Digital currencies have been around long enough to prove that they are not going anywhere. Cryptocurrency and other digital currencies may seem alien and quite confusing to many, but in some sectors, they are being embraced and thriving. The primary concern for something like cryptocurrency is the volatility, as they have gained and lost value dramatically and overnight in recent history. Some digital money can be redeemed at face value for cash and are very safe and backed with liquid assets; this is usually referred to as e-money.

Crypto Transactions Gain in Popularity

It is safe to say that crypto transactions are already well embedded into some industries, you can purchase a Tesla car using bitcoin, and there are plenty of casinos that accept Boku payments. Some people feel that this is the future of all currencies. The advantage of cryptocurrency is that it is decentralised and not reliant on any central banking system. It is a peer-to-peer transaction system; everything is recorded using Blockchain, which is 100% secure and cannot be tampered with or altered.

Central Bank-Issued Digital Currencies

Moving forward, if central banking systems were to start using digital currency used, there would have to be an element of stability closer to the way things are now. Bitcoin and other major forms of cryptocurrency are way too unstable and would not work in the current economy. It is an idea that makes a lot of sense; however, unless the stability were to improve, it could not easily take the place of standard currency. Central banking authorities would need to create and adapt their bank, and monetary law and public laws would need to cover the legal status of money that has been privately issued. There is an awful lot to consider before digital currency replaces all other forms.

Security and Regulation

Although cryptocurrency is inherently secure, regulation flies in the face of everything it was created to do. But any new form of digital currency would need to be able to prove that it was not prone to cyber-attacks, could cope with technical glitches and outages, and could not be subject to fraud authority algorithms. The Blockchain does cover most of these issues, but the whole point was not to rely on any third-party banking system that sits in the middle of transactions. However, we need to consider whether there was any aspect of digital currency would leave things open for financing terrorism and money laundering.

Positive Aspects of Digital Currency

There are some advantages of digital currency; for one thing, there is no cost for manufacture, which currently is quite significant for many countries. Storing and spending digital money is also cheaper if all the hurdles can be overcome. Experts predict that digital money has the capability of increasing gross capital flow because of the lower transaction costs. It would make it easier to integrate markets but could potentially raise the risk of financial contagion.

The production of a banknote is a long and complex process in which the place of art is much more important than it seems, but in the never-ending fight against counterfeiting, banknote printing companies must constantly innovate and use ever more sophisticated technologies and anti-corruption standards to secure consumers and monetary authorities. Let’s learn where our banknotes come from, and why their production is a scrupulous and demanding process full of formalities and pitfalls.

Paper money was invented much later than metal coins. It appeared with the development of printing technologies, which made it possible to simplify the process. Ancient China was the first to abandon piles of metal change in favor of paper. Eventually, the production of paper money turned out to be much cheaper and easier.

Other countries around the world followed suit, and so banknotes gradually became the primary means of payment. Today, produced with the help of advanced technologies, their quality, durability, and security reach state-of-the-art levels. How does the production of banknotes work and what is the point of all the efforts put into it? Let’s find out and hear what money printers have to say about their job.

The art

A banknote begins with a design concept. Its creation is a long and complex procedure that involves many professionals from different fields, going from financiers to artists.

Sketches are offered first. The main requirement is a clear affiliation to the country, for which artists use national coats of arms, landmarks, portraits of historical figures, and many other references. The higher a banknote’s face value, the more complicated the elements on it are, as the more expensive is a banknote, the more attractive it becomes for counterfeiters.

If you look closely at any note, you will notice the variety of design facets: lines and dots cross and blend, portraits and landscapes burst with colors and precision, and even the smallest elements are distinct and precise. Our brain unconsciously captures these details, and if we receive a fake bill with poor printed quality, we instinctively feel that there is something wrong with it.

“We always need to employ great ingenuity to counter fraudsters’ plans, allowed by faster and faster democratization of designing and printing tools. The one thing that has changed since then, is that counterfeiting banknotes is no more a question of skillfulness but definitely a question of technological arsenal”, says Thomas Savare, CEO of the French world-leading company Oberthur Fiduciaire.

The expertise

Once the sketch is created and approved, the banknote is set into production. This is where the real magic begins – the actual work is up to those who print the banknotes. There is just a handful of money printers across the globe, and their industrial process is probably one of the most difficult in the world.

A distinctive feature of money production is the impossibility of outsourcing. Full confidence in the product quality comes through full control of the process and careful checks of suppliers. Other industries can order the production of components from others: for example, the production of smartphone microchips is often contract manufacturing. In contrast, money printers render it inconceivable that the pattern on the paper is applied in one factory and the security elements are added in another; a single-site operation is a must for many of them.

The burden of such responsibility is not easy to bear. “We have to master the printing techniques themselves, but we also have to master the job of integrating different technologies, different substrates, and different security features… Many printing skills, finishing skills, and design skills are needed, besides growing R&D activities, all of which develop new security features to adapt new techniques and new processes, to enhance the security and the durability of banknotes”, tells Thomas Savare.

To cope with the procedure, security printers employ a holistic approach, based on the requirements of central banks and certifications passed. The latter usually refers to manufacturing processes, but some companies go beyond themselves and receive additional certifications, such as the anti-bribery ISO 37001 or the social responsibility ISO 26000. The process of obtaining them is not an easy one and may take several years in some cases. Do they really need it? The answer is undoubtedly yes, believes Etienne Couëlle, Oberthur’s Managing Director: “Our processes are subject to ISO norms with very strict requirements. Having the trust of our clients is of the utmost importance to us and we do everything we can to fulfill our mission.”

The control

Freshly printed notes are sent to quality control. Although it is one of the last steps in the process, it is no less complex than the sketching and printing described above.

Going back to the analogy of conventional manufacturing, money printers cannot afford to take just a few samples from each batch for production control: every single banknote is checked without exception. This was done manually just a couple of decades ago, but now manufacturers use special machines, explains German banknote and securities printer Giesecke+Devrient on their website: “Each freshly printed banknote is inspected for all quality characteristics during single note inspection. Single notes are only checked after they have been numbered, coated, and cut. Defective notes are automatically sorted, and reliably destroyed, and flawless banknotes are securely packed. At the end of the inspection, customers receive a precise and detailed report about quantities and quality of the inspected banknotes.”

There are several reasons for this meticulousness. If defected notes fall into circulation, ordinary citizens will suffer losses, the reliability of the country’s central bank as an issuer will be questioned, and criminals will get an opportunity to profit from counterfeiting.

Quality control is necessary, but even that is not the last step in the process of turning banknotes into legal tender. Freshly printed notes are not money; they are just polygraphic products made with sophisticated technology. Once printed and checked, banknotes are sent to countries’ central banks and are kept in reserve funds. In order to enter the economy, they must be put into circulation (issued), that is, leave the bank, become its liabilities, and be recorded as such on the balance sheet – and finally become full-fledged means of payment.

If we look back at the entire process of creating a banknote from conception to its release into circulation, we will see not just the work of various professionals and high-tech machines. Behind every stage of creating paper money, there is skill, responsibility, and many years of expertise, thanks to which we can be sure of the banknotes in our wallets.

If you want to open a bank account in Portugal without leaving your home, this is what you should know: there is nothing insurmountable. This article will help you to deal with the key aspects of this process. Follow below to learn vital info!

Step 1: Find the Intermediary to Work with

This is step number one to think of. It is going to influence the success of opening online bank account Portugal. So, this is what you need to rely on when choosing a team to collaborate with:

• The way the customers see this intermediary. The reviews should be positive and demonstrate that the staff treats its work responsibly, doesn’t break the deadlines, and so on. It is very important as long as if you choose an intermediary based on this, you will come across a nice result;
• The website interface that represents an intermediary. You should be able to find what you want on the site without any hardships. Besides, there must be clear lists of the documents to present and this kind of stuff;
• What is more, you ought to be able to contact the intermediary if you have some questions to resolve.

Step 2: Check That You Are Okay with the Price Suggested to You

Once you feel like the intermediary is fine (speaking of the terms of collaboration), make sure that the price satisfies you to the fullest. Normally, there is a description of what the final sum to pay comprises.

It should include the service itself, and further support from the legal department of the intermediary. Naturally, things may be different when speaking of the various teams to work with but this option is actually really nice to deal with. Actually, 300 EUR is a fine fee to pay. It is an adequate cost for this kind of service (note that there is a minimum deposit for the bank accounts too).

Step 3: Get the Documents Ready for the Process

It also depends on who you plan to work with. The list may differ but the majority of the papers and scans to get ready are going to coincide. This is what you usually have to prepare in advance:

• Statement of residence. It may be given in the form that is convenient for you. For instance, you are free to provide a utility bill or a rental agreement (the matter is that your name should be stated there);
• Scan of your passport. In other words, it is proof of your identity, and it is actually a document number one to present;
• Portuguese NIF. If you have not received this document, you can also do this online;
• Evidence of your profession. A contract is going to be just fine in this case.

So, as you see, the list is not too big to deal with. It means that you will be able to collect all the stuff that is necessary and order such a service as opening a bank account in Portugal online.

Step 4: Upload the Documents and Wait till Everything Is Done

Once you have got everything ready, it is time to download the scans on the website of the intermediary who will help you to open a Portuguese bank account online. It is going to take no more than a few minutes. If you feel like having any trouble with completing the process, feel free to message the team and they will help you to resolve the matter.

Normally, it is about to take several weeks but it depends on many factors. For instance, it is important how busy the intermediary is right now, when the bank is ready to respond (Novobanco is one of the most reliable banks to collaborate with by the way), and so on. But usually, you will not have to wait for a long time if you plan to open your bank account online. Once everything is ready, the bank cards will be delivered right to your door.

Good luck to you on the way to establishing a bank account online! Hope it will go as smoothly as possible and you will not have to worry about anything.

As the UK simultaneously wades through a recession and a cost of living crisis, it’s no surprise that businesses are feeling the crunch. According to Xero, 94% of small businesses faced at least one month of negative cash flow in 2021, with almost a quarter (23%) experiencing more than six months of this. It’s almost inevitable that both of these figures have worsened in 2022, and the issue is only likely to escalate further in the near future.

With so many British companies facing cash flow problems, there may be times where relying on emergency funding is essential. Overall, three in five UK businesses have sought external finance in the last three years, with more than half (54%) doing so to gain more working capital. That said, businesses also seek short-term financing for reasons like investing in goods and services, funding expansion and purchasing fixed assets.

Whatever the purpose, business owners need to know that they can secure money easily and safely, without being saddled with sky high interest on their repayments. We’ve outlined three short-term financing solutions that are not only effective, but safe.

1.   VAT bridging

Businesses don’t always end up paying VAT (unless they’re buying property), as it is a form of indirect consumption tax levied on consumers when they buy goods and services. However, many companies do actually initially pay the tax, before claiming the money back from HMRC. This can leave them with a deficit though, with the government department often taking up to 30 days — and sometimes even longer — to send back the funds.

An effective way of quickly securing the lost money is to rely on something called VAT bridging, which is where you obtain the money you’re owed, and often right away too. As tax credit specialists Adsum explain: “If you need a quick solution to your financial problems, [with VAT bridging] you can access the VAT return that you will be entitled to, but within 24 hours rather than months.”

This can be a simple way of securing funds, though it does rely on your business being VAT registered and having already paid VAT on something.

2.   Short-term business loan

A short-term business loan allows a company to borrow a lump sum of money that’s later paid back over an agreed period of time, typically between a month and a year. It must be used for business purposes, like an investment or buying a new property, and will be processed by a bank or specialist lender.

The main potential drawback of a short-term business loan is the interest rate involved, which is typically around 7% to 14% for small businesses, though bigger businesses can expect much smaller rates. You can also opt for a secured business loan to reduce the interest rate, although this would mean using your assets as security should you default on your loan.

All in all, this is a decent option if you need quick and easy access to working capital, though you need to think carefully about whether a secured or unsecured loan makes most sense for your business.

3.   Line of credit

A line of credit gives you direct access to a pool of funds whenever required, enabling you to quickly withdraw money and repay it when you like up to a pre-agreed limit. Most lenders offer business lines of credit for up to a year, and they must be repaid in full or renewed at the end of this period. Although interest rates can be high, like a credit card or bank overdraft, you’ll only pay this on any outstanding balance.

This option may require some kind of personal guarantee (like a house or a car) if you’re deemed a riskier borrower, which can make it a slightly more unsafe option. More established and bigger businesses will likely be eligible for an unsecured line of credit, however.

Overall, a line of credit works both as a short and medium term type of financing. It can be a great get out of jail free card to have in your back pocket, ensuring that you never have to scramble to access finance at the eleventh hour.

It has been observed that start-up owners and seasoned businessmen are often willing to leverage outside expert assistance. It is crucial that they recognise the value of dedicated professionals, given that most companies fail in the early years of their firm due to a lack of understanding of legality and taxation. One such profession that businesses must pay close attention to is chartered accounting.

Many firms claim to offer top-notch accounting services but only a few stand on them. Go ahead and visit Butt Miller, for example,to discover their offered services, including tax planning, financial audit, enterprise pricing strategies, and more. Read on to understand who are Chartered Accountants (CAs) and the reasons you need them!

Who Are Chartered Accountants?

An accountant who has finished several additional certifications and complies with the required industry standards is known as a chartered accountant. The professional has a bachelor’s degree in accounting, three years of documented job experience, and is mentored extensively by another fully qualified chartered accountant.

The CA Program, a collection of post-graduate courses on subjects like taxation, management accounting, auditing, financial accounting, and ethics, must also be completed for an accountant to gain dedicated proficiency. A person can become a chartered accountant once they have satisfied all these prerequisites.

 Top Benefits of Opting For Chartered Accountants

 1.      Build Professional Reputation

The ideal accountant will support you and effectively represent your business. This is much more crucial for start-up companies. High market value and recognition may facilitate a solid network with banks and other investors.

Another essential perk of consulting with an experienced CA early on in your business journey is the proper guidance you gain in dealing with all your legal matters. Your accountant will ensure that each deal is done keeping the necessary conditions in mind, safeguarding you from possible fraud.

 2.    Keep The Matters Confidential

Whatever the business circumstances, a company always ensures that its financial affairs, such as investments, current deals, financial holdings, etc., are never revealed or leaked. Well, CAs must adhere to a robust code of conduct, which demands that they take strict responsibility for the data they communicate. They ensure that your financial data is always handled with security and respect.

 3.    Provide Expert Accounting Solutions

Chartered accountants’ extensive knowledge reduces informational blind spots and allows them to provide effective and precise advice in various company situations.

A professional’s technical skills acquired during the qualifying process equip them with the business knowledge required to handle challenging accounting difficulties. You must retain the services of an accountant who satisfies high professional standards, depending on your company’s financial requirements.

Your company’s financial interests come first in all financial reporting and business procedures carried out by chartered accountants since they comply with strict integrity requirements.

 4.   Accelerate Business Growth

Chartered accountants are experts at reducing risk. They also help firms through crucial growth phases by spotting opportunities like acquiring new assets, freeing up additional capital, pursuing financing to fund growth, or improving pay structures and employment.

Many firms dedicate specialised teams aimed at levelling up businesses. You can, for instance,  visit Butt Miller and further understand how a chartered accountant’s services can provide your company with a competitive edge throughout key growth phases, help with scaling and expansion, introduce new products, or enter new markets. They provide a full-service accountancy practice in several specialised sectors like creative services, manufacturing and service industries, professional services, etc.

 Wrapping Up

A chartered accountant also achieves substantial cost and time savings. An expert will assist your company in lowering tax liabilities while also limiting the time spent on reporting. A chartered accountant frees up your time and financial resources so that you and your executive team may concentrate on running and expanding your company.