Counterfeit Money Detector

What is Gross Income

Many people ask the question, what is gross income? Many of them know the answer and many do not. Well, here's a simpler explanation of what we actually mean by gross income. Read on...

Several times you've heard people, mainly accountants, while calculating taxes, using the terms 'gross profit', 'net income', 'gross annual income', etc. Many, who do not come from an accounting background, do not follow these terms. They keep wondering what is gross income? So for them, here is a simple explanation of what we actually mean by gross income.

Definition

When you get your salary, you will notice that the word gross income is mentioned in your pay slip. It is the total amount that you make before all the taxes have been deducted. Gross income can also be called gross profit. In order words, you can also say that gross income is the sum total of all the income, that a person or company makes. The source of the income, is not that important. The various things this income usually includes are:

• Rents
• Royalties
• Interest
• Dividends
• Any gains that you or the company has derived after making dealings in property
• Pensions
• Any income related to decedent
• Any income from life insurance
• Income from endowment contracts
• Annuities
• Income from any interest in an estate or maybe trust
• Some sort of compensation for any services which includes fees or commissions or fringe benefits
• The gross profit that has been derived from business
• The gains derived from any dealings in property
• Alimony
• Separate maintenance payments

Many people do not know the difference between gross income and net income. Now, no longer will you be confused about the difference between gross and net income. So, net income of a business is what remains from the gross profit, after you have deducted all the costs of the business such as the depreciation, interest, tax deductions, etc. For a person however, the net income is simply what remains, after, from the gross profit, you deduct the allowances and the deductions. This is done to find out what is the amount of income tax the person has to pay. Thus, now I hope, you no longer will be confused between gross income and net income. So, now that you know what is gross profit, let us now see some other terms which are also related to gross income; gross annual income and adjusted gross income.

Gross Annual Income

It is pretty clear from the name itself, what gross annual income can actually mean. It is the total gross income that you have made over the entire year. It is your total yearly income before any sort of deductions such as tax. Suppose, I earn a monthly salary of USD 3000, then my yearly salary will be USD36000. This is the gross income before deducting all the taxes and the figure of USD 36000 is my gross annual. The amount that I will take home by the end of the year after deducting my taxes from the gross income, is the total net income.

Adjusted Gross Income (AGI)

The Internal Revenue Service or the IRS uses the AGI in order to find out whether the tax payer is eligible for some of the tax benefits. If you want to know how to calculate the AGI, here's how. First you have to find out your gross income and then from that, you have to deduct the qualified deduction i.e. moving expenses, and alimony, 50% of the self employment tax, health insurances, interest on student loans, etc. All these have to be subtracted from the gross income. The adjusted income is also called the net income. If you see the first page of the IRS form 1040 and 104A, you will see that the entire section deals only with the adjusted gross income. Some people tend to confuse AGI with the modified adjusted gross income, which is almost similar to the adjusted gross profit, except for certain factors which are not included in the former. They are passive income and losses, student education fees, interest on student loans, taxable social security, etc. Modified gross income is higher than AGI, but always lower than the gross profit.

So, now you are clear as to what is meant by gross income. Henceforth, while calculating taxes or your annual salary, you will not find it confusing any more in following these terms. So, next time, when you see the accountant calculating something using terms like gross profit or profit etc, you can join in and help him too!
By Ratnashri Dutta
Published: 8/10/2010
Read more at Buzzle: http://www.buzzle.com/articles/what-is-gross-income.html

What is Adjusted Gross Income (AGI)

Adjusted gross income is a financial measure of determining how much of the gross income you earn is taxable. This article will help in understanding this concept and also in calculating this measure.

We all are aware of the term gross income. For people who are not, gross income is the total income of a person prior to tax deductions and interest payments. Gross income includes wages, interest income, income from retirement accounts, rental income, capital gains, alimony amount, unemployment compensation, farm income and royalty income. This amount is also known as pre tax net sales less cost of sales.

Adjusted Gross Income Definition

An adjusted gross income (AGI), in simple terms, is a fraction of the gross income earned, that determines how much percentage of it is taxable. This term can be defined as a chunk of the gross income calculated after deducting enumerated deductions like medical expenses, unreimbursed business expenses, moving expenses, IRA (Individual retirement Account) deductions, alimony and deductible retirement plan contributions. AGI is often known as the net income which is used in tax calculations after the tax credits and payments are looped into the gross income.

This figure is used by IRS (Internal Revenue Service) to determine a tax payer's eligibility to avail certain tax benefits. Lower the AGI is, higher are the benefits availed by the taxpayer. Say for instance, you are a teacher and you have just moved to a new place. If you deduct the moving expenses and cost of supplies required for your classroom teaching, these deductions will lower your AGI. However they can be shown as tax deductible expenses and can fetch you tax refunds.

On Form 1040 (Standard US Income Tax Return), The AGI section is the last number on the first page of the form. Precisely, AGI decides your income tax liability that includes tax bracket and qualification credits. The IRS also has an adjusted gross income calculator (AGI calculator) that will aid in the calculation.

Modified Adjusted Gross Income

Modified Adjusted gross income (MAGI), or modified gross income is not the same as AGI. MAGI is the amount of income which is calculated by adding certain deducted expenses (passive income like student loan deductions, student tuition fees, taxable social security, self employment tax, IRA contribution deductions, higher education costs, foreign income and foreign housing deductions) to the AGI. This income determines how much percentage of the individual's contribution towards IRA is deductible and whether the tax payer is eligible to avail tax benefits (like social security benefits, traditional IRA contributions and some tax deductions) or not. So higher this MAGI amount, the deductible amount of IRA's contribution reduces. Remember, this amount is not tax deductible. Also, many a time, this amount is either higher than or nearly same as the adjusted gross income. However there is a benchmark on MAGI, as all these benefits are quantified by limits. If MAGI is quite high, a person may not be eligible to avail the benefits.

So if you want to find out your adjusted gross income for the current financial year, take into account the AGI of the previous financial year. Once, you are done with calculation of AGI, the next concern is calculating MAGI. Make a checklist of all deductions that need to be added to your current AGI. And make sure that the deductions that are added to your MAGI do not exceed a certain limit as a high amount of MAGI cannot earn you tax refunds.
By Narayani Karthik
Published: 8/12/2010
Read more at Buzzle: http://www.buzzle.com/articles/what-is-adjusted-gross-income-agi.html

Cost Cutting Ideas for Companies

This article tells you about cost cutting ideas for companies that would help you save money without affecting the productivity of the company. To know more about ideas for cost cutting in companies, read on...
So you have canceled all the office parties, stopped gifting your employees, and even laid off few employees and still, you face the economic burden. Well that's obvious because the above ideas for cost cutting in companies were not the right or enough solutions for the problem. This way you can just break the old ties with people who believed you and who helped you taste the success. So laying off employees or compromising on their rights and comforts is the last thing you should do. Doing something like this is definitely going to affect the productivity of your employees and would create an insecure and suspicious environment in the company. To avoid such a scenario, this article tells you about some cost cutting ideas for companies that you can try, to get instant results as well.

Cost Cutting Measures for Business

Before you chalk out any cost cutting ideas for businesses it is essential that you analyze everything about your business financing. The first step would be assessing your profits and expenses. A proper look at it would help you decide the areas in which you can afford and employ some cost cutting strategies. For example, there are various areas when it comes business, such as, inventory, insurance, telephone costs, travel and entertainment, vacations, and manufacturing, etc. Once you decide the area of cost cutting, you have to plan the appropriate cost control techniques to save more in that area. Efficient personnel management is important along with the financial management for cost cutting. Instead of laying off employees, stop recruiting new people and see if the employees can do multiple tasks. For example, ask your secretory only to do the accounting job if possible.

One of the other ideas for cost cutting in companies is paying attention to the marketing strategies of your business. If you think you are spending a lot on your marketing plans, especially when you are not producing with that rate, then it is wise to revise them. For example, you can save the money on advertising and instead go for client references to get more business. One of the important aspect of cost control management is investing in assets and not in liabilities. So do not hesitate to own things that make your work easy. For example, instead of appointing a persons for accounting, it is better to have accounting software that requires only one person to manage it. Another basic area where you must pay attention when it comes to applying most of the cost control methods is administrative expenses. You must see that the staff uses all the office infrastructure responsibly without wasting anything. For example, switching off the lights and computers, etc., when not in use.

Creative Cost Cutting Ideas in Companies

Apart from the basic ones, there are a lot of industry-specific innovative cost cutting ideas in companies that you can come up with. For example, if you are a publication house and need to do a lot of rough paperwork then make it a rule to use both the sides of the papers. This will help you cut on the paper cost. You can also think of selling unnecessary things from your office, such as furniture pieces and some insurances as well. You can also think of part-time employees and guest consultants that would save a lot of money without affecting the production process. Don't let the employees use the office telephone for personal calls. If the employees are ready to work from home then encourage that so that there will be less burden on the office infrastructure. Try to postpone the salary hikes and appraisals if you can convince the employees. If you spend on traveling and organizing seminars then avoid attending seminars held outside the city. If you wish to organize seminars, hold it in partnership with other companies. These were some of the cost cutting tips for companies.

The above cost cutting ideas can definitely help you save up to a great extent. The only thing you have to do is implement the above ideas for cost cutting in companies efficiently. I hope you recover soon from the cost cutting crunch.
By Geeta Dhavale
Published: 9/10/2010
Read more at Buzzle: http://www.buzzle.com/articles/cost-cutting-ideas-for-companies.html

Gross Vs. Net Revenue

The comparison between gross and net revenue presented in this article is aimed at clearing out all your doubts regarding these two important accounting concepts. Keep reading ahead to know how the two are different.
Accounting is the backbone of any business, as it guarantees sound financial health, which is essential for smooth operations. If you are new to accounting and reading balance sheets, two of the prime concepts that you need to understand, are gross revenue and net revenue. I was personally quite confused about what both of these concepts mean, until I found out for myself. That prompted me to present a comparison between net and gross revenue, in this Buzzle article.

What is Revenue?

To put in simplest words, revenue is the income received by any company from sale of its goods or services. Revenue can also mean 'tax revenue', which is the money collected by the government as taxes. Broadly speaking, revenue is the income received by any financial entity in return for services offered or goods sold. In some countries, like the United Kingdom and India, revenue is known by the name of 'Turnover' of a company.

It is the incoming receipts generated as a result of goods sold or services provided. It is the prime parameter of consideration, when evaluating the financial health of a company. Revenue could be classified into two types - gross and net revenue. 'Gross' and 'Net' are two terms that you will come across a lot, when studying accounting. Let us look at the difference between gross and net revenue in the rest of the article, which are two important terms related to financial management of a company.

Gross Vs. Net Revenue Comparison
Let us begin this comparison, by defining gross and net revenue at the start. After that, we are free to discuss the significance of these two terms, in terms of stock research and evaluation of overall business performance.

Definition
Gross revenue is the income generated by a company, through sale of goods, after adjusting for cost of goods sold (production costs), without any other kind of deductions taken into consideration. On the other hand, net revenue or net income is calculated by deducting taxes and all other expenses, from the gross revenue or gross income. In retail businesses, the income generated by a company through sales, minus all the commissions, maintenance expenses and refunds that it pays, is called net revenue. So if the expenses of a company in the form of commissions, depreciation and refunds, along with taxes are subtracted from gross revenue, all that you are left with is net revenue. In banking sector too, this term may be used with the same meaning. Some people use net revenue as a synonym for net profit. In that case too, it is the gross revenue minus all the expenses and taxation involved after sales.

Significance
Gross revenue of the company is an important factor that gives you a rough idea about the sales volume of a company. Gross revenue or income doesn't clearly reflect the profitability of any company, as taxation and other expenses are not taken into consideration, while calculating it. However, it does reflect the efficiency with which human and material resources have been used.

Net revenue or net income, is the total profit generated by a business, after adjusting for expenses and taxation. It is colloquially referred to, as the 'bottom line', since it is placed at the bottom of a financial statement and is certainly the most important of all numbers displayed in there. Net income, declared quarterly, is the most important parameter for the investors, who are evaluating the past performance of a company, as a potential stock investment candidate.

It is important that you know what these terms mean, if you are going to be studying company balance sheets for stock investing and other purposes. Taking a crash course in accounting would be a smart move if you are interested in understanding financial transactions in greater detail.
By Omkar Phatak
Last Updated: 2/23/2012
Read more at Buzzle: http://www.buzzle.com/articles/gross-vs-net-revenue.html

Discretionary Income

This article will tell you all that you need to know about discretionary income, which happens to be very different from disposable income for an individual.
When we speak of the income of an individual, the two concepts that come to the fore are disposable income and discretionary income. Disposable income is the amount of money that the person can spend after taxes have been cut from this amount. These taxes can be deducted at source or later in the year. On the other hand, discretionary income implies the amount that is left from the disposable income, once expenses related to food, shelter and clothing have been paid off.

Thus it can be said that it is the money that is available to spend once all the essentials and necessities have been purchased by an individual. Hence money that is spent on luxury items, vacations, shopping sprees and other objects all fall under this category, making it much lesser than the gross income.

Implications of Discretionary Income
If the economy of a country sees high levels of discretionary incomes, this means that a lot of people are living with a high standard. If more people are buying luxury items and expensive gadgets, this is a sure sign that the economy on a whole is doing well and prospering. Moreover, in developed countries the rate of fluctuation of this income is quite low, because people are used to living in a certain way. Hence, even in times of economic recession and downturn, people still like to spend money on a lot of luxury items.

Simply knowing what the definition is not enough though, because a study of this concept leads industrialists and marketers to define their strategies. Add to that the fact that it is very difficult to establish at what point a persons expenditure crosses over from essential to luxurious, and this makes this concept a highly theoretical one. For instance, food is categorized as an essential item in this list, but for someone, who is a nonbeliever in financial management and spends all extra income in fancy restaurants, this concept becomes misleading. Additionally, there are certain other areas like education, health care and transportation which are also essential for most people.

For sellers and consumer product manufacturers this income equates to the buying power of customers. They analyze many statistics to determine their sales forecasts and their production strategies, so that there is no excessive or inadequate inventory. Economists claim that investments and savings also count into it, but these should take precedence over say a fancy and expensive indulgence. But the situation gets even more difficult to understand because of the use of credit cards. Since individuals spend more than they make, most of the time, because of credit cards, discretionary income becomes even harder to calculate in such a scenario. Paying off debts as soon as possible is very important as a result of that, and you must understand that it is more important to have higher disposable income than simply earn a higher salary and spend everything on living expenses and bills.

The state of the economy also plays a role in the amount of discretionary income a person has. In times of economic recessions, it will obviously be lower. But when the economy is booming, every person will have a higher percentage to spend. In times of high inflation, the number falls again, and this in turn leads to rising personal debt, which ultimately results in higher levels of national debt as well. Thus there are a number of things that are intermittently linked with its levels, even though this is a concept that has no standardized value and formula to calculate.

Here are some useful statistics, sorted mainly by age and other parameters.

• Households with income more than $100,000 per year are only 10% in USA. 70% of it of the country is generated from these households.
• Its overall average numbers in the country is around $20,000 per year.
• The highest value of total discretionary income was in 1997-98, coming in at $940 billion.
• Households headed by people in the age group 50-65 years have 30% of total discretionary income, and the most aggregate.
• Households headed by the 35-50 years age group have around 40% of it.

Thus, households whose head is in the age group 35-50 have the most, and this is no surprise since this is the age when working people are at their peak and can make the most money. Additionally, households whose heads have a higher education also earn more income, and thus have a high aggregate of such income, in comparison with a household that is headed by an individual with lesser education. This is also easy to explain.

At the end of the day, it's a figure for expressing the standard of living of an individual in economics, and the overall picture gives an idea about the health of the nations economy as well. Putting this concept into practical use is a rather impossible task.
By Rahul Thadani
Published: 12/11/2010
Read more at Buzzle: http://www.buzzle.com/articles/discretionary-income.html

Retained Earnings Formula

If you are looking for the formula aimed at calculating retained earnings, you have landed on the right page.
If you look closely at a company's quarterly financial report, there will be several details mentioned in there. One of the most important numbers that you as a share holder should note is the retained earnings value of the company. It is an important parameter for gauging the performance of the company in any quarter.

What are Retained Earnings?

How do companies grow and develop their capital base to make new developments that give them the edge to compete with other industries in a sector? It is only through reinvestment of their own profit in the business. These reinvested profit sums are known as retained earnings of a company. In technical language, it is the part of the net income that is reinvested by a public listed company in its business after paying out dividends to its shareholders. It is an important parameter of consideration in stock research.

It is up to the management how it uses the earnings for the benefit of the business. The funds may be diverted towards repayment of an outstanding debt or it may be used to further developmental or expansion plans.

The value of retained earnings will usually be listed under share holder's equity details in the company balance sheet. Instead of consuming the earnings, if they are invested smartly, a company prospers. It can create new assets and develop new projects which can help it cope with competition in a ruthless market.

Formula

The formula for calculation should be obvious after I defined it in the previous section. Here it is:

Retained Earnings (RE) = (Previous Retained Earnings + Net Income - Dividends Paid)

Thus you need to know three parameters. First thing is the beginner or previous retained earnings from earlier quarters and the net income of the company if any, after adjusting for losses and dividends paid.

This surplus money generated can be used for research and development or to clear out any of the outstanding debts that a company might be facing. It may also be used for marketing and buying of new machinery.

Managing the earnings is one of the prime financial management goals of any company. Great CEOs are marked by their ability to make good use of the earnings for the company's expansion in more areas. These funds provide a company with an opportunity to adapt to changing conditions and enter into previously unexplored territory, where it can increase its sales.

Using the Formula

Now that you know the formula, all that you have to do is substitute the requisite values of certain parameters to get the value. Let me illustrate it with an example.

A company has previous retained earnings of $1,000,000. In the past quarter, it has recorded a net income of $1,500,000 after taxes, out of which $300,000 must be paid in dividends. Then what will be the retained earnings of the company? Using the above formula:

Retained Earnings = ($1,000,000 + $1,500,000 - 300,000 ) = $2,200,000

Using this formula, one can account for the surplus profit made by the company, which is available for reinvestment. As explained before, retained earnings is what drives the growth of the company. Companies that have reached the top, have managers who know how to invest these earnings wisely.
By Omkar Phatak
Published: 12/11/2010
Read more at Buzzle: http://www.buzzle.com/articles/retained-earnings-formula.html

Cost Saving Ideas for Companies

In this economy, cost saving ideas for companies have become a standard part of short term planning. This article consists of some company cost saving ideas.

"Continued cost cutting is going to help the bottom line. The company is making money in one of the worst markets and there's room for earnings to go a lot higher." - Matt Kelmon
Even though the economy is getting back to normal, companies are trying their level best to save money for further investments and business extensions. When it comes to financial management or businesses saving money, a very important point that comes to our mind is 'cost cutting'. There are minor, as well as major, steps that can be taken for the purpose of cost reduction in an organization. However, companies think that the most helpful method of decreasing expenses is to cut labor costs, which eventually results in employees being laid off. Many businessmen believed that employee lay off is to be considered as the last cost cutting idea if there is no other alternative left. Remember that keeping a track of the minutest of expenses and effective rearrangement is the key to cost control. In the following, we have discussed few of the best cost saving ideas for companies.

Cost Saving Ideas for Companies and Businesses

• One of the best cost cutting ideas for businesses is to make a detailed record of the expenses and income and compare it. This will give you a rough estimate of the extent to which you need to cut costs.
• Another thing to consider is to start paying what you owe to another entity, or receive what is due to you. This will easily clear your financial standings, which can then be effectively used in cost control management.
• Administrative expenses also matter a lot when it comes to reducing expenses of any business. Keep a watch on how electricity or power is consumed and telephone lines are used, and what kind of office supplies are bought. Consider using the AC system only when required.
• You can maintain all office equipment such as lifts, air conditioning systems, alarm systems, and similar other setups to reduce monthly maintenance costs.
• You can rework the light settings of your office to reduce the number of lights without compromising on the present visibility. Check if employees are using office telephone lines for personal purposes.
• One good cost cutting idea for companies is to make a reliable plan regarding what office supplies you need, and buy those goods in bulk, which you may get at a discount. You can surely reduce the expenses more if you think about hiring machinery and equipment for office operations, instead of purchasing them.
• Since many companies spend a lot on marketing their products and services, you need to think about resetting the marketing plans and strategies. Exclude ineffective marketing efforts and come up with good marketing strategies, which are known to produce good results.
• As laying off employees may hamper and reduce the productivity, you can consider reassigning your personnel to tasks they are best at. Provide motivation to employees and use their skills and abilities to the maximum.
• In order to save on costs, it is better to purchase or rent out equipment and appliances which are considered to consume very less energy. This can be applied to computers, printers and scanners, and other office appliances.

One of the most effective cost saving ideas for companies is to encourage employees to save as much energy and resources as possible. If all staff too is responsible, costs can come down substantially. There are many small things that can be thought of, to reduce the overall costs of operating a business. These are few general cost control strategies for companies. Note that cost control techniques may largely depend on the size and type of a business. Following these cost control methods, over time, will significantly reduce expenses of any business.
By Stephen Rampur
Last Updated: 9/28/2011
Read more at Buzzle: http://www.buzzle.com/articles/cost-saving-ideas-for-companies.html

Cost Cutting Measures for Business

There are simple and effective cost cutting measures for business which they can implement and have effective management. Read this article to know more on the numerous ways of having a leaner business structure.
When you are venturing out for starting a new business you should surely think of cost cutting. Though, it is not restricted to only new businesses. Every company or business firm has some measures in place which allow them to contain the spendings on their business. We will see the cost cutting ideas in the following paragraphs. These are applicable to both, small as well as large organizations.

Administration: One of the important tips is to decide on what is absolutely necessary to have in a business or company in terms of basic requirements like furniture, elevators, lights, toilets, etc. That is how you can have an effective management of the affairs of your business.

Non-Popularity: Similarly, companies which are involved in manufacturing and production, they can reasonably save by researching and getting similar machines which are either locally made or else of companies which are not so well-known. However, it is needless to say that along with the research of such organizations, quality is not compromised. But first and foremost issue is to get over the fact that only the known big brands will help you serve better.

Maintenance: Closely following this factor what comes next is the maintenance. Maintenance is more applicable and appropriate for cost cutting in small businesses because the production is comparatively much lesser than otherwise. Maintaining the machinery comes in handy as a sure shot way of cost control strategy in the long run as there are very less chances of damage, hence, contributing to the longer life of the machinery.

Marketing: The main chunk of funds go into marketing and advertising your business. By thoroughly studying the market and aiming exactly at your target audience and, appropriate time, placement of adds, the duration, etc. can be one of the good cost saving ideas for companies. Alternatively, always refer to the earlier marketing strategies implemented by the company. Studying and noting its reasons of failure or the drawbacks will churn out a marketing plan showing more positive results.

Personnel: Another important cost cutting measures for companies is personnel management. Firstly, hire eligible, qualified and efficient personnel. This is directly proportional to the output and net result of production. Secondly, newcomers, freshers and interns should be hired for helping and assisting with smaller issues, for example, formatting the lay out of the content on the Internet if you are a company that deals with content writing.

Electricity: A major cause of concern for not only global warming but your pockets too! Save on the electricity bills by closely monitoring the requirements and timings of electrical appliances. For example, turning off the excess lights during day time, during lunch hours, the air conditioners when natural air can make do, etc. Also, invest in energy-efficient appliances. It will cost you more initially but it not only has a long life but will remarkably cut down the bills too.

Mails: Other things to be considered for cost cutting measures is restricting the usage of papers i.e. encouraging use of emails instead of the traditional snail mail. Efficient and cheap method that also contributes towards saving the environment.

Incentives: More focus should be given on the salaries and incentives of employees rather than providing them with recreational or extra facilities. This diversion of funds will keep the employees in good spirits!

So these were some cost cutting measures for business as well as companies. Hope it provided useful tips and helps you. If you have any suggestions or additions to these you may please add it here through the comments section given below and share it with others.
By Torque Earnest
Last Updated: 10/1/2011
Read more at Buzzle: http://www.buzzle.com/articles/cost-cutting-measures-for-business.html

Finance Manager Job Description

The duties and responsibilities entailed in the job of a financial manager consists of financial management, financial planning and working on issues related to making sound business choices. Keep reading to know more about the same.

The past couple of decades have witnessed tremendous growth in the financial field. There have been numerous career opportunities that have rocked the financial world. Given the complexity of financial jobs, the activities and tasks entailed in the jobs of a financial manager vary drastically. The developments in world economy have propelled avenues of tremendous business opportunities all across the globe. However, there is no denying to the fact that starting a business is not an easy task. Careful financial planning and analysis of all market vectors is essential before an individual starts a business venture. Since business world has become extremely professional, considering all pros and cons of starting a new venture is very crucial so that the capital invested is utilized productively. Even large corporate companies research a lot before investing eye popping money in any sector. To help people, government agencies and private firms in figuring out all merits and demerits of any business opportunity and investment related issues, finance managers are hired for seeking fruitful advise.

Job Description of a Financial Manager

There are a large number of specific job titles for different types of finance managers. In fact, the term, 'financial manager' encompasses various job titles like 'controllers', 'financial bank managers', 'cash managers', 'chief financial officers', 'treasurers', and 'credit managers'. Depending on the type of designation, duties and tasks of finance managers vary significantly. In general, duties and tasks of financial managers are as follows.

They play key roles in mergers and acquisitions on national and international levels.
In government agencies, like health care, the health care financial manager works in making yearly budgets and deals with issues related to health care financing. Similarly, all financial issues of any department of a firm are managed by financial managers.
In case, financial managers work as branch managers with financial institutions, they must perform all duties of a branch manager which include assisting customers for account related problems and making good contacts with clients to attract more business for the institution.
In banks, financial managers work extensively in almost every department. Right from savings, loans, mortgage and best investments, these managers play a phenomenal role in advising and assisting bank's clients in almost every issue of financial management.
They also prepare financial reports, balance sheets and store account related data carefully, for income tax purposes.

They also look after investment areas that are profitable for the firm or an individual and advise on the same.
Financial managers who work as financial risk managers work on risk management issues. They help to maximize profits, by finding out risk factors.
Financial controllers ensure that the long term objectives of financial growth of the firm is met adequately. By directing and implementing financial strategies, financial managers ensure that all financial goals of the firm are met adequately.

• Educational and Skill Requirements

• Educational Requirements

Minimum Bachelor's degree in courses like economics, business administration, finance and accounting.
A postgraduate degree (MBA, PG in finance and similar subjects) is always preferred.
Not all positions require licensure, however, those in accounting departments must be Certified Public Accountants (CPAs)
Work experience is always appreciated.

• Skill Requirements

Excellent interpersonal communication skills.
Analytical bent of mind with attention to detail.
Must love working with numbers.

The earning potential of financial managers is worthy of consideration. On an average, a financial manager can earn $50,000 per year, in the starting years and his or her income can cross $100,000 after some years of experience. Just like various salary ranges for jobs, financial manager salary is also dependent on several factors.

After knowing various duties incorporated in finance manager job description, you must have noticed that it is a profession that requires knowledge of finances and economics. Students interested in it must make sustained efforts to take requisite educational qualifications so that they can achieve success.
By Kundan Pandey
Published: 12/16/2010
Read more at Buzzle: http://www.buzzle.com/articles/finance-manager-job-description.html

Cost Reduction Ideas

What can be the ideal cost reduction ideas for companies? If this is the question on your mind, then this article will help you to know things better.
The business environment of today is very competitive and one needs to be very smart and knowledgeable to emerge as a winner. If you have a look at the performance of businesses across various sectors of the economy, you will realize that the profit margins are never the same in all the businesses. Some enterprises make more profits while some others make quite fewer profits. For those companies who are struggling to keep their margins intact, cost control strategies can prove to be a great boon. They can help them to avoid the unnecessary expenses and increase their net profit. The ideas given below will help you to make your firm more profitable.

Use Advanced Technology
Making use of advanced technology can be the best way to reduce costs. Science and technology have made a great progress and if you can replace the old machinery which you are using with the new one, then your productivity would be much more at low costs. The advanced machinery may cost you more initially, however, in the long run, you will be able to produce more goods at less prices. Implement this idea to see positive results.

Hire Employees as Per your Need
Hiring of employees should always be as per the need of the organization. Employee salaries constitute a big chunk of the total expenses of a firm in any given financial year. If you go on a huge hiring spree without any substantial need, then you would be spending much more than you should have resulting into lower profit margins. The human resource professionals need to discuss employee hiring plans with the senior management and arrive at proper conclusions to avoid losses.

Avoid Wastage
Avoiding wastage would be one of the most vital practices for all product manufacturing companies. Many times, because of poor management of raw materials and goods, they lose their quality and become useless for selling. This increases the total costs of the company and if it is not able to sell the products at higher price sin the market, the profit margins will be squeezed. The consumption of electricity should be done rationally and the factory managers should try to save on electricity costs wherever possible. This is definitely one of the most important cost saving ideas for companies.

Take the Right Decisions
Sometimes, wrong decisions taken by the company management can prove to be quite dangerous for the future of a company. Especially, the decisions regarding purchase of materials, acquisitions of new companies, fixing salaries of employees should be taken after a lot of market research and taking into consideration the financial position of the company. A hasty decision can increase the costs to a great extent again affecting the overall profitability.

Close Down Loss Making Ventures Temporarily
Another idea would be to close down the non performing businesses for the time being. A company generally invests in multiple businesses and if some of these are not giving good profits, then closing the business for the time being can help to save costs. You can re-enter the closed business once the demand in the market for the concerned product picks up and you expect better profit margins in the upcoming quarters.

Cost reduction is a part of effective business management. Availability of options and application of these options to your business are essential factors. The ideas given above will help you to make good profits if implemented wisely. Good luck for the business!
By Charlie S
Published: 12/28/2010
Read more at Buzzle: http://www.buzzle.com/articles/cost-reduction-ideas.html

What is Gross Pay

What is gross pay and how to calculate gross pay? These might be some questions in the minds of many people. This article will help you understand the meaning of gross pay and how calculating gross pay is possible. So, continue reading to know more...
All working professionals must have encountered the terms like gross salary and net salary. Understanding the exact difference between them is absolutely essential to know of one's earnings and financial situation. Once you know what gross pay is and what distinguishes it from your net pay, you would be able to plan your expenses systematically.

Facts About Gross Payment

The definition of gross payment says that it is the total amount of salary or wages paid to any employee by the employer before any kind of deductions made. It is nothing but the total amount offered by the employer for the services being given by the employee in a full year. Your gross pay reflects how much amount is being paid to you by your employer in every pay period.

While trying to understand the concept of gross pay, you need to be aware of two terms-hourly gross pay and salaried gross pay. For calculating the gross hourly pay, you need to multiply the fixed hourly pay rate with the number of hours served by the employee in the pay period under discussion. The technique of calculating gross pay for salaried employees of corporations is slightly different. Every employee working in a firm has a fixed total remuneration. If this amount is divided by the total number of pay periods, you will get the salary gross payment.

When some items are deducted from the gross pay, the amount which is left is the net pay or in hand salary of the employee. The deductions are compulsory and are made from every payment made to the employees. The taxes to be paid to the government authorities are the most important deductions from the salary. These taxes can include the national taxes, taxes to be paid to the respective states in which the employee works and also the local taxes. The second major deduction would be that of the health insurance costs as the health insurance cover is provided by the employer. This too will be deducted on a monthly basis. Social security deductions are also considered while calculating the net income of a person for a year from the gross income. Given below is the formula that will help you calculate the net pay.

• Net Payment = Gross payment - (social security + tax deductions + state and local taxes).

Taking Financial Decisions Based on Gross and Net Pay

Whenever an employer advertises about job vacancies and mentions the salary which he is offering, it is the gross salary most of the time. So, that is why you get a paycheck of an amount which is little less than the promised amount at the end of the month. So, while you consider decisions of opting for a loan or buying anything big, it has to be on the basis of the net income and not the gross salary. This is because in case of a loan availed, you will have to pay the monthly installments from the net salary. Taking an investment call on the basis of the gross income could be a wrong decision that can stress your finances greatly.

So, hoping that this article will help you in proper financial management, I would like to sign off here. All the best and take smart decisions for a happy future.
By Charlie S
Published: 1/10/2011
Read more at Buzzle: http://www.buzzle.com/articles/what-is-gross-pay.html

How to Calculate Gross Pay

How to calculate gross pay? This might be a big question before many people in the corporate world. This article will help to explain what is gross pay and how to calculate the same from net pay. So, continue reading to know more..

There is certainly a big difference between the gross payment and net payment received by an employee. As an informed person, we should be aware about calculating gross pay. There are a few steps given below that will help you know how to calculate gross pay.

Calculating Gross Payment

Calculating gross pay for employees hired on an hourly basis is quite simple. You just need to get the details of the number of hours devoted by the employee at work and multiply that figure with the pay rate. The resultant amount will give you the gross pay for the contractual employees hired to work for a few hours for the company.

When calculating the gross pay for full-time salaried employees, one will need the figures of the annual pay package of the employee as well as the number of pay periods in a year. If you divide the annual salary figure with the number of pay periods, you will easily get the total gross income of the employee in the particular financial year.

Calculating net pay from gross pay and calculating gross pay from net pay is possible if you are aware of what are the mandatory deductions from the total income of the employee. If you wish to know how to calculate gross pay from net pay, then the things you will be needing is a calculator, your monthly salary slip and details of deductions such as tax deductions social security and health insurance amount paid by you. First of all, note down the net salary figure. Then, add all the deductions mentioned above and the resultant sum should further be added to the net income to give you the total gross income. Conversely, calculating net pay from gross pay is easy too. You again need the total of your monthly deductions and subtract the same from the gross income figure to get the net income.

• Given below is the formula for gross payment.

           Gross payment = Net payment + (social security + tax deductions + state taxes).

• Given below is the formula for net payment.

          Net payment = Gross payment - (social security + tax deductions + state and local taxes).

Importance of Gross and Net Income

In the above paragraphs, we have discussed how to calculate gross pay as well as net pay. Both net pay and gross pay are important from the point of view of judging a person's financial strength. They are important parameters to determine the strength of your personal balance sheet. More than the gross income, the net income assumes significant important when you wish to take a loan against your salary income. A bank or a financial institution will be sanctioning loans for salaried people only on the basis of the net income every month. This income figure helps them to know of your loan repayment capacity. Gross pay vs net pay discussion is also important when talking about the corporates after individuals. In case of companies too, you give more emphasis on the net income generated in any particular quarter or year than the gross income.

This content on how to calculate gross pay will enable you to start proper and systematic financial planning and financial management. So, think over these factors carefully before taking any big buying decision. Good luck!
By Charlie S
Published: 1/10/2011
Read more at Buzzle: http://www.buzzle.com/articles/how-to-calculate-gross-pay.html

Fund Manager Job Description

The fund manager job description entails handling financial investments of organizations and large business houses. The investments can be in a wide array of options ranging from mutual funds, stock market, bonds, real estate, etc.

Managing the finances of organizations is not an easy job, fund managers need to have the pulse of the market and ensure that the clients get good returns on their investments. Doing extensive market research is an integral part of the job. Some individuals or firms specialize in certain kind of investments, like equities, bonds, etc. Large private investors also hire fund managers and refer to them as wealth managers. The basic aim of the fund manager is to invest money for the clients and make them a profit. Getting good return on the investment is one of the major tasks of fund managers.

Duties

Fund managers are mostly employed by asset management companies, financial institutions and specialist stock investing firms. Eligible candidates who have an educational background of business schools and have certification from the American Academy of Financial Management will be preferred. Fund managers are in demand especially good ones during these times of economic turmoil. The job description can vary a little for the different specialties, here are a few.

Hedge Fund Manager
Hedge funds are unregulated and therefore have large sums of money invested in low risk and high risk return options. The manager needs to understand the strategy of the investors and study the market making speculative investment. Keen market acumen, an ability to predict market trends and doing lots and lots of research is the main task of the hedge fund manager. The hedge fund manager salary according to statistics stood at around four billion US dollars. A person working as a hedge fund manager also needs to track global interest rates and the changing economic policies of different countries. If you are wondering how to become a hedge fund manager, well you need to at least have a degree from a business school with a major in finance subject.

Mutual Fund Manager
They are hired mostly by asset management companies to take care of investments made on behalf of the clients in mutual funds. Mutual fund managers will have to keep close track of the prevailing market conditions and suggest times to buy stocks or to sell. As mutual funds are professionally managed collective funds, managers will have to carefully invest these funds in stocks, securities, commodities, etc. They will also have to keep track of the international market and prevailing political conditions that might affect the financial markets.

Investment Fund Manager
Organizations and individuals hire investment fund managers for financial advice and to wisely invest their money to make a profit. Investment fund managers will have to do a lot of research about the stock market to find opportunities to make a profit by investing in company shares. They will also identify real estate which can be brought to make a profit by selling it at a later date. Investment managers will also have to liaison with clients and managers from different companies to investigate investment opportunities.

Equity Fund Manager
This job profile requires individuals to manage the funds within one or multiple equity funds, they will also have to interact with investors and liaison with clients for financial planning. They will also have to implement strategies that will help manage the organizations investment portfolio. Monitoring the markets and prepare reports regarding the performance of equity funds on a quarterly basis or as stipulated by the firm. They will also have to oversee international equity funds and therefore have to keep an eye on foreign policies and the international political environment.

Basically, the fund manager entails wisely investing funds for organizations and large private investors and make them a profit. They will have to research and find opportunities in the stock market, mutual funds, startup ventures, real estate, etc.
By Indrajit Deshmukh
Published: 1/28/2011
Read more at Buzzle: http://www.buzzle.com/articles/fund-manager-job-description.html

Chartered Market Technician

Right from graph paper and pencil to the use of high tech computers, chartered market technician jobs have seen tremendous growth in the recent years. Divulged below is some information about the same...
There are trillions of dollars flowing in the economy and expertise in understanding financial markets can hence give you an edge to make promising careers. Thanks to the establishment of the non-profit global organization, 'The Market Technicians Association (MTA)', in 1973, that proper study and training procedure for studying financial markets came into existence. The journey from pencil graphs to high tech computers in the financial markets has been rewarding for numerous chartered market technicians who have been in this profession for a couple of decades.

While some have invented or improved methods of financial analysis, many have moved on to become well established financial analysts, teachers, investors, educators, mentors. Some have even formed their independent brokerage firms. Being a very vast field, several jobs have been an open gateway to target right career opportunities in the financial field.

Becoming a Chartered Market Technician

Candidates who aspire to become Chartered Market Technicians (CMT) must firstly study the official website of the organization The Market Technicians Association (MTA). To become a CMT, the MTA provides certification programs in which candidates are required to demonstrate expertise in a numerous aspects of technical analysis. This exam is conducted in three levels, the first two being MCQs based tests and the last one, an essay based test. In the course of years, the MTA has designated nearly 3000 members worldwide and it has become popular in financial marketing services for training competent candidates. To become a CMT, one has to pass all the three exams conducted by the MTA. Understand that it is not just enough to understand financial pie charts and diagrams and predict few obvious results. Candidates must be able to read as well analyze financial charts and graphs. The relationship between price patterns and fluctuating market - every minute detail must be understood well. Candidates are also given advanced training in numerous facets of understanding the financial markets. It is good to have some background in finance and commerce to become a member of MTA, so that it is easier for candidates to grasp the concepts.

To pass the tests, candidates have to go through 3 levels of tests. In the 1st level, basics of charting methods, terminology and ethics is tested. In the second level, applications like Dow Theory, Elliott Wave, intermarket, etc. is put to test. In the last and most vital part, candidates are tested on essays that must be well researched and written properly.Candidates who have a background in finance, especially a bachelor's degree in relevant subjects, or those who're working in fields related to finance, securities, dealers, broker markets, financial services, fund managers and stock markets can take certifications of CMT to enhance their careers. To join the MTA, one is required to become members of this program and every individual must be sponsored by at least 3 MTA members. There are certain terms and conditions that must be followed by every member joining the MTA and all these have been specified on the official website of MTA. It has to be remembered that passing tests conducted by the chartered market technicians is recognized by U.S. Securities and Exchange Commission and it is also regarded equivalent to passing Series 86/87 examination. This is certainly a great career booster for individuals in the finance field. Even the Financial Industry Regulatory Authority (FINRA) prefers employees who have passed the first two levels of exam as an alternative to the more difficult, the Analysis Series 86 examination for technical analysts.

Chartered market technicians are required in the finance sector for diverse works, just like chartered accountants or certified financial planners. Candidates interested in this career must make efforts to get relevant education and carve a niche for themselves in this segment of the market.
By Kundan Pandey
Published: 1/31/2011
Read more at Buzzle: http://www.buzzle.com/articles/chartered-market-technician.html

Asset Vs Liability

Understanding the comparison between an asset and a liability is of prime importance in today's world where every one is in the race of increasing wealth. The explanation in this article will help you understand things clearly.
Being aware of one's assets and liabilities is essential for all of us. This can help us in judging our financial position. At the time of taking credit from banks and financial institutions, what the lenders will consider is whether your liabilities are in complete control and you have substantial assets which can be used as collateral. The information given below will help you know the exact difference between the two.

Comparing Assets and Liabilities

The day people start earning, they are advised to start accumulating assets and have a strict check on the liabilities. Assets are those things which help you earn cash whereas liabilities are those purchases for which you have to make regular payments. Some objects included as liabilities can turn into assets in certain situations. The best example for this is a home bought with a bank loan. On your home loan, you pay the monthly installments and hence there is out flow of money In this particular case, the home would be considered as a liability for the person. In another case, let us assume that a person is an owner of a home and he has decided to rent his home to someone for a fixed rent every month. This means that the owner would be making a certain amount in cash every month and this will add to his total monthly income. This added liquidity makes the home an asset for the person. So, the situation and circumstances can convert an asset into liability and studying these circumstances carefully is essential or proper financial planning or financial management.

The comparison of assets and liabilities suggests us that the total amount of assets should always be higher than that of the liabilities. By following this rule, people would be able to stay in a good financial health. You should also be aware of which assets can give you the maximum returns and help you increase your net worth several times. Over the years, it has been observed that stocks of bluechips have given over hundred percent appreciation to investors having a long-term investment horizon. So, stocks would definitely top the high return assets. At the same time, they would also be called the high risk assets since stock prices are fluctuating and can give huge losses in times of market crashes. So, the stocks would be a good asset class for the investors who can take more risks and have the ability to bear losses at times.

Mutual funds are known to be the finest assets a person can possess over the years. Mutual funds are available in different formats and can be safe investment bets due to their diversified nature and proper management by fund managers. Again, there are types like high risk high return or low risk low return fund which investors can think of while putting in their money. Bonds, which are loans forwarded to corporations for their expansion plans are also an excellent example of long-term assets since the returns for bonds are enjoyed by the investors for many years. While cash can be the biggest liquid asset a person can have, rentable properties, gold and silver and bank savings and deposits are also assets which one cannot ignore.

Credit cards, loans from banks, car for self use are some common liabilities for people. In today's times, taking right decisions regarding asset acquisition and maintenance can benefit an individual to a great extent. So, hoping that this article has helped you to know these concepts well, I would like to sign off here. Good luck!
By Charlie S
Last Updated: 9/20/2011
Read more at Buzzle: http://www.buzzle.com/articles/asset-vs-liability.html

How to Calculate Retained Earnings

In the field of accounting, analysis of financial information is fast becoming an important function. To execute such analysis, one needs several ratios and percentages. Retained earnings is one such percentage. The following article, describes the process that is used to compute retained earnings. Let's have a look...
The concept of retained earnings is applicable in cases where the enterprise is a company, corporation or a company where dividend is paid as a reward to the investors, owners and shareholders of the company. Thus the formula of retained earnings is also applicable for partnerships or sole trading concerns which share profits with their investors.

Significance of Retained Earnings

Retained earnings have a progressing formula, that is, such earnings are calculated by subtracting losses/expenditures from profit/incomes and then, the dividend or rather profit is subtracted from the same. This leaves behind the figure of retained earnings. Depicting retained earnings in the balance sheet final accounts, is a compliance as per some Accounting Standards and some Generally Accepted Accounting Policies (GAAP). The significance of this left over money is that it is used for reinvestment or for investing into other operations, such as expansion or in some cases, it is simply put in to a proper growing investment fund or even a bank account. Basically, this kind of surplus constitutes the savings of the company.

Retained earnings are to be depicted in the balance sheet, in a format as prescribed by law. This compliance is basically an accountability compliance, as it gives a fair picture to the shareholders, who are after all owners of the capital of the company or business.

How to Calculate Retained Earnings?

The calculation of retained earnings is a four step process. Now when it comes to computation of retained earnings, the retained earnings of the previous year are also included. However for the first year of the business, which known as 'Beginning Retained Earnings' or Beginning RE, is not included. The formula, nevertheless remains the same. So here goes...

Step 1
In the first step the 'profit' or rather the revenue that has been generated and earned by the organization is calculated. This involves income of the company and the total expenditure, which gives the total earnings of that very accounting period. The formula goes as:

• Total Earnings = Profit (-) Loss or, Income (-) Expenditure

The total earnings is often also known as gross profit. There is however a bit of a debate over the use of the term 'gross'. As gross does imply income minus expenditures, however there are some additional inputs into the formula such as taxes and duties or depreciation of sales inventory on the expenditure side of the formula. Hence total earnings is used. In some cases, the earnings are also computed by subtracting direct expenditures from sales. The formals differ from company to company and the method or formula that is more convenient is taken up.

Step 2
The next step involves the computation of certain compulsory deductions that have to be subtracted from the total earnings. These principally include, depreciation, taxes, duties and other deductions. This gives us the net income or net profit. The formula goes as:

• Net Income = Total Earnings (-) Depreciation (-) Taxes (-) Other Deductions

The word 'net' implies that the depreciation and taxes have been deducted. As per some conventional systems and regional accounting standards and policies, retained apart from taxes and depreciation a lot many deductions are connoted in the net earnings. For example, overheads, defaulted debts, etc.

Step 3
In this step, the dividends paid, interest (such as bonds and debentures) as under profit sharing schemes, and other transactions where profit is shared are deducted. The procedure depends upon the working system of the company, the current issue of dividend, bonus shares, preferential stock treatment, etc. In real life this is the most crucial and also the most difficult step, owing to the fact that there is a lot of compliance involved. Securities governance bodies, such as United States Securities and Exchange Commission, legislation's governing the business, taxation norms and other laws and compliance that are involved are not just important but are crucial. The rate at which the dividend is supposed to be issued is ascertained by the broad of directors, who are elected by the shareholders themselves.

Step 4
This is of course the last step, here following final formula for retained earnings is applied.

• Retained Earnings (for accounting period ...) = Beginning RE + Net Income (-) Dividends and Profit Sharing

For the first year of course, retained earnings would be computed without the Beginning RE. In some cases the figure is also converted into a percentage. There is no limits with regards to the accounting period for which the formula can be applied, it can be applied for weeks, months, days, etc. On an average it is applied to a year. In mammoth sized companies, a retained earnings statement is prepared and analyzed by the management on a daily basis.

As mentioned above the figure of retained earnings is depicted in the final accounts of several companies. This is due to the fact that these earnings depict to the shareholders the total amount of surplus cash that the company. From the management and company's point of perspective, retained earnings depict the total amount of cash that it has in its pocket to spare. This helps the management to assess performance, make plans for the future and map out future strategies, and make provisions for the welfare of the employees themselves. I hope that the elaboration on retained earnings is resourceful.
By Scholasticus K
Published: 3/1/2011
Read more at Buzzle: http://www.buzzle.com/articles/how-to-calculate-retained-earnings.html

Cost Saving Ideas for Hospitals

This article provides you with some simple yet effective cost saving ideas for hospitals that can help you control the finances of the hospital efficiently.
Running a hospital is no cakewalk. Handling a huge infrastructure with dedicated departments along with a number of doctors, health care providers, and of course, the endless patients, is no doubt, very difficult. It needs lots of management and organization in terms of hard work, energy, and finances. Yes, believe it or not, money is the thing that keeps everything going so having adequate finances is very essential for every organization in order to keep it running smoothly and hospital is no exception. Running a hospital requires a lot of money, firstly to build the infrastructure which is relatively an easy task and secondly maintaining that infrastructure efficiently on a daily basis which is certainly a challenging task. You must be aware of this fact if you are already into this stream, especially, in the nonprofit or charitable hospital where providing people with health care service earns you no money. Well, but do not worry, this article tells you about some of the promising ideas and methods that would help you in better cost control management. Take a read.

Money Saving Ideas and Tips for Hospitals
Energy Saving: Auditing your energy costs regularly is very important so that you know how much you are spending on electricity. Just analyze how much unnecessary energy or electricity is used in the hospitals. So to cut down on energy, installing energy efficient lights and other equipment is a wise option. Such equipment and lights may be a little costlier, but they certainly help you save a lot of money in the long run.

Using Machines: Yes, machines help you cut down on unnecessary resources that you must be utilizing to perform certain tasks. And some tasks are better performed by machines. For example, instead of keeping an expert accountant get an accounting software downloaded in the hospital computer which an average person too can operate. It is also one of the best ways to minimize errors and mistakes in work which eventually require more energy and money to correct.

Say No To Paper: Not only in toilets but all over the hospital. Just analyze how much you spend on paper in general. Be it maintaining documents, collecting data, preparing reports, and of course, paper towels in toilets. Instead, do everything on computers, having a soft copy of everything saves you a lot of money that you would spend endlessly on papers. Also install a hand dryer which will save you money in the long run.

Reduce, Reuse, Recycle: Remember this mantra every time you think of cost cutting in any field. In many hospitals disposable tools and utilities are used which obviously needs to be replenished once over. But using tools and utilities with reusable value can help you save a lot of money. For example, many hospitals have substituted their disposable surgical towels with washable surgical towels which has helped them save a significant amount.

Employing an Efficient Staff: This is one of the best cost saving ideas for hospitals. Having a staff which is resourceful and talented can prevent you from spending further. So make sure to employ people who can multitask, of course, for the not so skill oriented jobs. Apart from this, reducing the working hours can also benefit you if you pay on per hour basis.

Generating Revenue: Generating revenue can help you increase the budget for the smooth running of the hospitals. There are various ideas that you can employ to generate money. For example, having a cafeteria for the relatives of the patients, starting a gift shoppe, or running a pharmacy owned by the hospital can help you generate additional revenue for the hospital.

Apart from this, buying equipment, services, and supplies in bulk, hiring volunteers instead of staff members, organizing fundraising programs, and establishing a budget process can also help you save a lot of money. These cost control strategies would surely help your hospital come over the financial crunch it may suffer from.
By Geeta Dhavale
Last Updated: 9/20/2011
Read more at Buzzle: http://www.buzzle.com/articles/cost-saving-ideas-for-hospitals.html

Home Topics Financial Management 44 Finance Director Salary

A finance director holds one of the most important positions in companies belonging to all sectors of the economy. This article contains the relevant and important details about the job profile and salary of a finance director.
The need for experienced and highly qualified finance professionals is rising these days due to the increased competition in the market. Finance directors are supposed to oversee all the financial transactions in the company for the benefit of the organization. These professionals are generally pass-outs of reputed business schools, and are hired at very high salaries.

Job Description

The job profile of a finance director consists of taking big financial decisions to make the organization's financial position strong. He studies the current financial position of the company and sets aims or goals for further expansion. He makes policies for growth and explains it to the middle management and lower level employees as well. His functions also include accounting, budgeting and taxes. He also has to convey the company's current position and his plans to the board of directors, and discuss all details with them personally. He studies the debt to equity ratio, balance sheet, profit and loss accounts, and financial reports to take the right decisions for his firm's prosperity. Establishing cash controls, management of investments and ensuring that employees working in the finance department get the right training and exposure, are also among his duties. In many companies, finance directors conduct press conferences to help investors/stakeholders know about the expansion plans and financial situation of the company.

Educational Requirements
Becoming a finance director takes several years of hard work, consistency in performance and a positive attitude. To begin with, you need to pass out with a graduation degree in subjects such as finance, accounting, economics or business administration, from a renowned university. A master's degree will naturally enhance your chances of securing greater employment. Internships in finance firms and practical working experience help in getting higher level positions. Having sound accounting and computer knowledge is imperative for all candidates. Apart from this, excellent communication skills, interpersonal skills, logical thinking ability, problem solving skills, analytical skills and language skills are a must for this position. While applying for this job, you should make sure that your resume is perfect and well drafted. Taking help from experts to prepare a resume can help a lot.

Salaries

The average finance director salary is much higher as compared to senior level positions in other sectors. In the United States of America, a qualified finance director can earn a median salary of around $200,000 per year, which is absolutely stunning. However, their salaries also depend on the type of employer, location of the job and work experience. Finance directors earn a very high salary in large metropolitan cities as compared to smaller cities and towns. Those working for financial service majors will make more money than those working for relatively smaller firms.

The finance director salary range can be between $75,000 to $300,000 per year. It also depends largely on bonuses, stock options and incentives, which they are entitled to. The bonus payment again depends on the financial health of the company and overall economic conditions. Having said this, the average salary has been pegged at around $100,000 per year by industry experts.

If you are interested in making a career in the field of accounting and finance, then this is the right time to jump into this field, because the economies of most nations are picking up after the recession, thus creating many good jobs. All the best and make the most of the opportunities that come your way.
By Charlie S
Published: 4/25/2011
Read more at Buzzle: http://www.buzzle.com/articles/finance-director-salary.html

Money Management Skills for Kids

Parents must try instilling money management skills in their kids, in order to help them understand finances better and much earlier in life.
Parents wish to empower their children, so that the latter can take life head-on when the time comes. Providing them with the knowledge and the skills to deal with challenging situations responsibly is a crucial part of any upbringing process. Most schools and activity groups do not teach your child important management skills, as their interest in your child can never match up to yours. Learning the importance of money and having the ability to manage it, are skills that are acquired at a very young age. Teaching your child how to value money and to manage within the means, can help your child in a lot of ways in the years to come.

Money Management Tips for Kids

Allowance
Today, the teen years begin at 10, making it the new 13. Over exposure to the fast changing world has changed demands of the kids as well. With expensive demands as such as gadgets and other fancy items, making them earn it is an excellent way of making them value money. Giving your child a fixed allowance every month and paying them incentives for doing a few household chores, will help them understand that resources are always limited. Teach them to save up this money buy what they want. If the item is very expensive, then you chip in half the amount or so, if your child is able to save half for a certain period of time.

Monthly Budgets
Buying stationary is the biggest expense that kids have all through their academic year. Sit down with your child and make a budget for the things that he / she wants for the month. Books, games and other miscellaneous items, that are usually on your child's shopping list should be managed within a budget. Making such budgets will teach your child how to prioritize demands as well. Allocation of resources and comprehension of your own financial situation is brought out through the activity of making budgets. It is also a way of learning to let go of some demands, to satisfy a few others which are more important.

Expense Checkbook
Maintaining an expense checkbook is one of the most important money management skills for kids. It is extremely important that you teach your child how to maintain an account for the money, besides how to spend it. A record of expenses will give you child a guideline as to where and how the money is being spent. Knowing how much you have and how much is spent, helps you value the limited amount of money better. Of course, there will be times when your child will overspend and ask you for a little more money. Do not be too hard on your child. Allow a credit limit that your child will be able to pay back through his or her allowance.

Saving Plan
These are not saving plans for college or the next academic year, but say for an activity in the summer vacation. Budgeting will show your child how much part of the allowance is supposed to be spent, and how of it is supposed to be saved. You can make a few additions to this amount by giving your child monetary rewards if he / she performs well at school or helps out at home.

In a nutshell, money management skills for kids is about making the right choices, in order to reconcile the demands with limited resources. Besides money management, these tips will help your child to be more independent, understand the importance of prioritizing, self-control, and being practical. Starting early will give you an edge over other parents, as younger minds are easier to mold.
By Mukta Gaikwad
Published: 5/25/2011
Read more at Buzzle: http://www.buzzle.com/articles/money-management-skills-for-kids.html

How to Become a Finance Director

Finance director is a senior level position in the company management and is considered as one of the most respectable jobs in the world of banking and finance. This article will try to explain how to become a finance director.

The finance department is one of the most important departments in any type of organization. This department has to handle financial transactions of the firm and plan on investments and raising of funds for funding ongoing projects. As no project can be completed without money, the job of a finance director assumes further importance. Finance directors work in the areas like resource management, strategic planning, preparation of a financial budget for the financial year, supervising company's financial performance and preparing financial reports for outside agencies like creditors and shareholders. Ensuring that the firm's asset quality is high and debt levels are comfortable, are also some of the responsibilities of this job. Being the leading person in the department of finance, the finance director has to form teams, assign work and help in planning as and when they need. In short, the ultimate aim is to make sure that the firm achieves its financial goals or objectives in a planned way.

High School Preparation
Sincere efforts taken during this stage of one's educational career pays off greatly. So, take special effort on subjects like economics, finance, mathematics, English and computer science while you are in high school. Get excellent grades so that you are not denied admission to top business schools to get deeper knowledge of finance.

Get Your Graduation Degree
Getting a graduation degree in accounting or finance is essential to pursue this profession. If you look at the track record of the Chief Financial Officers (CFO's) of top companies, you will find that all of them have passed from top business schools. So, you need to try to do your MBA in accounting or finance from the top business schools in the US. As a student of finance, you should have ability in the following areas:

• Financial management
• Managerial economics
• Management accounting
• Costing and budgeting
• Preparation and analysis of financial statements
• Mergers and acquisitions
• Fundraising through different routes

During the course of your study, you will be taught these subjects by expert faculties, hard work and passion for knowledge can lay a strong foundation for a successful career in finance.

Intern at a Major Finance Firm
During the business management course, students have to do their summer internships in financial and banking giants. Here, they get practical work experience and can apply their classroom knowledge. You will need to have good educational record to get internship at top firms in investment banking and asset management. A successful internship can help you get final placement in a top firm after you compete your course.

Become Auditor/Accountant/Finance Associate
After you complete your university education, you need to work as an auditor/accountant (junior level) initially for a few years. Then, with proven ability, you can become senior accountant or senior business analyst.

Become Assistant Finance Controller
Becoming assistant financial controller/assistant manager would be your next target after gaining experience in accountancy and auditing. By working at a managerial position, you will be able to sharpen your business skills and prepare yourself for future challenges. It would take around five years to become assistant finance controller.

Enter the Senior Management
To become a finance director, you first need to enter the senior management of the company. This is possible after gaining around ten years of experience in the field of finance. As a senior management professional, you will be involved in strategic planning, decision-making, chalking out expansion plans and fundraising. After spending some five to ten yeas in senior management position, you can then be eligible for this position.

The salary in this field can be between $120,000 to $300,000 or even more. By following the above step and taking keen efforts, you will be able to secure your career in the future.
By Charlie S
Published: 6/7/2011
Read more at Buzzle: http://www.buzzle.com/articles/how-to-become-a-finance-director.html

Financial Management

Information on how to manage your finances to achieve the designated goals. At the heart of successful business management is efficient and effective finance management.