Posts By Gavin Griffin

Making a perfect financial plan

Making a perfect financial plan

The business plan includes a financial plan that comprises of different financial statements which shows where the organization is standing currently and where it is expected to be in the future.  The plan will help you in determining the amount of finance the business needs and also helps others in understanding whether it is wise to invest in your company.

Structuring the plan

The first thing one need to decide is the ways you are planning to raise the funds for your business.  Banks and financial institutions are the obvious choices many people opt to raise the money. You also have to work out the amount required to raise the short-term capital loan to meet the working capital requirement and the long-term loan to meet the purchase expense of larger assets. One can also look at raising funds through the online trading of digital currencies to meet short-term needs. Applying loan to banks will be a good choice to raise money for long-term needs.

Once your fundraising part is decided on, then you need to concentrate on the 3 most important financial statements:

  • The cash flow statement
  • Income statement
  • Balance sheet

The cash flow statement or the cash budget- This statement shows the sum of money that is expected to come in and go out of the business in a particular time period. The topics which one needs to predict involve:

  • Sales forecasting
  • Credit receipts vs cash receipts
  • The time frame for the collection of accounts receivable
  • How often the expenses will incur
  • The time frame to pay the supplier

The cash flow statements show that the business is financially viable and helps in establishing the goals you wish to achieve

Profit and loss statement- The income statement gives a summary of the company’s expenses and revenues. Revenues are the organization’s sales and any other source of income it receives. The expenses comprise of the cost of all the goods sold. The bottom line of the income statement shows the organization’s net income that is revenue minus expenses.

Balance sheet

The organization’s balance sheet shows the company’s assets and the liabilities. The asset of the organization should match perfectly with the liabilities. This is quite an important statement as it shows the organizations current financial position for a particular point in time.  It helps you to give a better viewpoint with regard to the working of the company.

 

 

 

 

Forex Trading Basics

Forex Trading Basics

We often see Forex exchanges in places like airports or banks. Forex is basically a foreign currency exchange, in short, the exchange of currency of a country for other countries currency. People usually exchange the currencies when they are visiting other countries. They need the local currency of that particular country to buy food items or pay for the shopping. But apart from this, the Forex can be traded like any other financial assets. It is often said that Forex trading is one of the easiest ways to gain profit. Nevertheless, Forex trading also needs as much discipline, skills as efforts as other trading markets. Hence, before thinking about trading Forex, it is important to understand how it works and the risks involved. Here are a few basic concepts every one dealing with Forex should know.

Eight Majors:

The stock market has various stock options that the investors can choose from. But the Forex market or currency market deals in mostly in eight major currencies. Following are the eight countries that have a major contribution in the Forex market.

  • New Zealand
  • United States
  • Switzerland
  • Eurozone (top listed ones are Spain, Germany, and France)
  • Australia
  • Japan
  • United Kingdom
  • Canada

Forex traders can take benefit of making profits through interest by focusing on these major countries. The currency rate data for these countries is available on daily basis, making it easy for Forex investor to decide their strategy in Forex trading.

Yield and Return:

Forex trading works on the concept of yield initiatives return. The spot market in Forex trading is when you exchange a foreign currency for other on the spot. All the currency rates are mentioned in comparison of other currencies, for example, the USD/INR association is mentioned as $1 is equal to ₹68.72. Hence in Forex trading, you are buying one currency while selling the other, earning interest on buying currency while paying interest on the sold one.

It is important to watch the Forex market the currency values keep changing every day. There are many Forex brokers in the market that can help you in deciding what the right option for you is. Also, referring to the informational website can help you know more about Forex trading and scams.

Conclusion: Because of the electronic trading platforms, Forex trading can be done more easily than earlier. Traders can start by trading small amounts to learn more about the Forex trading markets. For others who would like for long-term investment options can study about a carry trade and other fund pools in more details.

How to choose the right online trading platform?

How to choose the right online trading platform?
Life gets good and profitable by making the right choices at the right time. We do not generally know what the right thing to do is, as we have several opportunities lying in front of us. When it comes to wealth management, we are very much excited. In that energy, we usually tend to take fast decisions and make the bad choices leading to drastic changes in our savings pattern. This is highly observed in the cryptocurrency and forex trading environment. Very rarely do we directly sit and trade. It is a trending reality that we are giving the entire responsibility to automated trading robots and wait to make money. But, how to choose the right robot?
Characteristics to consider for the right robot
We have to first consider the overall performance of the system. This can be done by analyzing them in detail by understanding when it was first established and also the gain factor. The gain factor can be calculated based on the profits gained based on the sum of deposits. The drawdown factor is also an important point in this regard. This signifies the range which is calculated as the difference between the highest and the lowest trade made. The total profit sum made from all the trades positive trades made versus the negative trades made will also be a definitive factor. The total trades made will also give a fair understanding of how active the system was during the past, present and how it will be in the future.
Keep viewing these parameters over a period of time and understand which the best performing robot that can be used is in the autopilot mode. The forex robots and the crypto robots are developed with intelligent systems and algorithm patterns to analyze the market trends and forecast the best option that is possible. They are provided with user-friendly interfaces and easy features to get through the entire system at a glance. We will have time to learn and interpret the market trends and understand how the robot utilizes the opportunities to make the right choice. They make good predictions that are commendable. Investing in the right software system will make help you understand the market statistics. In case of any direct assistance, we are provided with a good customer support team. This is the essence of choosing the right robot.

Know Deeply The Accounting Dimensions Of Auditing

There are definitely some accounting standards like materiality associated with the auditing process and the auditor must take this prospect into account while conducting an audit.

  • One such materialistic parameter is the intended wrong statements made by the managers on financial information mainly for economic benefits. Even though the materiality depends on amount and quality of the items, they are being judged here in accordance to their relevance to related circumstances. Usually, they provide a threshold value which turns useful for the auditor.

 

  • The auditor is independent to express his feedback and opinion about the financial statement made by the company officials which should stick to the framework of the standard accounting policies and other statutory regulations. Actually, this so-called process is the real-life assessment of the materialistic aspect of professional judgment.

 

  • The notion of materiality identifies its importance with some financial matters either in specific account details or collective transactions state that is really needed for the true and fair representation of the financial accounting process.

 

Apart from this, materiality has certain legal and regulatory characteristics based on financial information and its link to transactions or economic accounts. Hence, there are different materiality categories depending on the subject being presented for auditing.

 

  • The auditor always set a characteristic materiality level that is acceptable to identify any type of miswording both in quality and quantity. Example to such situations includes a state when the user address or interprets the wrong financial report on the accounts that have a wide deviation from the accounting policy.

 

  • Further, the auditor should be able to guess the chances of the fake assertion of statements even if it is in relatively small amount as in future the cumulative effect of the same can lead to a large materialistic effect on the monetary section.

 

  • Usually, for an auditor, the factor of materiality is considerable while accounting for
  1. The lengthy process of auditing
  2. Assessing the consequence of misstatements

About the ongoing auditing affair

  • The association of auditing standards has issued certain laws with regard to checking on the appropriateness of financial statements made by the concerned institutions. Further, the auditor should ensure whether these are followed by pointwise.
  • The financial report prepared by the auditor is truly helpful in establishing the credibility of the venture even if it does not guarantee the future sustainability of the same.
  • Moreover, the records on the assets and other liabilities of the business firms have to be re-accounted each year so as to provide a fair account of the financial statements.

What is Hash?

A hash is a capacity that changes over a contribution of letters and numbers into an encoded yield of a settled length. A hash is made utilizing a calculation and is basic to the blockchain administration in cryptographic money.

The foundation of a digital currency is its blockchain, which is a worldwide record shaped by connecting together individual squares of exchange information. The blockchain just contains approved exchanges, which averts false exchanges and twofold spending of the money. The approval procedure depends on information being encoded utilizing algorithmic hashing. The subsequent encoded value is a progression of numbers and letters that do not look like the first information and is known as a hash. Cryptographic money mining includes working with this hash.

Working

Hashing requires handling the information from a square through a numerical capacity, which brings about a yield of a settled length. Utilizing a settled length yields a strong security since anybody endeavoring to decode the hash won’t have the capacity to tell to what extent the information is basically by taking a gander at the length of the yield.

Preparing the hash capacities expected to encode new squares requires generous PC handling power, which can be expensive. Keeping in mind the end goal to lure people and organizations, alluded to as miners, to put resources into the required innovation, cryptographic money systems compensate them with both new digital currency tokens and an exchange charge. Diggers are remunerated just in the event that they are the first to make a hash that meets the necessities put forward in the objective hash.

Unraveling the hash is basically taking care of a complex numerical issue, and begins with the information accessible in the square header. Each square header consists of a rendition number, a timestamp, the hash utilized as a part of the past square, and the objective hash.

The miner centers around the nonce, a series of numbers. This number is attached to the hashed substance of the past square, which is hashed by itself. In the event that this new hash is not exactly or equivalent to the objective hash, at that point it is acknowledged as the arrangement, the miner is given the benefit, and the square is appreciated to the blockchain. Decoding the hash requires the digger to figure out which string to utilize as the nonce, which on its own requires a lot of experimentation. This is on account of the nonce which is an arbitrary string.

What the Future has in store for Cryptocurrency?

Digital money is the cash that is computerized and utilizes propelled encryption systems for a generation known as cryptography. Digital money made the jump from being a scholarly idea to (virtual) reality with the formation of Bitcoin in 2009. While Bitcoin pulled in a developing following in ensuing years, it caught critical financial specialist and media consideration in April 2013 when it topped at a record of $266 per bitcoin in the wake of surging 10-times in the first two months.

Bitcoin made a market estimate of about $2 billion at its pinnacle, however, a half dive presently started a furious level-headed discussion about the fate of cryptographic forms of money all in all and Bitcoin specifically. All in all, will these elective monetary forms, in the long run, supplant regular financial measures and advance to attaining a presence similar to dollar and euros in the upcoming years. Or then again are digital forms of money a passing craze that will fire out after a short time? The appropriate response lies with Bitcoin.

Bitcoin – the Current Standard

Bitcoin is a decentralized cash that utilizations distributed innovation, which empowers all capacities, for example, money issuance, exchange preparing and checking of all things to be done to which is considered by the system. As this decentralization offers Bitcoin exempt from government control or obstruction, the other view is that there are no specialists that assure a smooth run or provides guarantees the value of a Bitcoin.

Bitcoins are generated through the process of mining that needs strong PCs to break down the complex calculus and figures out the mathematics behind it.  They are as of now made at the rate of 25 Bitcoins like clockwork and will be topped at 21 million, a level that is relied upon to become to in 2140.

Such features make Bitcoin different from the fiat cash, which is in-turn backed by complete certainty and approval by law. Fiat money issuance is an exceedingly unified movement administered by a country’s national bank. While the bank manages the measure of money issued as per its fiscal strategy goals, there is hypothetically no furthest point of confinement to the measure of such cash issuance. The estimation of a Bitcoin is entirely subject to what financial specialists will pay for it at a particular time. Also, in the event of overlapping of the trade of Bitcoin, clients having Bitcoin adjusts do not have any reactions to recover it

Ensuring the Bitcoins

Ensuring the Bitcoins

 

Bitcoin and Blockchain technology have found newer ways to envelope the payment methods that have changed the way things were moving, from a slower pace into highly variable and purely digital environment, covering for the losses in case of theft of Bitcoins. This poses to be both an opportunity as well as a challenge for the digital world; increasing dependence of the coin currency has raised awareness among the users to make the payments using the coin currency, however, they have their own apprehension about how safe the premiums paid through Bitcoins are in the digital wallet of the insurance companies.

 

The security is very high when it comes to dealing with the cryptography-based digital coding of the highly sensitive transactions, using the Bitcoin as a medium to control the creation of additional currency units. The loss of any central authority governing the virtual transactions put them in a high-risk zone making it vulnerable for the coin currency itself to be insured from the theft and hacking problems that are creeping in silently. As the IRS has tightened the regulatory norm of attracting tax on the bitcoin currency, any sale or purchase of the coin currency will attract capital gain tax. The benefit of the ruling, itself legalizes this as tender, hence the usage of the bitcoins the foremost in the cryptocurrency saga, to be invested by all without having any apprehensions.

The coin currencies have a major positive impact in the insurance sector, as more policyholders are willing to remit their premium payments in digital currency, as they have created a new class of assets, the value of premium payments have risen once they are converted into the $ equivalent. The only concern is that the value of the premium may reduce when the conversion to the dollar is done.

 

The Insurance industry has responded to the spate of virtual currencies that are flooding to be done thought the crypto-based payment gateway, read more about QProfit System to understand if the trading itself can be insured against the risk of theft. The coins in the trading account, the QProfit System has the advantage to deal in peer-to-peer currency. The insurance companies are slowly responding to the positive outcome of bringing the Bitcoin-based insurance against the theft of coins, as well as payment gateways to facilitate premium, and claim payments, so that a separate class of decentralized coin based separate wing for the crypto-based transactions is provided.

 

 

 

 

Crypto Currency Tokens In Insurance

Crypto Currency Tokens In Insurance

 

Once you decide to take part in the Initial Coin Offering, the tokens allotted to the purchaser that is stored in the digital wallet that the buyer creates. The intrinsic value of the coin currency that is not in physical form is valued for its composition, and a promise to pay the bearer of the coin currency, all this has been there from the era’s bygone. However in the process of decentralization, there is no promise to pay nor there is any ownership of the asset of the real world, everything is a business model that translates into the real world asset, as the token grows in the trading platform.

 

The possible uses of the token in the Insurance sector are:

 

  • using these token as a form of paying the premium by the users is easy and recordable at every single point of transaction, and claims settlement are also easy by way of depositing all the medical expenses in the digital wallet of the user
  • the tokens can be used for transferring between a wider market reach, within or outside organizations, in a multinational industry
  • giving the incentive-laden industry in form of tokens is a hugely successful venture that is delved in, with the number of policies exceeding the target specified can be allotted token in the digital wallets that can be used to make payments or purchase stocks, read more about QProfit System, for the details about using the tokens used for buying and selling of shares, the QProfit System by far has a wider reach online than offline trading platforms
  • with blockchain enabled technology can the tokens be used for the insurance sector with a high saving cost in the transaction processing and also save a lot of time with faster connectivity and the high-end speedy process is all that is required by insurance companies
  • the financial coverage of the losses that the policyholders are looking for, the premium paid by the policyholder is capitalized and paid against any claims lodged, the premium amount is used as a reserve, if that amount is invested in a volatile market, then the risk exposure is high

In case both the insurer and the policyholder adopt the token-based policy premium payments, the solvency requirements have to be considered, before accepting the coin based currency, the token volatility could affect the promptness in settling the claims in general.

 

 

 

Risk management techniques in Forex Trading

Risk management techniques in Forex Trading

One of the most important aspects of trading that are often overlooked by novice traders is risk management. One or two bad trades can eliminate all the profits that you accrued.  Having a risk management strategy or a policy in place must be one of the first steps that you must take as a trader as this will minimize your losses and even bring in profits. Remember even the best trading strategy cannot save you if you do not have an effective risk management system in place.

Before we plunge into the risk management techniques you must know about :

  • Value of PIP
  • Stop loss.

How will the value of pip influence your trade?

One of the most important points of risk management in forex trading is how the value of pip behaves; it is paramount that you know what happens if the pip moves up or down. Calculating the pip value will tell you exactly how much loss or profit you will make from a single lot based on the movement of the selected number of pips.

Stop loss in forex

It is common sense that controlling losses is the main motive of the risk management strategy. Everyone knows that you have to stop trading when your losses mount and you have to do that with a stop loss order. While the whole concept is simple the execution is tricky and complicated. As is the norm, you must set a stop loss at the beginning of any trade so that your trading position closes as your losses reach the earlier set limit.

Now comes the sticky part wherein you have to decide where to set the stop loss. Once it is set do not back off or move away from it no matter what the market position. To begin with, keeping your stop loss always at a static price. This is highly advantageous because the risk to reward ratio will remain minimum and this will ensure that your career as a trader is not destroyed by one single trade.

Conclusion

Entering the single largest financial market in trading requires a lot of guts and clarity of thought. If you are hesitant you can try your hand at any of the demo accounts provided by several traders or venture into automated trading systems like the Ethereum Code. If you are interested you can continue reading about it and make an informed decision, after all, it is your hard earned money that is at stake.

 

 

Can I pay my Insurance Premium in Crypto Currency

Can I pay my Insurance Premium in Crypto Currency

 

Captive solutions are part of the new age solutions that are offered to use the cryptocurrency as payment methods in the future. Alternate ways to transfer the risk is important in today’s landscape as the nations are busy in determining the value of the cryptocurrency. Since they are still considered a speculative subject, accepting them as a payment method is still in the nascent stages, to use the underlying technology and use it to permanently change the financial world.

 

The distributed database used by the various trading platforms, to be independent of the banks and other central authority, read more about QProfit System, like a huge self-managing system of accounting. It records and saves all the transactions carried out in the cryptocurrency based

QProfit System using the same entry and exit point in the peer-to-peer approach of networking equally. As different computer interacts with each other there is no supervisory element required for crypto-based transactions, with great speed and accuracy.

 

The major advantage of using the coin based currency system to pay for services is a unique and a path-breaking concept that is gaining momentum with high accuracy and security. The potential simplification and efficiency are capable and broad, and the enormous pressure to modernize and reduce cost has made insurance companies to look beyond and use the technology and involve the intermediaries. Using the blocks and record, the transactions and making the best use of the payment system resulting in the accurate account balances and verifiable crypto enabled transaction records.

 

The existence of smart contracts and payment through the cryptocurrency are constantly a subject of discussion that insurers are ready to use and benefit spreading the awareness to the other peers in the industry promoting the underlying the technology and the payments to go through the crypto medium. The big five insurance companies are steadily increasing the partnership in the Bitcoin-based Insurance Industry Initiative and huge network. the extent to which shows the level at which the benchmarking is done for transactional payments like an insurance premium claims payment, that is considered to being the blueprint stage.

 

The Future has a clearer vision for the insurers to involve payments through coin currency that is highly secure and can store the digital records including the important document encrypted in the client digital wallets, for a safer and complete record of the trail if information that is required for future purposes.