May 2018


Overcome Financial Anxiety – Dealing With Financial Fears


You are not earning the same as before and your savings are all gone. No matter how hardworking you are and no matter how hard you tried to save, you still find yourself in a financial mess. You’ve been receiving notices from your creditors because you haven’t settled your payments until now. Your house mortgage is due by the end of the month and you are not sure how to pay the bill. You have to pay your medical insurance and you have kids going to school. Financial difficulties can bring stress, fear and anxiety to anyone but there are ways to overcome financial anxiety.

All of us suffer from financial stress and anxiety. Financial difficulties are common problems most of us experienced from time to time. The status of the economy and other personal issues like sickness and death in the family can lead to financial woes. Managing financial anxiety is not easy. Although it takes a lot of effort and assistance to overcome financial anxiety, there are solutions to your problems.

Financial stress can affect you physically and psychologically. You will find yourself unable to sleep at night worrying about your bills and finances. It is difficult for you to accomplish anything that needs concentration because your mind is scattered and you simply cannot focus. You become irritable or bad-tempered and restless. The fact is, suffering from financial stress and anxiety can affect your behavior as well as your health and it can make you sick.

How to manage financial anxiety? To overcome financial anxiety, it is important that you are on the best of health. If you are experiencing sleepless nights and high levels of anxiety, you need to see your doctor and make sure you are physically and mentally healthy to face all your problems. Unbearable stress is not an easy thing to handle and there are people who suffered from nervous breakdown when faced with financial problems. So if you feel that you cannot handle the stress on your own, do not hesitate to seek help.

After taking care of your physical and psychological health, it is best to consult a financial adviser or planner to help you overcome financial anxiety. Financial experts can help you realize your options. It is important not to hide your real financial situation. Be honest and disclose how bad your situation is. At first your financial planner may want you to come up with a workable budget. You may need to track and record every single expense to see how much money goes to unimportant things, how much you can trim your budget and how much you can save. It can be very difficult in the beginning but if you want to overcome financial anxiety, you need to cooperate with your financial planner. You and your financial planner will work as a team to accomplish your short-term and long-term financial goals.

Managing financial anxiety is not easy but there is no other way to overcome financial anxiety but to face it. All people have their own financial woes, what sets you apart is how you respond to your problems.

Anxiety is a normal human response to stress but you should not let stress and anxiety control your life. You have the power and the choice to beat stress and overcome financial anxiety. Stress leads to anxiety.

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What Form Of Financial Forecasting Works Best?


Financial forecasting is one way to predict how well your business will do in the future. You can use financial forecasting to:

– Take an educated guess of how successful a new product launch might be

– Decide whether to take specific financial actions, such as hiring more employees, giving raises, or leasing new office space

– Solicit funding from investors or loans from banks

There are two types of financial forecasting:

Qualitative, which compiles expert advice to make a financial assessment

Quantitative, which looks at financial reports and past performance from your own company and competitors to deliver a fact-based forecast

When Quantitative Forecasting May Not Work

It might seem, at first glance, that quantitative financial forecasting is more accurate. But that isn’t always the case. For instance, if you run a start-up business and don’t have historical data, you won’t be able to make an accurate quantitative forecast. Approximately three years of data is required for accurate financial forecasting.

If you are launching a product or service that is very different from anything your company has done previously, quantitative financial forecasting may not be accurate, either.

Finally, in times of an economic downturn or recession, financial forecasting methods may fall flat. However, using time series decomposition to adjust for trends and seasonality, as well as business cycles, may create more accurate financial forecasting.

Qualitative Forecasting

Qualitative forecasting can be costly, but can provide more accurate results in some cases, including the above or if you are attempting to forecast in rapidly changing fields, like technology, or make forecasts beyond two to three years into the future.

Neither type of financial forecasting is “simple,” but the benefits to your company far outweigh the expenditures. [A financial forecast, even if it’s inaccurate, is still better than having no information at all.

A financial controller can help you choose the right type of financial forecasting, and organize it in such a way that you can get the information you need to make the smartest decisions for the future of your business.

We’ve all heard that old business saw, “You can’t improve what you can’t measure.” Nowhere is this more relevant than when it comes to your company’s bottom line, cash flow and profitability. But how does a small business owner measure these things? And how do you know your measurements are accurate?

The answer lies in having the right business and bookkeeping processes in place, along with the right person to control and manage these processes.

Here are a few steps you can take and processes you can implement to measure, and improve, your company’s profitability.

1 – Maintain up-to-date daily bookkeeping. – Daily bookkeeping ensures that Accounts Receivable invoices go out on time, so you can be paid in a timely manner, and that Accounts Payable are paid in a timely manner to avoid interest charges, late fees or bounced check fees.

When your AP/AR is running like a well-oiled machine, you can save money on interest, late fees and you’ll know you always have enough in the bank to cover expenses as they arise, whether it’s for new office equipment or to cover payroll.

2 – “Close the books” monthly to spot any inaccuracies and ensure up to date financial records. – When your part-time outsourced bookkeeper balances and closes the books, you’ll know exactly where you stand financially and can take steps to improve. This monthly “reality check” is necessary to spot errors and also so you can make fine course corrections as you steer the financial ship of your business.

3 – Review financial reports quarterly to get a snapshot of your company’s financial health, and perform financial forecasting as needed. – Quarterly cash flow reports, balance sheets and profit-and-loss statements give you a clear view of how your company is doing – and how you might improve. With a part-time outsourced bookkeeper and financial controller helping, you’ll receive up-to-date reports quarterly and have help analyzing the information in these reports so you can take actions that will benefit your company.

Financial forecasts might be needed quarterly, annually, or whenever your company is preparing to introduce a new product to market.

These are just a few of the processes an outsourced bookkeeping staff can perform to keep your company on the right financial track, improve profitability, and provide you with the peace of mind you need as a business owner.

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