4 Things You Need to Build a Supplement Brand

September 18, 2020

Do you have dreams of building your own brand or your own company from the ground up? Are you the entrepreneurial type that isn’t scared off by a challenge – in fact, a challenge only prompts you to work harder? Now, let’s take it one step further. Maybe you’ve decided that the industry you want to be part of is the health and wellness industry and you plan on creating your own supplement brand.

There’s no doubt that this industry can be a lucrative one, but it can also be highly volatile and competitive. That’s exactly why you want to enter into the process as prepared as possible. So, here are four things you need to build a successful supplement brand.

What Kind of Supplement(s) Will You Sell?

The first step will be to consider the supplement you plan to sell. Will it be just one supplement, or will you have a line-up of many? Will you use private label supplements dropship companies or produce your own products? Will you keep it basic or get into blends, even offering proprietary blends that could give you a leg up on the competition?

If you’re having a tough time figuring out what supplements to sell, you can start to think of it in terms of what healthy issue, deficiency, or gap in the diet are you looking to make up for. There has to be a need in the market for your product, and preferably, little competition when it comes to your specific item.

Who is Your Target Market?

This goes hand-in-hand with what the item you plan to sell is. You can’t determine what you’ll sell without also determining who your target market is. This should require market research that will give you a better idea on the demographics, such as the age group most interested in your product, their location, gender, marital status, age, education, and so forth.

You want to learn as much as possible about your potential customers so that you can craft an effective marketing plan.

Set Up the Manufacturing Process

Now that you have identified what it is you’re selling, you need to figure out how you will get that end product to them. This means it’s time to look into the manufacturing and production process or simply contact supplement manufacturers Australia.

You’ll need to start thinking about how you plan to source raw materials, how you will package them into capsule form (if that is the delivery system), what kind of production facility you’ll need, shipping, hiring staff, costs, production schedule, the list goes on and on. Even something simple like the capsule form you decide to use can be more confusing than you thought. You could be dealing with five different types of capsules trying to figure out which is the best one.

The fact is, that without an organized and operational manufacturing process, you don’t have a product to sell, so this step requires plenty of thought and planning.

How Will You Market Your Supplement Brand?

Then there is the marketing angle of your new supplement brand. Just because you have what you consider an exciting new product, it doesn’t guarantee success. You’re going to need a very robust marketing plan that builds interest in the product, and buzz, potentially before it even arrives.

Typically, a digital marketing plan is the way to go nowadays, as it offers the highest return on investment. You can reach a maximum sized audience at little to no cost to the company.

Organize your shipping logistics and order fulfillment

Unfortunately, many sellers underprice their supplement products to compensate for shipping costs- which lowers their profit margins and hurts their businesses. Arrange your shipping logistics in the way that will allow you to boost sales and increase profits. Consider updating your shipping prices to include your handling costs. You can also include packaging materials in your pricing so that customers can pack their items themselves. Alternatively, you can outsource everything to a company that specializes in supplement fulfillment for SMEs, reduce your costs and focus on other aspects of running your business. You must also choose a logistics provider that meets your standards and has the right experience levels to manage your orders. When choosing a shipping method, consider speed, customer service, transportation costs, storage and handling time and risk factors such as weather and customs delays.

Success Can Be Yours

So, what’s the key to success when it comes to building a supplement brand? It really comes down to proper planning, thinking about every potential scenario, and of course, offering consumers a unique product that fills a demand.

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GIS in Finance: The Future of Banking Analytics

September 17, 2020

Financial services and banking in particular are facing unique challenges. To begin with, banking became an important component of financial globalization. Multinational enterprises explore the rapidly growing emerging markets which place new demands on international banks. Another important aspect is the pressure to evolve the business models and shift to decentralized structures. How do banks cope with this trend of globalization? By taking their banking analytics to the next level. That’s where geographic information systems (GIS) are becoming increasingly helpful.

GIS interprets and makes the geographic data actionable so that finance professionals can easily capture the data needed for their specific banking analytics projects. To make the task easier, GIS systems make use of the publicly available geographic data, since many countries make GIS datasets accessible for use. This opens a whole new scope of possibilities for using GIS in finance. For example, a business analyst of a certain bank can open a map of Savannah, Georgia, and choose datasets from the U.S. Census Bureau which enable additional layers displaying employment status, income, residential status of residents, and a lot more. What else can you achieve by using GIS systems in finance?

Boost customer analytics

Banking is becoming more personalized and targeted. No longer people are treated as faceless account numbers. GIS software enables financial institutions to recognize their customers as real-life assets that have unique expectations and preferences. Forward-thinking financial organizations can use these insights to develop and introduce new services and products. Armed with geographical analytics financial organizations can assign additional resources to better meet their clients’ expectations.

Gain more timely and accurate market insights

GIS in finance takes customer segmentation to the next level. By merging several layers of data on a single map, GIS-based marketing approaches enable the creation of ultra-targeted personas that have unique financial requirements and preferences. This allows the financial organization to reach a new level of personalization as they are able to offer exactly the finance products and services their customers are lacking. GIS-powered banking analytics ties together service demand and supply to precise geographic locations. For example, the marketing department can create specific marketing programs for each of the segments in a certain branch market area. The content of the campaign should focus on the financial products that are preferred by the customers. This is how GIS delivers the next level of business and marketing intelligence.

Improve performance management

Finance-focused GIS applications help analyze and monitor the performance of bank physical locations and identify strengths and weaknesses, both those of the bank and the competition. Based on the local data, a bank can make a decision on performance improvement and even identify new services that are not offered by competitors.

Enable better asset management

GIS platforms transform the way banks operate, maintain, and upgrade their assets. From mortgaged properties location and cost to online tracking of cash status in bank machines, various layers of geographical data in bank GIS will make asset management cost-efficient and accurate.

Become more close and personal with clients

In their quest to offer the most sought-after financial products for a particular area, be it a new mobile office or a walk-in branch, a new mobile application, or a mortgage product, financial organizations use GIS platforms to precisely match their customer needs.

Financial institutions started adopting GIS and spatial technologies a long time ago. It’s time to take GIS-powered business analytics to a new level. Learn more about how your financial organization benefits from GIS technology.

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10 Vital Steps From Wendy Kirkland On How To Become A Progressive Day Trader

September 17, 2020

Day trading is basically buying and selling financial instruments within one trading day and traders who trade within this time margin with an aim to profit are called speculators.

The difference between normal traders and day traders is that where normal traders mainly look for profit over a longer period, day traders seek profit each day, so they exit positions before the market closes. This way, they can avoid losses and can manage to avoid negative price gaps.

Day traders can track small price changes and if used correctly, they can use it to their advantage. So, what are some of the ways by which you can be a successful day trader?

Here are a few steps that might not guarantee success, but will surely increase your chance of getting a hefty profit and avoid losses –

1. Make Well Thought out Strategies

Day trading requires planned strategies because time is of the essence. Following instinct might provide temporary success but in the long run, it may not get you anywhere.

So, to achieve success, you must have a strategy planned out before trading. For that, make a plan and stick to it, updating the strategy from time to time based on where the trade chart is headed.

2. Assess Yourself Regularly

Your emotion can largely influence your trading capability. It is easy to get swept away by excitement when you get a large profit.

It is also possible to get devastated after a major loss. Assess yourself regularly and keep your emotions at bay. This is what any successful traders would do.

To better assess your knowledge and to test yourself you can also try out the Kirkland Five Star Academy where you will get a comprehensive guide about day trading to make good profits. To learn more about it, check out the Wendy Kirkland Review.

Always remember, the right mindset can lead to the right investment. Unless one is prepared mentally, he/she is likely to suffer from loss more than he/she can cherish profits.

3. Taking Clever And Calculated Risks

In the trading market, there are many opportunities with the chance of landing large profits, but it also comes with the risk of getting a big amount of loss.

This is called a high risk-high reward state. Be clever in taking these risks as taking risk beyond your tolerance can be a huge matter

The reason being the loss not only depletes your capital but also demoralizes you in taking future risks. So, take only what you can manage.

4. Treat Trading Like Your Own Business

In business, there is profit, revenue, loss, capital investments, and so on. Trading has these features too. This is not a job where you get paid for every hour of your work.

Trading needs your time, effort, and to be continuously taken care of so that it can grow bigger day by day, just like any business does. So, always think of yourself as a small business owner while you are conducting any trade, as traders are hardly any different from them.

5. Maintain Your Capital

You must put it in your head that you will not always get a profit. With every victory, there will be a defeat.

It is all a part of the giant trading game everyone is playing. It is up to you how you manage these defeats. To mitigate these losses, you must have a margin amount that will act as a cushion to save you from your fall in the trading game.

So do not chase after risky good trades. If you do want to take the risk, take it for the ones that might show some form of growth in the future.

6. Analyze The Market

Like every other business, there is a steady learning curve that you need to go through to understand how things work.

Become a student of the market, not in a sense that you have to get a degree, but learn and improve your understanding, take advice from successful and trustworthy traders, read books, financial researches, newsletters, and articles.

All of them will help you get a piece of better in-depth knowledge, expand your outlook, and can even enable you to find more opportunities.

7. Know Your Securities

There are plenty of different trading methods to make successful trades. You will have to deal with stocks, futures, forward contracts, mutual funds, and exchange-traded funds.

It is best to learn everything about each of the trading methods as soon as you can.

8. Stay Up To Date With Technology

Technology can have a massive impact on your trades and every trader will try to use any updated technology they can to keep their game up.

The only way you can compete against them is to upgrade your own knowledge about the latest tech.

With the advent of cryptocurrency, blockchain technology, and several other fintech the world of finance has changed drastically.

There are even apps available to track your investments, profit, and loss. This helps you to keep track of every opportunity and stay focused.

9. Practice Virtual Simulations

Before starting their investment, many traders try out and test their strategies on a test account basis with virtual money to see if things would go according to their plan.

One can also test historical data, where someone else has used similar strategies like them and see where their plan has led them.

But to get an even more realistic assessment one needs to keep track of brokerage costs and the subscription fee for various utilities.

10. Start Out Small

Traders need to realize that the trade market is always unpredictable, and anything can happen at any time.

So, it is better to start small and gradually understand the playing field, rather than investing too much at once not knowing anything.

Try out your strategy with these small investments and only raise your stake when you understand what you need to do.

Final Thoughts

You invest your hard-earned money into something which is not guaranteed to give you a profit. But you must keep your head straight as it will be hard to recover from a loss caused by a bad decision that you were not expecting. Traders that want to seek a future here must have the motivation to be ready to learn and adapt to the ever-changing trade market.

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Exploring company closure options due to Covid-19 trade disruption

September 17, 2020

By Jonathan Munnery

The coronavirus pandemic has pushed down pressure on the global economy, tipping unstable businesses into the red and forcing the remainder into recovery mode to battle challenging trading conditions and the unstable future which lies ahead. The unprecedented economic backdrop has forced businesses to adapt to a customer base fluctuating in buyer behaviour, changing public health guidance and increasing social distancing measures. If Covid-19 has pushed your business to its inevitable end following an accumulation of pre-Covid-19 debt and long-term cash flow limitations, you will need to seek a formal insolvency measure.

A licensed insolvency practitioner will be able to advise you on the best route available for your business, depending on whether it is solvent or insolvent. The financial health of your business will determine the route that you will take as if there is a possibility of business rescue, there are routes available which can help spur business recovery. There are established insolvency tests which can determine the level of deterioration caused to the business and to gauge the financial position of outstanding creditors.

What’s the insolvency cash flow and balance sheet test for insolvency?

The cash flow test for insolvency measures if the business has enough capital to fulfil financial commitments and maintain the daily running of the business, such as replenishing stock and paying employees. If the business is cash poor and struggles to provide services due to lack of funds, this is a serious barrier to success as it marks the beginning of company deterioration due to debt built-up, restricting the basic functionality of the business.

If the business has significant upcoming payments and these will likely go unfulfilled following the results from the cash flow test, you will need to assess the value of company assets in order to fulfil these costs. The balance sheet test for insolvency will evaluate the value of company assets and liabilities, as if your business debts outweigh the assets of the business, you will be unable to repay debts and therefore likely to be insolvent.

After carrying out both tests for insolvency, if you cannot meet payment demands when they fall due and your business is not asset-rich, a cash injection or alternative finance facility is unlikely to help the business recover. You will need to explore the closure options available to you as a result of Covid-19 trading disruption weathered by businesses on a global scale.

Cost-efficient voluntary closure due to insolvency

If your business is at the finishing line and no longer has the necessary funds to continue trading, top-up products and maintain employee payments following the enforcement of cost-cutting exercises and stricter credit control measures, opting for a Creditors’ Voluntary Liquidation (CVL) may be the next step of your journey. This route consists of voluntary calling for the liquidation of your business after arriving at the realisation that the business has no prospects of recovery. If your business has realisable assets, creditors can recoup funds following the realisation of assets.

A Creditors’ Voluntary Liquidation consists of appointing a licensed insolvency practitioner to navigate the process following an agreement made between company directors. Shareholders and creditors will be notified of your decision to liquidate the business and the insolvency practitioner will compile a report which analyses the health of the business, outstanding debts and the value of assets, also known as a Statement of Affairs. Upon reaching an agreement from 75% of shareholders, the winding up of the company will begin. After the proceeds realised from assets are distributed amongst creditors, complying with the specified order of repayment to creditors, the company can then be struck off the Companies House register. It’s vital that company directors show no form of preferential treatment to creditors during this process as a failure to do so could result in director disqualification.

Forced liquidation due to creditor pressure

The most common type of company liquidation is compulsory liquidation which is as a result of legal action against the business from creditors in an attempt to recover outstanding funds. If you are in serious arrears, creditors can turn to the court for an order to wind up your business, resulting in the liquidation of your business and then dissolution. A voluntary liquidation route should be pursued before reaching this stage as you have greater flexibility over the time frame and by catching the business in the early stages of financial difficulty, you may be able to rescue the business or achieve a better return for creditors.

In order for a winding up petition to be granted, the creditor must be owed £750 and have waited a minimum of 21 days for the debt to be repaid. To kick start the process, an official receiver will be appointed, also known as a liquidator, who will assess the value of company assets and embark on a selling exercise to generate funds to repay the debts of the business. Any remaining funds left in the business will also be earmarked as repayment to creditors.

The company closure route may have been written on the cards for a host of businesses, months before the arrival of the pandemic which forced them into a faster end. Smaller shopfronts hopeful to generate custom from lunchtime trade and office workers, once soaring financially, may have had their custom entirely eradicated as office working transitioned into home working across the world and only essential shops were allowed to trade as the pandemic swept across the country. To protect the position of your business and reputation as a company director, turning to professional support to explore company closure may help limit liabilities and protect your future goals in the industry.

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About the AuthorJonathan Munnery is a partner at UK Liquidators, UK’s largest provider of voluntary company liquidation services made up of licensed insolvency practitioners and business restructuring specialists. He regularly advises businesses on the brink of collapse as a result of the effects of the coronavirus pandemic, guiding them through their options available.

UK’s wrongful trading rules during the coronavirus pandemic

September 17, 2020

By Jonathan Munnery

As the economy bites down once again as a result of a wave in local lockdowns, a spike in coronavirus cases and fluctuating quarantine travel rules, it’s likely that businesses are due to experience another income drought. The furlough scheme and additional financial support measures are due to taper down in a bid to slowly wean businesses off emergency grants and brace the business for a period of turbulent trading if the economic pressure surrounding the pandemic surges.

As an early response measure to protect healthy businesses directly impacted by Covid-19, wrongful trading provisions were temporarily suspended until the end of September to give businesses which were otherwise strong and viable, the opportunity to seek recovery and facilitate business rescue. The magnitude of risk associated with the spread of the virus resulted in sectors to be forced into a slowdown or even halt trading, leading to businesses to endure prolonged financial decline.

What is Wrongful Trading?

Wrongful trading is when a business continues trading with prior knowledge that the business is insolvent and therefore acting against the best interests of creditors. By continuing trade when knowingly insolvent, you are intentionally worsening the position of the business, accumulating debts and further exposing your business to legal action.

Wrongful trading under the Insolvency Act 1986 requires the company director to seek an insolvency procedure if the business is in serious financial difficulty, unable to fulfil liabilities and experiencing pressure from creditors. As the company director, it is your legal duty to ensure that you are placing the interests of creditors first, protecting their position from further worsening.

What’s the difference between Wrongful Trading and Insolvent Trading?

Insolvent trading is when a business continues trading when it is unable to fulfil liabilities, deteriorating the position of the business and creditors, however, this can be done unintentionally. Wrongful trading is when you are aware that your business is insolvent and therefore unable to meet financial commitments, however, you knowingly continue trading.

There is a subtle difference between wrongful trading and insolvent trading, however, wrongful trading is classed as a serious offence as you are knowingly trading with the knowledge that your business is insolvent and therefore unviable.

What’s are the consequences of Wrongful Trading?

Once the moratorium on wrongful trading ends, if a company director is found guilty of wrongful trading, the consequences are likely to damage your prospects. You could be fined, disqualified as a director for up to 15 years and even be held personally liable for the debts of the business. This is classed as a civil offence which could hinder your reputation as a business owner and place you on a blacklist by suppliers and creditors.

Wrongful trading rules during Covid-19

On 28 March 2020, Business secretary, Alok Sharma, announced an unprecedented change to insolvency rules, including a temporary moratorium on wrongful trading rules applied retrospectively from 1 March 2020 for businesses undergoing a rescue process. This means that businesses which would otherwise fall foul of wrongful trading rules due to Covid-19 pressures would be allowed to continue operating without the threat of impending creditor or legal action.

The moratorium is due to end on 30 September, (correct on publication date), when businesses on the brink are likely to either fall into the red or continue trading after the suspension of liability ends. If businesses continue to struggle after the moratorium ends, it is instrumental to seek specialist advice to avoid an Insolvency Service investigation.

Future of financially distressed businesses after moratorium passes

Once the moratorium passes and government support is pulled, this is likely to open the floodgates to struggling businesses with no cash reserves, emergency funding or financial support. In the first instance, it is vital to seek urgent advice before the business drowns in debt and shuts off access to formal restructuring and rescue measures.

The full scope of the pandemic is yet to be assessed as the UK enters a second phase of local lockdowns and curfews to curb the spread of the virus. It’s vital to take note that a business in severe financial distress is not necessarily irreparable and may be recovered through the likes of a Time to Pay arrangement (TTP). A Time to Pay arrangement gives the business breathing space as it restructures liabilities into affordable instalments. There are formal rescue strategies which can help you open the possibility of negotiating with creditors to revaluate outstanding debt into affordable instalments.

Following the moratorium, businesses on the fence about their future will be required to act fast to avoid falling foul of wrongful trading rules as this is a serious offence. If the business needs a cash injection to stay afloat, there are several finance options which can help the business get back on track. This period of trading difficulty has illustrated the importance of a war chest to provide financial support in the event of turbulent trading, such as during the coronavirus pandemic.

After the moratorium concludes, company directors should watch their step as failing to keep creditors interests as the primary priority could result in being held personally liable for the debts of the business. Your reputation as a company director will hinge on the duties fulfilled, the financial health of the business and seeking professional advice when it is due.

As businesses worldwide prepare to set foot upon the road of recovery, it is vital to assess the viability of the business on an ongoing basis to prevent the health of the business from further escalating negatively. The pandemic has set a backdrop of unexpected twists and turns, further turbulent trading due to the changing landscape of the economy and changing public health guidance due to the coronavirus pandemic.

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About the Author

Jonathan Munnery is a partner at UK Liquidators, specialising in providing company liquidation services to company directors in financial distress. Jon works closely with business owners fighting unmanageable levels of debt, creditor pressure and legal action, guiding how to make a cost-efficient exit and protect creditor interests, more information can be found on the UK Liquidators website.

Is It Safe to Work With a Mobile Notary?

September 16, 2020

Instead of traveling to a notary office, many working professionals prefer to use a mobile notary public and redirect the time saved to handle professional and personal responsibilities. Due to the benefits it offers, more notaries go mobile every year.

Although this transition has increased revenue in many public notaries operations, relying on a mobile notary may pose safety concerns to both the clients and notaries. Although saving time and acquiring convenient notary services is ultimately beneficial for a company in any industry, it’s paramount to prioritize your safety and colleagues’ safety to an equal degree. Ensure you take the necessary precautions before hiring a mobile notary to come to your home or office.

Dangers associated with mobile professionals

It is highly likely that you’re aware of the dangers of meeting and dealing with strangers, so it’s always in your best interest to act with caution. When contemplating hiring a mobile notary, remember that you may encounter potentially untrustworthy individuals in isolated locations. Though initially unsettling, it’s relatively common to welcome an acquaintance into your home, i.e., a new neighbor, a salesperson, a repairman, etc.

In an ideal world, the average homeowner would love to screen everyone that steps into their home thoroughly. Though that isn’t necessarily realistic, you’ll want to make sure you hire a reputable company like this and take your time to gather all the necessary information to make the notarization process run seamlessly.

Safety tips when working with a mobile notary

You’re primarily responsible for your own safety, so ensure you take every precaution when seeking traveling notary services.

Location

Since mobile notaries travel to your location of choice to deliver their services, it’s essential to choose the location carefully to ensure your safety. If you’re uncomfortable with inviting them to your home, you can pick the closest restaurant, library, shop, or another public space when you feel safe. The best notarization site is a public, well-lit place.

Regardless of the location you choose, make sure to inform someone you know, such as a friend or family member, of your whereabouts and how long the errand should take. Coordinate a time where you plan to call or text a loved one following your meeting with the traveling notary. Ensure that you give them the notary public’s address, name, and other fundamental details. Furthermore, check in with your relative or friend when you arrive at the location, either through a text or phone call. You should also schedule times to check-in when handling long assignments.

Time

Although a notary public offers flexible bookings, meaning they can deliver services during times that extend beyond business hours, it’s not advisable to meet with a notary late at night, especially in secluded locations. It’s better to have the documents notarized during the day for safety purposes.

Notarizing for disabled or elderly individuals

An adult caregiver may need to request notarization for the individual in their care, which lends to specific safety problems. Transporting disabled or elderly individuals can be quite challenging based on their health conditions, which may pose additional inconveniences. It may be challenging to move the person around or lug around medical equipment. Therefore, it may be best to hire a mobile notary.

Proper verification is critical for any notarization work. In most cases, a notary ascertains the signer’s identity using some form of ID. However, sometimes, the individuals may not have an ID on hand, especially when dealing with a senior citizen who no longer operates a vehicle. Fortunately, a mobile notary knows how to prove identity in the absence of identification like driver’s licenses.

Adult caregivers may be accused of coercing people in their care with mental or physical issues, especially when dealing with a will. Notarization protects adult caregivers, as a notary public has to assess the signatory’s willingness, ensuring that the person is taking part willingly and is in the right mental capacity to make high-profile decisions.

Choosing the right mobile notary

Your safety and the security of your documents both heavily rely on the notary public you choose. Don’t be in a rush to hire the first traveling notary you encounter. Instead, take the time to gather all the necessary information, including the individual or company’s reputation, information on implemented security measures, and available working hours.

Conclusion

Although it’s better to hire a mobile notary that works outside business hours, make sure you can choose a time that works best for you and protects you against dangerous interactions. Since mobile notaries handle non-public information frequently, you’ll want to verify that these highly-confidently documents are stored securely. Unfortunately, mobile notaries may not have a safe and locked filing cabinet at their disposal since they’re consistently on-the-go. To ensure your documentation remains secure, confirm they’re willing to take necessary precautions to safeguard your information against theft.

Although working with a mobile notary presents some safety risks, you can enjoy its benefits comfortably with proper vetting and safety measures. Besides enforcing your own safety policies, inquire about your company of choice’s policies as well.

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How Should Independent Contractors Calculate Their Taxes?

September 16, 2020

These days more and more people are working as independent contractors, freelancers, and self-employed business people. Whilst this has many benefits, it also means that you are responsible for many things which you would not normally have to do yourself. For example, you are required to calculate and pay taxes on your income. So tax planning and preparation is a need.

The thought of calculating your own taxes is daunting for most people, but it can be especially difficult for independent contractors as your income may vary week to week, and there may be deductions and other things which you need to take into account. To make it easier, this article is a guide to help independent contractors calculate and file their taxes more easily.

Understand the Business Structure

Business structure for independent contractors can be either a sole proprietorship, limited liability company (LLC), partnership, or S corporation. With any of these structures, contractors’ earnings will be reported as a part of their personal income and so taxes for independent contractors are assessed in the same way. If you work part-time for your own business or as a freelancer, but also an employee of someone else, you will need to file your taxes in two different forms: Form 1040 for your own business taxes and Form W-2 for your employment taxes. The process of calculating taxes for independent contractors and freelancers works the same way, as the IRS only looks at individuals through the lens of their business entity.

Calculate the Taxes

As a self-employed freelancer or entrepreneur, independent contractors need to pay self-employment tax, plus state and federal income tax. These are relatively easy to understand so it is important not to forget either of them when you are arranging your tax returns.

Self-Employment Taxes

Self-employment tax accounts for 15.3 % of an independent contractor’s net income, which includes 12.4% Social Security Tax and 2.9% Medicare Tax. Self-employment tax is filed under Form 1040.

Income Taxes

In addition to self-employment tax, independent contractors still need to pay income tax just like anyone else. Income tax is calculated on the contractor’s total income minus any deductions. The final income tax rate can be consulted in the tax table.

How To Calculate

The Estimated Tax Worksheet, (part of Form 1040-ES), offers a big help for independent contractors who want to calculate their tax themselves.

All the federal taxes above have to be paid four times a year as contractors are obliged by law to pay taxes quarterly, in April, June, September, and January if they earn more than $1,000.

Understand Federal Taxes vs. State and Municipal Taxes

Every state and municipality may also expect independent contractors to pay taxes. As the rate varies geographically, contractors can visit their local tax authorities to find out exactly what they need to pay in addition to their federal taxes. If a contractor works on a freelance basis, their clients will have to file Form 1099-MISC for them, but only if they have paid over $600 that year. If the freelance contractor hires subcontractors to take care of their work, it is up to them to fill out and file the form.

Identify Deductions

It is illegal for independent contractors to skip paying taxes outright; however, there are ways to minimize the money that goes to the IRS. Tax deductions can be reported on Schedule C of Form 1040 where personal income is filed. Depending on each individual contractor, there are various deductions that can be applied. These can be considered for home office repairs or health insurance purposes.

File Your Taxes

Once a contractor has taken all the above the steps, the next thing that needs to be done is the tax filing itself. Depending on finances and how confident they feel, they can either do this themselves or through an accountant.

Taxes can be filed in two ways: by mail or online. To file taxes by mail, independent contractors need to obtain tax forms online, then fill them out and submit them to the IRS. Payment can be made via check or money order. Contractors can also create an account on the IRS website and transfer the money directly from their bank account.

If the business has undergone recent changes, it’s a good idea for independent contractors to consult with a certified accountant for advice. A professional public accountant with years of experience can help minimize the taxes that require payment and simplify the process.

No one wants to think about how much they owe the IRS, but fully understanding the process can make it easier for independent contractors to calculate their taxes. While it is not always necessary for contractors to hire a tax professional, if there is any uncertainty, it is better to get advice than be hit with a penalty. Follow this guide and it will make the process simpler.

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Finding a rescue route for my failing business due to Covid-19

September 15, 2020

By Keith Tully

The unprecedented impact the coronavirus pandemic has had on a global scale has reserved pages in history books and spiralled the review of business risk planning exercises far and wide. From tearing out seamless supply chains, historic business partnerships and loyal customer bases, companies across each continent have been forced to write their endings, conclude trading and close shop due to Covid-19 pressures.

Many shopfronts are clutching to the thoughts of a recovering economy, late-blooming customer demand and end-of-year surges in trade to help bolster performance and recoup missed income due to the enforcement of strict social distancing measures and worldwide lockdowns. The first step to finding the best route for your business is to assess the financial health and level of damage weathered, including the likelihood of this being reparable. At this stage, you should seek advice directly from a business restructuring and recovery specialist as there is no ‘one size fits all’ scenario.

Seeking advice from a licensed insolvency practitioner

By turning to a business recovery specialist, they will be able to personalise advice to your scenario as the route you take will be determined by the financial position of your business, for example, asset value, liabilities, balance sheet, cash flow strength and cash reserves. By conducting a consultation with the company director and taking into consideration state support established to prevent business closure due to Covid-19, a licensed insolvency practitioner will be able to illustrate the extremity of the damage. By accessing advice from an experienced insolvency practitioner, you can make informed decisions, shield your business from obvious missteps and pave the road to recovery.

Handpicking company rescue route to weather Covid-19 storm

The route you take will be dictated by your contribution value to the local economy, your role as an employer, productivity and reputation. If you are a household name with a well-built legacy, a core employer and a high-value contributor to the economy, you may be able to assess external support or state backing to prevent a black hole from forming in the economy and to protect the livelihoods of employees.

Company directors are legally responsible for the daily running of the business, maintaining financial interests and spotting early signs of business difficulty by carrying out a balance sheet and cash flow test. This will help illustrate if the business has any weak pressure points, if liabilities outweigh assets and if the business requires an emergency cash injection to survive the remainder of the pandemic which is likely to have a long-lasting effect on the economy.

There are several routes available, such as a Company Voluntary Arrangement if you are struggling to meet liabilities, Company Administration if your business is insolvent or lighter support measures such as a Time to Pay arrangement to restructure tax liabilities with HMRC if it’s a helping hand that you need.

Company Voluntary Arrangement

A Company Voluntary Arrangement (CVA) or fast-track CVA can help re-evaluate business outgoings by collectively reorganising outstanding costs to creditors into affordable instalments. You can enter a CVA upon guidance from your insolvency practitioner and the agreement must be favoured by over 75 per cent of majority voters for it to be approved. If you are struggling to fulfil essential liabilities on a long-term basis, a CVA can prevent you from progressing to a serious stage of debt which may eventually force you into company liquidation. Company Administration is a suitable alternative for an insolvent business as a licensed insolvency practitioner will manage business affairs in the hope to facilitate recovery.

Company Restructuring

Analysing business operations, outgoings and incoming costs could result in the restructuring of the business. A licensed insolvency practitioner may carry out a cost-cutting exercise to streamline business liabilities and make daily maintenance more affordable. By implementing stricter credit control and due diligence measures, the likelihood of incurring bad debt instantly reduces, mitigating client and supplier risk. If your business requires a cash injection or alternative finance to improve cash flow, a restructuring exercise can identity and implement such measures.

As Covid-19 continues to test the viability of businesses of all sizes, sectors and trading styles, many continue to weather the storm with a limited view of prospects due to challenging trading conditions as the pandemic continues to eliminate the weakest traders. If your business is temporarily experiencing financial pressure as a direct result of the pandemic, it is essential to seek a business rescue solution to prevent the business from further deteriorating or falling victim of putting creditor interests second.

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About the Author

Keith Tully is a partner at Real Business Rescue, a UK firm made up of licensed insolvency practitioners and business rescue specialists. Keith has 30 years’ experience in the sector, assisting company directors struggling as a result of the coronavirus pandemic.

Can You Become Rich Trading Forex?

September 15, 2020

Can you become rich trading forex? Well, it is a very complicated question which no one can respond to with proper surety. But everyone has motives for doing what they do. It is quite evident that most of the people are doing forex trading to become rich because their main motive behind trading is earnings.

But still, our instinctive reaction to this question is a NO as well. Then what the right answer is? The truth is that forex trading can change your life in both negative as well as positive ways. So let’s just seek the proper answer and back the answer with facts behind it. So let’s have a look at it.

Can you become rich trading forex?

A majority of people nowadays are trading forex. It is because they all are looking forward to earning a little more as additional income than their salary.

Salary is a fixed income but no one can really predict how much you can earn through trading forex or maybe you could also bear losses and sometimes the losses could be huge.

Thus, it is completely uncertain and unpredictable that what could happen to the trade you make. So, to be very frank, if you ask me that can you become rich trading forex? Then I will personally say YES. Forex trading can make you very rich if you have huge funds and deep pockets. Because trading and earning are directly proportional. The more you trade the more chances are there to earn.

But don’t forget that you could also have an equal chance of facing loss as well. Thus in the case of forex trading, with huge income comes huge risk as well.

So you could become extremely rich only if you have the capacity to bear losses. Hence there is no surety or a 100% guarantee that you will get success doing forex trading.

Generally, people only talk about the huge profits and gains well they do get gains. As we just said, people with deep pockets and huge funds or people who are unusually skilled currency traders make huge money.

But for a newbie or a small level trader, there is a huge risk and very few chances to become rich through it.

Well, to be frank, you can become rich but make sure you are not greedy enough to risk more then you can afford. Because doing the same could harm your regular income, life cycle, and your savings as well.

Conclusion

So this is the answer to can you become rich trading forex? Just be consistent, patient enough to wait, think, learn, and then take the action. And just be aware of what you are doing. Do all of these along with knowing your limits and when to stop, then nothing could stop you from becoming rich through forex trading.

Do remember, not to be greedy enough that you risk everything behind it. Just be dedicated enough to wait and think properly and soon you will be rich through it.

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How to boost your finances amid the Coronavirus pandemic

September 15, 2020

With half of the world population working from home and the other half on furloughs or layering off, our society is increasing their worries about their financial situation. Moreover, the uncertain times that we are all living in are forcing many to rethink their livelihood. If you are in truly need of some cash, you can always apply for a guarantor loan, you may find this an easy, quick way to access money. Although, if you prefer to focus on different ways to get money, you have a wide range of possibilities. In this article, I will share some tips on how to quickly boost your finances amid the coronavirus outbreak.

1. Sell and buy second hand clothes

Second-hand clothes are the cheapest option to get new clothes that are still trendy. This way, you will save tons of money from selling those old coats and jackets that you do not wear anymore. It can be the perfect opportunity to help someone out who is struggling with their finances and cannot afford new clothes. In the meantime, you can speak to your relatives or friends and collect their outdated clothes, so you will be able to get some extra cash.

2. Consider temporary delivery work

With half of the restaurants offering delivery service, a lot of job opportunities as a delivery driver are being offered at present. The hospitality sector is one of the industries that are suffering the most from this novel coronavirus. However, many businesses around the world managed to re-conduct their efforts by selling their products or by just delivering their meals. Joining this changing industry will provide you with some extra money and will help reshape the industry.

3. Offer virtual tutoring classes

Now that September is here and the scholar season is trying to return to normal, there is a wide range of households that are not willing to send their offspring back to their classrooms. Therefore, you could overtake this opportunity to find those scholars that need a tutor or online teacher. The benefits here are various, as could just work from home while making money, and at the same time, you would be teaching to someone who needs real academic support.

4. Your opinion gets paid too

The economic, financial and political turmoil that this sanitary crisis has caused is forcing all businesses worldwide to consider second points of view and opinions. Large and mid-size corporations are conducting market studies to investigate and find out what consumers are doing at the present moment. Moreover, tons of companies are collecting the public’s opinion, paying them for that! Therefore if you are looking for an easy job, where they pay you quickly while you can work from the comfort of your home, this is for you. Although, you must carefully regard the small print, as hackers are also taking advantage of these processes to access people’s data.

To sum up, it is clear that we are not returning to normal anytime soon, so we must find new ways of making the most of our savings while contributing to the current financial environment.

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About the Author