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7 Things To Think About When Shopping For Life Insurance

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Try to imagine you’re dead. You can think up various scenarios like dying after saving a couple of kids from drowning or you died after going skydiving. Whatever the reason for your death, heroic or otherwise, you’re gone. Now that you’re dead, think about simple questions like: Are there bills that need to be paid? Is somebody going to suffer financially after your death? Is there somebody you want to leave a legacy? If you’ve answered yes to any of these questions then you need a life insurance policy. It is the most inexpensive way to pay for the above mentioned expenditures. How? Life insurance dollars can go to your beneficiaries at a low cost to you. For example, you pay $500 per year for $100,000 life insurance. You buy it 25 years before you buy. $500 x 25 years is only $12,500 but the policy pays your beneficiaries $100,000. This means you only spent 12.5 cents for every dollar of benefit money. Here are some things you need to know when looking for life insurance.

1. Buy Only if You Need It

Remember those questions above? Truth is all of us need life insurance to make our exit less strenuous on the ones we leave behind. Life insurance can make your death easier for family that need to arrange your funeral and organize your estate. With the right kind of policy you can you can build cash for your loved ones at a low cost to you.

2. Do You Have Enough?

How do you know that the insurance you purchased is enough to cover your bills and leave some money behind to loved ones? The best way to know if you have enough is to take stock of your financial responsibilities like debt and liabilities. You can gradually purchase life insurance as you go along so that you can cover any increase in your financial liabilities. Talk with a qualified life insurance broker to assess your risks so that you have enough to cover everything with some to leave behind to your loved ones.

3. End-of-Life Issues

Think of the end-of-life issues that need to be tackled. For example, do you have a will? If you are an entrepreneur, do you have succession plan and a strong leadership structure? Thinking about possible scenarios to what will happen when you’re gone will sharpen your focus to let you think of things that need to be done and give you a clear strategy on how to accomplish them.

4. Type of Life Insurance

Generally speaking, there are 2 types of life insurance: permanent and term. Term insurance is more affordable and promises to pay the beneficiary the premium when the insured dies within a specified term; 10, 20 or 30 years for example.

Permanent is for the “whole life”. It is referred to as “cash value” and is designed to help the policy exist in perpetuity. They are like bonds or CDs but backed by the insurance company. They tend to be more complex and expensive.

5. Where To Buy

You need to buy life insurance through a licensed broker that you trust. An insurance agent is the first step to buying an insurance policy. They can advise you on what type of insurance you need or the amount of coverage. You need to be able to trust the agent because he or she could represent different companies.

To get a feel of the process, ask questions and ask for a quote for a specific premium. You can also do research on the internet and ask companies for online quotes.

6. What Are Your Specific Needs?

Entrepreneurs need a little bit more than the salaried man. This is because their death could also affect their business or company. This is why they need life insurance policies that can also cover specific needs of their business. For example, there are policies that protect leaders through the Key Man Insurance. This is for the family of the individual, the company so that they can find somebody to replace him and it also gives the opportunity to the company to buy back any shares from the dependents of the deceased.

7. Options When Canceling

Know your options when canceling life insurance, even if you’re still shopping. If you have insurance that you no longer need or is not working for you, you need to know the options for canceling so that you don’t leave money or coverage on the table.

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Business

What Type of Bookkeeping is Best for Business?

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Regardless of industry or number of employees, every business requires bookkeeping in some capacity. Larger businesses might employ one, two or even more full time bookkeepers, while smaller businesses may hire a part-timer to review the books once a month. No matter the business, it’s important that owners and managers understand that there is no “one-size-fits-all” approach to bookkeeping.

While cost is always a dominant factor when choosing the bookkeeping process for a business, it is not the only one to consider – after all, businesses should not bank on a bargain when it comes to the person in charge of overseeing their finances. To better understand the different “types” of bookkeeping, here are three categories to consider:

1. Traditional bookkeeper

Whether your business is small or large, you’ll need to hire an experienced bookkeeper with a formal education and accreditations. Specifically, the bookkeeper should have substantial experience in business accounting, preferably in your particular industry. This way, you can rely on their previous learnings, which will allow for a shorter onboarding period.

It’s important to consider the role a bookkeeper will play in relation to your business’s Certified Public Accountant (CPA). Typically, bookkeepers are in charge of processing an organization’s financial transactions and documents, including purchases, receipts, sales and payments. Those transactions are recorded in a ledger or journal. In addition to the daily ledger, most businesses use software, (think QuickBooks or Sage), to keep track of entries, debits and credits. Keeping two separate recordings, one manual and one virtual, results in a trial balance with a final total of debits and credits that match. The ideal bookkeeper, particularly those who are certified, will classify and summarize financial information into financial reports, balance sheets, income statements and cash flow statements.

A CPA’s priority should be analyzing business processes and reporting, and providing advice to the business owner, especially for complex tax filing concerns. While a bookkeeper handles the businesses’ day-to-day transactions, the CPA will review and analyze the financials at specified times throughout the year. To ensure cohesion and integrity of the business’s finances, it is critical that the bookkeeper and CPA work as parts of a system.

2. Advanced bookkeeping technology

All businesses should implement some level of technology into the accounting workflow to lessen their financial and administrative burden. When considering advanced bookkeeping technologies, businesses must ensure that the technology works harmoniously across the board, while solving for particularly tedious tasks within the workflow.

For example, one of the more time-consuming, monotonous tasks in the average accounting workflow is data entry. From invoices to expense receipts, businesses are flooded with excessive yet necessary documents on a daily basis. For more streamlined and efficient data entry, businesses should employ expense tracking and management technology. Proper expense tracking ensures that employees are getting reimbursed for their expenses on the job while maximizing tax deductions and protecting the business in case of an audit.

To ensure the business’s expense management technology seamlessly plugs into their existing accounting workflow, owners and managers should be on the lookout for three features:

1. Mobile capture: Bulky scanners are office gadgets of the past. In today’s business world, mobile apps and software can turn your smartphone camera into a mobile scanner, allowing business owners and employees to simply snap a photo to extract data points, like totals, dates and vendor names, and import them into the proper location.

2. Integrate with advanced accounting software: Proper “locations” are often powerful accounting software, like QuickBooks or Sage. Through integration with the accounting software, the data entry process is not only streamlined, but ensures the correct information is being put into the correct data field.

3. Cloud Capabilities: In today’s increasingly-connected world, business owners and employees need access to their most important business documents at all times, so it’s important that their expense management systems are connected to the cloud. In addition to ease of access, the cloud promotes a collaborative work environment and allows coworkers to always be on the same page.

While most businesses use some combination of advanced technology and a traditional bookkeeper, those that are looking for a completely hands-off (and expensive) approach should consider a virtual bookkeeper.

3. Virtual bookkeeper

With the ubiquity of cloud technology and the popular practice of remote collaboration, some businesses are employing new virtual bookkeeping services. Virtual bookkeepers stand in as an entire outsourced accounting department for a business. With a team of bookkeepers, businesses have a unique system of checks and balances giving the owner peace of mind.  While they may lose the personal approach of a single bookkeeper, they can rely on availability and speed with multiple bookkeepers available at a moment’s notice.

When deciding what kind of bookkeeper will work best, it’s important for businesses to realize that advanced technology can supplement (or even replace) certain aspects of the bookkeeping workflow. While a full-time bookkeeper can certainly manage the entire process, businesses that implement certain software can eliminate tedious steps of the process, saving time and money. By allowing technology to solve for menial tasks, business owners may be able to move to a part-time bookkeeper or even take over the role themselves.

Each option comes with pros and cons, and it is determining the best fit for each individual business that is paramount.   Business owners and managers should keep their bookkeeping process current; both to the market and their businesses’ ever-changing requirements. There is always room for improvement, so constant evaluation and tweaking of workflows to ensure an efficient bookkeeping process, and ultimately, a better return on investment, should always be employed.

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Business

Solving The Labor Productivity Problem

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Labor productivity is a measure of a nation’s economic performance. It can be expressed by comparing output (the amount of goods and services produced by the nation), to input (the number of labor hours used to produce those goods and services). Growth occurs when output increases faster than input, and is measured as the difference between the two. For example, if output is measured as growing at 5 percent during a given business cycle, and input grew at 2 percent over that same time period, then overall labor productivity growth is said to be 3 percent. According to the U.S. Bureau of Labor Statistics, labor productivity fell by .2 percent in 2016. This was the first negative growth since the Great Recession of 2007-2008. While more recent numbers have shown short-term increases in labor productivity since then, the overall trend for the current business cycle indicates that the U.S. is in historically low growth as compared to every cycle since the end of World War II.

Why is Labor Productivity Flatlining?

While everyone agrees that labor productivity is historically low, no one can agree as to the root causes. You know the old joke: If you ask 10 economists a question, you’ll get 12 different answers. One theory is that our methods of measuring productivity are outdated, but measurement errors can’t in and of themselves account for the drops. Another school of thought posits that the downward trend is indicative of a slowdown in innovation rather than one in productivity, where today’s inventions lack the far-reaching effects of the industrial revolution and early 20th century electrification of the U.S.  Opponents of this view point out that those effects are measured with the benefit of hindsight, and that modern innovations such as the internet are still evolving. A correlating factor, these opponents claim, is that businesses have been too slow to adopt these new technologies, which has hurt growth. This claim dovetails into a root cause that researchers at the Brookings Institution believe could account for almost half of the drop in productivity all on its own: businesses are not investing in their own productivity.

When companies invest earnings back into the business—developing or purchasing better equipment, providing training and higher compensation to their labor force, adopting more efficient technology—it has a direct positive influence on net productivity growth. In the past decade, the domestic investment in GDP by U.S. businesses fell to the lowest point in over 60 years. A report released at the end of 2016 documented that the Fortune 500 companies were collectively holding $2.6 trillion in offshore accounts. Additionally, even as output has risen, wage growth for the middle and lower classes has stagnated. Having less money to spend means smaller revenue streams all around, which means less output and less investment, which contributes to the downward spiral.

Infrastructure And Personnel

Investing in your business is the key to boosting productivity. It really comes down to two areas: infrastructure and personnel.

Infrastructure, in this context, means tangible items that benefit your company. Things such as more efficient machinery and technologies, better logistics plans, or a more robust IT network are all infrastructure. Keep your business software up to date, embrace new practices such as distributed ledger systems, which keep all parties on the same page in collaborative projects, even getting better chairs for everyone can give you a bump in productivity. The more streamlined you can make your front end, the fewer mistakes and delays you’ll experience as projects advance.

You must also invest in your people. Develop your existing staff with specialized training, and retain them with good benefits and remuneration. Over the long term, as your productivity (and profit) increases, you will attract more employees, allowing you to branch out into other areas of production or take on bigger projects. You can also jumpstart your productivity boost by utilizing outsourcing companies that specialize in your field. For example, Indovance, Inc., in Apex, NC, provides expert CAD services for Building Information Management, architecture, civil and mechanical engineering, sign design, and pre-press services. Their “Twin Engagement Model” gives their clients immediate access to a highly-trained talent pool that’s ready to work on large projects. Their work can be rapidly scaled to meet changing demands without sacrificing efficiency or quality, and they quickly take on any company’s business goals and culture to be a true partner and extension of the team.  This is a great solution for business owners who want to boost their company’s productivity quickly, but don’t yet have an in-house team in place.

The synergy of investment

Positive labor productivity growth improves the standard of living for everyone. When a company (or industry, or nation) invests in itself to become more efficient, it can produce the same—or even more—goods and services with fewer labor hours, leading to larger capital gains and higher wages. More income combined with increased leisure time leads to more private sector spending and public sector revenue. This is not a zero-sum game, where a gain in one area automatically means a loss in another; this is a symbiosis, where thoughtful investment to increase productivity on a local level has a net growth effect that goes well beyond the boardroom walls.

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Venmo Debit Card Launches And Here’s How To Get One

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Popular peer-to-peer (P2P) payment app Venmo is testing physical debit cards that will allow its customers to shop at traditional brick and mortar stores using the funds their Venmo account. Square, a P2P competitor with Venmo, started marketing their own debit card. According to TechCrunch, Venmo is inviting users to a beta program that sends them a Venmo debit card that’s attached to their balance. That beta program was originally a pilot program for Venmo’s own employees back in June but is now being rolled out to normal users.

“We have started sending a limited number of beta invitations to test a physical Venmo card to some of our users. While we’re excited to hear what people think, beta features are not guaranteed to see a general release,” Venmo told TechCrunch.

From a revenue perspective, a physical debit card would allow Venmo to collect the merchant fees per transaction. This would in turn allow Venmo, owned by PayPal, to recoup the fees they pay the banks per transaction while keeping its core money payment services free for users. From a consumer perspective, this also provides a lot of convenience for people who prefer using physical cards. It also makes it easier to spend money that was just transferred into a user’s account without having to wait a day or two for the money to transfer to the user’s bank account. The money is immediately available to spend at places that have not yet partnered with Venmo.

The Venmo debit card is a Visa card issued by the Metropolitan Commercial Bank via Shift Financial. Shift Financial provides physical and virtual debit cards to payment providers. Like most debit cards, they come with a picture as a background and don’t appear to offer the customization that Square does with their sleek black cards.

The sign-up process is painless and free. Venmo users are notified about their eligibility when they open the app. Once the user’s identity is verified, the app asks to select a backup reload method in the off chance your Venmo balance doesn’t have enough to cover a purchase.

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