Key Notes of Finance for Individual
Individual finance or personal finance includes management techniques based on financial principles applicable to individual or family unit financial activities.
Individual finance or personal finance includes management techniques based on financial principles applicable to individual or family unit financial activities. This financial regulation helps to manage money, budget, savings, and expenditure. It also takes into account future risks and life events that involve financial matters. Thus, certain key financial areas need to be explored that help to provide financial freedom for a lifetime!
Personal books of accounts:
These personal accounts books need to be maintained to keep a record of the ledger accounts in the financial accounting system. It comprises two separate nominal ledgers, total debits v/s total credits, needed to keep a tab on every account. Nominal ledger accounts provide a double-entry while journals or daybooks provide accounting that deals with a minimal number of transactions. The information from ledger accounts leads to the creation of the trial balance.
Personal Taxation:
A form of direct tax levied on a person’s income which includes an individual, partnership, known-juristic body of a person, and undivided estate. It also involves a tax liability calculation, filing a tax return, and tax payments yearly.
Taxable income requires utmost care by making appropriate calculations so that the taxpayer can regulate the tax levied by making the desired deductions and claiming allowances on the taxable income. These measures help to levy the exemption and tax rate without discrimination.
Retirement and Pension Plans
With both plans aiming at making provision for financial security and stability, they paid to continue an individual’s lifestyle without compromising on living standards in today’s world that witnesses a high cost of living and rising inflation.
Both savings scheme help in financing planned and unplanned expenses incurred during the retirement stage. Pension and retirement plans provide guidance in placing your post-retirement income in a secured funding system. Guaranteed pension plans give the freedom to decide on ‘vesting age’ i.e. the age at which an individual retires and the premium amount one wishes or can afford to invest for payment that will accumulate to a sum got on vesting. We can make the payments for tenure at the applicant’s discretion.
Retirement plan projects towards buying an annuity plan for a lifetime policyholder who receives a guaranteed income for life. The account holder can avail of an immediate or deferred annuity. Depending upon the income that the policyholder wishes to receive on retirement, the purchase price can be set.
Asset protection
Deals with planning for protecting individual assets and business entities owing to significant assets. Certain factors have to be considered for availing asset protection to apply the desired debtor-creditor law. The identity of the debtor and liable aspects. Nature of claim and assets and the creditor’s identity
Succession plan
You need to make some plans for using new members or leaders to replace the previously allowed person for reasons such as leave, death, or retirement. To secure personal financial ownership, transfer of guarantee for credit to family or successors, and help to develop creditworthiness.
5 Benefits of our bookkeeping service
If you own a small business, keeping up-to-date financial records is essential for your success. You should update your books as often as you can. Here are five benefits of our bookkeeping service.
At Penthers, we make you the center of everything we do. Our focus is on supporting businesses, like yours, to improve productivity, increase their profits, grow sustainably, and find more time to do the things they want to do.
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