In recent months, the finance of the world has been under scrutiny. America is trying to make investments to make sure that their prosperity grows. Over in the UK, Brexit is causing a government wrangling that has been going on for months. With these kinds of things going on in the world, our personal finances are often at the front of our minds.
It doesn’t matter if it’s your home insurance, business insurance, Business travel insurance or just your standard car insurance, all of these products have been under scrutiny as we want to spend as little as possible but receive the best product as possible. It’s not just insurance where our finances have been affected, the rising cost of food and fuel and reduction in income are also having a financial impact on us, across the world. Let’s now take a look at some key areas in the financial sector that have been trending this month.
Small business growth is always something that is quite hard to achieve and in this economic climate, we have seen many businesses that are suffering from the downturn. Although the markets can be quite tricky if you’re entering into a new business, if you are lucky enough to have success, then using the digital arena to help promote your business is often the best way forward. Many companies and new businesses are finding that social media is a great way of promoting themselves, with a minimum cost input from themselves. It is this kind of technology that helped many businesses in times of slow growth.
Many economists now believe that the economic downturn is about to improve, which it is good news for small business owners. International trade has also had its difficulties recently so if your business trades internationally, you may find that you will either benefit or suffer from the current financial situation. Take for example a business that trades from the United Kingdom to America, the exchange rate between the dollar is favourable for Americans. However, in the past, it has been favourable for people living in the United Kingdom. It is always worth keeping an eye on the currency exchange rates.
Property is one of the biggest financial commitments that we will make, so protecting these investments is important to us. If you are referring to your main residence you may have a mortgage on the property so you will want to make sure that the interest rate stays as low as possible for as long as possible and the same can be said for a rental property. If you have a mortgage on a rental property you want to make sure that the rent that you get from the property covers your mortgage, with a little bit of profit. In some cases, you may want to be claiming depreciation on your rental property as this will help you to keep buoyant in the housing market.
As with all property that you own, you have to remember that even in an economic downturn, your property will still have a value. As it is an appreciating asset you should fully be aware that once the markets improve, so will the value of your property. It is at this point that you must buck the trend by hanging onto your property in harder times and maybe upgrade on your property when the times are buoyant. Economists now believe that we have seen a slight increase in the value of our properties, which means it’s not a bad time to buy or invest.
Accounting is an important discipline when it comes to the world of finance. If you are a small business, a sole trader or even a contractor, you may look to accounting services for contractors to aid you with your bookkeeping and tax returns. Accountants will be able to assist you with your financial matters. It is important that when you run a business or a contract that you keep on top of your finances, because when it comes to filing your tax return, you have to make sure that all of your documentation is in order. If you don’t have this in order, you could incur a large fine. GST accounting refers to the goods and services tax, all products and services are subject to tax and we as consumers pay this through the prices that we pay for products/services. An accountant will be able to assist you if you are a business or if you’re a customer wanting further information about GST. Having an understanding of tax is important as it gives you an idea of the real cost of a product versus the actual taxation of a product.
As you have seen across the world, the need for equality is getting stronger and stronger. Companies have now noticed that the gender pay gap needs to come to an end and it’s been heavily reported that at last institutions are now addressing this problem. As we mentioned above, we are in a turbulent time of economics. The pressure on incomes is ever increasing as the products around the world go up in price. Personal income is something that is trending quite heavily at the moment. The gap between male and female pay is starting to reduce, as there have been a number of high-profile cases within the media where the gender pay gap is quite large.
Above are some of the areas that are trending in this month in the financial world. It’s clear to see that it looks like there’s going to be quite a busy month for the financial sectors. As the countries around the world start to balance out their future plans, there will be an inevitable increase in confidence in world trade.