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.

To be fully compliant with regulatory guidelines, companies in the financial services sector should get acquainted with the most essential AML and KYC principles. Since compliance is not optional, you should pay attention to this if you’re a:

• Bank
• Casino
• Private lender
• Insurance broker
• Credit union
• Investment company
• etc.

In today’s brief guide, we’ll talk about essential industry terms and let you in on the most important steps you need to take to ensure compliance. 

About Anti-Money Laundering (AML)

It’s estimated that roughly $300bn is laundered every year by criminals in the US alone. To take a stand against financial crimes such as tax evasion, money laundering, funding terrorism, and similar, financial institutions must double-check their customers’ identities as well as monitor their account activity. In case anything is off, they are required to let the relevant authorities know.

About Know Your Customer (KYC)

The primary aim of KYC is to verify a customer’s identity to rule out fraud during customer onboarding. Ever since the US Patriot Act came to be in 2001, the financial sector has been put under an increased amount of pressure to mitigate the risk involved and stop financial crime in its tracks. The methodology focuses on double-checking personally identifiable information (or PII for short) which typically involves their full name, date of birth, address and so forth.

The problem of compliance

Since the law is clear on what financial services providers are required to do, what’s the problem? For starters, AML and KYC compliance is not exactly cheap. On top of it all, the process involves forwarding sensitive customer data to third-party providers in order to have it verified, potentially leaving it vulnerable to interception by bad actors.

Non-compliance can be a costly decision

If you think compliance can cost a pretty penny, non-compliance can bring a financial services provider to its knees (the fines can go upwards of millions of dollars). And that’s not even considering the irreparable damage your brand will face if you betray your customers’ trust.

Staying on top of crime

To sneak under the radar, criminals are coming up with clever tricks on how to circumvent these preventative measures. Since it’s now easier than ever to spoof a document or misrepresent one’s identity using a stolen personally identifiable document, financial institutions have a hard time staying on top of crime.

Automated KYC solutions are the answer

Your costs can go through the roof if you were to hire a KYC provider. Plus, a human day only has 24 hours in it, so this wouldn’t even necessarily solve your problem if your customer count is increasing rapidly and you need to approve new accounts with as little delay as possible.

Therefore, you should strongly consider investing in a high-grade technological solution that is capable of identifying the fraudsters on auto-pilot without introducing a bottleneck in your operational efficiency or jeopardizing the safety of sensitive personal data your customers have entrusted you with.

To conclude 

Since the penalty for non-compliance is no joke, financial services providers should treat AML and KYC principles with the seriousness they deserve. Thankfully, modern technology can efficiently automate the process without introducing unnecessary risks, so consider integrating it if you don’t fancy the idea of outsourcing the job to a manual third-party KYC services provider.

Your accounting business was once thriving, but now it’s struggling to survive. True, the last two and a half years have had their fair share of challenges, but with the pandemic quietly taking a backseat, your business should be better off.

The accounting business, like all businesses, is cyclical. You’ll have good months and bad ones, quarters that put you firmly in the black followed by ones that leave you seeing nothing but red. But these peaks and valleys don’t mean the end.

Most failing accounting practices can be saved, but they need to learn what they’re doing wrong and understand the steps they should take to correct their deficiencies to survive. Here are seven reasons why your accounting practice is failing.

Reason #1: Failure to Track Expenses

So often, accounting practices fail to execute the most basics of business functions properly. They’re so preoccupied by doing exactly that for their clients they can easily neglect to do it for themselves! But tracking business expenses, for example, doesn’t happen by osmosis. It takes a concerted effort on the part of every employee to track expenses correctly.

To do this well, accounting firms need to create a system for employees to report expenses. This way, your accounting department can categorize and track expenses so you’re ready for tax season.

You can’t truly assess your firm’s solvency when you don’t track expenses. You won’t know how much profit you’re making monthly, quarterly, or annual, and as a result, you won’t understand whether you’re failing or succeeding.

Reason #2: You Aren’t Engaging Technology

The good news, it’s easy to track your expenses with the right technology. But depending on how you run your practice, the bad news may be that you aren’t taking advantage of everything accounting technology offers.

Over the last two decades, the digital revolution has radically changed accounting. Once created manually, calculations and measurements are automatically generated with ease if you’re using accounting practice management software.

In addition to tracking expenses, these tech tools can help you manage your staff by delegating and tracking recurring work and automating action items. Accounting practice management software can also help you track project progress and easily collaborate with your staff, near and far. The bottom line, these programs help ensure nothing falls through the cracks.

If you’re still running your accounting practice off of spreadsheets and sticky notes, upgrading to accounting practice management software will help propel you to success.

Reason #3: Poor Bookkeeping

Accountants are professional bookkeepers, right? So, it may seem strange to think that there are firms out there that aren’t keeping their own books in tip-top shape, but it happens more than you think.

If you’re one of them, it’s time to start taking your bookkeeping responsibilities seriously. Your business is on the line; if you don’t keep better books or pay someone to do it for you, you will fail.

Using accounting practice management software, as we’ve already discussed, is an effective way to manage your books. But if you need something more robust and simply can’t spare the time to do it yourself, consider hiring an outside company.

There’s no shame in one accounting firm hiring another accounting firm to handle their books, especially if it means pulling your business back from the brink of failure. The better your books, the better the financial health of your business, and the investment is well worth it!

Reason #4: Poor Document Management

Are you keeping all the documents you should? Unfortunately, too few businesses, including accounting firms, do. And not keeping your receipts, statements, and other important financial documents could get your firm into big trouble.

In fact, the IRS has rules about document retention as it relates to your business taxes. According to the agency, you should keep most documents for two to three years, but you should save certain documents for at least seven years. When in doubt, just keep it!

Maintaining these records protects your firm in the event of an audit. And if you don’t have what you need when you need it, the absence of important documents could seriously hurt your accounting firm.

Reason #5: Failing to Stay Current on Regulatory Changes

Just as the IRS has rules about document management and taxes, so do the SEC and other governing bodies regulating business and finances in the United States and abroad. So if you aren’t staying on top of the legal standards for accounting, your firm could be at risk of failure.

The Financial Accounting Standards Board also sets rules for the way you should run your accounting business. Their latest set of standards, the Current Expected Credit Losses (CECL), is changing how firms across the country operate. Unfortunately, if you aren’t familiar with the CECL and aren’t actively pursuing this standard, there’s a good chance your firm will fail.

To get up-to-date on the CECL and learn how to incorporate the standard into your practice, visit the Office of the Comptroller of Currency website for more information.

Reason #6: Incorrectly Paying Employees

This may sound a bit strange. After all, who pays their employees more or less than their agreed salary and gets away with it? Plenty of accounting firms do!

Labor is the biggest expense for your business, and if you want your accounting firm to succeed, you need to pay your employees the rate you’ve mutually agreed to. Regularly audit your payroll to make sure you aren’t paying employees more than what they’re due. Overpay, and you’re putting your firm at risk of failure.

And if you’re paying your staff too little, you’ll have a completely different set of problems. Most employees will speak up to quickly correct compensation issues, but the few who don’t will have poor morale and little trust in you, their employer—two things you simply can’t afford in today’s competitive labor market.

Reason #7: Not Recruiting the Right Employees

The labor market is red hot right now and shows no signs of slowing down. So, in addition to keeping your current employees happy and satisfied, you need to attract top talent to keep your practice from failing.

Eighty percent of accounting managers are concerned about keeping their best employees. To do so, they need to offer good pay, flexible work schedules, and competitive benefits. The same goes for hiring. If you want a competitive edge over other firms seeking the same recruits, make sure your compensation package is more attractive than the rest.

This is far easier said than done, especially if you’re already struggling due to high turnover. But you need to do everything you can to make your firm a wonderful place to work so you can hire and keep the employees you need to keep your business afloat.

The stakes and competition have never been greater in today’s business world. It’s harder than ever to build a successful business, and once you do, there’s no guarantee it will stay that way. So if you’re struggling, do everything you can to uncover and correct the problem in an impactful way. Your business is banking on it!

Systematic investing is a way in which investors use scientific testing and mathematical data to make investment decisions.

Whether you’re new to the investing world or researching ways to improve your investment opportunities, this type of strategy may have crossed your path. But what is it and how does it work?

Read on to find out more about this type of investment approach and why it’s seen as the future of investments by many investors.

What Is Systematic Investing?

Systematic investing is when investors use maths and data from previous investments to make an investment decision. It helps work out whether a trade is risky or profitable.

You may also know it as the terms ‘quanta investing’, ‘algorithmic investing’, ‘data-driven investing’ or ‘rules-based investing’ where traders predict a stock’s potential for success using statistics from historical data.

Using quantitative data such as historical data helps develop mathematically-based algorithms making it easier to predict the outcome, giving the best chance possible of success.

How Does it Work?

The quantitative strategy will evaluate performance potential whilst also looking at other factors which could impact the process and its performance.

It’ll then be put through the backtesting process, testing it against historical data. This will bring about mathematical information that an investor can look at to decide whether the trade has a good chance of bringing a return.

To sum up, systematic investing is all about creating a customised trade hypothesis that can be tested to provide data. This data is used to help an investor determine whether an investment has the possibility to be successful or not. Risks are reduced by using mathematically historical data.

For example, a trader could create a strategy which identifies the best performances when the market is in good condition. This can then be used again in the future when the market is going well to pick out stocks likely to perform.

This is a very basic way of explaining how it works, and it’s key to remember that it’s also highly down to the investor to make an informed decision using the data and choosing a trade.

How often you trade is also important, as systematic investments will usually perform better if the strategy is in place for a long time. A deep understanding of the process is required if low-frequency trading is being used.

The Risks

As with all types of data, you aren’t guaranteed anything. Just because something worked historically, doesn’t mean it will work again. And this is especially accurate when it comes to investing.

Things like a stock market crash can’t always be predicted or picked up.

And if lots of people start using the same strategy, this can also affect its results. So keep this in mind when using systematic investing.

Other risks involved with this type of strategy include:

• Systematic investing can take a long time to work, so be prepared to be patient
• It’s hard to control influences like interest rates and trade costs which can impact an investment

There’s no guarantee that using systematic investing will be a success, but it does help highlight the risks. This way investors can make a more informed choice about a certain trade or investment.

And if it works, that strategy can be used continuously. But remember, things can change, so it’s crucial to always do the research to avoid a huge loss.

Is Systematic Investing for You?

Trades and investments are complicated processes. Using tactics like this can be helpful in assessing risks and working out what is most likely to perform well and can provide valuable data to suggest potential value in stocks.

If you like using historical data to base an investment decision, this type of strategy is for you.

It allows you to take a step back from the investment process, looking solely at the numbers and the data with no emotion behind it. This can bring out much better outcomes, but a good understanding of the process is also required for this.

Using proven theories to invest, whilst also identifying risks and returns, is a good way to go about the investment journey.