Adwords Program: Google Adwords Program Is The Answer

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If you want a successful business you need to advertise that business.

No matter if you have a product to sell to others or have a service you can perform for a fee.

One of the best ways to do this is to advertise with a Google Adwords program.

If you have the budget, a Google Adwords program will help you get the quality traffic to your site to make the sales you need to grow your business.

How this all works is by CPC, or cost per click.

This means you only pay when someone clicks on your ad to get to your site to see what you are selling. The ad you plce must be compelling enough to lure your customers to you.

If you are new to this type of advertising, you should begin by using the starter edition. It is easy to set up and get started.

Go to Google and select "starter edition". You will be prompted to target the type of customer you want by choosing the region you are in and the language spoken in that region.

Next, you will be prompted to create your ad. You should have already put some thought into this beforehand so you know what to write so you do not waste valuable time trying to come up with something on the fly.

You will need to fill in the URL for your site so that you can link your new ad to it.

How else are you going to get the customers, right?

Next, create a headline for your ad. If you have put thought into this you probably have a good one already. Make sure that it hits the high points of your business and your product or service.

Use relevant keywords. Prior to setting all of this up you should also have done some keyword research to find relevant keywords you can use to bring in the quality customers that will convert to sales.

Keyword research is time-consuming but if you find that special one or two that work well for you you are way ahead of the game and will have customers like you never thought possible.

You can try out many different keywords at different times to see what works the best for your business.

Next, you will need to set up your budget. Budgets can be set anywhere from $30 per month (which will not really get you any where fast), on up to tens of thousands of dollars per month.

The higher you set your budget the more chances you have that someone will click your ad.

Now you will be able to set up your account by entering an email address and password. If you already have a gmail account then you can just go ahead and use that one to do all of this.

All that is left now is to activate your account.

You may be sent a confirmation email to do this by clicking on a link in that email.

Log in and submit your accurate billing information. You are now a proud owner of an Adwords program. Click the button below to continue:
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Adwords Success: No Longer Open Like The Wild West

In some ways, the internet is no longer the wild west. It used to be pretty easy to open an account and get almost immediate Adwords success, but not anymore.

As with most things online, times have changed.

Adwords is far more challenging than it used to be and finding long term Adwords success require a lot of experience.

There is a lot that goes into creating a successful Adwords campaign. You first have to know which keywords you need to target to get just the right visitors to your site.

This is the first step and very important, but it is not simple. There are many factors that will determine if a keyword is a "good" keyword or not.

For example, you want a keyword that has quite a few monthly searches but not too much competition. But, what is "quite a few" and "not too much"?

That is where things can get tricky. To a large degree your exact parameters for those things will depend on the niche you are in and how much you can potentially earn from each visitor.

If you have a great conversion rate (the percentage of your website visitors who actually make a purchase) and you are selling a product where you will make a lot of money per sale, you can conceivably afford to spend more on each click.

But, the amount you can pay per keyword will be tough to figure too since it can vary from one person to another.

Google "rewards" those webmasters who know what they are doing. If you get a higher click through rate (the amount of people who see your ad and actually click on it) than you will be rewarded with a higher quality score.

If two people are bidding on the same keyword, the person with the highest quality score will get the click for less than the other guy.

As you can see, it can get very complicated (and very expensive) very quickly.

For this reason, I always advise people to get to know a little more about internet marketing before they try to use Adwords.

If you are brand new to the online world, you are likely to lose your shirt if you try to use Adwords right off the bat.

There are just so many variables to make a good campaign in Adwords  and to be successful.

If you really think that Adwords is the best way for you to get your business off the ground, you can hire someone who knows how to do it.

Of course, this too will add another expense to your online business and you must be careful that those so called "experts" really do know what they are doing.

You will need to be able to quantify their results in some way and that will mean you need to know how much each customer to your site is worth and what your conversion rate is.

Again, to increase your odds of having Adwords success, you may want to become familiar with the ins and outs of your online business first.

If you don't have a basic knowledge of how it all works, you won't be able to measure your success or lack of success.

Calculating PPh 21 on salary along with allowances for permanent employees

Income tax Article 21 is income tax related to work, services and other activities carried out by individual taxpayers, in the form of salaries or wages, honoraria, allowances, and other payments related to work or services performed by domestic tax subjects. The calculation of PPh 21 refers to government regulations related to income tax, namely Law Number 36 of 2008, Regulation of the DJP PER-16 / PJ / 2016 concerning Procedures for Depositing & Reporting PPh 21, Regulation of the Minister of Finance of the Republic of Indonesia Number 250 / PMK.03 / 2008 concerning Position Fee & Pension Fee and Number 101 / PMK.010 / 2016 concerning Adjustments of Latest Non-Taxable Income (PTKP). Find out the explanation of the following PPh 21 calculations for salaries and allowances for permanent employees.

Basic Income Tax Calculation 21

Based on the four government regulations related to income tax as mentioned above, the most important points that need to be considered in calculating the PPh 21 tax are as follows:

1. Gross income in the form of basic salary, routine allowances (including job allowances, transportation and food allowances), non-routine allowances (including THR, overtime, bonuses, production services), and allowances paid by the company for insurance premiums & BPJS contributions (in the form of Work Accident Security and Death Insurance programs).

2. A deduction of gross income, in the form of an office fee in accordance with the Minister of Finance Regulation Number 250 / PMK.03 / 2008, which is set at 5% of gross income, or a maximum of IDR 6 million in a year. The pension contribution is in accordance with the Minister of Finance's regulation Number 250 / PMK.03 / 2008, which is set at 5% of gross income, or a maximum of IDR 2.4 million per year. BPJS Pension Security (JHT) premiums paid by workers, and BPJS Pension Security premiums paid by workers.

3. Non-taxable income (PTKP) . The amount of the PTKP rate in accordance with the Regulation of the Minister of Finance of the Republic of Indonesia Number 101 / PMK.010 / 2016 is as follows: Individual Taxpayers of IDR 54 million. Additional IDR 4.5 million for married taxpayers. And an additional Rp. 4.5 million for taxpayers who have dependents of a blood family member, a family of equal descent, and adopted children, a maximum of 3 people. As well as an additional Rp. 54 million for taxpayers whose income of husband and wife is combined.

Income tax rates 21 & non-taxable income 21

Based on the four government regulations related to income tax as mentioned above, the most important points that need to be considered in calculating the PPh 21 tax are as follows:

1. Gross income in the form of basic salary, routine allowances (including job allowances, transportation and food allowances), non-routine allowances (including THR, overtime, bonuses, production services), and allowances paid by the company for insurance premiums & BPJS contributions (in the form of Work Accident Security and Death Insurance programs).

2. A deduction of gross income, in the form of an office fee in accordance with the Minister of Finance Regulation Number 250 / PMK.03 / 2008, which is set at 5% of gross income, or a maximum of IDR 6 million in a year. The pension contribution is in accordance with the Minister of Finance's regulation Number 250 / PMK.03 / 2008, which is set at 5% of gross income, or a maximum of IDR 2.4 million per year. BPJS Pension Security (JHT) premiums paid by workers, and BPJS Pension Security premiums paid by workers.

3. Non-taxable income (PTKP) . The amount of the PTKP rate in accordance with the Regulation of the Minister of Finance of the Republic of Indonesia Number 101 / PMK.010 / 2016 is as follows: Individual Taxpayers of IDR 54 million. Additional IDR 4.5 million for married taxpayers. And an additional Rp. 4.5 million for taxpayers who have dependents of a blood family member, a family of equal descent, and adopted children, a maximum of 3 people. As well as an additional Rp. 54 million for taxpayers whose income of husband and wife is combined.

Income tax rates 21 & non-taxable income 21

Calculating PPh 21 on salary along with allowances for permanent employeesFor income up to IDR 50 million, you will be subject to a 5% income tax rate. For income between IDR 50 million and IDR 250 million, you are subject to a 15% income tax rate. Meanwhile, for income between IDR 250 million to IDR 500 million, you are subject to a 25% income tax rate. And income of more than IDR 500 million will be subject to a 30% income tax rate. If a taxpayer does not have an NPWP , the amount of the PPh rate will be subject to an additional fee of 20% of the prevailing normal rate.

Income that is not subject to PPh 21, namely receipt of claims from insurance companies, income in kind, directly subject to Final Income Tax, receipt of pension contributions from employers to pension fund institutions where its establishment has been approved by the Minister of Finance, receipt of zakat from the amil zakat institution where its establishment has been approved by the government, as well as acceptance of Scholarships.

Calculation of PPh 21 Permanent Employees

Tax is an obligation that must be paid by all citizens who already have income, regardless of their profession. According to the DGT regulations, all Indonesian citizens who are employees, employees, or workers who earn a salary are required to pay income tax or PPh to the state.

5 Effective Tips for Dealing with Stubborn Employee Attendance Problems

Not coming to work because of illness or having to take care of family members who have special needs are certainly logical reasons. Apart from being logical, employee absence for this reason is also the right of every employee. Reasons for illness must be given permission to be absent because they involve the health and productivity of employees. The employee's attendance must be managed carefully.

Regarding employees who are unable to attend or have to be absent from the office, of course there are various reasons. If it is still within reasonable limits, employee absence will not be a problem. It is different if there are employees who take time off or are not present at the office for reasons that are not clear, or too often. Sooner or later this will have a negative impact on your business.

Employees who often don't come in will directly interfere with the production process. The production process will be disrupted because the amount of workload that is owned will decrease. There is indeed a re- plotting procedure on the work of the employee concerned. However, if the employee often does not come in, this plotting will also have an impact on other employees.

This simple problem if left to continue will be a serious problem. To anticipate bigger problems due to disorderly employee absences, you can apply the following five tips. Dealing with employees like this requires special handling.

Clear Sick Leave Policy

Companies are required to have a clear sick leave policy. In that sense, there are certain conditions or procedures that employees must perform if they have to take sick leave. For example, by doing permission directly via telephone. Or it could be the inclusion of a doctor's letter for information on the condition of the employee concerned.

This policy is important so that employees do not abuse their sick leave which is their right. With a clear leave policy, the office will receive clear information and authentic evidence of the employee's condition if it is not possible to enter the office. Of course it must also be investigated, with a fever permit and not being present for more than a week, for example, whether this employee really has a serious fever or is just lazy to go to the office.

Reprimand Directly

Call the employee concerned directly and discuss this matter. Of course the conversation that occurs should be in conditions of facing each other one on one. Without being intimidating, the conversation is more personal so that employees can reveal the real reason why he is making trouble with his attendance.

Speak in a subtle yet firm tone so that employees realize that this is a disciplinary reprimand. Employee attendance that continues to have problems will bring other problems if not followed up immediately. The employee concerned should also be asked to make a commitment for the future.

Full Attendance Bonus

As silly as it may sound, offering full attendance bonuses to employees can have an effect on your employees' general attendance. Set certain conditions to get this bonus. Of course by being present every day on time. You can also add other conditions to become additional conditions.

This offer can be applied to each employee in order to reduce unnecessary leave permission. With this kind of motivation, employees will be more eager to come to the office on time and take time off as needed. Also provide reasonable leave limits, such as one or two sick leave during a period of one year of work.

Understand Applicable Labor Laws

When efforts continue to fail to change the employee's excessive absentee habits, do not rush to fire the employee. Understand the labor law, which usually does not make dismissal of employees a punishment for the employee's absenteeism problem, especially if the reason is illness.

If it had gone too far, review the performance of karyaw a n concerned in recent months. Usually employees who have problems with attendance will experience a decline in their overall performance record. This performance record will formally become a reason for the company to review the work contract that has been previously agreed.

Perform Monitoring Office Hours and Attendance

Employee attendance problems can actually be traced from an early age when an employee shows a tendency to be absent for a certain period of time. You can assign HR staff to pay more attention and review to the employees concerned. The use of attendance applications can help you to get valid data.

Attendance applications usually provide realtime dataof every employee who works for your company. Arrival times, rest times, home office times, overtime and outside assignments will be recorded neatly. You can use this data as an evaluation material for problem employees as strong evidence of their presence.

Know the Right Time to Give Your Employee Contract of Work

When your business grows, the need for new employees in various fields is certainly one thing that must be fulfilled. This new recruitment requires precision and accuracy so that later it can match what you need. In the process of recruiting new employees, you must know about employment contracts. An employment contract is a form of document that contains the terms and conditions related to the work required.

Later the work contract will become a binding document between the company, you, and the prospective worker or employee who will be recruited. Before then explaining the exact time and conditions of the work contract required, you should know what the contents of the work contract that you will submit to employees.

The contents of the work contract are at least information related to work, salary and benefits of joining, leave and vacation policies, job classification, schedule and work period of prospective employees, information regarding company secrets, policies for using company accounts for social media, termination of employment and conditions, and conditions after the termination of cooperation.

Then, when is a work contract needed? What conditions make you need to provide employment contracts to prospective employees? Here's the explanation.

Position Required Hard to Replace

When you need a professional with special skills that are difficult to obtain, then you should provide a clear contract letter for the prospective employee. This is because the professionals you need have special abilities, for example related to market analysis skills and competitors, so employees in this position will be valuable assets for the company.

One way to ensure that an employee like this doesn't leave the company without good reason is to tie him up with a work contract.

Employees Have Access to Important Company Information

When you need employees who deal with important company information, then an employment contract is a must. The employment contract can serve as a binder that the employee will not divulge any secrets under all circumstances.

Usually, information leaks often occur when employees are no longer members of your company. However, with the inclusion of provisions regarding the confidentiality of information, you can still have power over confidential information known to the employee.

Don't Want to Avoid Competitions Against Former Employees

In the business world, competing with former employees is not desirable. One thing or another, employees who have worked for your company know the general company strategy. Of course this could be bad news. Employment contracts can be used to avoid this by specifying in detail the binding provisions that employees may not work for competing companies.

This provision could also state that employees who are no longer working in your company may not work for a company within a certain radius, or within a certain period of time at a company engaged in a similar field.

Requires a Clear and Legally Enforceable Agreement Basis

The employment contract contains detailed provisions regarding the cooperation the company has with your employees. Details such as the agreement not to work for a competing company as in the previous point, for example, need to be stated clearly and in detail so that when something goes wrong, you as the employer have clear legal force.

The work contract should also be in the form of a written physical document and given a wet signature from both parties. Because the provisions are complete and detailed and involve many matters, this document should also be in the form of a file so that it can be accessed by all interested parties.

After understanding the right timing and conditions for awarding employment contracts, you can start considering hiring new employees based on the right employment contract. Managing a large number of employees also requires a neat system.

Cutting Administration Time? Employee Application The answer

In the dynamics of the office world, there are always problems that arise in connection with company and employee relations. Problems such as late payment of salaries, errors in inputting salary slips, the length of the leave process, to overtime recap errors and attendance are no longer a special problem. Even though in simple terms this problem can be handled by using employee mobile applications .

The employee application in question is a software intended for employees and is directly connected to the data center in the office. The various problems mentioned above usually have the same root cause, namely human error . The use of employee applications can further reduce the level of human error because everything will be processed in an automatic system.

The employee application itself, has a variety of useful features to help solve routine problems above. Of course, the solution is done by utilizing technology, so that every administrative process carried out will take place in real time and without wasting time.

Various facilities can be obtained by employees, as well as having a good impact in the form of increased time effectiveness for the company. If you are still facing the problems mentioned earlier, consider the conveniences that employee applications provide for the following companies and employees.

Ease of Taking Care of Leave

Leave, is an employee right that must be given. However, the schedule for leave must also be arranged in such a way that it does not interfere with the production process of the company itself. Leave that is structured fairly and regularly, will have a good impact on employee and company relations.

Employees can easily submit the leave schedule they want without having to face the HR department. Up to this point, there has been a necessary cut in time, as a first advantage. Then, the HRD who receives the application through the employee application can enter the schedule submitted to the company calendar to see if there are any remaining leave slots.

If there is, then HRD can directly approve the leave request and provide direct notification to the employee concerned via an application embedded in his smartphone . Leave, which had to be taken care of in advance, can be completed in just a few minutes.

In addition, with the ease of arranging and scheduling leave, companies can delegate tasks more quickly if needed. The data that appears for employees who enter and are actively working will make it easier for companies to provide jobs to employees that are still available , if they are deemed very important and must be completed immediately.

Absence Anywhere

Doing attendance no longer only has to be present at the office. This is very useful for employees who have to conduct meetings outside the office in the morning. Employees do not need to come to the office first to be absent, but can immediately do attendance when they arrive at the meeting location .

Companies can also make settings in the attendance area that can be done, so that employee attendance can be truly controlled. In this way, employees can carry out their obligations properly, and the company can also provide flexibility to its employees when they have to work outside the office.

There are no more mistakes in recording attendance, because any absences made by employees through the employee application on the smartphone will go directly into the database archive that is managed directly from the office or company.

Overtime Calculation Accuracy

When employees are forced to work overtime, there is one calculation of additional wages that the company must provide. This calculation will be based on how long the employee is overtime, when the employee is overtime, and what position the employee is doing overtime.

Recording the status and position of employees in the database provided by the employee application greatly facilitates this. In addition, because the company's production calendar is integrated with absences and working hours, overtime employees will be immediately tracked and recorded accurately. The duration, position and amount of overtime pay will then be included in the details of the salary slip provided.

Employee applications usually combine various features for convenience for employees and companies. The calculation of overtime does not become a problem, because the recording is done automatically so that it can minimize errors, both regarding the identity and position of the employee, the amount of overtime pay, and the duration of overtime performed.

These benefits and conveniences can be found in the employee application that combines every feature they have. Usually, this kind of application will be the target of the company to increase work effectiveness and save time in administrative processes which could potentially slow down the company's work rhythm.

Know the reasons for employees applying for Kasbon and how to reduce it

The company's obligation to the workforce is to provide wages or salaries, overtime pay, leave, and severance pay. Wages or salaries must be given as employee benefits. Meanwhile, severance pay must be paid when terminating employment or employee layoffs. Overtime pay must be calculated as compensation for additional working hours, while the entitlement to leave must be fulfilled to provide opportunities for holidays, including maternity leave for female employees. Apart from some of the things that have been mentioned, actually there are no other obligations that must be borne by the company. Providing loan facilities is not an obligation, but only a company policy to help its employees. There are no rules that are violated by the company if it does not provide loans for its employees. There are several reasons why employees apply for loans or kasbon. The company has the right to give the proposed kasbon, or refuse it.

Types of Employee Loans at the Company

In general, the types of employee loans are divided into two, namely employee cash bills and soft loans. Employee cash bonus is the most common type of loan in every company. When employees need money urgently, they usually apply for kasbon. Kasbon employees do not have standard rules about the amount, but usually Kasbon employees should not exceed one third of the monthly salaryreceived by the employee. Meanwhile, soft credit is a term loan with low or even zero percent interest. This credit is usually given to employees who have a certain period of service, with a monthly salary cut credit payment system. The purpose of providing loans to employees, among others, is to support the welfare of employees and their families, as well as to support employee activities related to their work.

Reasons for Employees to Apply for Kasbon

There are some companies that provide employee loan facilities to increase loyalty. Here are some reasons employees apply for kasbon:

1. For the cost of children's education . The cost of education for children is getting higher. Some employees may have estimated school funds for their children, but in fact there are many other urgent expenses. That is what causes some employees to apply for loans to the Company. 

2. For medical expenses or childbirth. The costs for treatment are often not prepared beforehand. Especially if an employee experiences a disaster or is seriously ill, the company cannot refuse to provide a loan. However, to overcome loans for this reason, companies can register their workers as members of BPJS Kesehatan or provide health facilities at the company. 

3. Wedding expenses. Sometimes there are some employees who cannot control expenses for their wedding preparations so they have to borrow from the office. 

4. Need additional funds for home renovation. Not all employees have a house in prime condition to deal with the uncertain weather when the rainy season comes. It could be that the monthly salary received by employees is not enough to renovate a house on a large scale. This employee cash fund is what is needed to improve the conditions of the house so that employee performance is not disturbed. 

5. To buy or replace a vehicle . With various considerations, some employees choose to apply for loans to the company to buy or replace vehicles that are no longer suitable for use. 

6. Requires funds for worship . Employees may apply for a loan to the office when they need a large enough bailout to fulfill their religious vocation, such as going on the pilgrimage or holding other religious ceremonies. 

7. Need funds urgently because the debit card was swallowed by the ATM machine, lost, or damaged.

How to Reduce the Number of Employee Kasbon Submissions

What if the company starts to object to the many requests for cash from employees? There are several ways that companies can do to reduce employee loans to companies:

1. Encourage employees to make improvements to their financial plans. 

For example, the company could bring in a financial planner for self-development or training sessions. Through this program, employees will be trained to make their financial goals, as well as what steps to achieve them. 

2. Establish or create an emergency fund together. 

A joint emergency fund comes from deducting a portion of the employee's salary every month. The amount of salary deductions to be included in the emergency fund can be estimated and mutually agreed. Lending SOPs can involve the approval of employees, so that HR functions as a facilitator and cashier only. As a form of concern, companies can also contribute to the emergency fund. Company contributions may be recorded as donational expenses. 

3. Make stricter rules related to loan applications or kasbon. 

When the loan fund budget has reached the maximum figure that the company can budget for, the repayment is not as smooth as expected. So companies need to review the rules for applying for employee loans. For example, by limiting the needs that can be given a loan, reducing the maximum loan amount, shortening the installment period, and so on.

Advantages of Using Payroll Software for Company Assets

Making policies in the human resources sector and implementing them to employees is the most crucial thing that an HR manager must do. The formulation and formulation of policies must be very careful and thorough. Strong data is needed as the basis for this policy formulation. To help with the process, it is highly recommended to use payroll software .

The use of payroll software is very effective for executing policies created, as well as managing employee data related to leave , wages, special incentives and certain gifts or sanctions. There are many benefits that can be taken from the employee's side by using payroll software that is integrated with other data. Below are some of the benefits that companies can get by using payroll software .

Filing Employee Payroll Data

Employee data storage on payroll software is done safely and based on cloud storage . This will reduce the intensity of employees carrying physical documents (such as birth certificates, family cards, and other important files). Besides being stored, this data can also be accessed by employees at any time with an internet connection only.

Employee payroll submission data no longer needs to take up a lot of space and media because any recorded or archive data can be stored online . Of course, digital storage also allows faster data retrieval when it is necessary to access employee payroll data for certain purposes.

Viewing Salary Slip Online

The use of payroll software allows each employee to access detailed information regarding the paycheck which is their right. This access can be done directly, anytime and anywhere so that it will make it easier for employees to get their rights.

The available salary slips are also a digital form of the actual pay slips, so that every detail and calculation that will be in the salary slip archive is a true and real calculation. Employees can also make corrections if there are some things that don't match the details of the existing pay slips. Simply make the download, then confirmed directly in the relevant section.

Get Salary Slip without the need to go to HRD

The salary slip itself has many functions that employees can use, one of which is to apply for credit or loans to the bank. Usually, there are employees who will feel embarrassed when asking for salary slips from the HRD for these kinds of purposes.

However, by using payroll software , employees no longer need to go to the HRD department directly to ask for the physical files of the salary slips they need. Employees can download a neatly archived digital file , then this download will only be known by the relevant supervisor. Employee privacy will be maintained and there is no need to feel embarrassed if you want to ask for pay slips for the two purposes mentioned above.

Calculation of Overtime, Attendance, and Wage Payment Details

Work shift arrangements made by the company can be immediately identified by employees through an integrated smartphone application . This minimizes ignorance of work schedules thereby reducing the number of miscalculations. Payroll software also allows it to be directly integrated with attendance software , so that it will easily calculate the amount of overtime done by employees, and enter into the calculation of salary payments.

In addition to calculating the amount of overtime, for example employees receive food incentives or food allowances that are calculated daily, employees can also double-check the details recorded on the salary slip. Have meals, overtime pay, and various other calculations been calculated and conveyed correctly? In this way employees can take control of the health of the company's financial system.

Employee Financial Information Update

Each employee has the right to a certain amount of salary and any incentives from the company, according to the portion and what the employee has done. On the other hand, employees are required to provide accurate data related to the Taxpayer Identification Number or bank account to which wages are transferred each month.

The use of payroll software allows employees to update these two crucial things. Employees can easily update their NPWP according to the prevailing system, then the supervisor will know it directly. Of course, the NPWP functions as a complement in fulfilling the tax obligations of each employee.

Regarding bank accounts, employees can also update at any time if the employee wants to change the destination account for wages transfer every month. The process is easy, through the features and options in the payroll software used, so it will save time and effort to update these two information.

Valid Data and Employee Trust

With easy access to data related to employee payrolls at the company, of course employees will have great confidence in the company. Information openness and easy access can increase trust in the company, and will have an impact on improving the performance of employees.

For companies themselves, payroll software can be a good control over the financial system as well as a valid data delivery medium related to payments and payroll calculations for each employee.

The use of payroll software itself will directly ease the work of the HR division in the running of the company. In the long term, the company will also benefit greatly from the various features available, thereby increasing the company's productivity. This is important, for the future development of the company and to maintain the company's relationship with its assets, namely its employees.

Salary Slip, About Company Obligations and Employee Rights

Before the enactment of Government Regulation Number 78 of 2015 concerning Wages, giving salary slips to employees was not yet a mandatory matter which was regulated by default. This is the reason some companies do not provide slips to their employees. However, since 2015, the enactment of this regulation has made employers have the obligation to provide salary slips to their employees as proof of salary payment which is the right of their employees.

Salary slips , when viewed from the format, are details regarding income and deductions in employee salaries or wages, so that employees know exactly how much wages should be received, how many deductions or additions are made, what are the subtraction and addition variables, and some other details. Apart from being obliged to be given as stipulated in the PP, slips are also a form of company transparency to its employees.

Examples of subtraction and addition variables from one's own wages include sales commissions, reimbursement costs , incentives related to certain activities, employee absences related to absences, penalties or fines due to certain problems, allowances, income taxes, insurance contributions, and so on. Each of these details is listed systematically and coherently on the pay slips given to employees each month, along with the final amount received by the employee. There are at least three benefits of paying your employees a pay slip.

As Evidence of a Legal Work Relationship

If you have a company that employs a number of employees, you can make this document a form of a legal cooperative relationship. With routine pay slips on behalf of every employee you employ, the company officially and legally has employees.

Salary slips can also be a clear basis for cooperation that occurs when unwanted problems occur in the future. When there may be individuals who claim their rights as employees, you can ask for the relevant files that have been provided regularly for basic evidence that the person is your employee. If he does not have the slip, then the status of the cooperation can be doubted.

Of course this applies if you as an entrepreneur also carry out the obligation to provide paychecks correctly and on time. For both permanent and non-permanent employees, it is your obligation to provide a salary slip. Isn't a healthy company a company that is transparent and respects its employees?

Estimated Employee Financial Capability Related to Loans or Loans

Apart from being proof of cooperation, giving slips also allows your employees to make loans or credit to related institutions. Applications for credit and loans usually require a paycheck, as a measure of the financial capacity of your employees. Of course, by providing carefully recorded slip details, you can help employees get credit according to their abilities.

Relevant institutions that will provide credit or loans will usually ask for copies of the salary slips of the last few months to assess the financial capacity of your employees. This is important, so that the credit or loan provided does not exceed the capacity of the employee so that it does not become a burden in the future.

As a basis for correction & monitoring of the salary given

In addition to the two benefits above, the salary slips given to employees also have other benefits, namely as a basis for correction and supervision of the delivery of wages by the company. Ideally, the recorded details are the real income and deductions that occur in relation to employee wages provided by the company.

If at any time there is a discrepancy between the details and the reality, the employee can file a complaint with the company regarding the discrepancy. This is at the same time supervising the order and regularity of salary payments. Good relations between employees and the company can be established so that everything can be done in a professional and open manner.

Seeing these three benefits, of course the obligation to provide slips is actually not only beneficial for clarity of employee wages but also other benefits for the company.

3 Main Differences between Salary Slips for Permanent and Non-Permanent Employees

As a profit-oriented company, of course, it has a number of employees who run their respective fields. Every employee who works is expected to make a certain contribution so that the company can continue to run and generate certain benefits. As an appreciation, the company provides a wage or salary in accordance with the contribution of each employee. The salary can be in the form of money or goods with a certain value, and details of the components of the salary received are also provided in the form of a salary slip .

Salary slip is a document, both physical and digital file , which contains details of what the employees are entitled to in salary. The salary slip itself usually contains the amount of salary, additions and deductions, as well as company information and the date the salary slip is made. This is important to convey because employees have the right to know the details of the salary they receive, along with the additions and deductions in each salary given by the company.

In practice, companies also have two types of employees, namely permanent and non-permanent employees. It turns out that the pay slips of these two types of employees have a slight difference when examined. The difference is in the deduction and addition to the salary received.

Retirement Discounts

This deduction is only on the payroll of permanent employees. Why is that? Simply put, employees remain at the company for a relatively long time and at the end of their working period they will receive a pension amount . This money, whether it is received periodically or once, is the right of permanent employees as their appreciation for contributing to the company.

On non-permanent employee salary slips , deductions related to pension funds usually do not exist because non-permanent employees only work based on the contract made. Temporary employees have short tenure and are usually not official members of the company. This causes temporary employees not to have a pension deduction because they do not work until their productive age is over at a certain company.

Positional allowance

Temporary workers usually do not have managerial or decision-making positions. This is because these strategic positions must be held by permanent employees who have in-depth understanding and knowledge of the company. In addition, managerial and decision-making positions usually deal with sensitive data that are company secrets.

Job allowances are more often found on salary slips for permanent employees who have certain positions in the company. Because non-permanent employees do not occupy such strategic positions, their salary slips do not contain additional job allowances.

Income Tax Deductions

Tax deductions are an important variable that must be included in the payroll of permanent employees. This income tax deduction is usually taken directly from the employee's salary and deposited collectively by the company. The permanent employee then receives the details of the income tax deduction on his salary slip and is then obliged to report the withholding income as confirmation to the Director General of Taxes.

For temporary employees, this income tax deduction is usually non-existent. Temporary employees must take care of their own income tax payments, which are their responsibility either online or manually to the Director General of Taxes.

If we look closely, the salary slips for permanent employees and non-permanent employees are different. Permanent employees usually have more detail because there are quite a lot of cut-off and payoff variables. For temporary employees, pay slips are simpler, usually only containing basic salary, overtime pay, and deductions from late fees or the like.

Of course submitting a salary slip is the obligation of your company. Use payroll software to make it easier to manage this paycheck.

Effect of Attendance Application Use for Company Development

Entering the business world which is increasingly dynamic every day, the perpetrators are always required to keep abreast of the times. These developments certainly have an impact on every aspect of the business, which must then be addressed wisely so that the business can continue to show progress. Forms of change include the applicable regulations, attendance application systems and cloud -based HR management , to information and resource management. Of the many that are constantly changing in the business world, there is one thing that does not change in number, namely time.

Time management is a big factor in determining business development. Every person and business actor has the same time in one day, but of course what will show more rapid development is the one who uses the time optimally. This time utilization is then influenced by the transition of various systems to digital forms which all run in real time and are very fast.

In practice, a simple change that can be made to increase the effectiveness of using time is the application of cloud -based attendance applications . This application can greatly save time used by employees to do attendance, if it was done with a fingerprint machine or even manual attendance, so that the work time becomes more. Logically, the more time that can be used, the workload that is owned will also increase.

In terms of human resource management or HR, you will also feel the difference by implementing this attendance system. Some of the basic differences include:

Much Shorter Time Attendance

The use of attendance applications in companies is proven to fundamentally reduce the time used for attendance. The application of this system allows employees to do attendance from their respective smartphones so that it can be done exactly on a specified schedule without having to queue at one particular machine. The use of applications also allows high employee mobility without requiring them to come to the office first just to do absent work.

Attendance List Management Effectiveness

The use of attendance applications is usually accompanied by a more neat and organized archival storage of recorded data. Of course, with a neat file, strategic decision making related to employee attendance can be done more quickly. Imagine if in the present you are forced to deal with a pile of documents that only contain employee attendance lists, how much time you waste just reading and looking for the data you need. With the attendance application, finding the required data is as easy as typing in the name of the document or data required, and you will have the data you need. The effectiveness of using time becomes high and time can be allocated to other work channels.

Optimization of HR Staff

Overall, the use of attendance applications can improve staff optimization in the HR field. By using the application, a lot of work can be done faster because everyone has a system set up. You don't need to waste staff in the HR department so that resources that were used up in the HR field can be optimized in other fields. The easy to use application allows you to assign this to employees without requiring too many HR experts.

Connect with Management of Other Fields

Attendance applications do not usually stand alone but are included in the complete HR system. This application comes along with features of tax management , work shift management, leave management, to payroll payments , and BPJS. Of course, with the many features that come with it, you can maximize the use of this system to increase company productivity.

From some of the things above, you can see how shifting the use of the timesheet system can have such a big impact on the company's development.

Positive Impact of Using Attendance Applications to Optimize Employee Performance

The problem of employee attendance sometimes requires special attention. How come? Rogue employees who often don't come to work but can do absences are still often found. This individual employee is usually a disease that can be a big loss for the company. The attendance system becomes important when something like this happens. That is why the attendance application usage system began to be widely used in various companies.

The absence of employees has a significant effect on the performance that employees provide for the company. If indeed then a job can be done remotely or without being present at the company, it is not a problem. However, for jobs that generally require employee attendance at the company, this absence will be a problem and lead to a decline in the employee's performance. The use of attendance applications basically aims to exercise better control, on the attendance of employees who have to come to the office and employees who do work with remote systems . The use of attendance applications has a certain impact on employee performance. The following explanations will provide an overview of the impacts.

Control Daily Attendance & Work of Employees

First, be clear about attendance control, you as HR or the company can clearly know when the employee is present and when the employee returns. In some companies, it is mandatory for employees to also report what they have done on that one working day. Of course this daily report will facilitate job evaluation which is usually carried out periodically at a later date. Employees who attend and leave on time are assumed to have done the work targets that have been set, so that company productivity will not be disturbed and can run effectively.

Minimizing Errors in Calculating Working Hours and Overtime

By using the attendance application, the company will know the working hours of employees who enter on that day. Thus, if there are employees who do overtime it will also be found easily. From the side of the company itself, clarity of working hours will increase the effectiveness of paying salaries and calculating overtime so as to ensure that each employee's rights are given according to what was done. The problem of overtime counter errors can be easily resolved, departing from the data archives that are clearly recorded in the existing attendance application.

Increase Employee Work Enthusiasm by Calculating Salaries

If the payment of salaries and overtime is done transparently and uses a clear calculation basis, then no employee will feel that they are not getting their rights. Just imagine, if the overtime calculation error occurs repeatedly and causes employees not to get their rights, the employee's enthusiasm for work will decrease because they feel that the overtime they are doing is not being rewarded properly. With the use of the attendance application, once again, employee data and working hours can be recorded clearly and neatly filed so that the company has a clear basis for calculating the salaries and overtime performed.

Taking holiday rations is more organized, maintaining a good atmosphere in the world of work

Many attendance applications that are used also provide features for applying for holidays or leave that are the rights of employees. You can easily organize this because everything is clearly recorded in the archive. Looking at the existing archives, you can cross-check employees who have worked overtime for several days and deserve leave. This needs to be done so that the overtime spirit of these employees is maintained and is still able to give their best performance. Of course, it is common knowledge for the HR department that employees with a good mood will perform well.

Some of the things above are clear impacts that can arise with clear attendance organization using attendance applications. Although it sounds trivial, data on employee absenteeism has many benefits and can also be used to improve employee performance in the company.

4 Reasons Why You Should Switch to a Cloud Storage Based Time Attendance Application

The presence of employees and office staff on time will be a good thing to accelerate the development of the company. Indeed, in practice, there are also many offices or companies that have very flexible working hours so that employees no longer need to be present at nine o'clock, but as long as one working day can meet the agreed work time quota. The definition of on time is no longer just coming right at nine in the morning, but in accordance with the work agreement. To support this timeliness, you will be greatly helped by using an attendance application.

Several things you need to know why the use of attendance applications is important. Apart from the matter of punctuality and flexibility of working hours as mentioned above, attendance applications also usually have a clear and neat filing system. Further on the reasons for using the attendance application, you can listen to the explanation below.

Less Expenditures for Fingerprint Time Machine

The use of fingerprint as an attendance system is widely used in various companies. This system is used because it can record directly according to the time the employee puts his finger on the machine. Indeed, in terms of data validity this is a plus. However, if you look at practicality, using the fingerprint system requires a special machine so of course it needs a separate fund allocation.

With the use of an attendance application, you no longer need to think about a fingerprint machine , because absences can be done using a smartphone owned by each employee. Every smartphone from employees and office staff will be connected to one large system that allows employees to be present from anywhere.

Minimizing the Potential for Cheating from Unscrupulous Employees

In this case, the attendance application can greatly reduce the level of fraud because the identity of each employee will have clear and very personal data so that it is almost impossible to cheat the existing system. Although the fingerprint system also has these advantages, basically the attendance application system is the next stage of the fingerprint system . The difference is that if fingerprint uses fingerprints, the attendance application will use the employee's smartphone as the main device for attendance.

The assumption is, of course, that every employee has a smartphone , both personal and from the office, which has a unique and different identity for each employee. In addition, the identity and attendance system can only be done by entering a certain password so that the security and data entered is more valid.

Increasing the Work Effectiveness of Employees Working in the Field

Imagine when you implement a fingerprint system that requires each employee to come to the machine and stick his finger on the existing sensor. It will be effective if the employee works in an office, but for employees who work in the field this will be a waste of time. The time it takes to come to the office and be absent and return to the field again tends to decrease its work effectiveness . By using the attendance application, employees who work in the field can easily do attendance via smartphonesthey have and can go straight to their place of work. Time previously spent on the road can now be used to work in the field so that projects or jobs will be completed more quickly.

Employee Work Analysis Without the Need to Do Absent Recapitulation

Employee attendance records are stored in the cloudstore which can be accessed by all those who have authority. When you need to make strategic decisions related to employees, you can easily access this data and don't have to come far to the office. In addition, you can use any recorded data to review employee performance and employee attendance because recorded data can be recorded in detail.

Some of these reasons are strong reasons why you should consider using an attendance application to replace the previous system. By understanding these reasons, of course you can plan the next steps related to employee attendance.

4 Benefits You Get by Managing Your Pay Slip Digital

Running a company cannot be separated from the human factor and all its dynamics. Various problems that can occur are certainly one of the arts in managing human resources who become employees, so that they can seek maximum optimization. Of course, talking about employees cannot be separated from the discussion about salaries or pay slips that are their right. From the company side, the employee's salary itself is an obligation that must be fulfilled as a form of gratitude for employee performance.

In the company, with regard to employee salaries, there is a known term paycheck . The salary slip itself is a document proof of payment from the company for fulfilling its obligations. In the past, payslips were done manually and took a lot of time, even with all the potential for writing errors. Along with the development of the times, now a variety of HR services are widely available and can be used for managing paychecks. This service does not come with empty promises, but you can get some of these advantages.

Digitization that Eases & Speeds Up the Process

The process of managing payslips with HR services will increase the effectiveness of using the time spent on managing payslips. How not, pay slips of hundreds or maybe even thousands of employees can be worked out in a shorter time and can be distributed with just one click. The process, which previously took so much time and effort, can be compressed into an automatic process that is carried out using a digital system and is much more practical.

More Neat & Practical Archive Storage

Salary slips, in the payment system in the company, serve as evidence that the company has paid a nominal amount of money to its employees or employees. This evidence needs to be published because every expense from the company must be entered into the 'bookkeeping' system so that there are no unrecorded flows of funds. By using HR services to help manage paychecks, you will have a complete archive of each pay slip issued, the time of issue, and the nominal amount of each pay slip. Of course, this access will only be obtained by some people, considering that this archive is an important company document. When later you want to find a specific pay slip, you can simply type it and the slip in question will appear.

Salary Slip Management Cost Savings

When managing paychecks manually, you have to at least hire a few people, this also has to be done in a long time. Salary slips are a breakdown of the income that is the right of the employee so that the contents in it are in the form of income points and deductions which, if you look back, are not small. The costs incurred to pay for the services of each person working on this paycheck are also very far, than if you used HR services. By reducing expenses from the company, you can increase the effectiveness of managing existing funds so that the company can operate more optimally.

Integrated with Tax & Insurance System

The use of HR services as a salary slip management tool will also be integrated with the applicable tax and insurance payment systems . Salary payments listed on the slip can be directly deducted from each employee's tax obligations and insurance contribution obligations, in this case BPJS Ketenagakerjaan, so you can do several jobs at once. There have also been many HR services verified by the Director General of Taxes so you don't need to worry about validating the tax and fee payment processes listed on the HR service. Deductions from taxes and fees will also be conveyed in detail on the salary slip issued later, so that employees can also see a breakdown of all income and deductions imposed on the salary they receive.

Of course, if you look at the many benefits that can be obtained by using this digital HR service.

Take advantage of the Momentum of Business Development by Using Payroll Software

Having a developing small to medium scale business is certainly a hope and a challenge for all entrepreneurs. The development of this business must also be accompanied by progress in resource management, both human resources or other resources such as time and so on. One of the steps that is highly recommended in responding to business development is the use of payroll software .

Before deciding to use payroll software , of course there are several conditions or criteria that should be considered. Some of these criteria need to be considered so that the use of payroll software can be truly optimal and not even become a blunder for your own business. Some of the basic criteria are as follows.

Increasing Number of Employees

Of course, business development is also accompanied by an increase in the number of employees because the assumption is that more workload is carried out. If indeed the employees you have are still relatively few, say 10 people, then the use of payroll software is not really that significant. The use of payroll software will certainly help, but it will be very useful when there are enough of your employees because then you will be able to manage the payroll of each employee in less time.

Time efficiency

Increasing the number of employees and staff you have, of course, means an increase in the time it takes to manage the payroll of each employee. If time has become an increasingly important factor, then use payroll software so that employee payroll management can be done more quickly. This means more time to do various other jobs that also have high significance for the development of your business.

Complexity of HR Management

The more employees you have, of course the more dynamics you have to deal with such as attendance records, payment of employee salaries, distribution of work shifts to matters related to tax administration and insurance payments or BPJS. When this happens, it's time to start using payroll software . Some payroll software also offers these features, division of work shifts, attendance, submission of leave and reimbursement , to payment of income tax and BPJS contributions.

All these matters can be easily resolved by an integrated HR management system that integrates the employee database with all of these matters. Of course, the advantage is clear, the sooner it is resolved, the faster it will be to complete routine monthly and other periodicals without having to wait for manual processes.

Increased Mobility

Your presence in the office or company is necessary. However, if the demand for mobility increases, this is also an indication that you should implement the use of payroll software . The reason is clear, the approval and execution of payroll payments can be easily done anywhere, as long as you have an internet connection. This allows you to keep moving on to take care of other things without the hassle of having to be present at the office and doing any kind of payroll signing .

Increasing the Effectiveness of Company Capital & Funds

Doing good HR management certainly needs to have qualified HR staff as well. The use of payroll software does not mean eliminating every HR function and replacing it with cloud applications or services . You can downsize the accountants and staff who handle salary and tax payments . By allocating the capital that previously entered the tunnel, you can have additional capital and increase the circulation of funds in the company. Of course this needs to be done with careful consideration and careful calculation.

The development of the company will certainly be good news and needs to be addressed by taking the right steps. For this reason, you need to have a team with good capacity so that every decision can be discussed in advance. Some of the criteria above can be used as a reference for considering the use of payroll software .

Using Payroll Software for Operations in the Office?

Starting a business with a small to medium scale has many challenges. One of the most common challenges is about finance. Small to medium-sized businesses usually have capital that is not too spare, so they demand very neat financial management. This management can be done in the expenditure of physical goods, recruitment of prospective workers according to standards, to expenses on the administration. To make it easier for your business to grow, one simple solution is to use payroll software .

Maybe there are still many who wonder why using payroll software can help the development of small to medium-sized businesses. In simple terms, the use of payroll software as operational support is considered very profitable in terms of expenditure and financing. Just imagine, you no longer need to hire and pay accountants or employees who have high salary standards to take care of the payroll department , just trust in a trusted service that can always be relied on. Apart from the above, there are several other reasons that you must read in order to better understand why choosing payroll software as business support is the right thing. Check out the details below.

Using Payroll Software for Operations in the Office? Know the Benefits You Can Get !!!

Payroll Calculation with Minimal Error Rate

Errors in calculating payroll can be a nightmare for small to medium sized businesses. One of the reasons why you should use payroll software is because by using this service, the calculation will be carried out with a system that has been programmed in such a way that no payroll calculation variable will be missed.

Basically, the use of this kind of program minimizes the occurrence of errors from the human factor. Payroll programs that are currently in circulation have provided convenience and practicality so that you only need to make adjustments and adjustments with minimal intensity, of course if the calculation variables are stable.

Payroll Calculation Time Efficiency

Manage payrolls with traditional software like spreadsheets ? Or even with a mountain of files? Say goodbye to this routine because the payroll software that is now available is very easy to use. Uncomplicated operations and assistance from service providers will greatly save your time in managing employee payroll every month. In short, the calculation process and payment processing will be able to increase the time resources that can be used for other things that lead to the development of the company.

Guaranteed Office Employee Data Security

When you entrust payroll calculations to an employee, of course there will be a risk of data leakage whether intentional or not. This risk can have a very big impact on a growing company because it is related to the personal data of your employees. The use of payroll services can further improve data security because everything will be accessible only to those within the company who are designated and have the authority. Even so, certain payroll services even require confirmation of security every time they access important employee data so that it will be more secure.

Does Not Require Employees With Certain Skills

Easy use of payroll software , allows you to entrust the processing to almost everyone in your company or office. Of course this is a profitable thing because you will save expenses to pay for people who are experts in the field of payroll . Although there is nothing wrong with recruiting employees who do have expertise, for the period of development it would be better if company spending was carried out effectively right?

Support Services from Payroll Software Service Providers

This is an important advantage of using payroll software . When in the future you have difficulty in operating or updating your payroll system , you can easily contact the service provider and get help quickly. Usually this service is a standard service that is owned by the payroll service provider commitment to you as a customer.

Using payroll software for operations at offices or small to medium-sized companies is highly recommended for several reasons above. Of course, before choosing the service you use, make sure you know the various features offered.

4 Keys to Success in Managing a Franchise Business

If you have a plan to open a business branch or franchise , then you need to know how to manage it appropriately. Managing a franchise business appropriately can help you avoid adverse business risks. Given the capital that you have to spend to start a business branch is not small, of course you must be able to manage it perfectly. Curious how? Check out the four keys to successfully managing the following business branches!

Quality service

The key to successfully managing a franchise business is the first to provide quality service. Service is one aspect of business that sometimes may be considered less important, even though it is very crucial. By providing quality service, you are giving satisfaction to customers and opening the door to coming back wide open.

No matter how delicious the food you offer in a food franchise , if the service you provide is poor, your business is unlikely to succeed. Conversely, good service will encourage customers to promote your business or at least become loyal customers.

Some forms of quality service are providing service to customers with a friendly attitude, keeping the place clean, product prices in accordance with quality, so that they are not reluctant to provide complete information for every customer who needs them. With this quality service, your franchise business is very likely to succeed.

Availability and quality of raw materials

Raw material supplies are very important for you to pay attention to when running a franchise business , especially a food franchise . You not only need to pay attention to the availability of raw materials , but also their quality. Do not let customers feel disappointed with the quality of your raw materials so that they switch to a better business.

Quality raw materials must always be a priority if you want the image of your business branch to be positive in the eyes of customers. This is very important especially for those of you who are in a culinary business. The availability and quality of raw materials will determine the success of your franchise business.

Try not to run a franchise business that you can't actually manage. For example, this inability to manage, for example, you are unable to prepare sufficient human resources to help you or cannot provide the raw materials needed. Make sure you are personally and financially able to be successful in running a franchise business .

Idea of ​​ideas and controlled promotion execution

Promotion is of course a must if you want to develop a business, including a franchise business . However, what you need to pay attention to is not to let the promotion go out of control. Make sure you arrange promotional ideas well and are controlled so that they have a good impact on the development of your business branch.

You can do promotions with ideas that are simple but still interesting , for example by distributing brochures to offers that are tempting but still profitable for you. This series of controlled promotions can certainly expand your customer coverage so that it makes your franchise business even bigger.

A system that is not only good, it has to match

You can only achieve the target for the success of the franchise business by implementing a good and effective system. First, identify what functions your franchise business requires . Describe the role of each function so that it is clear. So, from this description it will be seen which functions are close together and can be combined. In a business operational system, there are at least five functions that must exist, namely:

-) HR management - aims to improve employee welfare so that they are motivated to work better and increase efficiency, one way is to use special software such as HR which facilitates administrative management such as leave, payroll, absences, and others.

-) Production and distribution systems - so that quality and service remain consistent and uniform across all franchise business branches so that customers always get the best quality.

-) Promotion and marketing - increase brand awareness and attract more customers to try to buy your products, you can take advantage of social media, provide discounts, to hold interesting events . -) Financial system - controlling business finances by always recording cash flows regularly and neatly so that it makes decisions easier, by utilizing  Accounting software that can automate accounting calculations.

-) Customer management - always give the best to customers, both in the form of products and services so that their loyalty increases and they don't hesitate to promote your business.

Apply the four keys to success in managing the business branch above if you want your franchise business to be successful and produce the results you want. With confidence and hard work, it is very possible that the franchise business will be a huge success.

4 Online Business Risks and How to Manage Them

Business online a choice of many people to build their own business in the digital era as it is now. If you break it down again, this type of online business takes many forms. Starting from opening an online shop via Instagram, setting up an e-commerce website, to placing advertisements on blogs. Although it sounds practical because everything is done online, actually online business also has risks — just like any business in general.

The good news is, you can anticipate these risks early so that you know what steps or risk management to take. That way, online business can run smoothly and you can get maximum benefits.

1.) The occurrence of a hit and run

Because business happens online, you can't meet your customers in person. In fact, trust between buyers and sellers can be more easily created face to face. Lack of trust is what can potentially lead to fraud.

One of the most common cases in online business is hit and run. In this case, a customer usually seems eager to ask you a certain product via chat. It even asks you to add up your total purchases and asks to send an account number for transfers. However, after you do all these requests, the customer will suddenly disappear or just run away and don't answer your message.

You do not experience material losses, but your time can be wasted. What's more, what if you keep a product because customer A promises to pay for it, but when customer B orders the product, you can't sell it? However, because customer A disappears, you lose your opportunity to generate sales through customer B.

To avoid hits and runs, you can make clear, firm rules, and make sure they don't mean double. Frequently post on how to order, payment systems, delivery, up to the consequences of doing hit and run. If a customer does, you have the right to blacklist. Then, when you do a giveaway, they won't make it a winner.

2.) Very intense competition

As time goes by, the number of online businesses is increasing. Quoted from Liputan6.com, data from BPS shows that as of 2016, the number of e-Commerce in Indonesia has reached 26.2 million. This means that you have many rivals in running an online business . On the one hand, of course this is a serious business risk. However, on the other hand, fierce competition can encourage you to continue to provide different products and services and remain relevant to customers. If not, your online business will not be able to stand out.

Now, because of the tough competition, another online business risk that you might face is the difficulty of finding the right niche . Especially if there are big names that dominate your business industry.

As an online business risk management , you can overcome this by targeting a more specific audience. Do detailed consumer research to find out pain points and target customer needs, then design the right solution. Of course this requires a long process. But if you also balance it with an attractive marketing strategy , over time your online business will definitely be increasingly recognized so that it can survive the competition.

3.) Changing market demand

The high market demand is actually a good thing. However, if it is not managed properly, it can become an online business risk . Especially if market demand tends to fluctuate while the goods you are selling are not always ready. Usually, this kind of risk occurs in certain online business industries such as fashion.

The case that happens quite often is that when a new trend emerges, customers will most likely choose to buy products from online businesses that already have stock. As a result, you can lose potential customers. Imagine if this happened repeatedly every time a new trend emerged, it would be a shame, right?

Well, the key to this one business risk management is to provide the right amount of stock . The goal is to continue to meet market demand. However, for those of you who are beginners or who have just entered the online business , you should choose products that are trending for a long time or products that customers are always looking for so that you are not overwhelmed in meeting market demand. Some examples are laptop cases , books, or mattress sheets.

4.) Unrealistic expectations

Business online can provide a benefit that is promising. Of course there are many factors that influence this and it takes a process that is not instantaneous to achieve it. Unfortunately, many still think the opposite. As a result, online business people tend to have unrealistic expectations. Usually, things like this often happen at startup. They want to be able to get to the market as quickly as possible, prove themselves, and make a profit.

As a result, they don't allocate their time properly and don't really know what they want to make and sell. For this kind of online business risk , there is no other way than to evaluate the business targets that have been made. Readjust to your resources and abilities, then set a realistic target time. Do not let you push yourself too much so that your business is not well managed.

Apart from the various points above, another online business risk that is often experienced is financial management . There are still many online business people who tend to manage as is, so they end up feeling overwhelmed.

7 Ways to Build a Side Business with Small Capital

Basically, there are many business opportunities around you, both online and offline . Unfortunately, the main problem that makes business ideas stop just wishful thinking is the problem of capital. Have you experienced the same thing? Maybe it happened because you didn't understand how to do business with small capital.

Keep in mind that a profitable business doesn't always start with a lot of capital . You can realize this business idea with a small business first. Still confused about how? Check out the easy guide to building a side business with a small capital below.

Build a business from things you are familiar with

In fact, if you pay close attention to business ideas that come to mind, it is certainly not far from the things you are familiar with. For example, if you have a hobby of photography and have a desire to open an online business in the form of renting cameras and photo equipment, or you who like to cook have a business idea to open a small side business in the form of a cake shop on the terrace of your house.

How to do business by starting from what you know is easier to run, because by creating a business that is built on your expertise and knowledge, you don't need consultant assistance or assistance from other people. Of course, doing business will be more fun if you master the job.

The problem is, not everyone can be lucky enough to know exactly what they are interested in. Well, if you have this, you should really take the time to try various things that you enjoy, maybe for example cooking, writing, designing websites, and so on. Also try to pay attention to the problems that are currently faced by most people, then create a solution if it suits your skills and abilities.

Start with market research

After determining the type of side business, you need to start market research . This needs to be done to take into account the chances of success for the small business that you build with this small capital. Make sure you observe how many people have run the side business. You have to start looking for information about the quality and characteristics of competitors' products. Don't hesitate to find out from the service to the price offered.

This market research can also make it easier for you to find out what consumer behavior your business is targeting. It is best if your business idea has a sufficient number of enthusiasts so that the possibility of getting out of business early can be minimized.

Take advantage of affordable resources

Some online business people will find it easier to get great opportunities with multiple profits. These lucrative projects generally also require a lot of manpower. Unfortunately, limited resources prevented them from taking this rare opportunity. So, to solve this problem you can take advantage of freelancers or freelancers , from students to housewives.

In addition, to save operational costs , you can also take advantage of the resources in your family to manage this small business. There is no need to rush to recruit many employees if the financial condition in the business is not stable enough. You can also manage finances well independently.

Avoid unnecessary expenses

A profitable business can be started even with very minimal capital, provided that you don't spend too much money on things that are not really needed. For example, you want to have cake packaging with premium wooden box packaging to make it look more exclusive. In fact, this packaging certainly costs more than a cake box in general.

Therefore, instead of spending a lot on packaging, wouldn't it be better if funds were maximized to increase the quality and quantity of the cake product itself? Make sure that limited capital is only allocated for expenses that are really necessary. The better financial management in your business, the faster the business will grow rapidly. We recommend that from the start, create an expense budget that can be a basis or guide for you so you don't spend more than that budget.

Take advantage of the ' word of mouth' marketing strategy

Tell your family, friends, business contacts or old colleagues about your new business. Call, email , or create a social media account to share the news. This type of word of mouth marketing will help you introduce a new side business to a wider audience and certainly doesn't require extra funding. There have been many online businesses that have proven their success by doing business on this one. You can see for yourself!

Don't fall for debt

Applying for a loan is indeed a natural thing in building a business . However, that doesn't mean you have to do it. A new computer, office furniture, install a telephone, and supplies will probably cost a lot of money. Instead of buying everything at once and piling it into debt, use company profits to fund your needs. Eliminating stress and the burden of debt will increase the success of your business.

If you are forced to go into debt, really consider your ability to pay off debt later. Remember, debt payments are usually accompanied by interest, so you should pay attention to that too. Do not let you actually dig a hole to cover the hole, which is owed to certain parties to pay debts to other parties.

Make the best use of technology

In this sophisticated era, you can easily realize all kinds of business ideas thanks to the help of existing technology. The emergence of a variety of increasingly sophisticated social media and internet platforms can help you reach a broad-scale market even though small businesses are just starting out with a small capital.

For better business management, you can also take advantage of online accounting software from Sleekr Accounting which will make all your business activities easier . From dashboards and financial reports to inventory and warehouse management, everything can be done quickly and precisely.