Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation. There are several standard methods of bookkeeping, such as the single-entry bookkeeping system and the double-entry bookkeeping system, but, while they may be thought of as “real” bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process. Bookkeeping is usually performed by a bookkeeper. A bookkeeper is a person who records the day-to-day financial transactions of a business. He or she is usually responsible for writing the daybooks, which contain records of purchases, sales, receipts, and payments. The bookkeeper is responsible for ensuring that all transactions whether it is cash transaction or credit transaction are recorded in the correct daybook, supplier’s ledger, customer ledger, and general ledger; an accountant can then create reports from the information concerning the financial transactions recorded by the bookkeeper. The bookkeeper brings the books to the trial balance stage: an accountant may prepare the income statement and balance sheetusing the trial

Islamic Banking

Islamic banking is banking or financing activity that complies with sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah (Profit and loss sharing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah(cost plus), and Ijar (leasing). Sharia prohibits riba, or usury, defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to riba). Investment in businesses that provide goods or services considered contrary to Islamic principles  is also haraam.

These prohibitions have been applied historically in varying degrees in Muslim countries/communities to prevent un-Islamic practices. In the late 20th century, as part of the revival of Islamic identity, a number of Islamic banks formed to apply these principles toprivate or semi-private commercial institutions within the Muslim community. Their number and size has grown so that by 2009, there were over 300 banks and 250 mutual funds around the world complying with Islamic principles, and around $2 trillion were sharia-compliant by 2014. Sharia-compliant financial institutions represented approximately 1% of total world assets,

Financial Capital

Financial capital is any economic resource measured in terms of money used by entrepreneurs andbusinesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based, i.e. retail, corporate, investment banking, etc. Financial capital or just capital/equity in finance, accounting and economics, is internal retained earnings generated by the entity or funds provided by lenders (and investors) to businesses to purchase real capital equipment or services for producing new goods/services. Real capital or economic capital comprises physical goods that assist in the production of other goods and services, e.g. shovels for gravediggers, sewing machines for tailors, or machinery and tooling for factories. Capital, in the financial sense, is the money that gives the business the power to buy goods to be used in the production of other goods or the offering of a service. (The capital has two types of resources, Equity and Debt). The deployment of capital is decided by the budget. This may include the objective of business, targets set, and results in financial

6 Industries Where Promotional Pencils Make an Impact

In a world where there are a lot of promotional tools, such as custom tote bags, cups and mugs, USB sticks and more, you’d be surprised how many industries still regard promotional pens or pencils more than anything else. Here are some of these industries.

1.     Education

This seems reasonable and fitting seeing that there is a lot of work that has to do with a pen and pencil here. Schools, colleges and universities can benefit from having custom pens and pencils branded with their logos so that it reminds them of where they study and ingrain a sense of college and university spirit whenever they work.

There are some universities and colleges that even give branded pens and pencils to students giving tests at a test centre. Training and vocational institutes are part of the education industry, too, and may also do the same to help people remember what training and vocational institute they are hoping to be part of.

2.     Pharmaceuticals

Another industry that can have a positive impact through custom gear such as branded pens and pencils is the pharmaceutical industry.

Many of the pharmaceutical representatives come to medical professionals such as gynaecologists, dentists, cardiologists, general surgeons and specialists to pitch

3 Things You Need to Know About Investing in Commercial Property

Investment in commercial property is markedly different from investing in residential property. There are differences to consider when you are choosing to invest in commercial property, even if you have some prior experience with residential properties. Here are 3 things that you need to understand before you invest in a commercial property.

Commercial Properties Are Expensive but Offer Greater Potential Rewards

The commercial properties have a greater value than residential ones, given that the sizes of both are the same. This is true even if both commercial and residential properties are in a similar locale. This also implies that the stamp duty for a commercial property will be greater. Commercial properties are also higher risk for lendersbut do offer a much higher rate of return on investment.

Lender are averse to lending a high percentage of the property’s value because of the associated risk in comparison to residential properties.Therefore, investing in a commercial property requires a greater level of equity on your part.

Usually, lenders are prepared to go up to 70% of the commercial value’s property but lend more for residential properties because of the lower risk attached. But as an investor, you must understand that there are greater potential returns

Why You Need Specialized Lawyers to Win Your Case?

For every particular kind of case, there is a separate and unique law, and every lawyer does not practice every type of law. It’s as simple as that. That’s why you need to hire a lawyer who has specialized in that discipline of law to which your case pertains.

If your marriage is going through a divorce, a compensation lawyer cannot guide you. If you’re seeking adoption opportunities, then divorce lawyer is not the right kind of lawyer to consult. To finalize your divorce you’ll need a divorce lawyer, and for adoption purposes, you’ll need an adoption lawyer. If you’re an employee and you need a specialized lawyer then you visit

Here are a few reasons why you need a specialized lawyer to support you during your troubled times. Having the right lawyer who knows the laws that govern your case is very important if you want to win your case.

1- Why You Need a Bankruptcy Lawyer

When your business and financial situation makes you declare bankruptcy, you need a bankruptcy lawyer to guide you through the details. The biggest reason why you need a bankruptcy lawyer is that such a lawyer would know how to deal with your creditors and

3 Tips for Buying Gold Bullion

The world today is irregular in the way it works. There are no fixed patterns, particularly in terms of economic activities. And with the current social and political instability, the economic activities have become all the more unpredictable.

This is why it is important to always invest intelligently and to always be prepared for a rainy day. If you are looking for smart ways to save, one of the best ones out there is to buy gold bullion.

However, before you proceed to buying gold in bulk, we have prepared a list of 3 top tips that you should follow:

Check the Australian Laws about Gold Bullion

This is the primary step of any massive purchases- always check up the legal authorities. Before you buy gold bullion in Australia, research about the details about gold coins and bullion in Australia to make sure your purchase is safe and secure. This is also an effective way of minimizing your own risks.

In addition, by regularly checking up the legal authorities’ websites, you will be able to get an idea about the gold prices, rates, and trends in the market. This is an ideal way to purchase so that you are not misinformed in any way.

Expect Massive

4 Practical Tips to Help You Make the Right Investment Decisions

Whether you’re a recent graduate, a well-settled adult in your 30’s or nearing your retirement age, the right financial decisions can protect you from financial issues. The key to improve your finances is to cut down on your expenses and increase your earnings. You can increase your earnings by investing in profitable investment schemes.

When it comes to financial investment, you need to make smart decisions. Here are some expert tips that will guide you in choosing the most suitable investment options for your financial needs.

1.     Know Your Goals

You can make the most of the investment opportunities by planning your goals beforehand. It may take you some time to list down your monetary needs and goals, but the results will be worth your efforts. If you’ve clear financial goals in mind, it’ll be easier for you to choose the most appropriate sectors for investment.

Investing in commercial property can be a good option for you. Property values usually remain stable for a longer time period, which is why it involves lesser risks. Get in touch with to invest in real estate in a secure way.

2.     Consider the Time Frame

Before investing your savings in any project, make sure you plan your

5 Reasons to Insure Your Funeral Service

There’s no doubt that funeral insurance is an excellent product. If you’re unaware of it, the main aim of this type of insurance policy is to assist you financially when the insured person in your family is deceased. Like it’s mandatory in any other insurance policy, here also you have to pay a monthly premium to the insurer i.e. the insurance company. In return, you’ll be given the whole lump sum amount when the insured member passes away.

The money that is received helps you get on with the arrangements for the type of funeral service that your beloved deceased person deserves. Everybody knows that funerals are expensive in Australia, and if you don’t have a sufficient amount of money on hand, it can be very upsetting. That’s why here we present five good reasons why you should consider insuring your funeral service.

1- It Will Give Our Mind Some Peace

In case something happens to you suddenly, you’ll know that if you die your family will have a decent amount of money to arrange your funeral. After all, there sure is nothing worse than leaving your family in the need of money in the event of your death. But if your


Debt is money owed by one party, the borrower or debtor, to a second party, the lender or creditor. The borrower may be a sovereign state or country, local government, company, or an individual. The lender may be a bank, credit card company, payday loan provider, or an individual. Debt is generally subject to contractual terms regarding the amount and timing of repayments of principal and interest. A simple way to understand interest is to see it as the “rent” a person owes on money that they have borrowed, to the bank from which they borrowed the money. Loans, bonds, notes, and mortgages are all types of debt. The term can also be used metaphorically to cover moralobligations and other interactions not based on economic value. For example, in Western cultures, a person who has been helped by a second person is sometimes said to owe a “debt of gratitude” to the second person.

A company may use various kinds of debt to finance its operations as a part of its overall corporate finance strategy. A term loan is the simplest form of corporate debt. It consists of an agreement to lend a fixed amount of money, called the

Financial Statement

Financial statements is a formal record of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form easy to understand. They typically include basic financial statements, accompanied by a management discussion and analysis:

  1. A balance sheet or statement of financial position, reports on a company’s assets, liabilities, and owners equity at a given point in time.
  2. An income statement or statement of comprehensive income, statement of revenue & expense, P&L or profit and loss report, reports on a company’s income, expenses, and profits over a period of time. A profit and loss statement provides information on the operation of the enterprise. These include sales and the various expenses incurred during the stated period.
  3. A Statement of changes in equity or equity statement or statement of retained earnings, reports on the changes inequity of the company during the stated period.
  4. A cash flow statement reports on a company’s cash flow activities, particularly its operating, investing and financing activities.

For large corporations, these statements may be complex and may include an extensive set of footnotes to the financial statements and management discussion and analysis. The notes

Financial Accounting

The Financial Accounting Standards Board (FASB) is a private, non-profit organization standard setting body whose primary purpose is to establish and improve generally accepted accounting principles (GAAP) within the United States in the public’s interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. The FASB replaced the American Institute of Certified Public Accountants’ (AICPA) Accounting Principles Board (APB) on July 1, 1973.

In 2009 Reuters, the Wall Street Journal, USA Today and others claimed that the FASB succumbed to “political pressure” and lobbyists and tweaked mark-to-market accounting to accommodate “banks with toxic assets on their books.” Since 2009 the FASB added the disclosure framework project to its conceptual framework in order to make financial statement disclosures “more effective and coordinated and less redundant. As part of this process, in September 2015 the FASB issued a controversial proposal regarding “the use of materiality by reporting entities” and an amendment of the definition of the legal conceptmateriality. Materiality is “a mainstay of corporate financial disclosure that determines what a company must tell investors about its operations and result. Harvard professor, Karthik Ramanna and lawyer, Allen Dreschel

Internet Banking

internet banking, e-banking or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website. The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast tobranch banking which was the traditional way customers accessed banking services.

To access a financial institution’s online banking facility, a customer with internet access will need to register with the institution for the service, and set up a password and other credentials for customer verification. The credentials for online banking is normally not the same as for telephone or mobile banking. Financial institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to access their online banking facility. Customer numbers are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number. Technically, the customer number can be linked to any account with the financial institution that the customer controls, though the financial institution may limit the range of accounts that may be accessed to, say,

Financial Audit

A financial audit is conducted to provide an opinion whether “financial statements”are stated in accordance with specified criteria. Normally, the criteria are international accounting standards, although auditors may conduct audits of financial statements prepared using the cash basis or some other basis of accounting appropriate for the organisation. In providing an opinion whether financial statements are fairly stated in accordance with accounting standards, the auditor gathers evidence to determine whether the statements contain material errors or other misstatements. The audit opinion is intended to provide reasonable assurance, but not absolute assurance, that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. The purpose of an audit is to provide an objective independent examination of the financial statements, which increases the value and credibility of the financial statements produced by management, thus increase user confidence in the financial statement, reduce investor risk and consequently reduce the cost of capital of the preparer of the financial statements.

In accordance with the US GAAP, auditors must release an opinion of the overall financial statements in the auditor’s report. Auditors can release three types of statements

Bank Transfer

Bank transfer or credit transfer is a method of electronic funds transfer from one person or entity to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office. Different wire transfer systems and operators provide a variety of options relative to the immediacy and finality of settlement and the cost, value, and volume of transactions. Central bank wire transfer systems, such as the Federal Reserve’s FedWire system in the United States are more likely to be real time gross settlement (RTGS) systems. RTGS systems provide the quickest availability of funds because they provide immediate “real-time” and final “irrevocable” settlement by posting the gross (complete) entry against electronic accounts of the wire transfer system operator. Other systems such as CHIPS provide net settlement on a periodic basis. More immediate settlement systems tend to process higher monetary value time-critical transactions, have higher transaction costs, and a smaller volume of payments. A faster settlement process allows less time for currency fluctuations while money is in transit.

Bank wire transfers are often the cheapest method for transferring funds between bank accounts. A bank wire transfer is

Mobile banking

Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Unlike the related internet banking it uses software, usually called an app, provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour basis. Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted. Transactions through mobile banking may include obtaining account balances and lists of latest transactions, electronic bill payments, and funds transfers between a customer’s or another’s accounts. Some apps also enable copies of statements to be downloaded and sometimes printed at the customer’s premises; and some banks charge a fee for mailing hardcopies of bank statements.

From the bank’s point of view, mobile banking reduces the cost of handling transactions by reducing the need for customers to visit abank branch for non-cash withdrawal and deposit transactions. Mobile banking does not handle transactions involving cash, and a customer needs to visit an ATM or bank branch for cash withdrawals or deposits. Many


Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. Forfaiting is a factoring arrangement used in international trade finance by exporters who wish to sell theirreceivables to a forfaiter. Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Accounts receivable financing is a term more accurately used to describe a form of asset based lending against accounts receivable. The Commercial Finance Association is the leading trade association of the asset-based lending and factoring industries. It is Also Covered Under INDAS as same. Factoring is not the same as invoice discounting. Factoring is the sale of receivables, whereas invoice discounting is a borrowing that involves the use of the accounts receivable assets as collateral for the loan. However, in some other markets, such as the UK, invoice discounting is considered to be a form of factoring, involving the “assignment of receivables”, that is included in official factoring statistics. It is therefore also not considered to be borrowing in the UK.

Types of Banks

  • Commercial banks: the term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital market activities. Since the two no longer have to be under separate ownership, some use the term “commercial bank” to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses.
  • Community banks: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners.
  • Community development banks: regulated banks that provide financial services and credit to under-served markets or populations.
  • Land development banks: The special banks providing long-term loans are called land development banks (LDB). The history of LDB is quite old. The first LDB was started at Jhang in Punjab in 1920. The main objective of the LDBs are to promote the development of land, agriculture and increase the agricultural production. The LDBs provide long-term finance to members directly through their branches.[24]
  • Credit unions or co-operative banks: not-for-profit cooperatives owned by the depositors and often offering rates more favourable than for-profit banks. Typically, membership is

Definition Of Banking

The definition of a bank varies from country to country. See the relevant country pages under for more information. Under English common law, a banker is defined as a person who carries on the business of banking, which is specified as:

  • conducting current accounts for his customers,
  • paying cheques drawn on him/her and
  • collecting cheques for his/her customers

In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation tonegotiable instruments, including cheques, and this Act contains a statutory definition of the termbanker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking’ (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated.

The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. When looking at these definitions it is important to keep in mind that they

Financial risk management

Financial risk management is the practice of economic value in a firm by using financial instruments to manage exposure to risk: Operational risk, credit risk and market risk, Foreign exchange risk, Shape risk, Volatility risk, Liquidity risk, Inflation risk, Business risk, Legal risk, Reputational risk, Sector risk etc. Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address them. Financial risk management can be qualitative and quantitative. As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to manage costly exposures to risk. In the banking sector worldwide, the Basel Accords are generally adopted by internationally active banks for tracking, reporting and exposing operational, credit and market risks. Finance theory (i.e., financial economics) prescribes that a firm should take on a project if it increases shareholder value. Finance theory also shows that firm managers cannot create value for shareholders, also called its investors, by taking on projects that shareholders could do for themselves at the same cost.

When applied to financial risk management, this implies that firm managers should not hedge risks that investors can hedge for themselves at the same cost. This notion was captured by the so-called “hedging irrelevance proposition”: In a perfect market, the firm cannot create value by hedging a risk when the price of bearing that risk within the firm is the

Government Debt

Government debt is the debt owed by a government. By contrast, the annual “government deficit” refers to the difference between government receipts and spending in a single year. A central government with its own currency can pay for its spending by creating money ex novo. In this instance, a government issues securities not to raise funds, but instead to remove excess bank reserves (caused by government spending that is higher than tax receipts) and ‘…create a shortage of reserves in the market so that the system as a whole must come to the Bank for liquidity.’  Governments create debt by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.

In countries which are Monetarily Sovereign (like the US, the UK and most other countries), government debt held in the home currency are merely savings accounts held at the central bank. In this way this “debt” has a very different meaning to the debt acquired by households who are restricted by their income. Monetarily Sovereign Governments issue their own currencies and do not need this income to finance spending. In these self-financing nations, government debt is effectively an account of all the money that has been