Choose Your Right Bank For Your Business

Who Are You Banking With? Choose the Right Bank for your Business

Managing your finances in the first year of your business can be tough but the right bank can make all the difference.  With many banks who have the services you need, the two questions you have to answer are:

– How do I pick the right one?

– Who is giving me the best of services?

Gone are the days of mountains of paperwork, banking has also become a seamless aspect of our life thanks to digital services.

Here are five things to keep in mind while selecting the right bank for your start-up:

1. Business Costs and Cash Flow:

The first thing that you need to do while setting up a business is assessing your costs. Analyse your financial needs and choose a bank that provides services that will benefit you the most. Oh, what a headache, right? Let’s make it simpler – as a small business, you need to consider three aspects – start-up capital, growth capital and cash flows.

So, remember these factors and choose a bank that will offer you these services:

  • Range of business loans such as starting capital, equipment loans, expansion loans, etc. with:
    • Shortest application and approval times with easy online applications and verifications
    • Attractive rates of interest
    • Automated EMI payments and reminders
  • Suitable account-based services, such as:
    • Digitised account management, creation, and deactivations
    • Stock market and investment insights as well as advice
    • Liquid accounts with minimal costs
    • Easy, online fund transfers and payments
    • Automated online transactions

2. Banking Services:

Banks have become more customer-friendly and I’m sure they have made your lives easier too. But, we all know how banking works now – there are innumerable services offered by each bank! So how do you find the right one? The first step is to look for a bank which will allow you to digitally conduct most of your banking and financial needs.  

Internet banking has made our lives so much easier – fast-paced transactions, online applications and verifications, automated payments, account management, rapid assistance, and much more! For example, certain banks allow you to add a payee in 30 minutes with almost immediate fund transfer – a great way to save time and keep suppliers or vendors happy. Some other banks have rapid loans and payment approval timelines which reduces the time spent on banking and also, makes it convenient.

3. Banking Expenses:

We all know how banks charge for transactions and accounts. But, if you don’t keep a check, you can end up losing a chunk of your revenue in banking expenses! To avoid that, identify a bank that can offer you services at nominal costs, which include:

  • Transactions, payment getaway and bill payment charges
  • Account maintenance and creation – minimum deposit ledgers, deposit and withdrawal charges
  • Loans, mutual funds and investments – application charges, interest rate, premature and late payment charges
  • Credit/debit cards – application charges, interest rates, late payment charges

4. Terms of Usage:

Based on the services that you essentially require, choose a bank with operations and regulations that best suit your needs. Carefully review all terms of usage before choosing a bank to keep a check on, such as:

  • Unnecessary charges and procedures
  • Risk factor
  • Account liquidity criteria
  • Availability of services

Opt for a bank who will keep digitally updating you with changes in policies and regulations – through emails, SMS or push notifications on apps.

5. Size Matters:

Make sure you plan for the success of your business and choose a bank that can fulfil your future needs too. For example, you will not have to pay extra for ATM usage or foreign transactions when opt for an international bank. Alternatively, large-scale banks, whether national or international, will be able to assist you better with business growth and expansion scenarios.

When you are looking out for the right bank, don’t simply select the first one that approaches you. Go out there and find the one that fits your needs and understands you in a manner that helps shape your financial journey. After all, your business is your castle of dreams!

Register Your Business

Think Registering Your Business will be Tough? Think Again!

When most entrepreneurs remember starting up- they think of the running around, the stamp paper and waiting at government organisations.  But now with the Digital India initiative, you can now register online from the comfort of your home. The process has been massively streamlined and the main registrations include Digital Signature Certificate(DSC), Director Identity Number(DIN) and filing for the final eForm.

Are you looking to register your business? Park your attention here as we take you through the four registration steps:

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Step 1: Get your Director Identification Number (DIN): When registering each director of the company, you need to get identification numbers created. This can be done by filing and submitting the DIN-1 form that is available on the Ministry of Corporate Affairs website.

Step 2: Sign up for your Digital Signature Certificate (DSC): Your documents will only be received when you authenticate your documents with digital signatures. These Digital Signature Certificates must only be acquired by agencies appointed by the Controller of Certification Agencies (CCA). The DSC is only valid for two years and on expiry, you will need to renew it.

Step 3: Register an account on MCA Portal: Online fee payments can be made available and you can register when filing the eForm on the MCA Portal. All you’ve got to do is create a registered new user account, and good news, the creation of the account has no charge!

And Finally, Step 4: Apply for company registration: The final step to register your company is when you incorporate your company name, address, appointment of directors and staff and the qualification of shares. To get the final approval from the Registrar of Companies, you have to obtain the certification of incorporation with Form-1, Form-18 and Form-32.

What do you have to do to incorporate your company? Follow these steps:

  1. Filing of Form 1 for reservation of name
  2. Filing main Papers I.e. Form 7, DIR-12, INC-22

All steps require a set of formalities and procedures you will have to compile and submit as mentioned below:

  1. For DSC, you require 1 photo each, copy of PAN Card, copy of address proof.
  2. For DIN, you require 1 photo each, copy of PAN Card, copy of address proof based on the name and credentials that match with the PAN details. Also, a set of affidavits are required to be prepared and shared with all legal formalities required.
  3. Name approval requires you to confirm 3 names in their respective order of preference. Name allocation is subject to availability.
  4. Main forms and other forms include a well drafted MOA/AOA, and recent affidavits, declarations and all legal formalities. The address proof of the registered company must be submitted.

Ensure that these documents are reviewed before submission:

  1. Director Identification Number
  2. Digital Signature Certificate
  3. Original copy the of formal letter issued by Registrar of Companies on Company name: Form-1 for incorporation of a company, Form-18 for situation or address of the proposed company, Form-32 for particulars of proposed directors, managers and secretary

When the application has been approved by the MCA, you will receive an email confirming the incorporation of the new company and status of the form will change to Approved. Wooohoo! You’re done.

The Ministry of Corporate Affairs has incorporated INC-29 which combines DIN, Name Approval application and Incorporation Application.

Next Steps, your company is formally incorporated when you obtain the TAN Card, PAN Card, STPI registration and valid Digital Signature Certificates. So, what are you waiting for? It’s time to start your dream business!

Also remember to check out what Numberz can do for you once you start up, to smoothen out your accounting and invoicing procedures!

 

get paid faster

8 Tips To Get Paid Faster Instantly

Get Paid Faster 

Whether you run a product or a services-based company, getting paid on time can be a real pain. We all know the challenges – the accounts team may not have sent the invoice on time or customers simply disappear or you need to make multiple follow-ups to even get a response.

But, the faster your payments, the smoother your business runs.  And we know exactly how to make it happen! Read on to know our secrets:

  1. Mark those payment dates: Get Paid Faster 

    Working on a big project for a new client? Don’t wait until the end of the project to get paid, break down the project into different milestones of tasks completed.  Check if this works with the client and bill them accordingly.  Are you shaking your head thinking about the extra work of having to track of all those partial payments every month? With numberz invoicing solution, invoices will be sent automatically to your clients every month with the due amount. Now, how easy does that sound?

  2. Set Automatic Reminders:

    Follow-ups can take a lot of time and let’s face it, it can be embarrassing too. Don’t be a pest but develop the skill of asking politely and persistently. Building a good rapport will allow you to expect faster payments.

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    With the automatic reminders from numberz invoicing solutions, you can say goodbye to those unwanted follow-ups!

  3. Have a quick payment turnaround:

     

    When the work is complete, send your invoices immediately and don’t let them pile up. Let all your invoices be on top of your to-do list, avoid sending your client a huge total to pay. When your business is paid in small amounts, you can steadily build your payments and in turn, pay the invoices that are due to other businesses- so everyone wins!

  4. Be Thorough:

    When your invoices are sent, do you find that you have to explain a lot of the charges? You can say goodbye to all the back and forth by being extremely clear on your first invoice. Adding to that, numberz invoicing solutions will help you create just the invoices you are looking for –  professional and detailed – so your client won’t be confused by the charges and you won’t have to worry about either an overdone or ill-designed invoice.

  5. Consider charging Interest:

     

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    Think your client needs a little push to start paying on time? You could explore the option of charging interest on late payments. While some might think this is an extreme step, you can implement this policy on those serial defaulters that seem to never learn.

  6. But Think of Discounts, too! 

    Okay, we know how some clients love discounts, who doesn’t? So, offer them some. Set up a dynamic discounting system with numberz with which you can offer your clients a 2% discount when they complete the payment by Due Date and a 5% discount if they do so before the Due Date. Oh, did we tell you, you don’t have to worry about crunching a single number for all those dynamic payments? Yep, staring at your accounting books is a thing of the past.

  7. Make Deadlines Matter:

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    By letting your clients know in advance about the payment deadline, you can reduce confusion and miscommunication. When they sign the work contract, make sure you are both on the same page when it comes to payments. Restate them by printing these deadlines on the invoices and other transport documents.

  8. Let them Consider Instant Payments: Get Paid Faster 

    Sounds impossible? Nope, because you can add an option for the client to pay online directly on the invoice itself!

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    Use numberz for this cool option so that your clients are also reminded of their payments every time they see your invoice. Plus, online payments are convenient for many people which help you control your payments even better!

Like all spheres of your business, relationships make a real difference! Building a good rapport with your clients is a great idea but to personally know who is making payments from the client side can be an added advantage too. This can be done by simply sending a handwritten thank-you note regularly or calling every so often for a quick chat.

With value-based pricing, you can get paid faster and work towards getting more business instead of running after payments. Online Invoicing apps and online products enable you to detect payments and share invoices instantly. Tracking, analytics, and reminders can be automated making your life even simpler.  Also, have you checked out the “Pay Now” button on numberz? It can give your client that extra push to pay to real quick!

Invoice Basics: Don’t Miss These 10 Details

You’ve made the sale, delivered the product or service and now it’s time to get paid. While issuing your first invoice can be a real high, it is important that it has the relevant information that makes it easy to understand, has the right details for tax purposes and leaves no doubt in the mind of your customer on how to pay you.

Here are 10 quick checks that you must follow to cover all the details required for the preparation of an invoice:

1. Details of your business: You need to create invoices that include all the details of your business such as name, phone number and email address. This will make it much easier for your customers to raise questions and contact you when in doubt. It will also give the customer’s accounts team a clear way to process and file your payments.

2. Details of the Company being sent the invoice: To ensure that your customer’s company receives your invoice, you should include a contact name and the other details of the firm. This will help reduce any confusion when you are sending multiple invoices to different customers and call out your customer who will acknowledge payment. It will also simplify the process and let you know who to follow up within case payments are delayed.Blog-Creative-2

3. An invoice reference/invoice number: Your business must create a unique reference number for every invoice. You will now be able to account for invoices that are created and dispatched. This will help you in reducing the error of duplication. Add a letter to the number invoice to distinguish your clients.

4. Date of the transaction of the goods and services: The date of the transaction is essential for your business to know when you sold goods and services to your customers. This is most essential for VAT invoices and are known as Supply dates.For VAT invoices, ensure that include the VAT Registration Number; and either:

  • The VAT rate and final amount of VAT charged or
  • The VAT amount and VAT rate charged per product

5. Invoice date: This is the date that you enter when you create your invoice for the customer. The invoice date may not be the same date on which the transaction of the goods and services occurred. This is because this is the date on which the invoice is written and credited for goods and services.

6. Details of the products or services provided and their costs: You must add all the details in the description that you are invoicing. This can be done by listing each product and service, its break up and the final cost.You need to provide a clear description of what you’re invoicing for. This will be a line by line list of each product or services you’ve provided the customer, together with the cost of each. Your description is the heart of the invoice and it should be clear to allow your customer to make prompt payment.

7. The total amount of the invoice: You should ensure that the total cost of all products is products and services are covered and all discounts are mentioned as per the agreement. This is the final amount that you enter and is payable by the customer.

8. Invoice Payment Terms: These are all terms and conditions that you consider when creating an invoice. These are the terms that are mutually agreed upon by your customer and your business.

9. Details of invoice payment details: You can make it easier for your customer to understand and make their payments by furnishing all the payment details. This should include account details that include bank name, account name, account number, and sort code. For cheque payments, you only need to provide a payee name and address to which the cheque needs to be sent.

10. Customer’s purchase order number: Add this number to your invoice to easily identify your purchase order. This will help you track all purchases for future records and help you identify the particulars of the purchase with this number on the invoice.

These ten steps will ensure that you cover all the details that are required to be included on an invoice. By creating an invoice that is easy for a customer to understand and enquire, you will be able to process and receive payments quickly. Put these in place and then, when it comes to payments, you’ll be on the right track to have smooth regular payments from your clients and customers.

business

5 Things Business Owners Must Know About Cash Flows

At the helm of your business, there is no job that’s not your job. While your employed peers might enjoy more specialised roles, as the boss of your own business, you need to have an understanding of the basics that drive your business. You might have your own numbers guy or gal but to make money, you need to understand your finances and cash flows. “Why?” you ask, secretly hoping that you left the world of mind-boggling mathematics after your 10th grade Maths paper. Fear not! We’re here to tell you exactly that:   

1. It’s a good weather forecast: Your smartphone gives you all the information you need for the present and the future. From the weather to the traffic forecast, it gets you ready to face anything and also tide over any storm. Cash flow collects information from your sales people, credit workers, collections, service representatives and your finance department. By collecting this information you will know how much cash you can accumulate from payments, interest earnings, service fees and collection from bad debts and therefore know if tomorrow is going to be sunny or if you need to plan for a rainy day.

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2. Know Thy Expenses: More than knowing how much is in the bank, you as a business owner need to have a fairly accurate idea of how your business runs on a day to day basis. Your business should know what you spent on instead of only how much you spent. This can be done by simply creating a line projection of outlays. Here’s an example: Let’s say you collate all of the rent, inventory and office expenses in your cash flow tool or a spreadsheet and by doing so you can pinpoint what your projection of outlays would be for the following months.

3. What’s a Receivable?: There’s a lot of jargon when dealing with finances and receivables is a fairly simple one to decode. It’s the amount that your business will receive a.k.a what it is owed – remember all the invoicing you did?   Better receivables translate into better cash flows. Your business can do better if you improve the speed at which you turn your services and/or products into receivables. This way you can develop a good yield of cash for the company.

How can you do this? 

  • Offer discounts
  • Request customer deposits at the time of delivery
  • Provide ways in which quick payments can be made by the client – payment gateways
  • Insist on credit checks
  • Make credit available to the clients – if possible.
  • Sell old inventory and issue invoice promptly

4. Play Those Payables: As your business grows, so too must your sales. How do you do it? You must check daily expenses and the extent of how you can expand sales. Always inspect and examine ways in which you could be spending on the sales that you make and control them. In this case, your suppliers are your friends. So you should let them know your financial status and develop a trust and understanding with them. Analyse vendor costs for early payments based on change in the overall costs. Look for more flexible modes of payment to improve your cash flow.

5. Happy Investors Love Good Cash Flow: As a startup, keeping your investors happy is simple – have great financial prospects. If you have a favourable cash flow ratio then half your job is done. The better your cash flow, the happier the investor and the better your relationship.   A good cash flow tells your investor that your business and his money is set to grow.

The best way to understand your cash flow is by ensuring that your costs don’t keep creeping up over your cash in hand. Your operating costs is the amount you are willing to spend on your business on a daily basis. Don’t worry about having enough cash – a good cash flow ratio allows you to have the necessary funds to keep your investors happy and wanting for more!

What’s critical is to have the pulse of your business cash flows. Yes the balance sheets are important and critical. But cash flows are the daily lifeblood – that will ensure healthy business, happy employees and a happier you!