Personal income protection techniques

The life of human is full of uncertainties and the demand of human being is infinite. Nobody knows what will occur after even a second. Misfortune or mishap may arrive at any time, therefore personal income protection is mandatory. Do you think once, what will happen if your personal income from salary or from other sources may stop for enduringly since next day or if you fall in danger such as accidental or injury or severe sickness?

Do you have alternative way to pay out your house rent, buying essentials or medicines etc if you were in illness for a long time? Personal income protection techniques will assists you to manage the situation whatsoever it is over financially. For your personal income protection you would either take help from financial organization or from any banks or any other renowned insurance company (whose claims repayments rates are high & transparent) who provides this type of services indeed. Personal income protection policy may cover a amount of 75% of your gross salary on an contracted period of time till then you returned back to your work as full disease or fatal injury free condition. Income protection includes a broad range of options like income protection insurance, illness or sickness insurance, income insurance, injury or accident insurance etc.  

The mentioned types of policies will afford your security through financially, so deal with concerned insurance company or financial organization specially those who are providing such type of facilities to the peoples. When someone fully depends on only personal income source to maintain his or her living expenses hence it is highly recommended to protect your income or to take a personal income protection policy soon. Some reputed insurance company or financial organization may provide similar type of benefits to the customers under disability income policy, so meet your adjacent insurance company or insurance company. Make sure, whether you choose an indispensable or best policy options to get the benefits from themselves in future. This type of benefits may grant under the circumstance of your monthly income. Check out about what are premium rates, selecting a suitable policy, claims you will get in time or not, only don't pay your attention to chose solely price basis. Rate's variations are based on coverage, with higher premium in long term disability program provides the best coverage to it clients.  

Search for such type of insurance or policy or income protection which will provide you a complete income protection facility other than cheaper alternative. Further more, I am telling you to ensure whether you are getting a policy or option or not from your service provider because you are going to open up something for mitigating your future problems like financial in an uncertain crucial moment.

Finally my advices to all of you, please contact with this type company who really provides such type of “PERSONAL INCOME PROTECTION” policy professionally. And take a monthly deposit scheme for 5 years or 10 years in any financial bank or institutions to preserve your money for future usage.  Wish you always a sound health and a very happy life!   

More ways to save your personal money

Are you searching some essential ways to save your personal money? If it is so, then I would say this article will give you some fundamental tips on which you will may learn to save your money. Hence, let’s see now what are the more ways to save someone’s personal money:

1. Ensure the economy life.
2. Put a tiny bank in your residence as a result you will get visual reminder to make some extra savings daily, at the end of few months you will see a magic how a tiny ceramic or clay made bank will full of coins or money!  
3. Try to negotiate with company boss or administration your salary on how to increase your personal salary.
4. If your company boss or administration is too much rigid or disagree to increase salary then never be disheartened try to improve your performance in assigned tasks or alternatively if you think you are quite capable to hunt a better job as well as better position with high amount of salary and benefits then you can try elsewhere to switch the existing job.
5. Check your receipts and payments, statements of bank, financial institutions or any other related and everything is there if any discrepancy or errors or omissions or over charges found. Rush to the concerned authority to rectify this fault.
6. Be cautious from the false negotiations.  
7. You need not to buy other same things until it scrapes, you can repair it.
8. Also need not to pay for car parking tickets or car parking charges until it is emergency.
9. Try to avoid credit cards if it offers you cash back.
10. Shun the VIP or elite class cards from Master or Visa gold or VIP it may charges more.
11. In case of buying newspapers or magazines you can buy these upon monthly subscriptions.
12. Practice money saving formula in your daily meals avoid read meat, rich foods and became vegetarian; it will help you to save money and health both.
13. Choose low cost food shops which ensure you good quality items.
14. While you go to office regularly take home made lunch.
15. Avoid buying any unnecessary products unless it’s absolutely necessary.
16. Your neighbors are your company, try to meet them, talk them because you may get help from them.
17. Avoid shopping when you’re not quite fit or tired in physically.  
18. Try to avoid food shopping when you are so thirsty or hungry.
19. Please check out prices of commodities with other shops prior to buying.
20. If you buy products from online, get cash back, check out with authorized staff.
21. Review each and every month’s personal or family expenditures.
22. Try to bargain or negotiate for a discount with shop managers at the time of shopping.
23. Set up your daily, weekly and monthly personal and family saving s plan and implement it urgently.
24. You may sell your used items like mobile phone, telephone set, TV, Personal computer or laptops and get extra cash. Sometimes I followed these items are lying at home merely as useless.
25. Ensures economy plans for shopping to make some extra cash.
26. If you even enter in a fixed price shop or set price shops to buy something, negotiate or bargain with them for a discount or special benefit. Sometimes they may allow you because of lower selling in this season.
27. Leave all types of bad habits like smoking, drinking alcohol, coffee, betel nuts etc. This is surely harmful for your health.
28. You may have potential artist childs at your home, contact with model developer agencies to develop or trained up your childs as a professional model, For example, in Bangladesh Dhigi (She performed so cutely at Grameen phone ads then she became so popular in all over the country, now performing at cinema) is a daughter of Former Film Artist Duel.
29. Switch off and Save your utilities bills such as lights, fans, and computer unless these are running unnecessarily.

Above mentioned points are for saving your personal money and for creating positive awareness within an individual.    

Personal income quotes

A large income is the best recipe for happiness I ever heard of. 
 ♂ Jane Austen 

A wise man will live as much within his wit as within his income. 
♂ Lord Chesterfield 

Cannot people realize how large an income is thrift? 
♂ Marcus Tullius Cicero 

Economists are coming to acknowledge that measures of national wealth and poverty in terms strictly of average income tell you little that is significant of the health or viability of a society. 
♂ Rowan D. Williams 

I am indeed rich, since my income is superior to my expenses, and my expense is equal to my wishes. 
♂ Edward Gibbon 

I'm living so far beyond my income that we may almost be said to be living apart. 
♂ e. e. cummings 

Invest three percent of your income in yourself (self-development) in order to guarantee your future. 
♂ Brian Tracy 

It is better to have a permanent income than to be fascinating. 
♂ Oscar Wilde 

Real poverty is less a state of income than a state of mind. 
♂ George Gilder 

The income from sales now covers the expense of materials but I expect this to improve. 
♂ Mike Thompson 

These days an income is something you can't live without - or within. 
♂ Tom Wilson 

It's not about lending a name to a project. It's truly creating a vision we've for years. We have a substantial amount of our personal income in this.

♂ Rande Gerder

Areas with a larger personal income can support more stores. A higher level of per capita income can support luxery-type stores. 
♂ David Lenze

The fact that households are saving so little, even with strong growth in personal income, is a potentially troubling development. 

♂ Joseph Abate

Collected by Rejaul Abedin from different sources. 

What are the simple ways to increase NOI (Net operating Income) except increasing sales under absorption costing?

Here is our topic is “what are the simple ways to increase NOI (Net operating Income) except increasing sales under absorption costing?” Therefore we have to find out the real solutions on it. Prior to go increasing NOI (Net operating income) we have to understand about Absorption costing, that what is Absorption costing actually?

Absorption Costing Meaning: As we know absorption costing wherever all the manufacturing costs are absorbed by only produced units. Alternatively, ended unit’s cost in inventory which includes direct labor, direct material and fixed manufacturing overhead and variable cost both. It frequently distinguished with direct costing or variable costing. The fixed manufacturing costs are not owed or assigned to the products manufactured in direct costing or variable costing. VC (Variable costing) frequently used in decision making for the sake of administration of the respecting company. For income tax reporting and exterior financial reporting the absorption costing is in fact needed. In the absorption costing method the fixed overhead is meant a product cost if it is not sold.Absorption costing is one sort of costing technique in which all types of usual costs either it is fixed cost or variable cost are charged to cost units produced or it is a technique in which all of the costs being linked with the production of goods or services. For manufacturing a demanding product a managerial accounting cost technique concerned. In absorption costing the total direct costs and overhead costs linked with manufacturing a product as cost based. GAAP (Generally Accepted Accounting Principles) needed absorption costing for outside exposure. Also absorption costing known as full costing or full absorption costing or the full absorption techniques. 

In absorption costing, variable manufacturing costs, since labor and raw materials are simply a part of the cost. This method is else measured fixed overhead and variable to be part of in on the whole cost of the service or product is offered thereby. The majority of the companies are seeking to increase their OP (Operating profit) require reducing these costs in the lack of maximizing sales. In fact, increasing sales or lowering costs are the two ways to improve profitability of companies. For reducing production cost, cost accounting can give you excess information to implement your plan.

The disadvantage of absorption costing is where the administrator may raise production level except total sales consideration in to account. This year costs may delayed to the next year under higher production level. This is meant, the administrator will appreciate for the raises to more profits.

Ladder to increase NOI (Net operating Income) except increasing sales under absorption costing which as below:

Ladder-A) Make sure a budget for all of the production costs. Appraise past production periods to produce goods in order to determine the normal expenses of your company.

Ladder-B) Discuss regarding budget with supervisors or managers of production departments and set out your budget. Now think about how to reduce production cost of the company.

Ladder-C) Recognize the specific reasons of cost overruns these are supposed to labor, manufacturing overhead or direct materials and so on.

Ladder-D) Differentiate the real cost of productions against cost of the budgeted items. Seek for unfavorable variances for production of goods or commodities where the concerned unit may spend more money.

Ladder-E) Identify economy resources to rectify the overrun costs. To update processes of production costs which produce less waste or raise the output of production of your workers of companies.

Ladder-F) Change the cost accounting techniques either it not goes well in your business operations. Analysis and recheck or existing cost accounting system may effect in activity based costing which may more accurate and lower allocated cost of production rather than standard costing.


Hope you read out attentively this article and also find out by yourself what ladder A to F you got as useful for your NOI (Net Operating Income). Else I expect you may try your best to increase your companies NOI (Net operating Income) under Absorption Costing except increasing sales of your company.  

Tips to increase your business operating income

Prior to enter in our main discussion let's know what is the meaning of operating income? Operating income shows a measure of earning strength from ongoing operations of a business organization, equivalent to earning before deduction of income taxes and payment of interests else operating income is called Earning before interest & taxes (EBIT) or recurring profit etc. Frequently operating income is considered as appropriate measure of a management's aptitude to make use of operating assets of an organization. It let us know, a unique assessment of the organizations profitability's tendency than net income. If operating income increases it shows in a net affect in a business operation wherever a manager may decrease cost of the products or commodities or increases in sales volume only. If a company increases its employees salaries in proportion, operating income may unaffected.      

  

Now we’ll penetrate in to the area of increasing business operating income, at this stage we have to understand clearly about followings to ensure operating income:

1. Period cost
2. Fixed cost
3. Product cost
4. Revenue   

About period cost: This is such type of costs that are not included in product costs. These period cost are expensed on the P/L account or income statement in the period when incurred, either purchased or manufactured goods period cost aren't inclusive as part of the costs. For instances, General & administrative expenses, sales expenses, sales commissions, employees salaries, rent etc are instance of period costs. These items are not period costs such as direct material, direct labor and manufacturing overheads etc.   

About fixed cost: Simply, fixed cost are those which doesn't changes with the sales level, if sales decrease or increase but not anything changes then fixed cost remains same as before. Fixed cost is such costs which are associated with the way of time in its place of with the units of output like rent, interest, salaries of permanent employees, depreciation etc. For example, if a company lease on a building premises, in that case, if company has to pay an amount of BDT.15000 each and every month to cover the lease cost but if doesn't produce anything throughout the month, the payment of lease is still due fully. 

Product cost: Product cost generally means is a cost of direct materials, direct labor, and manufacturing overhead that are consumed in order to produce a product. Product costs involves in making or acquiring a product. It can be consider or includes the charges which involves during the time of delivery of products or services to a customer. This type of cost can be recorded as an inventory asset if the products remain unsold. Then it is charged to the COGS (Cost of good sold) as early as possible that product is sold then will be treated as an expense in the P/L account or income statement accordingly.  

Revenue: As we know revenue is the amount of money and which is before paying for expenses and taking out taxes, for a business organization is it the total amount of money which is received by concerned organization for the services provided or goods sold during a specific time period. Else it may includes all net sales, interest, any other increase in owner’s equity and replace of assets, which is also computed prior to expenses are deducted. For instances, revenue may be treated when money is received during a signing session in a contract or from spot sales collection, when services is given or any other times respectively. Cash basis and accrual basis are the two different accounting methods to recognize revenues in accounting rules. For your clarity, here I am giving a different example, if you make sales of 50 bottles of 200 ml shampoo for BDT. 110 [where BDT. Means Bangladeshi Taka as currency] each then you made BDT. 5,500, this BDT. 5,500 are your revenues in that particular amount if you pay our VAT, Taxes etc then you’ll get your profit. Yes, there is the difference between profit and revenue.

From above writing I think you got an idea about period cost, fixed cost, product cost and revenues. Proper utilization and understanding of these items and techniques shall help to gain your operating income in the respective business.

Formula of net operating income enhancement except increasing sales

As our main objective to enhance net operating income except increasing sales so, at very first we have to define what is the meaning of net operating income (NOI)?  The so simple answer is income after deducting operating expenses, before ducting interest and income taxes is called net operating income (NOI). In the income statement or P/L account if it is shows a positive figure then it is treated as net operating income where if it is shows a negative figure then it is called net operating loss (NOL). Also there are a number of accounting conventions, at what times net operating income (NOI) may enhance except increasing sales. In support of better understanding, it is quite essential to gain some knowledge on how net income is resulting. As also we know any standard income statement or P/L accounts starts with revenues or sales and it subtracts COGS (Cost of goods sold) from the revenues or sales appear at gross profit margin then it subtracts every costs linked administrative operations from gross profit margin to come out at NOI (net operating income).

Now let’s we move to our main topic, if we want to enhance business net operating income except increasing sales then we have understand clearly cost of goods sold and operating expenses what they includes.    

     

Level –A) Collect chart of accounts copy from your business accounts department then there you’ll see all schedule of linked values and accounts.

 

Level – B) Identify the all items that includes in the COGS (Cost of good sold) these items are called variables, there values associated with the levels of productions. You will see values go up when production level increased. These items are directly associated with generation of sales also you know the most familiar items is “Inventory” and depreciation of expenses in the COGS (Cost of good sold) which is write off item to capital assets category. 

Level – C) Now you have to identify those items that are involved as operating expenses. Operating expenses includes telecommunications costs, traveling costs, supplies expenses etc. 

Level – D) Then after levels “C”, think about lower of the cost of goods sold (COGS), provide a possibility to procure or supply chain to keep lower the cost of sales and inventory over contract pricing as lower. Check out discounts has already been taken in to account or not? Make a tally of in house allocation cost by outsourcing. In some cases, hire a more variable and hourly basis employees for your organizations. 

Level – E) And in the final level “E”, please may I suggest you to consider, operating income with lower link costs? Because of these costs typically are fixed types, as a result of this cost saving formula that can give you a good output like long lasting & vitality in business operations. Use techniques like spending little more expenses in telecommunications expenses rather than less in traveling expenses, it will save time and money both. By that your employee may involve with other effective works. Ensure, either you get office supplies discounts or your product or services pricing of contract with vendor is OK or not? Try to reduce the expenses, because of cost saving, you can grow your income, check out another better business locations with less rent, and look for a better competitive rates or prices if you buy products from manufacturer or producers directly.  

At last, now I think after read out this article you already got your main key points where you should concentrate to enhance your net operating income (NOI) except increasing sales.

Easy tips on how to make twofold your business income

Do you think it's so hard to do or it's quite impossible to make double your income from business? Oh, no it is quite easier than your beliefs or ideas. If it is so, may I request you to read out or follow this article and then implement it in to your business? There is having merely three major areas where you have to focus on in order to enlarge your in flow of money in business.

A) Try to raise your average amount of money against each of purchase (Welcome a bigger sales volume).

B) Raise your number of customers on spot sales as well as credit sales (in conditions) [Get more new customers to boost your sales] 

C) Enlarge the frequency of each purchase by your average customers (Establish retention of customers to ensure number of repeat business)  

If you implement above three A) B) and C) in your business operations you’ll surprise to see the real impact of enhancement in each group can have in your total size of business.

If you think you can able to raise merely 10 percent to 15 percent each of three categories or more than this figure. If it is raise only 10 percent in each of the category mentioned as above then you’ll able to expand your total volume of income by nearly 33 percents. If it is cross 25 percent your income will increase nearly twofold. As for example just follow the formula given as under:  

Total income = Purchase  x  Number of Average purchase per customer  x  Per customer

BDT. 30,000 = BDT. 30 x 500  x  2

[Where BDT. Means Bangladeshi Taka as currency]

Each of categories if you increased by only 10 percent as a result you'll raise your total income by 33 percent 

BDT. 39,930 = BDT. 33 x 550 x 2.2

Suppose, you can raise each of the categories by 25 percent

BDT. 58,594 = BDT. 37.50 x 625 x 2.5

Therefore, in each of the categories if increased by 25 percent we may treated it as nearly twofold your business income.

If you want to apply this formula in your business you can do so, with changing the given figures also for your expediency. All of us can't come in a same opinion that we have used same figures in all of the three categories to increase income in a twofold figure. You know, welcoming new customers in to the business arena is bit difficult than raise the size of each average purchase. For example, here it is shows 20 percent more repeat business:


10 percent new more customers means 
10 percent new bigger sales volume, it'll help you to 
20 percent recurrence business. If you follow this formula you can twofold your total business income during the period.


If you highly determined to make twofold your business income then I suggest you to follow the following principle although this is bit costly: 


1. Ensure bigger sales at any cost.


2. Welcome more and more customers by offering new benefits.


3. Implement retention of customers as well as maintain business repetition to a previous or existing customer for future endeavors.


Eventually, if you follow this article and apply it in to your business then obviously you'll notice your income has been reached in a twofold figure. Keep in mind, “More customers, More Sales, More business profits”.  

Essential steps to Maximize Your Company’s income

If you are an owner of a business, then you have to be very watchful on many areas because sometimes you will advice to your employees, your managers or company superiors or subordinates. As business or money is yours, liability is yours. Only increasing sales at all times do not indicate profits or income. Also we know maximizing business income or profit is very hard to think but if you follow some real business policies, principles, strategies, major business basics etc then it is very simple. Here I am going to focus on some areas of business where you can put your concentrations.   

1. Product pricing: It is very much essential for a manufacturer or a seller or a merchandiser. You have to review your product pricing on a regular basis in comparison with existing business competitors from market competitions. Your product pricing may be affected upon your product's market demand, cost, quality etc. 

2. Only cash flow in bulk size doesn’t mean high profit:  Proprietors sometimes mistakenly withdrawn hard cash from the business center in sense that s/he’s getting more profit from operations. Merely having cash and making profit has huge distinction. Hence, in your business if you do so, may I request you to maintain books of accounts properly such as Ledger, Petty cash register, PL account (Profit and loss account) or income statement periodically? And income statement will show your business performance like gross profit, net profits and expenditures during a accounting period. 

3. Check out creditworthiness of your customer: At the time of allowing credit sales or transactions you have to judges your new customers creditworthiness. If you allow credits then maintain a form where they will add some references (3 more). Referee will put their signature, photos, address, contact number and recommendations etc. And make a physical verification before issuing the materials on credit.

4. Credit risk management analysis: Another important point is to establish a credit risk analysis system such unless your new or potential customers not paying their utilities bills for several months, their characters, s/he bears more loans from banks or financial institutions which are now out of controlled for them.

5. Allow special facility on even credits sales: Say, one of big customer wants credit for a big project at that time you must call an official meeting with them for negotiations on sales prices, discounts as well as credit terms or payment terms and conditions, maintain a written agreement with seal and signature. And if possible collect PDC (post dated check or cheque) from themselves as warrantee.

6. Deliver dunning or demand letters: Besides phone calls or reminders or physical visits you have to issue or deliver demand or dunning letters like reminder letter, 1^st, 2nd or 3^rd letter for collection or recovery of previous dues.  

7. Collection or recovery on credit sales: Say, you are maintaining a credit sales policy like 30 days, 60 days or 90 days when you made an invoice during sales. You have to be very careful about your past dues or outstanding whether it is being cleared with term days such as 30 days, 60 days or 90 days. If you see, you are crossing your credit limit just collect hard cash or on dated cheque or check from your customers. This can be done through negotiations or via an agreement (where credit & payment terms and conditions shall describe). So, check out now if you have more credits outstanding in to the market. If so, then involves some employee or commission basis broker/agent to recover your prior dues unless they're bankrupt or insolvent (be careful, this is one kind of risks). 

8. Run a POS machine for spot sales like debit cards or VISA/Master Card: Maintain electronic payment systems. In modern world business owners are very familiar about debit card, Visa card or Master card. Hard cash bearing is always risks or hassle, so if you don't have this, you can buy a POS machine for your business center and hang out some sticker that you are accepting VISA or Master or Debit card here! Never think plastic cards is not good, you know banks or financial institutions are giving guarantee for this type of transactions. Do so, for maximizing your sales as well as revenues.  

9. Deal with clients very carefully: If you made a sale that doesn't always mean your job is actually finished. You have collect hard cash or plastic money from themselves. Some client's shows always busy themselves for doing any fraudulent activity. So, be careful at the time of dealing customers.  

To conclude, I presume you had finished your reading, if you got new impression from my writings, now it’s the high time to implement these in to your business in order to maximize company’s business income.

Is there having difference with Retained Earnings, Accumulated Retained Earnings and Corporate Disbursement?

Yes, there is a difference between retained earnings and corporate disbursement. If you read out following definitions of each of them then you will clearly understand about their distinction. Here I am trying to show you the differences which as under.

Retained earnings: Retained earnings mean we know the sum of profits of a company after payment of dividends to it share holders. Retained earning also called in may synonyms such as retained capital, accumulated earnings, accumulated profit, undistributed income, earned surplus, retained profit etc. Retained earnings may appear on the PL (Profit or loss account) or income statement or in the balance sheet under shareholders equity. It is treated as accumulated retained profit in the balance sheet. Basically retained earnings are a dividends amount which is undistributed among shareholders. The formula of retained earnings (RE) is = Beginning RE + Net Income – Dividends. In most of the cases company decided not to pay this dividend because of investment in a profitable projects in which company can create more growth or profits.

Accumulated Retained Earnings: When a company keeps it’s earning amount without disbursement to its shareholders those earnings are called retained earnings. That retained earnings when accumulated from an accounting period or fiscal year to another or next accounting period or fiscal year that is called accumulated retained earnings.

Corporate Disbursement: Sometimes we may call corporate disbursement as “cash outlay or cash outflow” or “monetary outflow” etc. Simply, corporate disbursement indicates, the act of paying out or disbursing in the discharge of expenses or debts money. Actually corporate disbursement comes when a company pays out its business debts money or expenses to its accounts payable or parties for settlement. For example, vendors payables, payment of salaries, payment to landlords, dividend payment, amounts pay to a lawyer, utilities bills etc. In case of purchase of assets (long term) usages like in the production equipment or property etc.

  

Above discussions is noticeably tells us where differences are there. So, now let us we apply these knowledge in our business areas where applicable.

What are the distinction between Income, Revenue and Gain?

Every businessman small, medium or large types those who are self employed or serving in Accounting and financial or non financial background individuals clearly have to understand these terms Income, Revenue and Gain chronologically. That’ why I have taken a decision to explain these 3 (three) which as follows:

Firstly let us know about Income, What is income means? 

Income: Net results from revenues less expenses incurred from previous period. Income commonly also known as earnings or profit. Income is an economic benefit (increases in assets like cash or receivables and decreases in liabilities such as loans, payable etc but it increase owners equity) for a proprietor of a business which arises during a past accounting or fiscal period. For example, some peoples called rent revenues as income. And an income from operations in sales less CGS (the cost of goods sold) minus operating expenses. In general sense, professional accountants treat income as “net of revenues and expenses”.   

Secondly, I would like to tell you about what is revenue?   

Revenue: The gross sales or cash receipts from its client’s for the sales of goods or services (merchandise sales) by a businessman are called revenues. Also alternatively revenue means turnover from sales or fees earned during an accounting period. In the IS (Income statement) revenues position is in first line. Revenue is the gross increase in receivables, cash or any other assets. For examples, dividend received from an investment, interest received by banks or financial institutions, property developer companies lease income etc. 

Third but finally I am going to conclude the question about gain, 

Gain: Generally gain means the difference between starting amount and ending amount. Say, gain on sales of companies assets (which is not an inventory of the concerned business) such as sales of an old delivery truck. Gain is the amount which received that is in surplus of the asset’s carrying amount (book value). For instances, If that delivery truck was sold out for an amount of BDT.20, 000, and it’s carrying cost was BDT. 2,000, the accountant will treat balance amount of money BDT.18, 000 as gain on sales of old delivery truck.

 

The above discussion is all about distinctions between income, revenue and gain. 

What are the different types of revenue?

There are 5 (five) types revenues which are as follows:

1. Sales Revenue
2. Interest Revenue
3. Dividend Revenue
4. Lease Revenue
5. Provision of services Revenue etc

Sales Revenue: Sales revenue is a type of revenue which comes from sales of goods or services to the customers. Selling items such as computers, accessories, shoes, toys, clothes, furniture etc. 

Interest Revenue: Interest revenue is what comes from financial institutions, banks, Micro Credit organizations, Multi Purpose cooperative enterprises. Interest only comes when you invest money to your customers. Interest counts upon principal amount, sometimes interest upon interest. Few interests are simple interest, compound interest etc. For instances, if you place an amount of BDT. 20,000 as call deposit with bank or financial institutions at the rate of 2 % per annum if you will get BDT.400 each year. That BDT.400 shall treat as your interest revenue or interest income.  

Dividend Revenue: If you get revenue from equities or stock investment that is called dividend revenue. If you buy shares from an organization if that company declares to pay you dividends that is example of your dividend revenue.

 

Lease Revenue: If you rent out your room, residential house, car, and boat etc to someone with BDT.10, 000 and then if s/he pays revenue BDT. 10,000 that is your lease revenue. Technically this is also called operating lease. 

Provision of Services Revenue: Suppose that you are a tutor, or a painter or gardener etc. If you get money from your job or service that is called revenue from provision of services. 

I got only aforesaid 5 (five) revenues during my research. If you find out more of revenues just make an addition with these. Thanks a lot for read out.

Definition of Gross Profit & Gross Margin, operating profit & Operating margin and net profit & net margin

Suppose that you are conducting small & medium or even large type of business. One thing you have to understand clearly what is called Gross Profit & Gross Margin, operating profit & Operating margin and net profit & net margin otherwise everything worthless. So, let us see here all of the definitions to eradicate of the confusions:

  

Definition of Gross profit: The gross profit or operating profit means revenues or sales minus COGS (Cost of Goods Sold). If this number shall be divided by sales then it is called Gross margin. This illustrates as bellow: 

Sales – COGS (Cost of Goods Sold) = Gross Profit

Gross Profit * 100/ Sales = Gross Margin   

Here, Gross margin shows how profitable is the business prior to subtracting ITD (= Interest taxes & deprecation expenses) R & D (Research and development expenses), SGA (Selling, General and Administrative expenses) etc. 

As you saw all definitions are very simple and easy to read but you have to be very careful about understanding and applying figures during the accounting calculations. 

Operating Profit and Operating Margin: As I mentioned above about Gross profit that Gross profit does not includes other expenses which incurred by the organization itself that related to the organizations sold items like ITD, R & D and SG&A etc. At the time of subscripting R & D and SGAs from Gross Profit, gets operating profit. That operating profit divided by sales is called operating margin (It is term of % percentage). The formula illustrates bellow: 

Gross Profit – SGA – R & D = Operating Profit

Operating Profit * 100/Sales = Operating Margin   

Net Profit and Net Margin: As we know more or less all the companies wants to make money from business. Net Profit is vital here. Net Profits we may denote as Net Income, Net Earning, or merely Earnings. We may understand Net Profit (NP) as how much profit an organization produced during a fiscal year after subtracting its all expenses or it may call quarterly, half yearly etc. In terms of quarterly and half yearly Net profit will shows partially. The Net Profits formula is as follows:

Sales – COGS – SG&A – R&D – ITD = Net Profit  

 [Where COGS= Cost of goods sold, SG & A = Selling, General and Administrative expenses, R & D = Research and development expenses, ITD = Interest taxes & deprecation expenses respectively]

If a organization’s net profit grows, investors, shareholders looking for receiving its dividends. If organization do not pays this net profits amount then they preserved in to the retained earnings for further investment or future uses etc. As we described about Net Profit now let’s see what about Net margin or net profit margin: 

Net Profit * 100/Sales = Net/Profit Margin

From my practical experiences I saw peoples always look for a highest profit margins company to invest as a shareholders rather than lowest profit generating organizations. Have a more profit in business!    

Formula to make more revenue on website or blog

Say, you have already been created your website or blog then what are your responsibilities there in order to earn revenues? Process is very simple just you have to follow the instructions such as if you are a beginner in this area then learn about how to increase your traffic or visitors to your website or blog, if you have very little or no experience about using internet then may I advice you to train yourself by an instructor? Or if you have merely computer operating knowledge if you try it is possible to be an expert but it’ll take more time. If you do so then you will see your self confidence growing day after day. During learning or at the end of learning you may apply your knowledge in to the highly potential and practical areas. Now we learn which sites really pays revenues upon clicking on their ads. Some good PPC (Pay Per Click) sites are www.google.com/adsense or www.chitika.com or www.bidvertiser.com or www.adbrite.com etc. And here we will see some good sites of in text-advertising such as www.infolinks.com or www.kontera.com or www.vibrantmedia.com etc. Else you can add more affiliate marketing product or link ads in your website or blog from www.cj.com or www.amazon.com or www.clickbank.com or www.azoogleads.com (This site will redirect you in http://www.epicdirectnetwork.com) there you will notice publishers tools in menu bar click on “to apply to be a social media publisher- click here.  Now I will tell you more about “Text link ads” for this you may visit www.textlinkbrokers.com or www.text-link-ads.com etc follow their instructions to give their text link ads in to your website or blogs. Feed ads can also generate your more traffic more advertisements for this add rssfeed from yahoo.com , msn.com or visit any rss feed service provider’s site or click on www.rssfeedreader.com  and visit www.feedburner.com or www.pheedo.com. Another important benefit of rssfeed is that it will keep dynamic and active your website or blog if you not provide any post in a day. You can add more services in your website or blog such as paid survey’s and polls www.answers.vizu.com , Pop-up ads from www.paypopup.com or www.adversal.com or www.popupad.net or www.tribulfusion.com etc, audio ads from www.netaudioads.com , article marketing from www.hubpages.com or www.squidoo.com or www.associatedcontent.com, direct banner ads shall help you to bring ads in your blog in a new level from www.oiopublisher.com or www.blog.taragana.com etc. for premium content please visit www.seomoz.org they have lots of seo contents for free. Finally I am sharing a sentence for you customizing a monetizing formula for your blog or website in favor of making money is highly required and its fully depending on your individual skills, knowledge on social networking, increase your traffic levels, I hope above writings shall help you to implement your desired goal. All the best to you!  

Important tips on online Affiliate Marketing

Many online Internet users are very well known about the name of “Affiliate Marketing”. Affiliate marketing is a unique system to promote and sales company's goods or services worldwide via online merchants. Affiliate marketer allows commission on their performance. By the affiliate marketing anyone can make more commission on each and every sale just required knowledge about marketing through internet such as email marketing, marketing via website or blogs through publishing ads, chatting marketing, forum post marketing etc. If you want to be a successful affiliate marketer you should know about followings:

Firstly you have to Sign up in a large and recognized affiliate programs which really pays commission on sales.

Make a short online research in order to find out which in the top affiliate program on the world or look for your local ones.

If you have an own website or blog then must Includes a number of good contents or resources or materials for your online visitors so that they can really able to make money or benefited.

In your blog or website add some profitable ads from Google Adsense, Infolinks, Amazon affiliates from amazon associates area, knotera, chitika, adbrite, adhintz etc.

If you get good number of traffic and popularity then you may get local or domestic ads monthly by that you can earn money.  

In the affiliate marketing a third party advertises products or services on behalf of trader for a pre agreed commission upon each and every sale.

Affiliate marketing also called “Pay for performance” where rewarding only allowing to them who are successful in convincing customers for a good output.

Any business organization may do “Affiliate Marketing” besides independents or individual affiliate marketer.

Here’s top Affiliate Marketing sites goes (This serial is not any ranking by surveys):

www.cj.com  [Commission Junction] , www.amazon.com,  www.affiliateseeking.com , www.affiliateseeking.com , www.affiliatetip.com , www.clickbank.com, www.sharesale.com , www.affiliateseeking.com www.affiliatewindow.com,  www.linkconnector.com , www.cpaempire.com http://www.imarketingltd.com, http://www.eaffiliatez.com , http://www.affiliatecrew.com

Lastly, one important sentence for you, all of the affiliate marketing networks are doing act as middlemen they come between merchant and you as you are promoting products or services in to the final consumers. If you have a good chance to deal some clients directly over chatting or voice conference call then you have to be very careful about offering products or services benefits as well. A direct dealing is more beneficial but sensitive too. And a professional affiliate marketer will maintain a multiple jobs at a time for their income. So, if you want to do so you have to acquire more knowledge on affiliate marketing from www.affiliatedefined.com , http://www.affiliatexfiles.com, www.affiliatemarketingarea.com  , www.meonit.com or from any other sources, if possible do an online research or survey to find out more related articles and affiliate sites. Hope nice earning from affiliate marketing!  

Earning money from blog writing

As we know more or less all are passing very busy moments and want to earn additional money from all of easy sources. Writing blogs is one of the easiest ways to earn a good amount of money from online. Process is very simple; just you have to read this article very carefully. At very first you have to select a topic or subject on which you want to start your blog writing. Then prepare and sign up your free blog site from www.blog.com or www.blogger.com  or http://www.xanga.com or http://www.typepad.com or http://wordpress.com  or http://www.writing.com etc. Visit this site for free tutorials of blog writing http://www.siteground.com/tutorials/blog. Also for more knowledge of “How to start a blog” please go to http://www.wikihow.com/Start-a-Blog . My advices is to you please write your blog in MS. World file and preserve this for further checking by you if needed because sometimes you may edit your articles alternatively you may directly edit your published blog articles from your live blog site via online. After writing your blog please publish it to your blog site for the sake of readers. Add “Rssfeed” select some good subjects like world news, earnings, sports, business etc in your blog site to keep your blog site always dynamic, it might be happen that one more day you wouldn’t write and submit your blog to your site in that case “Rssfeed” shall help you. Add feedburner and add various ads like www.infolinks.com or www.adsense.com (From Google) or Yahoo’s text ads, or www.kontera.com, or www.adhintz.com or www.adbrite.com or www.chitika.com etc to monetize your online income flow. Also you can add more little “banner ads” or “Video ads” or “Affiliate Marketing program site’s ads” in your blog site for earning commission say if one visitor clicks on your www.amazon.com ad’s from your blog site the s/he became interested to buy for that particular products after that what amount of money amazon made profit on that sales, a partial commission shall automatically will give you by amazon. The more you will write in your blogs the more you will get visitors impression or traffics progress. Keep in mind that “More traffic means more generating income”. Finally, wish you a very happy earning from your blog writing!

What are the different types of Income? Define them elaborately.

There are many types of income I found in business areas. Multi types of income such as

1.      Income

2.      Business income

3.      Basic Income

4.      Gross Income

5.      Earned Income or linear Income

6.      Residual Income

7.      Passive Income

8.      Leveraged Income

9.      Net Income (NI)

Now elaborately I am going to discuss the above mentioned different types of income which are as under:

1.      Income Definition: In business income refers to a company’s residual revenues after all expenses and taxes have already been paid. It else’s known as earnings. On the other hand, income means economic wealth that is created in exchange of individual performance or through investing capital. Income may consume in a day to day business expenses.   

2.      Business Income Definition: The term “Business income” refers financial gain during a stipulated period of time from a business organization. If income is received from a business operations is called business income. Here it’s notable that business income is taxable. For instances, rental income to the business, sales or turnovers, interest from banks accounts of business organizations etc.

3.      Basic Income Definition: Basic income or Guaranteed Annual Income is meant an income totally granted to all on an individual basis without means test or work obligation. In various European countries there are three ways such as

i)                    it is paid irrespective of any income from other sources

ii)                   it is being paid to persons rather than households

iii)                 It is paid except requiring the performance of any work or the eagerness to accept a work if offered.

4.      Gross Income Definition: Generally gross income denotes a person’s total personal income before taking any taxes or deductions in to an account or a company’s revenue minus cost of goods sold. Also called “Gross profit” or “Gross margin”. On the other hand total revenue received before any deductions or allowances such as taxes, house rents, cost of goods sold etc.

5.      Earned Income Definition: Earned Income also referred as linear Income. There is a direct correlation between your income and time. Say, you are trading your time only for dollars, if you work 10 hours you will paid for 10 hours, if you don’t work , you won’t paid.

6.      Residual Income Definition: If you gain something by doing accurately and then reaping the financial profits over and over further except any repeat effort at your end. For instances, a percentage of earlier sold products that re occurring income i.e. insurance, a monthly membership service or product, royalties, real estate rental income and monthly or weekly subscriptions. Else legitimate network marketing is a tested process that may used to construct a concrete residual income.  

7.      Passive Income Definition: Passive income is a type of income that not required your time in order to sustain. For instance, High interest bearing accounts, Investments, SEO, Virtual marketing, legitimate network marketing, selling via automated method, product development, any affiliate program administered by a third part like commission Junction, ClickBank, or others. Passive and residual income very often used interchangeably.

8.      Leveraged Income Definition: Leveraged income is such type of income which you gain in conjunction with the combined efforts of others. For instances, down line builder income, or say if your employees have an own business and recruit other employees in order to create income towards your base line, A team, sub affiliates in your affiliate programs etc. J Paul Getty said, “I will rather earn 1% of 100 people’s attempt than from 100% of my own attempt”.

9.      Net Income (NI) Definition: Net income is calculate by taking revenues and adjusting for the cost of doing business, interest, taxes, VAT, depreciation, and other expenses etc. Net income (NI) is called a company’s total earnings or profit. Net income (NI) we can see in a company’s income statement or profit or loss account or statement of revenues and expenditures etc. Net income is very much important to appraise on how profitable was the company during a period of time. This appraise is also may used to compute EPS (Earning per share). For instance, say your gross income is BDT. 6,000 and where total deductions shows BDT.1,000. In that connection your taxable income is BDT. 5,000. If you have BDT.1,000 as income tax which is subtracted then the residual BDT.4,000 is your (NI) net income.