Islam and Business Finance

Hello readers, some individuals are probably not aware that they are entitled to tax credit in the UK. Individuals that are not on a high income can claim tax credit in the UK. There are two types of tax credit which are 1. The Child Tax Credit 2. The Working Tax Credit -With the Child Tax Credit, you as an individual must be responsible for the welfare of a child  (an individual younger than 16 years)  or a qualifying person (an individual that is older than 16 but younger than 20; the individual must be in school). If you cater to one child, you must be earning below £25,000 per annum, if you have two children, to qualify you must be earning below £35,000 per annum and if you have three children you must be earning below £40,000 per annum -With the Working Tax Credit, you must either be at least 16 years, have a disability or have at least one child and must be working for a minimum of 16 hours per week, or be older than 24 years and work for a minimum of 30...

Image courtesy of Stuart Miles at FreeDigitalPhotos There are individuals out there that do not think they can achieve financial success. Maybe they have not had the best of opportunities, its never too late to develop your skills. It is better late than never. Its best not to procrastinate. Define your goals, do not let anyone make you think you are proud because you believe you can go after some jobs that is a wrong way of thinking. It does not mean you are proud it means you believe you can do it if Allah wills. Do not be discouraged by little bumps or pot-holes just keep going. If you stop pursuing your goals you won't achieve it. Thus, if you won't give up on yourself, you can achieve your financial goals if Allah wills.  Make sure your job is halal. Everything happens according to the will of Allah (you have freewill and are responsible for your actions). Everything should be done deliberately for the sake of Allah. Part of doing something deliberately f...

Hello readers, so today I decided to write the 3rd part of this article. I will advise you to read part 1  and part 2  before reading this one and yes there is still going to be another part, the last part. There are 3 main qualities associated with fraud which include  1. The reason why the individual/group wants to commit the fraud. 2. The loop-holes in the system of the business that could make the individual/group to justify their fraudulent act. 3. The ability of the individual/group to justify their fraudulent act. When internal auditors do a good job it can be very useful at preventing, detecting and mitigating fraud. Prevention and detection are two different actions that can be used to deal with fraud. In order to prevent fraud, thus limit the exposure of the company to fraud, the owner/owners must set the right tone, thus they must deal with fraudulent activites in a strict manner  An effective and efficient internal control will prevent po...

Image courtesy of winnond  A 6 year old boy that was going to make breakfast for his Dad on his birthday. While he was trying to toast bread, he spoilt the toaster he had just purchased for $200. Now a school of thought will say the boy should be scolded since he spoilt the toaster, that he should not have touched the toaster. Another school of thought will say his intention was pure so he should not be scolded but thanked for his effort, however should be told in a very nice manner to seek adult supervision in future. Well, I agree with the latter. The boy should be thanked, that way you encourage him to keep doing good. He wanted to put a smile on his father's face. As such, he should be appreciated for it. P.S Parents do not tell your children they are asking you a stupid question, no question is stupid. If they do not know let them ask and that goes for adults too, if you do not know, ask. I overheard a father telling his daughter she just asked a stupid question and...

I watched a video on facebook, apparently I could not watch it to the end cause I was not glad with it. The woman was telling the police in her country to stop going after their boys for doing yahoo yahoo. To justify the arguments she said it prevents them from stealing from their community. Stealing is wrong whether it is from your community or other communities. So what? They do not have a job so the next thing is to deceive people into giving them money. That brain can be used for better things. It can be used to invent products, thus creating a business, thus creating employment opportunities and thus contributing to the development of your nation.  Secondly, all this people that go about scammimg other people you create a bad impression about your country and thus discourage potential investors that can contribute to development of your nation from investing in your country. That job issue she was talking about can also be addressed when more investors are attracted to...

Image courtesy of jscreationzs at FreeDigitalPhotos.net Hello readers, today I decided to write about the foreign exchange risk. I dealt with the economic risk associated with foreign exchange in a previous article . I will be dealing with the transaction risk partly today. I will be writing about 3 ways the transaction risk associated with foreign exchange can be mitigated Leading and Lagging It will be to the advantage of a business to convert its currency to the one that will be needed if they believe that the currency needed will appreciate against its own currency. That way when the currency appreciates you gain some money. However, there is still a risk that the currency might actually fall. When this action is carried out it is called leading. Lagging on the other hand is for you to wait to the last minute before you exchange the currency if you believe that the needed currency will fall when compared with yours. Netting This can be used if you have a...

Image courtesy of xedos4 at FreeDigitalPhotos.net Hello readers, Indonesia is a beautiful city to invest in, with an average GDP annual growth rate of 5.37% from 2000 to 2015. It is ranked 16th in the world on the list of countries by GDP (nominal). Here are the industries to invest in. Manufacturing Industry This industry is one of the most important in the industrial sector. The industrial sector contributes mostly to the annual GDP growth rate. The PMI increased from 46.9 in November, 2015 to 47.8 in December. Mining Industry This is another industry you should invest in. It also contributes immensely to the annual GDP growth rate of the economy. Leisure Industry The leisure industry is also a good one for investment. Thus, you should consider investing in the country. Due to the wealth rise in Indonesia, the purchasing power of customers have increased and they are willing to pay for leisure. Technological Industry This industry is booming and it is a...

Image courtesy of Sujin Jetkasettakorn at FreeDigitalPhotos.net I enjoy reading educative articles but I do not open articles that have negative headings. Be careful as to what information you allow into your system. Only articles that promote positivity should be read. It is not everything that you read on the internet that you should swallow in. Some individuals share ridiculous text on facebook. Some individuals put out negative information online, just because someone had typed that ridiculous information does not make it positive.  I once saw one text on facebook "when people try to stop my bad habit they are just mad because I am fun". What a ridiculous text. No you are not fun. Develop the growth mindset, negative information will not encourage the growth mindset. With this mindset, you will be able to achieve your financial goals insha Allah. Individuals that have developed the growth mindset believes you are either part of the problem or you are part of th...

Today, I decided to talk about how to minimize the exchange rate risk. I know some of you are into importing and exporting, thus you will be exposed to the risk. When foreign transactions are being carried out by an entity or an individual there is always a probability that the foreign currency that you might be receiving might fall in value when compared to the currency of the country where your business is domiciled. Thus, you end up receiving a lower amount than you expected.  A way this risk can be mitigated is to make the goods you are selling in the country you want to sell them (if your business is big). Thus, any business dealing that has to do with the country should be dealt with in that country. I have dealt with the economic risk associated with foreign currencies in this article.  Make sure your business is halal. Everything happens according to the will of Allah (although you have freewill so you are responsible for your actions). Everything should be ...