Finance is a very vast field and a number of complex financial processes take place every day. It is quite possible that when the dealing between various parties is with the help of cheques, some differences might arise between the account statement and cash records. This is because, if a cheque is released on ending dates of a month, some time may elapse before it is realized and the money changes hands only in the next month.

This would get reflected in the cash book at the end of that particular month but not in the bank statement. This is because the money has not been released from the account but it has to be registered as outgoing cash. Take for instance, that you have signed a cheque on say 28th or 29th of a month. This cheque needs to be registered in your cash book against that particular date as outgoing cash. But, since it is month end and some time is needed for completion of various formalities, the money would be debited from your account only in the next month.

To sort out the differences between the cash book and bank statement, it is necessary that you first identify the differences between the entries in both of them. To achieve this purpose, you can take help of a bank reconciliation template. A bank reconciliation template would help you to identify the said differences. First of all, you need to check which entries are present in the account statement, but their corresponding entries are not there in cash book and make necessary adjustments.

You need to repeat the whole procedure by interchanging the position of cash book and bank statement. However, it is quite possible that at the day of reconciliation no change in the bank statement has been made, so do check for an appropriate day for making adjustments. Further, you can easily download a bank reconciliation template from various websites for free.

Learn more about Bank Reconciliation Template, please visiting http://www.gsyywz.com/general/exploring-bank-reconciliation-template/.

Revenue accounting is the process of receiving, organizing and recording payments and invoicing, recording, tracking, and collecting loans and other types of debt receivable on customer accounts. Revenue accounting provides essential tools for determining and keeping track of the revenue generated.

In business, revenue means the income that a firm actually receives from its activities, especially from sales of products and / or services to customers. Consistent revenue growth is essential for a firm to attract investors to its publicly traded stock. However, revenue is less important than profit to investors. The word ‘top line’ is also used to represent the term ‘revenue,’ because in a company’s profit and loss account, revenue is usually placed at the top, and all other costs and expenses below that.

‘Revenue recognition’ is one the four major principles listed in the US generally accepted accounting principles (GAAP). The other three include the ‘historical cost principle,’ ‘matching principle’ and the ‘full disclosure principle.’

Data capture, preparation, accounting, auditing, reconciliation, management reporting, and interline billing are the main processes involved in revenue accounting. Airline revenue accounting system is a good example. Its objective is to provide scheduled passenger airlines with a computerized solution to cater to the needs of passenger revenue accounting departments.

Revenue accounting has now grown more complex and auditors are now examining financial records in finer details. Unfortunately, many accounting systems do not handle complex revenue processes well because they are designed for simple revenue processes. You can automate revenue accounting by using software packages. They help you mange multiple business models, corporate entities, and currencies.

Accounting provides detailed information on Accounting, Accounting Software, Accounting Jobs, Accounting Services and more. Accounting is affiliated with Certified Public Accountant.

I’ve never been a financial expert and I have serious doubts that I’ll ever have time to become one (with all the things that interest me). But this morning I all of a sudden realized how the foundation of healthy personal finances starts with setting the healthy priorities.

It doesn’t matter if you’re a person entering the second half of your life, younger or older, the quality of life and priorities are something we should all be thinking about. Quality doesn’t necessarily mean luxury or expensive things. Little things that make us happy every time we see them or use them and things that make us feel better add to the quality of our life so much more than the shiniest car, a fur coat, or a piece of jewelry. Wait, I’m not saying that we should give up the material possessions to become happy… No, we deserve all the best! But we should cover the basics first.

Maybe you’re upset about how much it costs you to take your kid to school (and back home) every week. Maybe you’re complaining how expensive the schools are. For our own good we should not classify the cost of the education under the expense category. Because learning is always an investment into everybody’s better future: your kid’s, yours and better future of this whole planet.

Maybe you’re fine with the school cost but you’re paying a lot (to rent or own) a big screen TV when at the same time you’re short on money when you need an herb remedy from the health food store which would really make you feel better. In my personal opinion, TV is something that we all have but we could leave just as happily without it and small screen is big enough to see the shows we really enjoy.

On the other hand, something like natural progesterone lotion, tea tree oil, black cohosh root pills, herbal tea that you find beneficial or healthier fruits and veggies from the local farmer’s market. will definitely improve the essential quality or your life.

To satisfy this kind of basic needs of your body and everyday living means a big improvement in excellence of your life, healthy priorities and in the aftermath – healthier finances.

Copyright © 2006 by Daria Perse. All rights reserved.

Daria Perse is a founder of BestLingerieSecrets.com webpage. With years of experiences in underwear manufacturing and selling business she is a rich source of information regarding all kinds of undergarments.

Discover 10 tips that every woman must know when it comes to choosing, wearing and sharing for lingerie – go to: http://www.BestLingerieSecrets.com

The major reason for the current financial and economic crisis in America is said to be a rash of Bank failures. And Bad Home Loans are said to be the major reason for the Bank failures in the United States.

Quite simply, American Banks had been over financing home buyers. Suppose a potential home buyer approached his Banker for a home loan, and his credit rating and financial standing would entitle him to a home loan of, say, USD 100,000.00, his Banker would gleefully advance him say USD150,000.00! Naturally this borrower would not be in a position to repay the stipulated installments because of his lower repayment capacity. This would eventually lead to a default on part of the borrower, rendering his loan account a non performing asset.

In the light of the Banking crisis in the United States and also in Europe, it would be worthwhile and also interesting to have a look at the home loan financing scenario under the Islamic system of Banking.

Typically, under the Islamic Banking system, home loan financing is based on the principle of Profit Mark Up on the cost of the property, by mutual consent of the Bank and the Borrower. This type of financing is usually done under the contract of Murabaha.

It goes like this. Suppose you are interested in buying your dream home (who’s not!). You approach the Islamic Bank with your requirements with regard to the financing. The Bank in turn would assess your requirements as well as evaluate your eligibility for the financing based on your income and repayment capacity. After taking an overall view of your financial standing and credit rating, the Bank would fix a eligible amount of home loan for you. Let us say the Bank fixes a home loan limit of USD100, 000.00 for you.

This amount would include their mark up on the cost of the property. This mark up is fixed by mutual consent. Suppose the mark up is say USD 10,000.00. That means the net amount of your home loan is USD90, 000.00. The next step for you, the borrower, is to identify your dream home in the range of USD90, 000.00. After that you give details of the property thus identified to the Bank, who in turn will negotiate with the owner of the property and make a purchase of the same specifically to sell it to you.

The next step would be to complete the formalities in regard to documentation etc., after which you get the possession of the home, though you are still not the owner of the same. The ownership will vest in you once you repay the stipulated number of installments within the repayment period fixed. Then your dream home becomes really yours!

The main characteristics of the above type of home loan under Islamic Banking are: a proper evaluation and assessment is made of the repaying capacity of the borrower and fixation of the appropriate loan amount. Another notable feature, which is in fact the bedrock of Islamic Banking, is the absence of Interest on the loan amount. Instead the Bank adds up a profit margin to the cost of the asset and divides the total amount into equal installments payable usually monthly.

The above example is a simple type of home loan under the Islamic Banking System. Within this system, variations are possible to suit the specific needs of the borrower.

Two million Muslims in the UK face an ethical dilemma if they want a mortgage or a loan. Conventional mortgages and loans all require the payment of interest and “riba” as interest is called under Islamic law, is forbidden by the Koran.

British financial institutions are increasingly catering for Muslims’ specialist needs through a number of alternative arrangements that respects the teachings of the Koran. Here are just two of them:

Ijara with diminishing Musharaka – the mortgage alternative.

Ijara with diminishing Musharaka is an Islamic alternative to a conventional UK mortgage and has been adopted by several British banks and building societies.

In essence, Musharaka means partnership. Under this Islamic financial concept, the bank buys the house and legally becomes its owner. Then throughout the pre-agreed period, say 25 years, a monthly payment is made. Each monthly payment includes a charge for rent and a charge that buys a small proportion of the house itself. It’s form of variable shared equity plan with the proportion of the house being owned by the purchaser, steadily increasing as payments are made. Once the final payment has been made, the house is owned outright. Ijara

Here you tell the bank or financial institution what you want, for example a car, and they buy it. In return for a monthly payment that covers the cost of the bank’s capital, the bank then allows you to use the asset for an agreed period. In reality, it’s a form of leasing

Islamic finance is not widely available in the UK – so where can find it? Here are three suggestions:

Over the last few years Lloyds TSB has introduced Islamic products to 33 of its branches. Their spokesperson says, “It’s important for our customers to see that we are following the right procedures. We have a panel of four Islamic scholars who over-see the products. They offer guidance on Islamic law and audit the products”.

Another high street bank, HSBC, is developing a special range of Islamic products under the Amanah brand name. This range includes home finance plans, home insurance, commercial finance, and various current accounts and pensions. Hussam Sultan, the Amanah product manager says, “As a bank, we are not here to moralise or tell our customers that Amanah finance is the way to please Allah. We’re just here to provide them with a choice”.

The Islamic Bank of Britain has three branches in London, two in Birmingham and one each in Leicester and Manchester. They’re the only British bank specifically providing for Muslim customers and claim to be halal throughout their operations. All their financial products are approved by their Sharia’a Supervisory Committee – all Muslim scholars who are experts in all aspects of Islamic finance.

For your interest we show below, definitions of some words used widely in connection with Islamic finance.

A Glossary of selected Islamic words used in finance.

Amanah: Means trustworthiness, with associated aspects of faithfulness and honesty. As a central supplementary meaning, amanah also describes a business deal where one party keeps another’s funds or property in trust. This actually the most widely used and understood application of the term, having a long history of use in Islamic commercial law. It can also be used to describe different financial activities such as deposit taking, custody or goods on consignment.

Arbun: Means a down payment. It’s a non-refundable deposit paid to the seller by the buyer upon agreeing a sale contract together with an undertaking that the sale contract will be completed during a prearranged period.

Gharar: This means uncertainty. It’s one of three essential prohibitions in Islamic finance (the others being riba and maysir). Gharar is a sophisticated concept that encompasses certain types of uncertainty or contingency in a contract. The prohibition on gharar is often used as the grounds for criticism of conventional financial practices such as speculation, derivatives and short selling contracts.

Islamic financial services / Islamic banking / Islamic finance : Means financial services that meet the specific requirements of Islamic law or Shariah. Whilst designed to meet specific Muslim religious requirements, Islamic banking is not restricted to Muslims. Both the customers and the service providers can be non-Muslim as well as Muslim.

Ijara: Means an Islamic leasing agreement. Ijarah permits the financial institution to earn a profit by charging leasing rentals instead of lending money and earning interest. The ijarah concept is extended to hire and purchase agreements by Ijarah wa iqtinah.

Maysir: Means gambling. It’s another of three fundamental prohibitions in Islamic finance (the other two being riba and gharar). The prohibition of maysir is often used as the basis for criticism of standard financial practices such as conventional insurance, speculation and derivative contracts.

Mudarabah: A Mudarabah is a form of Investment partnership. Here, capital is provided by the investor (the Rab ul Mal) to another party (the Mudarib) in order to undertake a business or investment activity. Profits are then shared according to pre-arranged proportions but any loss on the investment is born exclusively by the investor and the mudarib then loses the expected income share.

Mudarib: The mudarib is the investment manager or entrepreneur in a mudarabah (see above). It is this managers responsibility to invest the investor’s money in a project or portfolio in exchange for a share of the profits. A mudarabah is essentially similar to a diversified pool of assets held in a conventional Discretionary Managed Investment Portfolio.

Murabaha: means purchase and resale. As opposed to lending money, the capital provider purchases the required asset or product (for which a loan would otherwise have been taken out) from a third party. The asset is then resold at a higher price to the capital user. By paying this higher price by instalments, the capital user effectively gets credit without paying interest. (Also see tawarruq the opposite of murabaha.)

Musharaka: This means profit and loss sharing. It’s a partnership where the profits are shared in pre-arranged proportions and any losses are shared in proportion to each partners’ capital or investment. In Musharakah, all the partners to the commercial undertaking contribute funds and have the right, but without the obligation, to exercise executive powers in that undertaking. It’s a similar concept to a conventional partnership and the holding of voting stock in a limited company. Musharakah is regarded as the purest form of Islamic financing.

Riba: This means interest. The legal concept extends beyond interest, but in simple terms, riba covers any return of money on money. It does not matter whether the interest is floating or floating, simple or compounded, or what the rate is. Riba is strictly prohibited under Islamic law..

Shariah: This is the Islamic law as disclosed in the Quran and through the example of Prophet Muhammad (PBUH). A Shariah product must meet all the requirements of Islamic law. To facilitate this, a Shariah board is usually appointed. This board or committee is usually comprised of Islamic scholars available to the organisation for guidance and supervision for the development of Shariah compliant products.

Shariah adviser: Means an independent professional, usually a classically trained Islamic legal scholar, appointed to advise an Islamic financial organisation on the compliance of its products and services with Islamic law, the Shariah. While some organisations consult individual Shariah advisers, most establish a committee of Shariah advisers (often known as a Shariah committee or Shariah board).

Shariah compliant: Means the activity that ensures that the requirements of the Shariah, or Islamic law are observed. The term is often used in the Islamic banking industry as a synonym for “Islamic”- for example, Shariah compliant financing or Shariah compliant investment.

Sukuk: This has similar characteristics to a conventional bond. The difference is that that they are asset backed and a sukuk represents the proportionate beneficial ownership in the underlying asset. The asset is then leased to the client to yield the profit on the sukuk.

Takaful: This is Islamic insurance. Takaful plans are designed to avoid the characteristics of conventional insurance (i.e. interest and gambling) that are so problematical for Muslims. They structure the arrangement as a charitable collective pool of funds based on the comcept of mutual assistance.

Tawarruq: When used in personal finance, a customer with a cash requirement buys something on credit on a deferred payment basis. That customer then immediately resells the item for cash to a third party. The customer thereby obtains cash without taking an interest-based loan. Tawarruq is the opposite to murabahah.

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