As we live and get older, we learn a lot of things about life. Good and bad experiences serve us lessons and make us more equipped when dealing with our unpredictable future. We can also tap other people’s experiences to open us to new ideas. These thoughts were highlighted one day when my wife said that she appreciated my calm demeanor even though things are not going well. While I am not always like this, when I think about it, I attribute this behavior to one principle: living life on the path of least regret.
When a recession hits, it affects many people and industries across the world. Even if you think that your industry is not affected, your company can still be hit due to knock-on effects. Revenue becomes harder if your clients are affected or if they realign their budgets. If this persists for several months, it can result to layoffs and furloughs.
Protect your income
It is with this increased risk that we should protect our sources of income as much as possible. If you run a business, then this is the time to optimize operations and reduce unnecessary expenses. Look into each recurring expense and determine whether it is critical for your business. You may be surprised to know that some of them can be eliminated without affecting your operations.
In the previous article, we discussed the advantages and disadvantages to working from home. In a remote work setup, it is important to establish a fixed time and place for you to work. But there are more things that we need to take into account: communication and security. These are the additional lessons I learned while working remotely since 2012.
Communication is a high priority
My boss always emphasized that communication is the most important thing especially in the context of working remotely. If we are not able to communicate effectively, then the whole setup will fail.
We live in interesting times due to the COVID-19 pandemic. More and more companies are being forced to adopt a remote working setup (or working from home) for its employees. I have been working remotely full-time since 2012. This article discusses some of the lessons and tricks I learned throughout the years.
I understand that working from home does not apply to all industries. It is mostly applicable to jobs that involve working in front of a computer. My career is in software development which fits this set up comfortably. However it can also apply to other industries such as business process operations, accounting, and company administration.
In Part 1 of this series, we discussed basic accounting concepts like the Accounting Equation. From there we identified the different Account categories and how transactions are placed under Debits or Credits.
You may be thinking, “Ok good, I get why this is being used by companies and banks, but this does not apply to me!“. Perhaps you may be right, but have you asked yourself these questions before?
- How much did I receive as salary this year?
- How does it compare to my earnings from my side business?
- I have been paying my car loan for quite some time now. How much did I pay for it so far and what is left to pay?
- Considering everything including non-cash assets, what is my net worth?
These questions are easily answered if you are recording everything using a double-entry system.