buying and selling shares. This is important because individual stocks can be very volatile. The price of a share is influenced by many factors, including the company’s performance and market sentiment.

Real estate

Compound interest is one of the best ways to grow wealth. This is because it is an investing strategy that takes periodic profits from an investment and puts them together to multiply returns.

Real estate is an excellent place to invest for compounding. While it differs from earning high interest on your savings account, it is a great way to achieve capital growth without actually investing your own money. Using real estate to compound your earnings can result in significant wealth in the long run.

When it comes to compounding in real estate, there are two main strategies. The first is called the cash flow strategy. It involves using the money you earn from a rental property to buy another. Buying more properties can lead to exponential growth over time.

High-yield savings accounts

The best high-yield savings account s offer a higher interest rate than traditional ones, which can help you reach your financial goals. You can find these accounts at banks, credit unions, and online banks. You can also link these accounts to brokerages.

The Federal Deposit Insurance Corporation (FDIC) insures these accounts up to $250,000. While the rates vary, these accounts usually have an annual percentage yield (APY) of 1.50% to 2%.

The rates can be adjusted based on changes in the federal funds rate. These changes are typically a result of the Federal Reserve raising or lowering its rate.

Some of the best savings accounts offer no minimum balance requirements, while others require a small amount. Some high-yield savings accounts even provide ATM cards.

Some financial institutions require you to keep a certain amount of money in your account to avoid penalties. In addition, the interest rate may be compounded daily, weekly, or semi-annually.

Conclusion

Investing in the right compound interest investments is wise if you want to increase your net worth. While most people think of stocks and bonds as their go-to investments for generating high returns, many options exist.

The best compound interest investment is the one that produces the most money in the long run. For this reason, it’s essential to start investing early. The sooner you start, the faster you will reach your financial goals. The power of compounding interest is one of the main reasons many people choose to save for retirement.

How Fintech is changing the Banking industry

Fintech is a combination of Financial Technology associated with financial services. Fintech is nothing but the most accepted technological change to carry out financial management in the form of mobile payments, online banking services, mobile banking, and many more. All banking institutions and financial management use Fintech technology wisely for their consumers and customers. So, the Fintech banking industry is improved traditional banking systems. It makes banking systems more accessible and streamlined to use for customers. During the pandemic, these online banking services played a vital role for people to make transactions online within a few minutes. Lengthy banking processes like taking loans and transaction processes are becoming easy due to the use of Fintech.

The banking industry has changed from physical to digital with the help of digitalization Fintech helps consumers make their own financial decisions and made them financially literate. In short, Fintech combines both traditional and digital services and gives more ease to customers while handling their financial issues. So, let’s discuss the latest financial trends in banking!

Latest Trends in Fintech Related to Banking Industry

Digital wallets

Digital wallets are in the form of mobile apps to carry out user payment processes. It helps to store payment and password information on the mobile of that user. Customers use digital wallets like Amazon pay, Google pay, and other payment apps to handle their finances and transactions, and it helps them to store records of their payments and the history of transactions on mobile. Digital wallets not only handle payments but also help to book plane tickets and help to make hotel reservations also.

Virtual cards

Virtual cards are customers’ primary choice for making payments digitally and physically. It is the safest and most guaranteed method for making payments online. These virtual cards can get easily blocked without losing access to the main card. Virtual cards reduce fraud risks and make payment easy and safe.

IOT

IoT means the Internet of Things. It includes smartwatches, smartphones, and other online gadgets, which are widely used to make payments online instead of bank cards. Many Fintech companies try connecting with those devices to gather customer insights.

Biometric authentication

Due to Fintech methods, everyone goes towards online payments. And every digital wallet and online transaction method needs passwords to store personal financial information. But currently, users like to use biometric authentication rather than the number of passwords and PINs for verification. So this biometric authentication has become the priority system for all Fintech companies. Your confidential and personal information will remain safe if your device gets stolen or lost.

AI Chatbots

Artificial intelligence shows its ability in every technology sector by making useful and revolutionary changes. And Fintech is also not unaware of AI. Proper customer service is one of the important parts to play for every financial institution. So, AI chatbots help financial systems to contact their customers and inform them about their services and account details on time.

Voice payments

Already there are many methods to carry out banking and payment processes for people. But there is also one easier method than a digital wallet voice payments. Voice payments is a technology used in the banking sector which runs on Artificial Intelligence technology. Artificial intelligence is technology in which smart machines and software can be made using human intelligence. With the help of voice payments, we can do our transitions within a minute only by giving a command to that application or device. Only we have to link our credit card no. and other bank details to that device. Generally, the new generation attracts technology easily for their ease and convenience in life, so there are more chances that the future of banking and payments will be voice payments.

Blockchain

Blockchain is the concept involved in cryptocurrency which stores data and helps to make out transaction process digitally. Cryptocurrency is a type of digital banking where no physical method; all transactions and payments are made digitally. So cryptocurrency is wholly based on financial technology because the currency is also in the form of digital coins like Bitcoin. The Fintech industry has a large impact on it. Because the concept of blockchain refers to storing financial data in digital format, which generates more revenue and gives a great user experience and fast financial transactions. The benefits of crypto and blockchain help Fintech to develop and grow more efficiently.

Embedded Finance

Embedded finance is also known as embedded banking. Embedded finance is a term that deals with integrating traditional banking or financial services into non-financial services. A few examples of Embedded Finance are Embedded payments, cards, and lending, which bring ease to customers to deal with their money. This technology offers safe and secure payments, loans, and investments without any interference from financial institutions. Its key advantage is that it gives all financial services in one place with safety and security in case of your assets and data.

Challenges ahead of the Fintech Industry

Lack of Data security

The increasing use of digital services and technology leads to the creation of big data, which should be managed and handled correctly. Because data contains confidential payment information of users, physical banks have their CCTVs, and security guards to keep data safe. But virtual security is not that simple; it requires highly efficient cyber security applications or software to do these things.

Government Regulations

Finance is the chief factor for every government, so they are customary laws. The government regulates rules to protect every citizen’s data. There is always interference by the government in technology which is related to the financial process. But it is necessary to apply rules and legal terms to any technology to protect it from cyber attackers. If you create any software or application for financial services, you make sure that there is any legal compliance on this tech by the government and then proceed to your work.

Increasing Cyber-threats

Technology modification leads to cyber attackers who can track and misuse our data without permission. So, people sometimes see the risk of using technology for financial convenience, which is unsuitable for Fintech companies. The solution for this is to increase the number of cyber security experts to gain security and confidentiality of our confidential data. Cyber security experts can help the Fintech industry to gain customers’ trust issues in their data security.

Conclusion

We are now on the starting edge of financial technology. Many modified and unbelievable technologies will be waiting for us in the future. As our population increases, there is more need for fast and easy service without any physical contact, which can be possible with Fintech. There is a need to enhance financial tech literacy in the people, which can bring more ease to everyone’s life while banking and payments. We have to find out the solutions for challenges in digital financial services, through which Fintech becomes more accessible to users.

TOP 6 STOCKS TO INVEST IN ANY TIME

The global COVID pandemic has shaken the earth for quite some time now. It has also shaken the stock market with volatility in it being so spontaneous to consumer sentiments. The month of July had seen quite some dips and ups in the stock market, but even with its fair share of heart-stopping moments, it managed to finish in gains. The market saw one of the worst one-day sell-offs since last October with the rise in Delta strain of the Covid-19. But despite all such factors, equities also ended in gains by the end of the month, S&P also made almost 2.3% gain by the end.

So, keeping all such factors in mind and the market being so volatile that it is operating at very high superfluous rates, below are the TOP 5 Stocks that one should buy every time.

Adobe INC.

This software company has been in the play for quite some years now. It recently announced the $300 million valuations, which have raised the value of the company. In 2021, it outperformed in the second quarter of every analyst’s expectations, thus sealing it as a top market performer. Recently, subscriptions of its softwares like Lightroom and Photoshop have helped the company in its $3.8 billion turnovers. On the other hand, the company derives the largest profit from its digital sector, contributing $2.8 billion of the total revenue. It has shown promising growth year after year and is surely one of the market’s best choices at the moment.

2. BJ’s wholesale warehouse Club Holdimngs Inc.

This stock has been continuously growing since the pandemic and has shown promising returns in this quarter especially. During the pandemic, most consumers were looking for affordable products in larger quantities which helped bulk retailers like BJ’s hold on the pandemic market. Other than that fact, it was trading at 5 times lesser price than its direct competitor Costco. This gave BJ’s an extra benefit. Also, BJ’s was pulling in P/E 18 times more than Costco, which was 41. This made BJs a favourable stock for many investors. The company has plans of expanding its business and is surely one of the best stocks to invest in 2021 at this point.

3. The Walt Disney Co.

Even though 2021 has not been the year for Disney, it still remains one of the safest long-term blue chips to invest in. The lacklustre performance of Disney this year is due to the parks, entertainment division, and cruise line completely shutting down. But with new hopes, the cruises have started operating again since August. However, the new future of COVID-19 with the Delta strain is a risk. But still, Disney+ has been garnering triple subscribers every quarter, with now more than 100 million subscribers. So with such interests in its streaming platforms, investors can surely reply on its OTT platform revenue if Delta strikes.

4. Facebook Inc.

The world has gone digitally rightly, with Facebook’s return of this quarter being almost 21%. The company is valued at a humongous $1 trillion. It still continues to evolve with AI technology integration and better search features. It stands in the market with three other constitutes of its- Facebook, Whatsapp, and Instagram. The CEO, Mark Zuckerberg even has been planning on adding e-commerce to Instagram with the intent to create what he calls ‘metaverse’ with the aim of people working, playing, and living together in a digital world.

5. SONOS Inc.

The idea behind the growth of this premium speaker company is that when so many people are working from home, they will surely like an AI connected to the home system. It has been rightly proven with the company’s growth year-over-year being 15% and 90% respectively.

6. Lowe’s Cos Inc.

Lowe is a simple home improvement business that has a very strongly built foundation. The company has almost 16 times more forward earnings than its direct competitor Home Depot. It has been raising its dividend payout for 25 years now and currently has an almost 1.7% payout, which is quite attractive. Also, Lowe bought back its own shares in the first fiscal quarter and paid a whopping $440 million in dividends. This surely makes Lowe an attractive long-term investment.

Final thoughts!

These are the best stocks which have been performing really well, keeping in mind the current market situation. The list is obviously not exhaustive, but these are surely some of the best bets. It must also be mentioned that anyone who decides to invest should do their own research as we hold no responsibility for deciding one’s own actions.

The Top Richest Women In the World in 2021

Science says women are smarter and more active than men. They have also proven themselves in the field of business, and that too managed to be the wealthiest personalities all around the world. A woman has patience, perseverance, smartness, and a brain, all qualities required to be a successful entrepreneur or a leader leading an organisation to the highest point in terms of success and popularity. The year 2020 has brought up many changes in everyone’s life in various aspects. It has also resulted in the women identifying their talent and interest, which made them step into the business world, and studies have proven that it has increased to 36% more than the previous year. They came from all around the world from various countries and cultures and made themselves the best business person ever. So let’s have a look at their journey and success to become a rich personality as listed below.

10 Richest Women in 2021

1. Francoise Bettencourt Meyers

Francoise is none other than the granddaughter of the Founder of the L’oreal Paris Cosmetic Brand. She got her business as an inheritance from her mother, Liliane Bettencourt. Her grandfather worked at his company since the year 1997. Francoise, a 67 years old woman, helped Loreal be more precise and diversified than before by adding new products using various technologies and has built up the business in a profitable way. The company has a net worth of about 33.6 billion dollars but has been noticed to fall down about 6%in 2020 as the need for makeup decreased in the quarantine days. Recently the manufacture of the skincare products of Loreal has made the company more profitable due to the increase in cosmetic demand.

2. Miriam Adelson

Miriam holds a wealth of about 39 billion dollars only with the help of Casinos. She got this art from her husband, who has been a stake controller, and now she controls about 56% stake in casino operator Las Vegas Sands. As 2020 has affected us all, the same happened here. The company lost 985 million dollars as Sheldon Adelson died in January as the resorts and casinos remained closed due to lockdown. Although it opened in June 2020, it ended up losing 1.69 billion as its net loss. Miriam is 75 years old, currently living in the United States and has now decided to focus on the business in Macau in Asia and to sell the property in Vegas.

3. Sussanne Klatten

Sussane inherited a 19.1% stake from her mother, Johanna Quandt, who has passed away. Whereas her father, Herbert Quandt, made the BMW industry one of the most successful luxury vehicle markets. The car making company has been reported to get a profit of about 119 billion dollars in 2020 as the company has recovered from great losses from their past. The BMW company has increased its stock price by more than 93% since March 2020, being wealthier than ever before. Apart from this, Sussane has also got a pharmaceutical company from her grandfather, which is well known all around the world. She is a 58 years old woman residing in Germany having a net worth of 28 billion dollars.

4. Julia Koch

Julia is a 58 years old aspiring woman of the most famous United States. She lost her husband in 2019, David Koch. Now she is the owner of America’s largest private company as per the net revenue calculated recently. The company called Koch Industries has a net worth of 46.4 billion dollars. And Julia now serves as the board of directors in the company having a stake of 42% stake. Besides her, David’s older brother also holds the 42% stake.

5. Alice Walton

Alice is the daughter of Sam Walton and has lost a bit from being the world’s richest woman. But anyway, she owns a net worth of about 62 billion dollars and is expected to soon raise up her revenue in the near future. She is 71 years old and is currently staying in the United States who owns a company named Walmart. She gained about 7.4 billion dollars due to rising stock of about of her company up to 5% since March 2020.

6. Gina Rinehart

Gina Rinehart is a woman of 67 years, having a net worth of about 23.6 billion dollars and is a citizen of Australia. She is well known for being the richest person in Australia who serves as the chairperson of Hancock Prospecting Group, which is a mining and agriculture company. This was founded by her father, Land Hancock, which partially affected in 2020 but soon recovered by a stake of about 77% in the whole group. The majority affecting the company comes from the Iron ore department during the pandemic times.

7. Yang Huiyan

Yang is the only owner of 58% who owns the China-based real estate. Having got it from her father as the equity of the business since 2007 has the bet worth of 30 billion dollars. She is a 39 years woman staying in China currently.

8. Iris Fontbona

Iris is 78 years old and recently stayed in Chile. Her husband passed away in 2005, whose name was alAndronico Luksic, who established a beverage and mining fortune. She has a net worth of 24 billion dollars.

9. MacKenzie Scott

MacKenzie is the ex-wife of Jeff Bezoz, who was the Founder of Amazon, and as per the data, it is reported that they got divorced in 2019. This news became very famous because of his splitting property and business, which overall holds as the financial state. Then at the time of separation Bezoz gave away about 6 billion dollars to many non-profitable companies for social work. However, MacKenzie still has a net worth of about 53 billion dollars.

10. Jacqueline Mars

Jacqueline and own the pet care and food company Skittles and M&M with 40 billion sales. Their grandfather founded this company, Frank. C. Mars in the year 1911. She is an 812 years woman staying in the United States has an estimated worth of 32 billion dollars.

Conclusion

Women are doing extremely wonderful in the field of career and life and have also shown their charm in the business and monetary world. And has built up many business empires with a lot of revenues and success.

How can you Increase your Cover Amount for Term Insurance?

Life is steadily developing, and so are your financial wants. With age, your responsibilities also increase, and you might want to offer additional protection to your family in your absence. If you have invested in a term insurance plan early in life and over the years have realized that your loved ones need more financial security, you can always increase the sum assured amount.

Read on to know how you can increase the cover amount of term insurance plans.

How to increase your cover amount for online term insurance?

There are two ways to increase your cover amount:

Use the increasing cover option in your existing policy: If your current policy offers the rising sum assured option, you can go forward and raise the cover amount and enjoy more reliable protection. Many term insurance plans provide this feature to increase the sum assured at major life stages, such as when you get married, have a child, or adopt a child. This allows you to ensure that your loved ones are well-protected all the time.

When you opt for this option, the insurance company will likely increase your premium amount in proportion to the sum assured amount. However, the rest of the features and services remain the same, and there is no change in the terms and conditions of the plan. In the unfortunate event of death, your loved ones receive the updated sum assured amount, as long as you have paid all premiums and the policy is active.

This is a convenient option as you can modify your existing plan without any hassles.

Purchase a new plan with a higher sum assured:

If your current insurance provider does not offer the option to increase the cover amount of your online term insurance plan, you can consider purchasing a new term plan. In this case, you will have to surrender your old policy and then buy a new plan from a new insurer. The new insurance company will offer you a plan based on your current age, medical history, policy term, and sum assured. The premiums for a new plan may be more as you would be older than when you bought your old policy. So, it is imperative to compare different plans, features, services, premiums, etc., and then pick a plan that is the most cost-effective.

While this option may seem a bit tedious, it can be ideal if you are not happy with your existing term insurance plan and insurer and want to move to a better company. Also, keep in mind that it is better to go through slight inconvenience now rather than leave your loved ones with an inadequate cover amount in your absence.

Which of the two options is better?

The choice would entirely depend on your needs and your current policy. If you are happy with your existing plan and your insurer agrees to increase your cover, you can stick with the same company. However, if your current insurer lacks in providing you with the required features and cover, you should consider moving to another insurance provider. Various insurance companies offer online term insurance plans these days, making it easy and hassle-free to purchase insurance from the comfort of your home.

To sum it up

Before you increase your cover amount, make sure to evaluate your needs thoroughly and pick an amount that will protect your family members and beat inflation. Moreover, it would be best to keep in mind that the policy’s premiums increase with an increase in the sum assured. So, pick a cover amount that fits your budget.

If you are looking for high sum assured options at affordable rates, you can explore many options that can be suitable for all income and age groups.

How to find initial customers

If you have just started your business in any sector and your primary objective of earning revenue is through providing services; then your burning question should, “How do I find initial customers?” Finding initial customers can be a bit tricky since there are a lot of measures and steps that need to be undertaken to get to that point. We will be discussing some smart points on how you can find initial customers to boost your business.

Strategies on finding initial customers

We will now be taking a look at some of the strategies for finding an initial set of customers as they are important in taking your business forward,

Create a list – Since you have laid the groundwork for establishing a business, you would have met a potential set of customers. You could have met them through social media interactions, focus groups, and other similar instances. Create a list and add them as potentials that would help you in establishing your business. You can even set aside some time to browse online for potential clients and interacting with them.
Referrals – Ask around and know people who might have an interest in buying what you are selling. Getting good referrals can also be important in getting more like-minded customers and connections that are interested in you. You can even speak with your friends who are veterans and get ideas on how to score big through referral connections.
Work upon your network – You need to search for some local business networking groups and gain perspective about your domain and industry. Understand how you would be able to help others as opposed to how they can help you. Creating a connection with these business owners is a great way to meet prospects if you are selling B2B or B2C.
Show off – Yes, you heard it right. You need to showcase your services at trade events that would attract a sizeable amount of customer base that you would cater to. Doing this will help you in getting clients, potential customers, interested buyers, referrals, and even great contacts.
Industry events – Another important way in finding prospects and initial customers is through industry events. There is no need to have a separate booth installed for yourself where you would want to sell your services. Instead, you can just meet your clients, have a one-on-one interaction about the industry, its potential growth, how each of you is contributing towards making it flourish. Focus on creating your connections first instead of making a hard sale of your services, that might not bode well. Building a relationship is a slow process and you must nurture it with time to see it grow.
Team up with business owners – You can also find an entrepreneur whose products and services are not competitive and also ask them to connect you with some of the potential customers and clients. Having a partner who has an understanding of these matters also goes a long way when it comes to developing contacts with initial customers. You can use the online social network to connect with business owners and ask them for their assistance with regards to approaching the initial customers.

Conclusion

Getting the initial set of customers whilst starting your business can be challenging since it is the initial phase of revenue generation. There would be a lot of things involved, a lot of disappointments, and a lot of learning; but when you get there, it is important to nurture your relationship with them with care. Make sure that they are satisfied with the work that you provide to them, as this would help you attract more customers.

How to get funding for a business

Introduction

There will be time when you need to raise money or get a new financing round in business. There are many ways to invest cash into your business, but debt or capital is the two most common. Both are very different, and you can see which one is right for your business. Let’s dig deeper to understand and simplify the process. You should know how to raise funds for a business.

Debt finance is the process of borrowing money from a lender and paying it back with interest over a period of time. The most common way to raise debt is to borrow from a bank or NBFC. Debt lending is a common way to raise money for millions of companies across the country. When you collect money through a loan, you haven’t let go of any stock in your business, which means your property remains intact. This makes loans a popular option among borrowers. After all, in addition to an innovative business idea, new businesses depend on financial resources to make their expected rapid growth sustainable. Of course, the amount of capital a company needs depends on the business model. But where did the funds come from?

In addition to traditional creditors such as banks and state institutions, several sponsors nowadays specialize in financing new businesses.

Top funding options apart from a traditional bank.

Crowdfunding

The concept of crowdfunding is very similar to mutual trust at a basic level. This option involves multiple investors and offers a fixed amount based on business ideas, goals, action plans, and profitable plans. All you need are people who believe in your business ideas. This is one of the easiest ways to raise money without a loan.

Consider Self-funding

Commonly known as bootstrap, this plan is an ideal action plan when it is difficult to convince others of your business ideas and visions. Investors often seek traction before investing. The first self-financing round allows you to demonstrate your thoughts’ feasibility and build investor confidence in the new round of financing.

Bootstrap is an excellent idea for startup financing, especially if your initial business requirements are small. It also gives you the freedom to be your boss. You can’t answer anyone, which also allows you to control your income growth.

Private Lending

In addition to the funding options mentioned above, private lending can be a viable option for businesses seeking capital. These are often individuals or investment groups that offer loans with terms and conditions that can be more flexible than those of traditional banks. This can be particularly appealing to startups or businesses with unique funding needs who might not meet the strict requirements of banks.

Some platforms that connect borrowers with a private lender are adopting a “”people-first”” approach, emphasizing transparency, personalized service, and a focus on building long-term relationships with borrowers. These platforms can be a good starting point for businesses exploring private lending options.

Get in touch with the Venture Capitalists.

Venture capitalists, a safe destination for big bets, offer professionally managed funds looking for funding for startups. The best part of venture capital investment is the experience and follow-through they bring. Venture capitalists usually invest in stocks, and they leave when a company initiates an initial public offering or is acquired.

Venture capitalists often look for startups with sufficient traction and a strong team. However, if you choose to raise funds from venture capital, be flexible enough to be informed and accept scrutiny.

Try Angel Investment

Cash surplus people invest in promising startups and try to gain market share when they reach their potential. They can work alone or collectively in a network to find new companies with great potential. This funding option has a business mindset that wants you to be interested in your success and expect up to 30% equity.

The investors for startup are expected to be of high interest and low investment compared to venture capitalists. Still, it’s important to remember that even Google, Yahoo, and Alibaba were the result of angel investing.

Borrow vs. fundraise: which is best for your business.

Fundraising

Advantages

Finding an investor may be a better strategic move to help you grow your business, Des Marteau said. Investors often offer more than just capital. They may have business connections, manufacturing capabilities, distribution experience, etc. He was inaccessible by other means. If that’s what your business needs, you may also be able to receive a much more considerable amount from a venture capitalist or angel investor than from a loan.

When using a crowdfunding route, unlike certified equity investors, entry barriers are much lower than getting a loan. Instead of going through a lengthy application and credit check process, anyone can launch a crowdfunding campaign with just a few clicks. This is also a wise option if you need to raise a small amount of money. Both commercial lenders and investors tend to negotiate large amounts of capital.

Finally, financing works for businesses at any stage. On the other hand, most lenders’ “business hours” requirement eliminates startups that need to procure seed capital to get going.

Disadvantages

One of the most significant drawbacks of equity financing is the need to relinquish ownership of the business. According to Chan, investors are more likely to maintain a larger share of earnings than mortgage repayments and often seek in-house decision-making power as part of their stock.

Consumer crowdfunding sponsors may not demand fairness, but these platforms usually have low success rates, and campaigns take a lot of time and energy to raise money.

Borrow

Advantages

Loans are one of the most profitable ways to fund your business. When you get a loan through a bank or SBA (Small and Medium Business Administration) lender, the interest rate is usually lower than a personal loan. You can also enjoy some tax incentives. Taking a loan also allows you to increase your business credit score when you repay the loan.

Disadvantages

The application process is very long if you consider getting a traditional bank loan or an SBA bank loan. You often need to meet a long list of prerequisites, including being an established business rather than a new company. Mr. Chan also pointed out that the loan also means that if the loan cannot be repaid, there is a risk of losing collateral.

Benefits of alternative funding

Alternative lenders often charge a higher interest rate for their convenience, although the approval and financing process is usually much faster. Evan Singer, general manager of SBA loan provider, is beneficial in the easiest business loan. It helps in a pinch. They might not be a good long-term strategy because of the highest rates. I warned you.

Rapid application process.

It can take weeks, or even months, for a bank to confirm a loan application. Also, disagreements and concerns about collateral valuation (because banks usually underestimate collateral to reduce their risk exposure) can slow down the process.

At the other end of the speed, the spectrum is alternative financing. Evaluating an application typically takes a few days, or up to a day for National Business Capital & Services.

Access to unsecured business finance solutions.

All bank loans are secured by business and personal assets. This is not always the case with alternative financing, where many financing solutions are not guaranteed in approval of business loan. For example, National Business Capital offers unsecured working capital loans, credit lines, and Merchant Cash Advances.

Impairment or lousy credit approval.

Banks claim good personal and business credit scores. The latter is especially problematic for some applicants who don’t even know they have a business credit score in the first place.

Corporate financing through a capital increase

One way to raise money for your company without going to the bank is to decide to increase your equity capital. This will allow the entry of capitalist partners who will fund the company to exchange shares or participation.

Before publishing your capital increase offer, we recommend that you first research and elaborate on the amount of funding you need and then adjust the offer to your financial goals.

One way to do this is to use Equity Crowdfunding, which follows the same system as crowdfunding, with the difference that investors receive shares in the lending company. This allows the company to raise funds.

Tips for finding the best funding options

Financing to companies by factoring

This is one of the more common ways to raise money among large companies than small businesses. Therefore, this is a way to proceed with collecting company invoices without resorting to commercial discounts.

Corporate financing through venture capital

If your company is a startup with high growth and innovation potential, this is one of the best options for raising private funding for entrepreneurs. Venture capital is a company managed by so-called general and limited liability companies responsible for the funds raised through private investors.

Financing to companies through IPO

This is a financing tool for large corporations, as it requires a minimum of € 1.2 million in capital to do so. If your business is listed, it will be an important way to raise money for your business.

Funding my company with public assistance

Before assessing a company’s financing through this option, remember that the aid or subsidy is a public incentive, not the source of funding itself, as the subsidy rarely fully covers the project’s entire cost.

Conclusion

Financing is an essential aspect of realizing your business vision. Funding and financing are both basic modern business scenarios that support the growth of startups startup. The first round of funding, commonly known as seed funding, forms the basis for financing. Series A, B, and C funding rounds follow. Seed funding usually refers to the essential initial funding round, but Series A, B, and C differ in the business’s maturity and investors’ types. Financing the series will help you evolve your start-up into a full-fledged organization by supporting it with the funds calculated in crucial steps.