When we are trying to understand Personal Finance, the best thing to do is to understand what Personal Finance is NOT.

Many people think that accounting and personal finance are the same, but Personal Finance is NOT Accounting.

On the surface they may seem the same; they both have something to do with money. However, the definitions will help us better understand the differences.

Merriam-Webster’s definition of accounting is “the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.”

Based on this definition, we see that accounting is the process of analysing and recording what you have already done with your money.

This is why having an accountant is usually not enough when it comes to your personal finances.

Accountants generally don’t concern themselves with personal finance (there are some exceptions to this rule). Unless your accountant is also a financial advisor or coach, he or she will likely just look at what you have done with your money at the end of the year and provide you with a report of their analysis.

This report is usually your tax return; what you owe the government or what the government owes you.

Very rarely does the accountant provide an individual with a Balance Sheet or Income Statement or a Net worth statement; all very helpful tools that are necessary to effectively manage your personal finances.

Personal Finance is looking at your finances from a more pro-active and goal oriented perspective. This is what provides the accountants with something to record, verify and analyze.

The Merriam-Webster’s (Concise Encyclopedia) definition of “Finance” is the “process of raising funds or capital for any kind of expenditure. Consumers, business firms, and governments often do not have the funds they need to make purchases or conduct their operations, while savers and investors have funds that could earn interest or dividends if put to productive use. Finance is the process of channeling funds from savers to users in the form of credit, loans, or invested capital through agencies including COMMERCIAL BANKS, SAVINGS AND LOAN ASSOCIATIONS, and such nonbank organizations as CREDIT UNIONS and investment companies. Finance can be divided into three broad areas: BUSINESS FINANCE, PERSONAL FINANCE, and public finance. All three involve generating budgets and managing funds for the optimum results”.

Saving money on your ventures ought to be the most importantly need for your business while presenting an item on the lookout. Huge loads of cash is spent exploring and fostering the item, setting up assembling units, recruiting laborers to oversee such units. You can set aside this cash by recruiting an organization that deals with this multitude of exercises at a compelling cost.

WHAT IS PRIVATE LABEL

An organization’s private mark item is one in which an outsider controls every one of its specs, yet it is sold under the brand name of the organization. These items are most pervasive in prepping and individual consideration items, pet food and extras, food and drink, and dress.

Benefits OF PRIVATE LABEL

Private name items are versatile to change in purchaser conduct on the lookout. Whenever the retailers depend on providers to offer them items, then the progressions expected by the market request are slow. In any case, name producers are more brief because of changes.

On account of name items, the retailers have more command over overproduction. They can educate the mark makers to make the items with explicit elements like tone, bundling, and so forth.

Since retailers can educate the private name makers, they have command over the creation completely. In this way, they can fix the creation expenses to build their net revenue.

With private marking, the retailers can have command over the marking of the items. Since the shoppers should foster brand steadfastness, the retailers give additional consideration to the bundling and nature of items. The marked items can be tweaked by the brand worth of the item.

WHAT IS CONTRACT MANUFACTURING

Generally, independent companies utilize contract fabricating. It includes employing an organization and utilizing their administrations to make the results of the organization. This saves the expense of the independent venture in setting up an industrial facility or creation unit. The employed organization centers around the creation, bundling, and even conveyance of the items now and again, while the recruiting organization centers around the advertising of the item.

Benefits OF CONTRACT MANUFACTURING

Contract fabricating is helpful for saving creation expenses of the organization. They need not raise tremendous cash-flow to set up industrial facility or creation units. Likewise, a few organizations use contract producing administrations in nations where wages are low.

Other than saving the expense of setting up creation units, the organization likewise saves recruiting directors and laborers for their creation units. Likewise, they save time to zero in on different parts of the professional showcasing and selling.

Contract fabricating makes it simple for organizations to present their items inside the nation and even allows them to take the aggressive jump of growing in adjoining nations.