This financial analysis is essential to measure the performance that got the business and to identify problems that may arise.

In personal finance is possible to apply the same principle to achieve similar results. We take stock of our economy to know how well we are managing our heritage and how healthy are our finances.

To make a balance we need to take into account two major components of our economy: assets and liabilities.

The balance sheet is calculated by subtracting the liabilities to assets held. That is, what is less what is owed.

What is asset finance?
The term active means all assets and resources that can be traded. Assets represent the value of our money.

To sort the better we can divide them into:

Property. In this section we include not only housing but also own the business premises and land which we own.
Household items and / or office. In this category include furniture, appliances and similar objects.
Automobiles. Whether new or used, purchased on credit or cash, each car of which we bill our account name as an asset.
Investments. The money is in the bank or any financial instrument that provides performance is also an asset.
Valuable items. Here we note various goods such as jewelry and art pieces.
Wage. Finally, we must take into account the average of what we earn each month, as it constitutes the most immediate of our assets.
What are the liabilities?
Among the liabilities that we consider are all the commitments we have not yet settled, the most common are:

Mortgage. Often a major liabilities is the amount of mortgage credit. This liability is the amount we pay for our home in case of requesting a loan at the time of purchase.
Card (s) of credit. Acquired debt (balance only) for payments made by credit card should be seen as a liability.
Other. This item is to consider all credit purchases made at supermarkets, department stores, as well as borrowing from family or friends.
Current expenditure. In contrast to wages, we must take into account the costs that we have a monthly (average) by way of food, clothing and / or income. That is, the average of all we need for everyday life.
Balance

To take stock of personal finances perform a list of the amounts of assets and liabilities, subtract the latter to the former and get a percentage. That is, calculate what percent of what we have is what we must.

The best thing is that the liabilities are in the range between 30 and 50 percent of our assets, this in order to keep our economy stable and not spend more than we can afford.

Another important point is that liabilities should be larger in relation to the assets of greater value. So, if you have a property of high or medium value, it is natural that the mortgage is the greater of the liabilities. Instead, you should not expect non-durable goods such as food, clothing and accessories are a liability too high, when the assets are not large.

It is advisable to make a personal assessment at least once a year. This allows us to accurately detect the state of our economy. The monthly statements are also useful as an organizational form, however, may not represent the reality of our finances as there are positive or negative months and a period of thirty days may be insufficient as a parameter.

Also take stock of our personal finances can be a good time to organize and file documents that support our assets and liabilities.

This stage can be a good time to inculcate our children some financial knowledge can help them throughout their financial lives.

Giving the administration of your monthly budget can help instill the necessary responsibility to spend its resources properly.

The suggested process for carrying out this transition is as follows:

A) We talk with them to get them interested in the topic

B) Seek agreements could be entered in a book in order that in case of any confusion can be consulted

C) Define the budget and how to manage

An example of these concepts:

Agreements:
A) The start date of the administration on their part: for example, from the first day of next month.

B) The monthly budget to be deposited, it is recommended that detailed and sufficient time to analyze the needs of adolescents, to not get discouraged if you have money in its first month of administration.

For example, a budget may contain the following items: daily transportation, breakfast or lunch, school materials and weekly outings with friends.

C) The date of deposit or deliver for money: It is important to follow the exact date designated for delivery of the budget and that this action will seriously with our strategy.

D) The monitoring will be given by parents: The teenager should be aware that the plan will be monitored in order to advise if there is any deviation from it.

E) Some kind of incentive to save: It is recommended to award the proper fulfillment of the plan, this can be done through an incentive to save or to fulfill its financial plan.

Managing your money
The use of a debit card may be the right tool for him to dispose of its funds deposited, since you can take proper control of your expenses and safe experience, the use of a credit card. As parents, we can use the deposit facility and follow up via wire transfer through bank statements.

Basic necessities and fun
It is important that at the beginning of these arrangements, let’s talk deeply about the proper management of a budget. Talk with your children to give priority to basic needs, which in this case would be the transportation, breakfast or lunch and materials for homework, but still consider other important items like fun.

Check to instill
At this stage it is important to follow the plan, of little use if we can not convey our financial experience as could be wrong. For example, to make ends meet without money, ask for more budget that spent too much on an outing with friends, or exceeded a certain breakfast, among other factors.

The financial benefit that you can earn a teenager with these suggestions mean the assimilation of important financial skills for adult life, and that its financial management responsibility in an age very near the start of their working lives. You will need regular monitoring and use the time due to repair any possible faults through talks that will sensitize and inform.

The budgeting is key to financial management. Previously used this concept to organizations, however, is a tool that everyone should use.

Options for making a budget.

There are several ways to use this tool, we will mention the most common.

First, perform a calculation of the money you earn and the money you spend.

Make a list of all your monthly income.

Make a list of fixed expenses each month and then do one of variable costs, to consider more detail, such as buying a soda, newspaper, etc..

This part is key because it has to clearly identify all your monthly fixed and variable costs and compare them with their income. From that moment, you can begin to make decisions about how much money you spend on variable expenses that are not needed.

If you have a surplus on fixed and variable expenses related to income, make it a priority to pay the debts with higher interest rates may have. If you have extra money after paying their debts now if you can save or comply one of his whims.

If, however, their revenues do not cover your expenses, use the information in your budget to decide where to cut costs and adjust to their abilities. Remember that the main objective is to cover basic expenses.

Also, you can take a course on how to develop a free quote online or take a specialized course in an educational institution or administrative accounting.

Another option is to use a budgeting software, you can use a simple spreadsheet in Excel or search for a more sophisticated software, which in this case, we need something simple.

Some users may find it very tedious to create a budget but the results will surprise you, there is a period strictly for personal accounts but if you do every day will be easier to notice discrepancies in your finances.

If you have attended for a considerable period “school of life”, will agree with me that things do not always happen the way you plan. For whatever circumstances, contingencies seem to be right around the corner. This is no different in business, where it is common to find differences between the partners, problems with the shop owner, disputes with or among employees, customers do not pay, returned checks, contractors with poor quality and so on. In this sense, it becomes imperative that all companies (and even the small one) has the appropriate legal mechanisms that allow them within the framework of the law, defend its interests against any eventuality.

And let me insist, is even more important for SMEs, where it is very common for a single transaction unfortunate jeopardize the assets of the company as well as their own. That’s why we explain below which are the 7 major contracts and can not do without, and a general macho each, which will guide you to suit your needs, or turn your SME. The 7 contracts that all SMEs should be in business relationships are unchanged and countless other legal acts can be held, in which virtue, minimum seven contracts all SMEs should have are:

1. Articles of incorporation. The social contract that gives life to the company and it is important to know under what form will constitute your SME, depending on the predominant activity that will develop, the partners that will make up, etc., because of According to the general law of corporations depend, among other things, the tax treatment, legal rights and obligations of the company and its partners. See contract …

2. Lease. If your company is established in the building of a third, we need a lease of real property: first, because it serves as home for the enforcement of our rights and obligations and secondly (and most This important contract), it serves to define the rights and obligations we have as tenants, ie who has the rights of possession of a property which we do not own. See contract …

3. Individual employment contract. It is essential that there be an individual employment contract of legal certainty to both the employer and the worker, which primarily serves to delimit the working conditions of workers employed by the employer. Having this contract is vitally important because our labor law favors workers in case of a dispute, the burden of proof is always on trial for the employer, ie the pattern to the Board of Conciliation and Arbitration must demonstrate that the facts asserted by the employee are not true. For example, if an employee claims that his salary is $ 1,000.00 per day, corresponding to the employer to prove that his salary was not so much, or another more common example: a worker may manifest in his lawsuit that began working for the employer on 2 January 1990, when in fact went to work on January 2, 2000, a fact that the employer must prove it. See contract …

4. Contract of sale. Undoubtedly for marketing goods or services of our corporation, we must enter into contracts of sale. This contract serves mainly to define the conditions under which they are to dispose of our products because our legislation not only provides simple purchase (ie where a person who conveys ownership of a thing in return for a certain price and money), but the law provides for different ways to make a purchase, with reservation of ownership, which is the kind of sale where the seller retains the transfer of ownership of the thing sold until the buyer does not meet all of the purchase, the chain of title, which is known as buying on credit; mixed sale is one where the consideration is covered with the most money, but the other part is given in kind, and so on. That’s why this agreement is of vital importance given that the parties are agreed between the way in which to make the sale (the sale) and this prevents any party fails to comply strictly agreed in the contract, and if not, can be sued for breach of it may result in a payment millionaire damages caused to the party. See contract …

5. Commercial commission contract. In the event it is necessary to require brokers commercial commission contract. This type of contract is essential for SMEs, because it helps in the marketing of our products through qualified or specialized in sales, without having to hire them as employees and thus avoid increasing the social burden for the company payments to IMSS, INFONAVIT, payroll taxes and so on. Thus, the seller simply grant him a commission and give this bill the company for the commissions received, is deductible in the payment of taxes. It is worth mentioning that if you do not have this contract and collaborate with vendors in this mode you can have serious problems, for example, IMSS can argue that the person is your employee and require the payment of all fees from hiring the corresponding fines, amounts that may be highly significant. See contract …

6. Contract services. This type of contract used primarily to hire professional services at a lower cost, without the need to go to people who provide them to our payroll. An example would be hiring someone to clean the office through a company specializing in office cleaning or hire a business consultant to advise us a couple of hours a week. For the same reason mentioned at the end of the previous paragraph and for which I mention below, it is important for all companies enter into contracts for services and thus define the rights and obligations of the parties: that will be the service that quality will at that time carried out and the consideration to be paid for that service. See contract …

7. Confidentiality agreement. Also, because the technology, processes and marketing of goods represent an extremely important asset for companies, and even in many cases account for nearly all of its assets, is essential to have a confidentiality agreement that protects these processes on the assumption that you have obtained the patent or trademark registered with the IMPI. Similarly, in the case of hiring staff and service providers have access to inside information of the company, this contract becomes essential to safeguard the confidentiality of such information and to not jeopardize the secrets of a successful company. … View contract can always turn to professionals Every mercantile business small, medium or large, requires a timely and efficient comprehensive legal advice.

For this reason, if you do not have a legal department within your company, you can always turn to professionals in the field, which will provide the safety and soundness to ensure growth in the domestic and international markets as competitive by the globalization of trade.

The autonomous, with customers signing contracts work but can guarantee the conditions of their work through a commercial contract or a private contract.

In addition, the self must know that if the budget signed by the client acquire legal status and conditions to acquire the same force as a contract administration. It is important to know and take it into account because both standalone and client budget eligible to claim any aspect of work performed.

Finally, the self can also form teams and hire staff so it is very likely that I should know the different contract models that exist in regulating its relationship with its workers.

A commercial contract refers to a legally binding agreement between the parties by which undertake to do or not do certain things. Contracts may be written or verbal and written in a formal or informal. Most companies hold their written contracts to clarify the terms of the agreement, and often seek legal advice to major contracts. Contracts can cover all commercial aspects as hiring, wages, employee safety, leases, loans, etc..

If one of the parties to a contract does not comply with the agreement made under that contract is deemed to have been a “breach of contract.” In this case, requires that the right to provide a resource that in many cases may involve a judicial system to enforce the contract or otherwise, ask the party concerned to pay compensation for damages caused by breaking the contract.

Generally, the law of contracts are executed by the state in which the agreement was held under the system of common law (customary law) or the Uniform Commercial Code (UCC, for its acronym in English). Under the system of common law, most contracts are regulated by customary law of each particular state, the laws from judicial decisions that become part of the local system. The laws of the Uniform Commercial Code apply to the sale of goods does not regulate the Common Law.

For there to be a contract or employment relationship must satisfy three assumptions: subordination, remuneration (salary) and provision of personnel work, and while these budgets den, the tie must necessarily be by contract.

A service contract does not involve the same conditions or requirements of an employment contract, as in the case of a service contract, the obligation is to do something, but not to meet a schedule or having a permanent subordination, although the two cases, obviously no compensation.

It is very common for companies to avoid paying contributions Social Security levies and hire staff for services, but the work and the actual conditions of service development are given make two budgets be considered an employment relationship, because if there subordination, a schedule is met, and so on., can not speak of the provision of services.

This type of contract does not generate employment and social benefits and are held for a period strictly necessary. You can be civil or commercial, depending on the assignment (yes results in a commercial contract will be governed by commercial law, however, the provision of services relating to professions governed by civil law).

On the “contract services”, the Constitutional Court Judgement C-154/97 through, Presiding Judge Hernando Herrera Vergara said that” a contract of service was developed independent activity, which may come from a legal person with which there is the element of labor subordination or dependence involving the power to issue orders in carrying out the contracted work.

Likewise, in a decision of May 16, it was clarified that although neither the Civil Code and the Commercial Code define what be understood as a contract for the Provision of Services, according to the dictionary of the Royal Academy of Language and the traditional concept that has been taken of that, we can say that are those activities in which predominates the exercise of intellect and have been recognized by the state.

A pre-requisite of the budget (or plan) financial, is to be clear almost all of our other plans, such as marketing, sales, operational, and so on. This is because, unlike other plans, the financial plan does not provide new information but simply summarizes numerically everything before we said we would be doing. For example, should be consistent with:

The investments we said we would do: its costs and returns. This is usually associated with investments in advertising.

Office costs, capital goods (machinery) and labor (salaries, social charges, SAC, contributions, etc).
The cost of capital.

It is important first to distinguish what is a financial plan which is an economic plan. The financial plan is more “visible” in the sense that it refers to the entry and exit of money. That is, when we talk about something financial, we refer to cash flow. In contrast, when we speak of the economic plan, we refer to the underlying economic reality, whether of the generating assets or earnings, as a loss. Sometimes these two concepts are expressed similarly, but at times, and is vital to recognize the difference.

Perhaps a better example to illustrate the difference: If we close a deal with a client for the sale of a service to be paid in two months, and we have no doubt that the payment will be made economically profit and is created (say “earned “). In our economic plan, the entry will occur at the same time we close our agreement. However, in the financial plan, which only checks for cash flows, will enter two months later.

Interesting questions:
What if our financial plan gives negative in a given month? eg, charge monthly in arrears and paid for months in advance. In this way the first month we pay but do not charge anything. We take a loan, or obtain money from another source. The important thing is that with the financial plan we will know in advance.

What if our economic plan gives negative?
The business is not profitable. It does not matter financially.
Does the financial plan and the economic positive to negative? ¿Backwards too?
At one time both can be correct. The first is whether we are in a business where you charge money in a year (one year, a month, any unit of time) and return it with interest (ie a greater extent) in another exercise. For the first we have positive cash flow and economic impact (economic because you do not mind the money is returned in another exercise, shows the economic reality that is lost).

The purpose of the financial plan for a company established to determine whether to take a loan and at what rate is willing to pay maximum. For a venture, however, not only has this utility but also demonstrates the strength of the project, the required amount of investment required for the project, the payback period and the rate of return for investors . All these data are for those who ultimately decide the investor.

Creating a daily budget can make a lot more effective, as it will be a daily reminder for you to keep up with their personal budget goals. It takes some work but the savings you can see is truly amazing. This advice will help you budget your daily financial planning.

1. Track your expenses. The first step in creating a daily budget of success is to keep track of your expenses. You need to keep your receipts and write down good money compared to how much you spend per day.

This includes small purchases such as a drink to big purchases like new furniture. Includes cash, checks, and credit card purchases. What they do not include invoices, or overhead. These should be followed with a monthly budget.

We are creating a daily budget here, and that means we’re losing sight of your variable expenses, or costs change all the time. Keeping track of all this can be a very daunting task, but necessary. Before creating your daily budget, you have to see how much money you are spending so you can make reasonable demands for himself.

You need to track your spending for at least a week – even longer, like a month, will give you the data you need. Save your receipts with the records sorted and organized by date to make these data are being collected significantly, and it will be much easier to do if they organize.

2. Find out where your money goes. You must keep track of your expenses and have your records and receipts to prove it. Now you have to take this data and make it meaningful to you. See the information from the first day that kept track of their expenses.

You may have bought a coffee and a muffin on the way to work for $ 4.32. At recess in the morning, have a drink in the vending machine for $ 1.00. During lunch, you went out and spent $ 8.39.

After work, he stopped and got some gas for $ 34.69 and a little milk at the store for $ 2.39. We look at the other day and see that every day you get the coffee and muffin. You buy drinks nearly every day. You will eat a few times a week and gas and groceries really vary.

3. Decide what you need and what you want. They have found that, on average spends $ 4.00 for breakfast every morning. You need to eat breakfast, but you have to eat all the time? A need is something that is necessary and a desire not.

You have to be honest with yourself when you are deciding whether their articles are a need or want something. You may decide you want to reduce the cost of breakfast for only $ 1.00 per day, eat at home before leaving in the morning.

You decide that you can lower the amount you spend on soft drinks and the job will try to bring their own lunch and kept in the office refrigerator. You may simply decide to lunch once a week and then the rest of the time you can bring your lunch.

Gasoline is a necessity to get where they need to go on your errands, but it can help reduce this cost. Foods are needs, but you can also search the brands that cost less and look for better sales.

These are just examples of how you can set your daily budget. However you decide how to make changes, it is a very personal decision and depends on you. Make sure you write what you can afford with your new budget.

4. Apply your budget . This is the hard part. It is necessary to follow the budget we have proposed. Resist temptation and keep in mind that you will be saving a lot of money for making these changes. If you feel it too, then concentrate on one change at a time.

When you feel comfortable with that change, then start working on another. If you find that you can not maintain a security system that you set for yourself, then be realistic and go back to make changes to your budget to reflect that.

The creation of a daily budget is a prerequisite and personal financial planning tasks are necessary for anyone who wants to reduce their expenses. These tips may help in budgeting.

You will be surprised how much you’re saving in the short term, and therefore how much you can save for your long term goals, simply by keeping track of your expenses and creating a daily budget.

This budget is basically composed of the following three elements:
a) units sold (the result of the sales forecast by the commercial area, and classified according to the specific needs of each company by product and product family, customer type, by geography, sales in local market and export markets, by salesperson or sales team, etc.).
b) Unit price (which implies the definition of the pricing policy, its eventual adjustment over time, the policies of discounts and bonuses on sales, special policies for market differentials, etc.).
c) Total sales resulting from multiplying the units (a) by the unit price (b).

As can be seen forming is deceptively simple, but just their explosion of detail is possible to observe and analyze in depth the mix of business / products of the company, which is essential for analyzing the economic performance of the company and is made through the creation of the Matrix Product Positioning / Business that can be studied in the highlighted link.

For the development and sales budgeting is necessary sales forecasting: the analysis of historical trends in sales and future prospects of the market towards that target our sales efforts.

Also a successful opening of the Sales Budget can see the effects of the model to develop the following aspects:

a) Policy and discount prices. (In this regard we suggest the reading of the “standard meter” for pricing .
b) Sales in the domestic market and export sales, with opening of destination countries and product mix to be exported.

For all that is important to reflect the widest possible openness in terms of its composition:

a) business or product.
b) Product, family or product line.
c) Distribution Channels.
d) Type of customers.
e) geographical area.
f) Sellers.

And all other references that are considered relevant to identify how, where and when will the sale and directly responsible for it.