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Making the Switch From Paper Cheques to Electronic Payment

Paper cheques’ days are numbered!

As anyone doing business in Europe will know, cheques are no longer used as a method of payment in most European countries. Rather, it is standard practice for companies to publish their bank details on invoices, so that payment can be made directly to their bank account.

Within North America, cheque usage is on the decline. We believe that the tipping point is fast approaching where cheques will become the exception, rather than the rule, in business-to-business (B2B) payments. A significant number of corporations are planning to migrate the majority of their B2B payments to electronic payments.

There are numerous advantages to using electronic payment methods such as electronic funds transfer (EFT) to pay your suppliers and employees:

Security and internal control is significantly strengthened, reducing chance of fraud and theft. EFT payment approvals utilize strong on-line banking security, instead of much weaker paper-based signature approvals

Paper cheque stock no longer needs to be stored and secured

Clerical work and errors are reduced through automated efficiency

Ability to manage and forecast cash flow is improved. Payments can be set up with various due dates, and post-dated for up to 35 days

Stale-dated cheques are no longer a possibility

Bank reconciliations are simplified, as there will be no outstanding cheques to account for

Cheque printing, mailing and handling costs are eliminated

Payment approval process is streamlined. Payments are ready for approval immediately upon entry into the EFT system. Payments can be approved from anywhere, at anytime, by authorized signing authorities

EFT is environmentally friendly. Paper & ink used in producing cheques and envelopes is eliminated, as is the carbon footprint resulting from the physical distribution of cheques.

There are also a number of benefits to vendors and employees of implementing EFT payables. These include:

Assurance of prompt payment directly to vendor’s bank account

Vendors have improved ability to manage and forecast their company’s cash flow

Time and cost of handling and depositing cheques is eliminated

Risk of lost, stolen or damaged cheques is eliminated

The process to convert to EFT payables is relatively straightforward. Begin by gathering written authorizations from your suppliers to pay them electronically. This information can be collected on a single page form and includes your supplier’s banking information, along with their agreement that payments will be made to the specified bank account. The supplier also agrees to notify you if they wish to change the account to which payment is to be made. These forms should be kept on file in the event of any dispute concerning where funds have been deposited.

Each bank has their own web portal and systems to enable their customers to process EFT transactions via the internet. Security tokens or USB keys, along with a user ID and password, are given to each person requiring access.

Multiple signing authorities can be easily accommodated, as each signing authority is given their own security token and access credentials. Before a payment transaction can be released for payment, all necessary approval authorities must first have signed on and approved the transaction. This is one reason why EFT is considered to be a far more secure method of payment than paper cheques.

Does your organization still pay its suppliers using paper cheques? If so, you may wish to consider joining the growing number of organizations that have converted their payment method from cheques to electronic payment, in the process realizing significant benefits.…

A Simple Guide To The Different Types Of Business Taxes

If you have a business to open, be sure that you know you are going to pay for business taxes soon as part of the requirement of owning a business. Business duty is to be paid in order to give support to the nation’s budget. All citizens have the duty to pay for taxes and not only the businessmen.

There are various taxes that are paid by business owners. The obligation is dependent on the kind of operation the business has and also its size. Another thing that can affect the kind of tax the business pays is the number of workers working in the company. Large business taxation has a different scheme than that of small business taxation.

There are 4 standards business fine that is stated in the law of taxation. These are the Excise fine, Self-Employment, Employment, and Income ones. Various guidelines govern the payment scheme of each type of tax for business. To know more on the four kinds of business taxation, read the information below.

The first kind of tax is called the Employment tax. Many businesses with a number of employees working in it are paying the employment fine. Business owners are often required to pay for the taxes of the employees such as the Federal income obligation, Social Security tribute and Medicare. However, this will depend largely on the kind of business you are running. Some do not apply to all of the business sectors.

Income ones also apply to business and its owners. Everybody pays the income obligation and so business firms are no exception to the rule. There is an equivalent percentage of tax that businesses pay and this percentage is deducted on the annual earnings of the company. All businesses are required to pay the income tribute to the government because it is stipulated in the law.

A company may pay for the income taxes of their personnel by subtracting a corresponding amount on the employees’ wages. This payment is an obligation that citizens must fulfill. If individuals or businesses do not pay the corresponding fee, they can be filed with an evasion case.

The third kind that will be paid by businesses is the Excise tax. It is called in such manner because it is the type of tax that is excess and not included in the standard type of obligation a company pays. Excise taxes are for businesses providing special services or special goods. There are some fees on special goods and therefore, businesses are obliged to pay for it.

The last kind of duty is called the Self-Employment tax. Those business owners that do not have any employees and are the sole owner of their business pay for self-employment tax. Examples of this tax are social security tax and Medicare fine and paying it helps the business owner because they will receive retirement benefits in the future. Therefore even if the individual is not working under a company, they still get retirement benefits if they pay the taxes.

If you do not know what kind of tax your business should pay, be sure to ask experts on the matter first or go to the internal revenue. They will give instructions and information on which tax to pay for. Be sure to pay for your business taxes on time so that you will not have any problems later on.…

Online Banking – Easier Form of Personal Banking

With the advent of technology, internet has given us the easiest option of paying our bills right from the comfort of our phones. Now you no longer have to write checks, visit post offices, etc, as the online banking system takes care of your needs. The regions online banking just gives you the liberty to bank anytime and from anyplace. It is one of the safest forms of securing funds, paying bills online and also transfer of funds

It would seem that not a day passes by without the media once again stirring up public fears and concerns by broadcasting yet another scandal/controversy regarding the perils of the internet and more in particular, the inherent threat that it poses to online businesses, ecommerce and the bank details of consumers.

Every other day the newspapers is filled with awful news about the various scam involving online frauds, which scares the public to no end and it also raises several questions regarding the working of the online-businesses such as ecommerce, trading transactions, etc. But with the regions online banking, you can be assured of a safe and secure way of online transactions. They also offer the mobile banking system, where you will have to select the “Mobile-Banking” tab and you are logged in instantly as you follow the further instructions.

Personal Regions online Pay is one of the most secure and safe electronic form of payments, which is supported by a service, that is able to link more than 500 banks, and almost I million users who are registered can access it. You will find that this form of banking is much faster than the postal-service and it costs quite less, every time you are sending money. You will find that money is credited in your account within a single business working day and likewise debiting.

The incidence of hacking of data is on the rise, where you will find that the personal and financial information of people are stolen, which can be used illegally leading to unauthorized-transactions. The online banking system community has faced a lot of flak for the financial irregularities which keeps on happening due to the internet scams. The need of the hour is to come up with an effective security system, which the regions online banking has introduced called the “Intelligent-Authentication-System”, where you will find that apart from the traditional security- features you would also get extra benefits such as secretly protected password accounts, the number of times the login has been made will be not only monitored but recorded as well. The bank has also come up with an interesting security system, where you will find that as soon as a person is logged idle on to more than 10 minutes, the session automatically expires, whereby again login is required by the user.

The regions online banking makes sure that the personal identity of the person is well protected and they do not believe in giving the personal details of their clients to other companies who are looking for ways to sell their products.…

The Importance of Financial Services Technology and Banking Software

Financial institutions like banks, security companies and other lending institutions must have some type of system in place that can manage their staff, customers and sensitive paperwork. Financial Services Technology and Banking Software is a necessity for any financial institution if they wish to make their services run smoothly.

Financial Services Technology / Banking Software

Banking software should address the clerical aspects of any business, fund disbursement, collateral maintenance and management. It should be in place to regulate trading, securities, lending, interest rates and changes that are constantly happening. It should also have applications for customers, staff and management.

Benefits of Collateral Management Software

This type of software is used to reduce cost, decrease time, speed up loan processing, track customers, staff and paperwork. It also allows for staff analysis, it reduces duplicate data storage, and it offers electronic storage. It incorporates document linkage and tracks cash flow, and offers payment solutions and application modernization. Banking and collateral management software brings less risk and it helps with decision making.

Purchasing Software

Financial Services Technology and Banking Software can be purchased through online sources. There are several reputable companies that will offer a free consultation that will evaluate the customers business and determine the software that is appropriate for the business. Whether it is a large institution or a small business, there is a collateral management software package out there. It is best to do the research of the software company to determine if they have the years of experience, references, favorable reviews and the customer service to back it up.

Conclusion

Banking Software has improved over the years and it has been upgraded to include securities, investment areas, loan processing and several trading applications. Customer applications, financial portfolios, staff paperwork, market interest rate, and current management solutions are all available through the right software. Any type of baking software should reduce cost and make every aspect of the business come together with automatic updates and easy transition between departments.

Decreasing processing time with applications is a necessity for any efficiently run banking institution. Time is money and in today’s economy any way to cut down unnecessary cost is welcomed. Time management, money management, interoffice communication and interchanging quickly between financial applications are needed to run a financial institution. A financial institution wants to be able to get the customer in and out quickly, but with complete satisfaction and financial banking software allows them to do that.…

How International Banking Works

For a company to become adept in International banking it has to be well versed with international transactions even before exploring the available finance options. The rate at which a bank can also interact on an international platform is also necessary. There are several finance trade products for companies trading on the international frontier.

One of these is the letter of credit which helps the seller to ascertain that payments have been made. Once this letter has been received from the bank, the exporter gets a confirmation that payment will be made by the importer. This is the means through which the bank guarantees that payment will be made. If for unforeseen reasons an importer fails to meet the terms and agreement on the payment, the bank then steps in and makes the payment. This is the in which the exporter makes performs risk-free transactions through following these stipulated terms and conditions.

Any international bank should be well aware of all the specifics of international financing. There are some companies that prefer using banks that issue letters of credit online. This is one way of speeding up transactions since the exporter is able to get the letter of credit promptly and therefore goods can now be released to the importer since the bank has guaranteed the payment and therefore does not cause the unnecessary delays in the export and import process.

International financing is so crucial since one wants to ensure that they get the favorable terms available. The bank in which one makes transactions should allow one to available finance options available for exporting goods. International banks are in most cases preferred because of number of reasons such as tax avoidance in what many know as offshore banking, which is not necessarily illegal but one should always be aware of the hazards that come with international banking.…

Study Banking – Academic and Practical Knowledge of Financial Markets

Students with a head for numbers and the financial markets should be at the head of the queue to study banking undergraduate courses. Banking degrees equip students with the academic knowledge to operate in the increasingly competitive world of financial markets, with experience of analysing and solving complex problems in banking and finance.

Not only do the course structures provide solid understanding of core modules, the elective modules give students the flexibility to define career objectives and aspirations for the coming years. By the end of a three year course structure students will have an advanced knowledge of international finance and banking and financial management, with the opportunity to focus on additional areas of finance with a dissertation relevant to interests and aspirations.

Studying banking degrees in London gives the option of a placement year within the industry with a range of companies renowned for their reputation in economics and the financial markets. This is the perfect way to network and build up potential working relationships for the future.

Although financial degrees provide a demanding work schedule the input from lecturers and tutors will help to lighten the load. Life as a business student in London is incredibly diverse and fast-paced, with an incredible social scene boasting festivals, parades, comedy clubs and more just waiting to be explored in spare time.

Students that wish to see the world and travel as part of their career will certainly be able to do so in business and finance – a global language that which all are fluent. Because of this factor, banking courses contain a diverse field of undergraduates with people from all continents enrolling – thus making it easier to identify with others for future careers.…

How the New Regulatory Reform Affects Jobs in Finance

Defenders of a liberal financial system will probably agree that lack of education, wishful thinking and over confidence caused thousands of Americans to get into debt. On the other side of the coin, debtors might argue that greedy bankers and financiers ‘bet’ on the crisis and consequently willed it. Philosophy teaches us to examine issues objectively. The government’s main objective, stipulated by the declaration of independence, is to secure the unalienable rights of life, liberty and the pursuit of happiness. The millions of Americans who recently lost their jobs evidenced the need for the government to secure these rights.

In essence the new regulatory bill has been developed to prevent abusive practices and to avoid manipulative propaganda. By creating federal agencies that will monitor what happens in the financial industry, the government expects to have a transparent banking system that will allow consumers to understand what they are getting into. Additionally, the government will have oversight of other financial companies that pose risks to the system, and have the power to dismantle them if necessary. The initial outcome of the bill will not begin until a couple of years; thereby it will neither improve nor aggravate the unemployment rate for the short term.

Last year’s stimulus package included grants to finance state training programs directed to laid-off workers; however these have had ambiguous results. As a matter of fact, a study developed by the Labor Department that randomly picked people trained by a federally financed program in 2001 and 2002 found practically no financial gains. Yet, according to Peter Weddle, former Chairman & CEO of Job Bank USA, Inc., one of the largest electronic employment service companies in the United States, “Being unemployed is the perfect time to assess if you are working at your talent.” He goes on to define talent as the intersection between passion and practicality or, in other words, “what you love to do but also what you do well.”

Though this might be true, most finance and accounting professionals worry how this bill will affect their economy. Some probably think it is a good time to go back to school and prepare for the opportunities that will be created. It would be foolish to speculate on what will happen, but it would be wise to prepare for the new regulation. Moreover, those who are able to fully understand the bill will be able to use it for their benefit. Government agencies will need auditors to monitor banks and other financial companies. The businesses being audited will need tax lawyers to interpret the new regulation and accountants to keep their books up to date. Maybe new types of businesses will be created. As businesses begin to adapt to the new regulation, they will periodically look for knowledgeable professionals.…

Underperforming Economic Sectors and a Strong Rand

With the Rand hovering around an all-time high against the dollar the last week, there is no surprise that the economy is feeling the knock on effects. According to Cees Bruggemans at FNB, the June 2010 manufacturing output was 8.8% higher than the same month last year and a 7% increase in the food and beverages sector respectively. These are both strong signs that the South African economy has fundamental strengths to support the tourism boom associated with the FIFA world cup.

While the growth of the South African Manufacturing and mining sectors continue to rebound from the lows of 2009, we are seeing a resistant bounce in other sectors of the economy less resilient to recessionary pressures. Durable and semi-durable goods have yet to see a turn around and repair of many of these sectors can only be expected in Q4 of 2010 or Q1 of 2011.

With the strong Rand currently trading at 7.2862 against the Dollar, according to forex traders eToro, further increases in the export markets could be dampened in turn having a knock on effect and slowing economic growth, which according to Reserve bank of South Africa is expected to hold steady at 2,9 per cent during 2010 compared to a forecasted global average of 4.6% predicted by the International Monetary Fund’s World Economic Output report from July, 2010.

While much of the recovery will depend on the output of the underperforming sectors of the economy, it is important to see the strength of the Rand remains a major element of the repair. The Rand has built strength against the dollar much in part because of the instability in the Euro area and volatility of the EUR/USD paring.…

Safety Deposit Boxes Give You Peace and Security

Banks offer various services aside from accepting deposits and giving out loans. They also provide money transfer; accept bills payments, issue bank checks, drafts and traveler’s checks, and a lot more. The banks also do not just secure your cash but also they can secure your documents, jewelries and other personal belongings through safety deposit boxes. Actually there are also other institutions that offer safety deposit boxes, among others are the post offices.

Safety deposit boxes are boxes or containers that are being safe kept inside a vault. Though the banks or any other institutions may have limited liabilities relative to thefts and other crimes that may occur while your possessions are inside the safety deposit box, still many people opted to keep their valuable possessions inside the safe box. This is relatively because of the high security measures that a bank or any other institutions implement compared to the safety and security that you can provide in your own place.

You can put anything you want inside the safety deposit box. This can be a set of precious jewelries, gemstones, valuable metals, other currencies that are so valuable to you, certificates of deposits and securities, and other important documents like your property title certificates, birth certificates, and wills. A hard drive or any computer data storage can also be secured inside the safety deposit box.

Safety deposit boxes come in different price ranges and sizes. In order for you to avail one, you have to pay a rent and you will be given an access key combined with another key that result to dual control to access the box. Your signature and sometimes even a pass code are also being required before you have an access to open the box. In some other banks and institutions, an electronic pass code or biometric security measures are being implemented. The main factor here is the control always requires a counterpart. You can not access the box all by yourself without the counterpart from the bank or the institution you are renting with.

Although in some cases like hotel rooms, cruise ships, resorts, and other facilities of the same nature, offer safety deposit boxes that will only require a single control that will only be known by the user. This is on a temporary basis while you are just staying in their facility and this will only be at your own risk.…

Swiss Banking And Finance

Swiss banking accounts offer people with money a way to keep their funds private from the rest of the world. These accounts may also help a person legally avoid high taxation rates in their home countries. Very wealthy people often use Swiss banking accounts as a means for keeping funds from the eye of the public and for favorable tax treatment. The process of setting up one of these accounts is usually very simple with the right professionals helping you along the way.

Benefits of Privacy

The major benefit of setting up a Swiss bank account is privacy. One does not need to have his or her name listed as the agent on a bank account. One can choose to hire someone else to serve as a director or shareholder for an account that is created. Also, most companies do not require that a person hold yearly board meetings or fly to the actual location to open up the account. Transactions can now take place totally online, and this saves time and money for the busy professional.

Secrecy of Records

Records are also kept confidential in Switzerland. Switzerland is renowned for keeping its records private from the rest of the world. Even during World War II, other countries attempted to force Switzerland to go public with information about the offshore accounts that people held in the country. The banks in Switzerland refused to go public with this information which made Switzerland a respected country for its offshore banking laws and ability to adhere to them. People who are interested in helping wealthy people protect their assets may want to attend bookkeeping schools to learn about the process of opening up a bank account for these people. By obtaining a bookkeeping education, one can learn how to maintain the confidentiality of records. It is important to receive this education because every so often world leaders from other countries will try to pressure agents at banks into coming forward with confidential information. The task of an agent is to stay strong and resist the temptation to publicly release information.

Risks to Watch

When one does decide to open up a bank account in Switzerland, he or she should make sure the agents working within a Swiss bank have obtained a bookkeeping certification. It is essential to make sure that the agents have mastered their bookkeeping training and are thoroughly knowledgeable about the way to keep records confidential from the public. These days, Switzerland is receiving pressure from countries like the United States to sign certain treaties that will make information go public. It is up to an agent who is the bookkeeper for a bank to keep information private no matter what occurs.

Save on Taxes

The main benefit that people will enjoy by opening up Swiss bank accounts is avoiding international taxes. People will be able to avoid very high taxes on their wealth and income by opening up Swiss bank accounts. It is always a wise idea to open up one of these accounts to preserve one’s wealth.…