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Archive for the ‘Finance’ Category

The financial accounting or bookkeeping outsourcing , also called simply accounting is a technique by which is collected, sorted, recorded, summarized and reported transactions with monetary value, conducted by an economic entity.

It is the use of certain principles to record, classify and summarize financial data in monetary terms and economic, to report in a timely and reliable operations of the life of a company.

The main function of financial accounting is to bring in a historical economic life of a company, records of past figures used to make decisions that benefit the present or future. It also provides the financial statements or financial statements that are subject to analysis and interpretation, reporting to managers, to third parties and state entities for the development of business operations.

Its features are:

- Reporting to third parties on the financial transactions of the company.
- It covers all business operations in a systematic, historical and chronological.
- Necessarily be implanted in the company to report the facts promptly developed.
- Language used in business.
- It is based on rules, principles and accounting procedures for recording financial transactions of a business.
- Describe operations in the analytical gear of double entry bookkeeping.

What is a Financial Plan?

Like any other type of plan a personal or family financial plan is a logical process which sorts the objectives and steps to achieve them. Importantly, a flexible guide to be adjusted from time to time to get adapted as reality changes. Any plan is a way to chart a course that serves as a compass, but when obstacles or unforeseen things appear is important to change direction.

The Financial Plan is a document that, basically, explains the objectives or goals that the individual has and what are the steps to achieve them. This document has a title page, index and contents of the plan. For example the index of a plan is as follows: Read the rest of this entry »

Today the dream of every person is to be rich. We live in a consumerist world makes us work more to earn more while spending the money on unnecessary luxuries. When you ask people what their purpose or do you want for your life, a large percentage going to say, to be rich.

But there is a more important than being rich is financial freedom. But what is financial freedom? Financial freedom is to generate passive income greater than our expenses. Passive income is that income generated without you having to work for them personally, revenues from their investments.

People just want to be rich to spend more, do not apply in your life concepts such as savings or investments, and the greater their level of spending more will have to work to maintain that standard of living and less time will have to enjoy your family and things that make them happy.
To achieve financial freedom there are certain steps that must be met, a process that takes time, is not achieved from one day to another.

Steps to achieve financial freedom.
As a first step is important to generate income, assets, which are the revenues gained by the work activity being performed, either a salary for their work or the fees received by a professional. Read the rest of this entry »

Money is what we need to bring food home to rent, to dress and have fun. It’s our money and we can do with what pleases us but for some reason some people still do not understand, and much, speaking evil of money, say money is the root of all evil. Obviously the result of illiteracy, disease and hunger is poverty or at least can be reduced easier with money.

People who think money is the root of all evil, he must be thinking of the love of money and greed.

Therefore we must be sure to make money honestly is a desire to honor and has nothing wrong with thinking about how to engage in money.

Positive Mental Attitude

The first thing we do is convince us that if we can be rich, have the ability to be richer and even more happy that we will be people who think to make money and not have to work on schedule and exhausting to be rich. Read the rest of this entry »

The financial crisis and recession are part of the DNA of capitalism are its essence, is registered as a genetic code in the depths of his being. Recurring, regularly appear after a few cycles, but their causes, their dimensions and their impacts are different due to the large number of influencing factors at different times.

Today we are in a time where the crisis is deepening and rapidly acquires dimensions of recession. The markets remain extremely volatile, fear takes over much of the ruling class and everyone is asking “are we heading for a recession as the 30?”. To that question, the answer that I share with many economists in the world is optimistic: “I do not think so.”

Yet others argue that “we are facing a phenomenon of immense proportions higher than the years 20-30 and the reactions we’re seeing are typical of a bunch of irresponsible leaders, incoherent and irrational, and are designed to cover only measures loss of the great players of the casino economy and a scope and costs absolutely suicidal. ” Those who take the position skeptical or pessimistic answer to those who have tried to calm the world with a “everything is under control,” saying that they hide the huge unpaid debt of Lehman Brothers, a billion in failed credit cards in the assets of JP Morgan and Bank of America, the collapse of General Motors and the automobile industry generally, the near bankruptcy of American local finance, the dilapidated state of the Silicon Valley and the financial difficulties of the giant General Electric … “The with this pessimistic position portend a catastrophe that will paralyze the activity and production worldwide. To them we must remember what Hitler said: “When goods can not cross borders will the troops.”

In 2006 I read in the Spanish media about the alleged embezzlement of two philatelic organizations. Again I was reminded of my professor, D. Solano Manuel De Haro was born in Ronda, chief executive of Banco de Bilbao, Chartered Accountant, Doctor in Economics and Professor of Financial Management Course of Business fifth. Twenty-five papers present analysis made us write this good man in his subject (thanks to my fellow group by the exquisite and laborious documentation). One study was indirectly related to the vulnerability of the small investors to the stock of fraud and corruption. His classes were practical, hard metal (I had to speak with a special microphone near your throat) Serve this post as a tribute to your memory, Manuel.

I have also refreshed the course on “Productivity and Economic Growth”, organized by the Savings Banks Foundation and directed by D. Victorio Valle, held in Manchester in September last year. Specifically, a presentation on the new funding entities ” on line and the alleged risks that could run the small investor. To a specific question from a participant, the speaker replied that, when in doubt, invest only economic quantity, some bad, we can return the Guarantee Fund the administration has for these purposes. Finally, I had in mind some of the recent financial fiascos important to investors and consumers that came to light (Gescartera, Opening, etc.)..

Donald D. Rugg (recognized expert on mutual funds and other financial products), we already said in 1986 that there are nine main reasons why investors, especially small ones, often make unwise decisions: 1. fail to develop a successful strategy 2. excessive or insufficient risk-taking 3. make a poor selection of investments; 4. do not choose the right moment to act 5. diversification of their investment is not adequate, 6. pay high transaction costs; 7. have bad advisers; 8. fail to control their emotions, especially greed and fear, 9. pay too much tax.

Almost twenty-five years later, most of these reasons are still cutting edge. The typical small investor has no knowledge, time or the desire necessary to avoid falling into such errors. My aunt, my brother, my mother, my brother-etc. have some money, and believes the story of the multiplication of the loaves and fishes and revenue easily have told (or emotionally blackmailed my seniors). I, the apprentice smarty financial (or an economist, or administrative or middle management, commercial, etc..) In my social sphere of action administering or advising collaterally, without liability and without preparation (or hard-sided) , huge capital, it can be one of many ways to start the story pyramid. And here we have this huge bag allegedly swindled more than 400,000 “? So many stamps there?, “Guarantee Fund covers this situation? The story can be repeated once more (and in this case would Gescartera multiplied by ten). Finance also has its dark cycles on your face how right he was Manuel!

9 – The magic long ago, start as soon as possible:

Many know that I am quite young, but it is important to learn to start soon. Investing does not take long depending on the degree of investment and can be a great help as we study and work.

Even as a young man starting to save some money you can save interesting to begin investing, much better than starting late.

10 – Be humble and know your limits:

It’s easy to get bigger when the market is rising. But the true risk tolerance only know when you have experienced the ravages of a bear market. Decisive action can be useful at work, but when investing is better to be humble.

In closing I would like to add a rule or Tip number 11 which I think extremely valuable and that every investor should as your money grows. Read the rest of this entry »

4 – Learn to buy with your head:

We have many incentives to buy compulsively. Probably heard about the United States population is in debt for life. They live in a consumer society far stronger than us, do not fall into the same pit.

To do so, before making a purchase really think, evaluate the situation. I know many people who compulsively spends saturated even your credit cards, many of these people earn up to 6 times my salary and I was amazed to see how indebted they are. They are the kind of person that even if you earn $ 5000 per month, believe that because the cards give an upper limit on his salary each, have the cash.

5 – Learn to save is as important as saving:

This part is interesting. You make the decision and is willing to save in a sustainable and lasting. But the problem is how to save.

In the case of Argentina had a 10% annual inflation in recent years. This means that if you do not get to work (invest) my savings, I will lose 10% of my purchasing power for years. Here is a great example, you have saved $ 10,000 more each year that money “numerically” is the same, but lost “value.” Stand still and see how they consume their savings without even touching them. To save and better off spending the money on other things. Read the rest of this entry »

In the latest edition of Global Investor magazine came out a little article with 10 things you need to achieve financial independence. These 10 tips are good to remember from time to time and as a guide. While many of the issues discussed in the blog, it is common to forget them.

So then the 10 things you need to know to be financially free:

Tips:

1 – Make more money does not always solve things:

Many believe that the key to solving financial problems is to earn more money. Tired of debt, unpaid bills or financial fear for the future, is believed to earn more money will solve these problems.

The way we handle our money is more important than the amount we earn. Obviously we’re talking about a midpoint, it is true that very low pay brings problems.

Perhaps by way of example I am the perfect case. My salary did not change anything in the last 2 years, except for a small but insignificant increase compared with the expenses he had. Today I am not a billionaire, but my financial situation is much better than when I started to work. Today have a few small savings to reinvest and I hope that starting small, can get more steps up road to financial freedom. Read the rest of this entry »

Check if your plan includes the following necessary factors that give rise to a successful business

* A sound business concept. The most common mistake that entrepreneurs make is not picking the right business to start. The best way to learn about your prospective business is to work for someone else in that business before beginning your own. Can be a huge difference between a good business concept and reality.
* Understand your market. A good way to check that the market is known as a test market your product or service before you begin. Think you have a great kite that will capture the imagination of kite fliers in the world? Then, make some of them and try to sell them first hand.

Read the rest of this entry »