WASTE NOT

All corporations and individuals ... everyone, that is, should have a zero-tolerance waste policy. We know about the 3-R's. How do we implement them? Do we print unnecessary documents that could be saved electronically? Do we print on the back of pages that we might have shredded or recycled?

Do we use the green bins strategically by using compostable bags and re-usable containers? Do we carry re-usable water bottles that we can fill from water fountains so that paper cups and plastic water bottles do not end up in the middle of the Pacific Ocean, eventually heading wherever the ocean currents take them?

If we ensure that our garbage bins are not filled to the brim with re-usable, recyclable, compostable items, our corporations and our progeny may have a longer life.

Risk: How We Perceive It

We know about investors' psychology. We know how the herd can overturn a single stock in a single day, whether it is a budding IPO or an old-timer.

How about risk? How do we perceive it? Do you perceive risk the way that I do? Did I perceive it the same way that I perceived it a decade ago? Will I perceive it the same way that I do a decade hence?

Some reflection on these questions is necessary ... for inevitably, your responses will differ from mine.

#creditrating #financialcoaching #investments

Pay Now, Accrue Later

When cash outflow is not expensed entirely in the month of its occurrence, there could be various reasons. Insurance, dues and subscriptions, event planning for conferences, software. These are all instances of cash outflows that need to be divvied up over the months of the year.

This is due to the fact these are termed prepaid expenses or prepayments on the current asset section of the balance sheet. The reason these are "assets" is that the business has paid for these in advance, and therefore, will accrue benefit for this outflow at a later period, or for the remaining eleven months of the year.

It is extremely important that prepaid expenses are reconciled at year-end. For year-end reconciliation, please contact me #TrushaDesai.com

#financialcoaching #fiscalyear