Small businesses are the backbone of the US economy. Based on research, there are 28 million small businesses and 18,500 large companies in the US. Of the 28 million, 22 million are operated by sole proprietors. That means the business has no employees. For businesses with employees, payroll is a vital task. If the process is not streamlined, it can slow down operations.

In large companies, business processes are automated. This helps companies remain relevant in the competitive environment. To do so, they have adopted cutting edge technology to gain an upper hand.

For small businesses to remain competitive, they need to optimize payroll process. Want to make payroll processing less time-consuming? Consider these 5 ways to streamline your payroll process.

1. Invest in Payroll Software with Cloud Management Capability

A lot of business owners put off investing in payroll software due to costs. Payroll software with cloud management capabilities is not cheap. Costs aside, such software can calculate taxes based on the employees’ zip code.

It can capture your employees’ data and information. Also, it can split costs between different departments and prevent duplicate entries. The same information can be shared with relevant departments in your business.

Want your business to run faster, and simpler? Invest in payroll software.

2. Pay Employees Less Frequently

A lot of small businesses adopt the hourly, daily or weekly payment scheme. Doing this takes more time to process payroll. To streamline your payroll process, pay your employees less frequently.

Instead of hourly, daily or weekly wages, opt for bi-weekly or monthly wages. This will cut your system service payroll advance. To make this a reality, you need to carry out some coaching on budgeting and personal finances.

3. On-board Your Employees Online

It is common to find new employees filling out a stack of forms on their first day at work. For a business seeking a competitive edge, this is not the best way to use company time. To streamline your payroll process, onboard your employees online.

Modern payroll software comes with cloud and web apps. As such, the system can be integrated with your website. Now, new employees can complete forms online. They include I-9, direct deposit authorization, and W-4 forms.

This saves time and creates an efficient atmosphere at the office.

4. Go Green with Paperless Payroll

Paperless payroll not only saves money but eliminates the need for time sheets, and physical paychecks. To integrate paperless payroll, invest in software with an online portal. With an online portal, your employees can sign up and check their pay information. No more physical checks or wasting paper.

You can streamline your pay stubs with PaystubCreator.net. As an online stub maker, not only does it ensure accurate calculations but error-free entries.

5. Offer Continual Training

Changes in technology and policies require your employees to be up to speed. This is one of the ways to stay ahead of your competition. Continual training and education equip your employees with skills and knowledge. This goes a long way in streamlining the payroll process.

To ensure your employees receive the best training, partner up with a training institution. Not only will they carry out training on site but online too.

Streamline Your Payroll Process to Stay Ahead of Your Competition

When you streamline your payroll process, it translates to several benefits. They include time-saving, cost-saving, and increased efficiency. Not only that. You will reduce errors and duplicate entries.

Looking for more tips on how to optimize your payroll processes? We can help. Check out our blog.

Once you become parents, what’s the one thing that is constantly on the top of your mind? Of course, the well-being and protection of your kid. Having said that, a child’s education holds a lot of significance in the life of every parent. This is because every parent wants only the best for their kids which makes them save more for their future goals and aspirations.

The best way to ensure your child’s secure and safe future is by investing in a Unit Linked Insurance Plan [ULIP]. A ULIP plan not only ensures protection of your family but also seals the deal with financial security. It may also turn out as the safest option if you follow these 5 steps in order to fund your child’s future education

Estimate your budget

Estimating your budget is the most crucial step as it lays the foundation of the future of your kid. Moreover, your entire corpus acts as the basis of his future education hence see to it that you generate enough income that not only fulfills your needs but also your kid’s. In order to estimate your budget consider factors like the list of universities, the stay, fees and additional charges of the university, and so forth.

Decide an investment amount

Once you decide the required amount of corpus for your child’s future education, break down the investment amount into a monthly figure. The best way to do so is by taking the help of a ULIP calculator which will give you the estimates of your final investment goal. If you start investing with a small sum of amount, then you can further benefit with the help of a compounding effect.

Consider your risk appetite

Investing in your child’s future education with the help of a ULIP ensures that your risk appetite is in check. ULIP insurance ensures that your encashment in funds is humongous. If you want the same, then see to it that you invest in equity funds. However, if you are someone who doesn’t wish to take risks, you can easily switch to debt funds.

Choose the best ULIP plan

With a plethora of available child policies in the market, there is a possibility to get confused due to too many options. In order to avoid confusion, invest in a plan based on the past performance of the ULIPs as well as your final goals of investment. Moreover, select a plan that not only offers child policies but also a lump-sum amount on the date of maturity. The best ULIP plan will waive off the premium during the death of the policyholder.

Opt for ULIP insurance

For child policies, it is advisable to invest in ULIPs. Investing in ULIPs not only ensures the protection of your kids with a provision of a life cover but also with the benefits of the higher returns. For instance, a ULIP Policy combines the advantages of insurance and investment together in order to earn higher market returns. Regardless of the scenario, your kid needs a better life and with the help of a ULIP, you ensure the best one.

As parents, we can go to any extent in order to provide our child with the best. That’s when ULIPs come into the picture. Make ULIP Insurance your one-stop destination for your kids as it will not only protect them in times of financial exigencies but also allow them to soar higher, at the same time.

Now that you know how to map your child’s future education with ease, when are you planning to make an investment? Start today with the help of ULIPs as it not only offers the benefits of protection but also growth. Since the needs of your child will be in check, the question of his/her future would no longer be an issue to you.

What are blue chip funds?

Blue chip funds are the mutual funds that invest primarily in blue chip stocks. Blue chip stocks are the stocks of large-cap companies that have been in the business for years.  The name ‘Blue Chip’ has its origin in the game of poker wherein blue chips have the highest value as compared to the white and red ones.

These companies have an established track record of good performance and a sound reputation. Blue chip mutual funds are composed of stocks that are very well-known and need no introduction. The products or services offered by these companies have a substantial market share and are widely accepted in the market.

One of the main advantages of investing in blue chip funds is that they have strong financials. This includes their revenue, profitability, dividend history, and the degree of leverage.  Blue chip funds are also less volatile as compared to the mid-cap and small-cap funds.

How do blue chip funds work?

In order to derive maximum benefits out of a blue chip fund, it is very important to understand how it works:

A blue chip investment is ideal for realizing long-term financial goals such as higher education, children’s wedding, or retirement planning. This is because the fund invests in stocks of financially strong companies, which have the ability to make profits even in the most adverse conditions.

By investing in well-performing stocks, the blue chip fund gives investors an advantage of gaining from the growth of these companies. Though the major portfolio consists of blue chip stocks, these can also invest in other avenues such as bonds, mid-cap, small-caps, or cash, for the purpose of diversification.

The broad market mainly consists of the blue chip stocks, hence the blue chip funds move pretty much in the same direction as the benchmark index.

Important features of blue chip funds

• With the major investment exposed to the blue chip stocks, the blue chip fund has the power to navigate through the volatile times in the market. The stocks belong to companies with strong business operations and they have the knowledge of how to hedge against the various kinds of risks. Thus, it can be easily said that blue chip funds are safe in the long-run and offer immense stability.
• Such funds have a strong list of companies in the portfolio. These companies have a proven track record of profitability and sustainable cash flows. These companies have performed well in the past and as a result, their stocks have shown commendable price growth over the past five-ten years. Therefore, investing in blue chip funds gives an opportunity for investors to witness growth in their money.
• The blue chip stocks ensure that your money is in safe hands and helmed by a strong management. The management of these established blue chip companies ensures strong corporate governance. Therefore, as an investor, you can be assured of fair practices in the companies. This also protects the company from earning a bad reputation and being caught in any illegal activities because these can have a direct impact on the stocks.
• Blue chip funds ensure wealth creation over the long-term. The companies in the portfolio have a good history of dividend payment. This ensures the strong performance of the companies and cash balance in their hands.

These funds have exposure to other assets such as mid-cap or small-cap funds and bonds. This makes the portfolio well-diversified and makes it well placed to manage even the slightest of the risks.

We all are aware of the importance of having a good motor insurance and how it eases our burden at a time of an emergency, but did you know that all vehicle insurance companies and their motor insurance policies are bound by law? Which means even the slightest change in insurance rules can affect your motor insurance policy premium. As per order of Supreme Court, the insurance regulator has directed all vehicle and commercial vehicle insurance companies, rather general insurance companies to offer the long-term third-party vehicle insurance covers to all the vehicles bought on or after 1st September 2018.

What Changes?

The new rule makes it compulsory for every vehicle owner to have a long-term or multi-year policy while it also detains them from riding a vehicle on the road without the third-party insurance.

The following states how this rule is going to affect a policyholder’s motor insurance premium.

Premium Outflow – The net outflow of the policyholders will be comparatively more in the beginning. Instead of paying premium amount every year, the policyholders will now pay it as an upfront lump sum. Owing to the new rule, there is an increase in the policyholder’s outflow in the first year but no such premium has to be paid by them in the second and third year.

Hike in TP Tariff – The premium for new cars except for those below 1000 cc will go up

• Below 1000 cc – Policyholders under this category will seem to gain by this new motor vehicle rule as the new long-term TP rate will witness a slight decrease in its total lump sum for 3 years.
• Over 1000 cc but below 1500 cc – The new rule will result in a hike in the long-term TP rate, making the policyholders pay extra upfront by the end of 3 years.

Over 1500 cc – The policyholders under this category will have to pay extra upfront by the end of the 3 years long-term.

Premium paid – The premium for motor insurance will have to be collected for the entire term of 3 or 5 years right at the time of purchase and would be recognized on an annual basis.

What hasn’t changed?

The things that still remain the same after the new rule are as listed below.

Policy Renewal – The said new rule isn’t applicable to policies that were bought before 1st September 2018 and, therefore, has no effect on the motor insurance renewal of policies existing before it.

Own Damage – The new policy demands an upfront lump-sum premium in the case of third-party liability. But it has no effect on the own-damage feature of the policy.

IDV – The new rule doesn’t affect the Insured’s Declared Value of a policyholder’s vehicle. It is still determined on the basis of the listed selling price, brand and model of the car.

No-claim Bonus – Since NBC is applied only on the OD part of the policy it may not be affected by the new rule.

Find out the impact of the new rule on your premium by browsing through sites of reputed vehicle insurance companies like Bajaj Allianz General Insurance. Their easy-to-use motor insurance calculator can help you understand your premium payouts even better.

If you’re considering a personal loan, you are not alone. Personal loans make up the fastest growing consumer debt category. And, there is over $120 billion in outstanding personal loan debt in the US.

Personal loans are available for a number of different things. The most likely is to pay off other debts, usually credit cards with higher interest rates. Other times personal loans are relevant are to pay for medical debt, urgent home repairs, or needed, but unexpected, car repairs.

If a personal loan seems like it would be right for you, keep reading to learn more about typical personal loan requirements.

1. You Need to Have Decent Credit

A good credit score shows the lender that you are a responsible borrower and they won’t be taking a big risk by lending you money. The higher your credit score, the more favorable your loan terms and interest rate will be. Even a small decrease in a credit score can have a big impact on the amount of your payment, reducing the total interest you will pay over the life of the loan.

Before applying for a loan, pull your credit report and clean up any errors that might be on it. Your credit report won’t include your credit score, so you’ll have to get that separately. Many credit card companies offer this for free to their customers, so check with yours before you pay for your score.

2. Terms May Vary and There May Be Fees

There are hundreds of companies out there that offer personal loans. Banks, credit unions, and online companies that specialize in these types of loans. Known as fintech companies, these online lenders can often offer favorable terms because they don’t have a brick and mortar bank to operate.

Shop around for the best terms and rates before you make a decision.

Many require an origination fee, which is usually a fixed amount or a percentage of the total loan. This will be added on to your loan amount, so if you take out a $25,000 personal loan, you’ll owe $25,000 plus the origination fee.

You’ll also want to check on the length of the loan. The longer the loan, the more interest you will pay. Make sure there are no prepayment penalties either. If you find yourself with extra money or your income increases significantly and you can pay off the loan early, you don’t want to be penalized for that.

3. They Impact Your Credit Score

Like credit cards, mortgages, auto loans, and student loans, personal loans will show up on your credit report and impact your credit score. Although they won’t have as negative of an impact as credit cards often do. Credit cards are revolving lines of credit, which can increase dramatically quickly.

A personal loan is a fixed amount with a fixed payment for a certain number of months. This is more favorable than the revolving lines of credit that you could drive up.

4. They May Require Employment and Income Verification

Your lender will want to see verification of your employment and income. They typically will ask for a current paystub, showing your employer and your income, whether that be monthly, bi-monthly, or weekly. They may also request your most recent W2 or tax returns to verify your income as well.

In addition to reviewing your credit report to see how risky of a borrower you are, the loan company will also want to make sure you have the income to make the monthly payments.

5. The Interest Rates Are Fixed, But Usually Higher

A positive feature of personal loans is that they have fixed interest rates, meaning your monthly payment will stay the same for the life of the loan. Unlike variable rate loans, which can raise your interest rate significantly, there are no surprises with fixed-rate personal loans.

When applying for a loan, make sure the rate is fixed. Walk away from a personal loan with a variable interest rate. Because the rates are fixed, they tend to be a bit higher than an interest rate for a mortgage or car loan. The interest rate also varies based on your credit score.

6. Most Personal Loans Are Unsecured

Most personal loans are unsecured, which means that you don’t have to put up any collateral to get one. Secured personal loans would require collateral, like a savings account or CD. If you default on your payments, the lender will collect their payments by taking your collateral.

Secured loans are an option if you have a low credit score and are considered a risky borrower.

7. There Are Other Options

Personal loans aren’t the only option out there for unexpected expenses. While they can be great for people who have decent credit, they may be unavailable to borrowers with less-than-stellar credit.

Other options could include credit card cash advances, payday loans, or the good old fashioned borrowing money from friends or family. You might be able to find a personal loan with no credit check as well. Bonsai Finance can tell you more about this.

If you’re a homeowner, a home equity loan or a home equity line of credit might be an option. These loans use the equity in your home as collateral and allow you to borrow large amounts at relatively low rates.

Final Thoughts on Personal Loan Requirements

Before applying for a personal loan, make sure you meet these personal loan requirements. Don’t waste your time or ding your credit by applying for a loan you can’t get.

Don’t forget that there are other options as well, so if a personal loan won’t work for you, hope is not lost.

If you have any questions or comments regarding personal loans, leave a comment below!

Investing in the stock markets is not only complex but risky too. There is an inherent risk that you may lose your entire principal investment in case of adverse market conditions. Most investors often think only about equities when investing in stock markets. However, you may invest in other products as well.

One of these options includes investing in the derivatives market. Here are some easy ways to invest in these products.

What is derivative trading?

Similar to share trading, this is another type of trading product. Derivatives are specialized contracts deriving their values from underlying assets. The two important types of products available in this market include futures and options.

In a futures contract, the trader assumes a buy or sells position in an index or a share. In case the price moves in favor of the trader during the contract period, he earns a profit. In case of an adverse price movement, the trader will have to bear a loss.

F&O trading fundamentals

• Most traded across Indian stock exchanges
• Traders need to pay a certain margin [calculated as a certain percent of the total order value] to assume a buy or sell position
• Daily profits and losses are calculated until the expiry date of the contract
• The margin is also calculated on a daily basis, which means the trader has to make good any shortfall in his account to ensure his contract is not sold to recover the money
• These contracts are valid for a certain period at the end of which these expire and in most cases, the profits and losses are shared between the traders and their brokers
• Futures trading may be done in an index like Sensex or Nifty; in India, the Nifty futures is one of the most traded contracts

Reasons to trade in F&Os

• Traders are able to leverage for higher stakes with the margin money when compared to the cash segment
• Daily settlements until the expiry date
• No mandatory need to hold a demat account
• F&O contracts are carried to the following day until expiry; however, traders may square off their positions during the interim

Different types of F&Os

• Index F&Os
• F&Os on individual stocks

Common terms

• Square off primarily means selling a position in the future
• Cover order is an order placed to sell square off of an open position

Settlements for futures

Daily Mark to Market [MTM] settlement – Profits and losses are calculated at the end of every trading day. The MTM continues until the position is sold or squared off.

Final settlement – On the expiry date, the exchange marks all open positions to the final settlement price and the profits or losses are settled in cash.

From experience, it is seen that shorter the time frame in investing, greater are the challenges. This is pertinent to intraday trading where numerous traders are looking to make a profit from intraday trading by spreading thin margins. However, they often end up losing it all.

At the end of the day, intraday trading is not a trading terminal, instead a reflector helping you introspect your behaviour while challenging the many emotions that come during the day. Let’s look at eight intraday tips that can help to enhance your intraday trading experience.

Keep aside emotions

If you were to reason, how often do you believe a reversal in trend could take place? Lesser than 10%? If the chances are so few, why do numerous traders continue to place a bet on trend reversals? Rather than contradicting the most significant force, that is the market, it can help to trade the trend. This is because the likelihood of success is rare and in the pursuit of wanting to catch the top/bottom, traders are often left with a substantial loss of capital.

Take advantage of stock volatility to tweak your stop losses

It is a given that all company stocks have a variety of characteristics. While some may have average fluctuations of 0.5% a day, others may range to 5% average volatility each day. It could be statistically unviable to trade stocks that have 5% volatility with a 1% stop loss. Moreover, the chances of traders being provoked are incredibly This is why it is vital to filter stocks that are aligned with your budget, or you could fine-tune your budget to a variable based on stock behaviour.

Controlling greed

Most traders are overcome with greed when they witness a tiny reversal in trend in a long-term trending company stock. For example, a stock that has been on the decline for a while may have witnessed a reversal of fortune for a few days. Some traders look to make a profit from such short-term retreats, and hence, become ensnared with bad quality stocks. You may want to stay away from such trading behaviour.

Losing small

As with many traders, every investor may have missed some amount of money in trading. The key here is to ensure that you lose small but gain big. However, poor money management leads to substantial losses in just a couple of trades.

Staying patient

By analyzing and studying stocks, you can make the right moves such as avoiding small profits or trailing stop losses to ride it to the farthest level. It is crucial to make the most out of the right trade.

The concept of pyramiding

Most traders average their losing trades, regarded as pyramiding. The better option is to go with inverse pyramiding. This means you can purchase a decent percentage at entry with a determined small stop loss and cut down your expenses by booking a few upwards. Once you are satisfied with it you may want to stay sustained with the rest of the amount until you have made the most out of the trend.

Some days you may have to wait it out

It is not essential to trade every single day. Knowing when not to trade can contribute immensely to your profit and loss. If you notice a series of confused movements and stop losses, these are signs that it is a bad day to trade and you may want to stay away from intraday trading.

Defining your exits

It is crucial to establish your exits before you begin a trading session. This can help make smart decisions and prevent irrational behaviour. Any loss beyond your defined exit point would not be logical or rational.