Financial lease dan operational lease adalah dua jenis perjanjian sewa yang berbeda dalam konteks pembiayaan aset. Berikut adalah perbedaan utama antara keduanya: Tujuan Financial Lease: Tujuan utama dari financial lease adalah pembiayaan. Dalam financial lease, penyewa (lessee) biasanya mengambil aset tersebut untuk jangka waktu yang lebih lama dan pada akhir periode lease memiliki opsi untuk membeli aset dengan harga yang sudah ditentukan. Operational Lease: Tujuan utama operational lease adalah menyewa aset untuk penggunaan sementara. Penyewa hanya menggunakan aset tersebut untuk jangka waktu tertentu dan tidak memiliki opsi pembelian pada akhir periode lease. Pengakuan Aset Financial Lease: Dalam financial lease, aset biasanya diakui sebagai aset penyewa di neraca karena penyewa memiliki hak atas aset tersebut selama periode lease. Ini juga berarti penyewa harus mengakui kewajiban hutang untuk pembayaran sewa. Operational Lease: Dalam operational lease, aset biasanya tidak diakui sebagai aset penyewa di neraca. Penyewa hanya mencatat biaya sewa pada periode yang relevan. Pemeliharaan dan Tanggung Jawab Financial Lease: Dalam financial lease, penyewa biasanya bertanggung jawab atas pemeliharaan dan perbaikan aset karena aset tersebut dianggap sebagai milik penyewa. Operational Lease: Dalam operational lease, pemeliharaan dan perbaikan aset biasanya menjadi tanggung jawab pemilik aset (lessor). Opsi Pembelian - *Financial Lease*: Pada akhir periode financial lease, penyewa biasanya memiliki opsi untuk membeli aset dengan harga yang sudah ditentukan atau nominal. - *Operational Lease*: Pada akhir periode operational lease, penyewa biasanya tidak memiliki opsi pembelian. Aset dapat dikembalikan kepada lessor atau perjanjian lease dapat diperpanjang. Durasi Financial Lease: Financial lease cenderung memiliki jangka waktu yang lebih lama, mirip dengan kepemilikan aset. Operational Lease: Operational lease memiliki jangka waktu yang lebih pendek dan biasanya berkaitan dengan penggunaan aset dalam proyek atau kegiatan tertentu. Kedua jenis leasing memiliki keuntungan dan pertimbangan yang berbeda, tergantung pada kebutuhan dan tujuan bisnis. Financial lease lebih cocok untuk pembiayaan jangka panjang sementara operational lease cocok untuk penggunaan sementara atau jika Anda ingin menghindari kepemilikan aset. Pilihan antara keduanya akan bergantung pada strategi keuangan dan operasional perusahaan Anda.

First, what is a bookkeeping? Bookkeeping is the process of recording all financial transactions made by a business. The output will be produce financial statements every month and usually fall into three simple categories: ● Balance sheets; ● Income statement; and ● Statement of cash flow At the end of every year, these statements are reviewed, and income tax is filled in based on data provided in these books. Please consider the following information to think if you want to start your bookkeeping: 1. Basic financial knowledge Bookkeeping doesn’t need a lot of expertise or experience in financial. If you already know basic financial knowledge, you can start plan to have bookkeeping. 2. Accounting Software Accounting software needed to make the bookkeeping easier, that’s why it is essential for you to buy the necessary software. This is comparatively expensive, so it’s better if you just stick to one software. 3. Manpower and Training Make sure you can have training period to every employee that you have, to figure out the performance and how much of the work is the employee able to deal with without making any major mistakes. 4. Investor If you plan to have potential investor or scale your growth, you can start to maintain your bookkeeping because sometimes potential investor will conduct some financial due diligence to check your financial information recorded properly and timely manner. These are some of the important things to consider before you plan to start your book-keeping. For the people operating their organization and want scale up and growth their business, it's important to maintain the records and have a good bookkeeping record.

Startups are usually formed on the idea of making it big and creating a revolution in the market, yet the picture is not as clear as it looks. A newly formed company has to be way more dynamic than just selling an idea. One has to look after inventories, taxation, market situations, product development, and much more, which altogether can be overwhelming. Hence one needs company financial report services, bookkeeping services, tax services, and market research services from experienced and expert business and finance experts. Hiring a professional consultant can advise a start-up regarding how to execute the plans into actions and save time, money, and aggravation. These professional consultants guide the new firms with what is needed to be done and look after their book reviews and other services. Every start-up needs a consultation who can receive the business plan and analyze your action to see how far you are from your goals and later suggest required improvements. Overall, it’s needless to say how much the right guidance matters when you are on the verge of uncertainty, mentioned below are a few reasons that will help you in understanding the importance of a business and finance consulting firm while having a startup. Giving unbiased feedback Mostly the startups work with the existing talents and all the key stakeholders are like-minded. Thus it becomes difficult to point out what is going wrong or where you need to change the strategy. No matter how hardworking and dedicated your team is, if you are unable to understand the market from the viewpoint of a third party you will never know what you are missing. A business consultant will understand the core model of the business and its applicability as per the current market trends. For an unbiased and valuable suggestion, you do need an expert business consultant. Creating a road map The business consultant along with giving financial report services will form strategic planning for the start-up. They will analyze your statistics and strategy and compare it with the currency market situation to form a much-required road map for your business. Doing market research Market research is extremely substantial when it comes to forming business strategies and taking strategic business decisions. Your consultant can read all the trends and suggest to you the key segments where you can plan to grow your business for maximum benefits. Giving management advice Mostly the CEOs of startups are either fresh graduates from big B schools or people with 4-5 years of experience at the managerial level. The issue with both scenarios is the lack of experience in terms of sketching the management blueprint of the firm. Due to which one may lose many crucial clients and won’t be able to trace the work of their own team. On the other hand, an experienced consultant has all the blueprints in their system and can tell how to execute certain activities by just seeing the work structure of the firm. All this will increase your efficiency and trustworthiness. You can hire these experts on either an hourly basis or keep them in the team for some time until you can witness the growth. Later, you can keep coming to them for further assistance but you can never go wrong with investing in business consultants as a starting firm.

To avoid bankruptcy, risk of default or sovereign debt, countries, companies (Private or Public), and individuals suffering from cash flow difficulties or financial distress use a fail-safe process so-called “ Debt restructuring”. The Pandemic Coronavirus, also known as COVID-19 has severely shaken the global economy resulting in huge financial crises and market downfall. The disease has harshly affected the developing economies and businesses along. Corporates are unable to pay their dues or debts causing losses to the creditors or lenders. In a situation like this, Debt Restructuring is the best and the only hope to cater to odd financial situations. Debt Restructuring is a process that allows companies to reduce and work out on their debts and to improve their chances of restoring liquidity so that they can seamlessly continue their operations. 1. The process can be carried out by reducing the rate of interest on loans or by postponing the date of the debt payment. ​ 2. It also includes a debt for equity swap which means that - creditors may agree to take over the offered company’s equity and cancel some or all of the debt. ​ 3. The process also involves a “bond haircut” - negotiating to write off a certain portion of interest or capital. How Debt Restructuring Works Companies facing debt crises use a Debt restructuring process and it usually is carried out by reducing the rate of interest on the given loans or extending the due date of paying the loan instalment or both. Creditors agree on this as they are aware that if being forced into liquidation, they would receive even less; hence, improving the firm chances of paying back the debts. Creating A win-win situation! This way, a business avoids bankruptcy and the lender or creditor received more amount than what they would through liquidation.

Corporate finance is a core of financial services dealing with sources of fundings, the capital structure of corporations, and the tools and analysis used to allocate financial resources. All the activities in relation to raising funds or capital for creating, developing and even acquiring a business are referred to as Corporate finance. It also encompasses effectively utilizing the available resources and minimizing Expenditure. It acts as a critical intermediary process between the organization and the capital market, directly impacting the monetary or financial status of that organization. It plays an important role in the optimum wealth management, distribution and return generation Types of Corporate Finance Corporate financing includes raising funds via either: Equity funds Debt funds The types of corporate finance also emphasize the difference between ownership and management, the basis for the development of strategies and procedures under this concept. Equity funds - This includes Funds invested by owners themselves for the development of their business. This may include preference share capitals, equity and retained earnings. Debt funds - They are also called external finance. These funds come in various forms including corporate loans, private financing debentures, etc. Debentures are generally issued to the common masses for refinancing, while on the part, institutional lenders are considered to be the primary source of private finance and businesses have to pay commercial rates of interest on the lent amount. Scope of corporate finance It is related to the allocation of capital expenditure over a given period of time and the decision related to financing investment and dividend distribution. These decisions are made by the financial department of an organization affecting the timing and size of the flow of funds or future cash flow. It includes: Investment decisions including analysis of different investment types in order to reach the best available alternative. Financing decisions that lengthen to raising of funds or capital through multiple sources to restructure business finance. Dividend decisions that include analysis of stockholders’ returns on the basis of amount and time. Managing of working capital for efficient everyday running of the business. Developing financial strategies for smooth policy implementations, reflecting the working of advanced corporate finance. Corona effect The adverse financial impact of covid-19 could potentially make the corporate treasures of business suffer in an odd sense. The Corona crisis has become a highly disrupting economic challenge for the global economy. The quick spread of the pandemic virus has chained a negative effect and shock in both a negative supply and a negative demand across the economy at large. Hence, top priority would be to save and secure the liquidity of businesses in order to prevent caus. Demand and supply are considered to be the origin for estimating the economic growth and policy measures. In the current scenario, where economies globally have sustained severe damage due to the Pandemic Corona, reducing the scope for effective economic policies. The macroeconomic effects recorded till date will primarily be felt in corporate finance due to the liquidity congestion followed by the dwindling sales and ongoing costs. That is where economic policy must start. So what can be done on the economic policy side? Opting the following measures will help reduce and control the odd effects on the businesses: 1 - Stabilise corporate liquidity. 2 - Stabilise financial market liquidity 3 - Stabilise corporate liquidity through tax deferral. 4 - Stabilise employment and labour income through short-time allowance. Effective Corporate financing will help corporates stand the difficult time and will allow them to pave the way for future gains.

Coronavirus is a true villain. The virus has claimed the lives of thousands and infected lots of people, affecting all business, markets and the economics at the global scale. Though international institutions like WHO are trying their best to curb this pandemic, businesses meanwhile are facing hard times and may eventually be trapped in recession (If the situation is not controlled). Merger and acquisition deals have also experienced a negative impact. Let's discuss what all is going wrong. There is a possibility of significant disruption in the global market, as the number of coronavirus cases peak. If not controlled on time, The negative effect will Not just cause harm for a shorter duration but will be draining economies in the long term as well. We may witness a decrease in record-high valuations but will continue to have a very favourable low-interest-rate environment and access to financing (both from commercial lenders and alternative financing sources (i.e. – private credit/debt funds) and certain underlying dynamics that have been driving Merger and acquisition to this point and digital transformation and technological disruption will continue. How has the current market environment impacted private equity portfolio companies? Remember - Market chaos breeds opportunity. Businesses who are dependent on the Asian markets for their supply chain will get hit directly. Even though there hasn’t been any sign of significant impact yet on the demand side, private equity firms are telling their portfolio companies to prepare accordingly. At this point, nobody knows what the full impact will be of the coronavirus, nor how long it will last. Most businesses are proactively drawing down on rotating lines of credit and other financing sources in order to put stable cash on the balance sheet to deal with the worst. Traders are seeking to allocate the risk associated with the effects of pandemic coronavirus on the target company, market and the industry in general, acquisition agreement deals will need to be considered carefully. As customers and sellers are trying to find ways to allocate the dangers associated with the results of the novel coronavirus on the target corporation and broadly the overall enterprise and markets, deal phrases in acquisition agreements will need to be cautiously considered. In negotiating the definition of Material Adverse Effect (MAE), which is the basis for a not unusual closing situation allowing buyers to terminate a deal if the target company suffers an MAE, objectives may seek to encompass “ailment outbreaks,” “pandemics,” “epidemics,” “global calamities'' and/or “public fitness events'' as exceptions or carve-outs to the definition of MAE. Buyers need to be mindful that accepting such exceptions have the effect of allocating the risks of the coronavirus to the client as it might be forced to consummate the deal despite the fact that the goal corporation’s commercial enterprise has materially deteriorated since the signing of the deal. While it's going to likely be tough for shoppers to negotiate for an entire walkway proper referring to coronavirus, buyers need to don't forget limiting one of these exceptions for situations wherein damage to the goal enterprise isn't disproportionate to others in similar industries, or given the character of the pandemic, within the identical geography. With the view of raising coronavirus concerns, even if buyers don’t go for changing closing conditions, they might still seek to reallocate some risk over to sellers by calling on special indemnity provisions. If they could identify and be able to articulate specific potential costs or liabilities (A target company may face) and Buyers will be ruling the deal and can negotiate better. Through diligence focused on pandemic impacts - potential liabilities arising from supply chain disruptions, workforce accommodation costs, or contract terminations The bloc negotiating the deal involving regulatory approval may also consider the potential delays, significant enough, as the federal agencies may be facing temporary shutdowns or could be operating at limited capacity due to this pandemic spread. Now the involved parties will have to consider if they should be extended the “outside date” for a transaction if the government agencies (responsible for approving the deal) may not be able to routine functions like in normal timelines.

The pandemic coronavirus has caused a drop in revenue to all major market players, claimed 100000 + deaths globally and has become a health and an economic disaster for the entire world resulting in death, unemployment and poverty. The economies at a global scale felt the threat in some way or the other; Banks, households, corporations and financial markets all are in the deep debt sinks. These situations are similar to those in 2008, Economies at large are at stake - hitting the biggest crisis of the decade. The newly established corporate are the most exposed entities due to the sudden pause in their cash flows, especially those who were already struggling to pay their loans. These firms could barely pay the internet on their debt, and only survive by issuing new debt. There is a serious crush of liquid since the usual global operations are put to halt. Deserted airports, empty trains, lonely fun-parks and barely engaged restaurants is hurting the economy really bad. More the pandemic lasts, greater the impact it will have, risking the sharp downtown morphs into a financial crisis with weak once starting to pull the chains of defaults similar to 2008 subprime mortgages. The recessions over the past centuries generally started with the higher interest rate for a sustained period, but it was never a virus - this economic disruption is so contagious that inflicting economies around the globe seriously for about three months in a row saddled with a record level of debt. Well assuming the possibility of the current low liquidity cash crunch scenario that can lead to a serious financial crisis, central banks, in order to take preventative measures are worldwide taking aggressive easing measures similar to those in the 2008 crisis As the economic expansion continued, year after year, lenders grew increasingly lax, extending cheap loans to companies with questionable finances. Today the global debt burden is again at an all-time high. Eventhough the global financial debt is at an all-time high, it will be too early to predict the certainly of the economic downturn due to the coronavirus. Although, a recession is inevitable and will hit the economies hard at a global scale. The manufacturing industry since 2019 was facing tremors of the financial quake and then shutting down globally leading economies for several months is making the situation worse. Everything from school, colleges, restaurants, gyms, bars are closed. It has been predicted that up to a million people per month might lose their jobs, a much worse scenario than in the 2008-2009 recession. Service sectors like the airline industry will have the worst effect among others. A ruthless price war will be unleashed among OPEC, Russia and shale producers with the rising prospect of the market contraction in the oil industry stressing the heavily indebted energy sector. If this price war spread, a calamitous cycle of debt-deflation will jeopardize the world corporate debt (double the size of 2008 debt pile) and international trade will sharply Contract.

Here are the highlights. Indonesia along with the Southeast Asian economies are battling hard in the worldwide financial emergency brought about by the spreading pandemic. The monetary effect will be tremendous, comparable to the aftermath of the 1997-98 Asian Financial Crisis, or maybe a lot more noteworthy. From one perspective, the Association of Southeast Asian Nations (ASEAN) economies are more ready than they were in the Asian Financial Crisis that hit the district over two decades prior, with bigger outside trade stores and generally speaking better macroeconomic positions contrasted with their circumstance in the late 1990s. Be that as it may, the monetary stun from Covid-19 might be more profound and longer-enduring relying upon how the pandemic plays out, and there is huge vulnerability encompassing the progressing spread and extreme containment of the virus. Indonesian economy have a broadened set of exchange and speculation accomplices, along with other ASEAN Economies including the United States, European Union, China, and intra-ASEAN exchange. In typical occasions, this expanded arrangement of accomplices would give a support to a provincial financial downturn, however in this worldwide pandemic, these accomplices are confronting a stop to or darkening possibilities for development for the initial 75% of 2020—with distressing conjectures for China (+1 percent development), the United States (- 6 percent), Japan (- 4 percent), and the Eurozone (- 7 to - 8 percent). Second, the breakdown in oil costs brought about by the unexpected drop in vitality utilization because of the broad lock-downs and travel bans will sharply affect economies subject to fares of fuel, specifically Indonesia, where coal and oil involve almost one-fourth of fares; Malaysia, where oil and gas make up around 16 percent of fares; and obviously Brunei, whose economy is as a rule bolstered by fares of unrefined and natural gas (more than 90 percent of fares). How worse it is for Corporate Finance and Banks around the globe? 1) M&A has come to a near standstill - A few deals that were already pretty much agreed have been announced recently, yet otherwise, buyers and sellers have put their pencils down. This will continue as long as we are compelled to stay home to battle the Coronavirus pandemic and markets/valuations stabilize. 2) This moderate environment will most unquestionably hurt a ton of advisory firms as there's little they can do about the present situation. Be that as it may, many M&A specialists are working intimately with their clients to figure out how they can take advantage of the market/valuation dislocation caused by the pandemic once it's finished. 3) Financial Trouble Pending deals are probably going to battle to get approved quickly or are in danger of falling apart because of the purchaser's remorse or financing troubles. This explains why the spreads — the contrast between the cost per share offered when the deal was agreed and the dealer's present market value — on many pending deals are gigantic at the moment. Be that as it may, it's hard to walk away from an agreed deal and COVID-19 might not be a "material adverse change" that qualifies to end a transaction. 4) Bankruptcy - an upcoming threat Bankers, especially the ones at boutique investment banks, always remind us that when M&A activity eases back down, it is compensated by bankruptcy and rebuilding work. That proposal will be tried in this market. Be that as it may, M&A generating high expenses, and it's improbable that a boom in rebuilding can make up the distinction. 5) It's too early to determine which corporate finance departments have profited the most up until this point. Everybody is as yet making sense of things. 6) How long will it take to recover? Finally, will M&A recuperate rapidly? Hard to say. Bankers, who are the ultimate optimists, say that contrary to the 2008 financial emergency, once this problem is resolved, they will be initiating plenty of fresh deals. This statement though is somewhat more skeptical. No one knows or has the foggiest idea of how profound this emergency will be. Is it going to transform into a depression or a recession? The answer to that will determine how fast M&A activity will return. What's certain is that some players, potentially private value firms, will have the chance to utilize some of the dry force (which is as of now about $2tn) to purchase much cheaper companies. When the initial emergency is finished, will we at that point enter a further time of austerity, ie, total government obligation should come down again — and a repeat of the aftermath of the 2008 emergency? The distinction this time around ought to be that banks are in a condition to satisfy their core capacity — get money streaming to the economy. With the goal that will make the aftermath distinctive to 2008 (regardless of whether austerity occurs). Not immediately, and probably not over the long-term either. Inflation happens when an economy clashes with real capacity constraints (insufficient human beings to do all the employments or insufficient plants and machines to meet demand). At the present time, we have the contrary problem: 3.3m individuals just documented an unemployment claim in the last week in the USA (A global leader) itself; their capacity isn't being utilized at all.

A regional response on the new coronavirus disease outbreak has gone under the spotlight as Southeast Asia scrambles to forestall the more extensive transmission of COVID-19, which has reached eight out of 10 ASEAN member states. The World Health Organization on Tuesday approached nations in the Southeast Asia region to critically scale-up aggressive measures to battle COVID-19, as the cases continue to rise globally. The infection, which was first identified in China, spread rapidly to 215 Countries, zones and territories, infecting more than 40,137,28 individuals and killing 2,78,993 till date. Although Southeast Asia remains the region where the coronavirus is well on the way to spread in huge numbers, the vast majority of the region's states remain altogether underprepared to manage the infection. Many started off slowly as the outbreak developed in China, with some Southeast Asia ministers unusually downplaying the seriousness of the infection or offering open suggestions of natively constructed solutions or homemade remedies for battle against it. Numerous Southeast Asian states, perhaps frightful of drawing China's anger, and vigorously reliant on Chinese tourism, aid, and investment, didn't initially close fringe links or significantly crackdown on tourism from China, an incautious decision. Southeast Asia is entirely helpless to the economic aftermath of the coronavirus in a variety of sectors, including tourism and manufacturing, just as because of hosed Chinese demand. Economies that have increased their reliance on China, for example, Thailand (because of tourism) and Vietnam (because of exports and gracefully chain linkages), will be the most noticeably terrible hit. The coronavirus has uncovered a few breaks in Southeast Asia's development models. A significant number of China's neighbours have inclined too intensely on external demand and China-centric flexible chains to drive their own domestic economic development. For the time being, central banks in Southeast Asia will probably select to cut interest rates and permit their monetary standards to debilitate in request to make their nations' exports more competitive. Governments will likewise likely turn out miniature improvement bundles to offset the drag. In recent weeks, some Southeast Asian states have started to respond more commandingly. (Singapore, the wealthiest state in the region, unsurprisingly responded to the outbreak as it so happens, with exceptionally adulated measures.) Thailand has demonstrated more viability and responsiveness than from the start, and other regional states have started strengthening their barriers, however, some remain careful about taking more stringent measures that may affront China by further restricting two-sided ties. Philippine President Rodrigo Duterte, for instance, was extremely delayed to close down trips to and from China. The viral outbreak has uncovered that few Southeast Asian nations are vigorously subject to Chinese tourism. Travel bans and restrictions have suppressed the progression of tourists since the Lunar New Year occasion. Tourism-related industries, for example, transportation and accommodation have been hit especially hard. The effect will be felt most intensely by Thailand, which has just been contending with a lazy economy because of an ageing population and powerless domestic investment. In any case, other Southeast Asian nations will likewise be influenced, including Indonesia, the Philippines, and Vietnam. Their high reliance on tourists from China and from other nations more, for the most part, implies that the outbreak will deeply affect their economies. Vietnam will be influenced the most because of its high reliance on Chinese flexible chains, yet its sharp general development rate—more than 7 per cent in 2019—gives an incomplete cushion. Then, the effect on the economies of Hong Kong and Singapore will be more extreme, given that they were at that point experiencing a moderate pace of development because of basic shortcomings even before the emergency unfurled. Eyes on Asia Most Southeast Asian states are inconceivably underprepared. Nations like Cambodia, Laos, Myanmar, and the Philippines have incredibly poor general wellbeing frameworks, and a constrained capacity to respond to a significant disease outbreak. The Philippine government has gone under analysis for slashing its health budget for 2020, and for alarm like conditions at emergency clinics dealing with the infection, where some experience the ill effects of a detailed absence of fundamental supplies. Include these nations' autocratic administration, and allergy to transparency in public policy, and you have a further recipe for disaster. Infectious disease experts accept the number of cases definitely known in Southeast Asia most likely doesn't mirror the genuine spread of the disease, in light of the region's powerless general wellbeing frameworks, and on the grounds that individuals can be asymptomatic from the start when they have the coronavirus. Given the region's broad exchange and tourism links with China, it most likely would be the following spot for countless coronavirus cases. Yet, states in Southeast Asia will require gigantic help from the international network if the infection spreads as a group in the region. Nations in the Southeast Asian Region should remake their procedures and beyond these momentary measures, the economies of these nations must make more extraordinary changes. They ought to invest in their domestic capacities to produce more lucrative goods and services. That way, they can catch a more noteworthy portion of worldwide flexible chains. And they ought to likewise invest more in domestic sources of development. Too much reliance on external sources of prosperity can bite back.

Since the year 2020 has started, it’s been proven as a curse for people around the world. The pandemic coronavirus is not only the cause behind damaging life but it is also creating a global economic breakdown. The COVID-19 virus is already a reason for the deaths of many people and the lockdown due to COVID-19 is messing up the wealth and world economy. The consequences of pandemic disease coronavirus outbreak are causing a health crisis worldwide which is affecting our daily lives. COVID-19 is resulting in current issues of our everyday routine including excessive expenses, losing jobs, economic and social crises, health disaster due to, and increasing COVID-19 positive cases and mental health issues due to overthinking, stress, tensions, isolation or fear of losing a job or already lost, and loss of study. The economic downturn and losing jobs is ultimately the root of mental health problems that are reaching at an extreme level of depression. The speed and number of COVID-19 positive patients are rising day by day. If we conclude the COVID-19 and post lockdown impacts on our everyday lives, we are running out of finance. Before lockdown we all were spending our money more than we actually require, we are required to find multiple sources of income, and more investment for the future. However, the lockdown due to COVID-19 is being a reason for losing jobs, salary cut-offs, more expenses on essential services including food and medicines, and economic downfall every day. We can still support economic recovery and lower the risks of the financial breakdown of the market through controlling and managing our finances. After the negative impacts of the COVID-19 outbreak an individual is not able to pay rents, bills, or meet the mortgage, a few techniques that will manage and raise your finances are: Analyze your daily, weekly, and monthly expenses: Try to control your unnecessary expenses. You need to align your extra expenses from your essential needs and simplify your lifestyle. The analysis and the control over your expenses will help you out to increase your budget. Invest in long-term finance beneficial schemes: If you’re lost your job during COVID-19 and lockdown, you must require improving your skills. If you’re having a good saving amount then you need to invest a small amount of your savings in buying a laptop, internet or data connection, and an online course that could be either free or paid. Improving skills will increase your future job prospects and make you capable to get your job back. Create diverse sources of income: Depending upon a single income source may lead you to a loss one day like many of us have lost our jobs in lockdown and ultimately it will lead you to face financial crises. Learn, improve your skills, and find more opportunities for earnings. Start investing your money in financial schemes: Financial schemes run by the government or non-governmental but reliable bodies are another way to increase your finances. Start studying the stock market, mutual funds, life insurances, Demat-accounts, and trading, etc. Initially, you can start by investing a small amount. Invest in buying property: If you’re keeping a good amount of money or savings, investing it in buying properties such as lands or flats will unexpectedly help you in need. Since COVID-19 is being a reason for washing out incomes coming, losing employment, major salary deductions, and unwelcome expenses on essential services including food and medicines, and economic downfall every day, everyone from us has got a lesson that financial management is extremely important.

Covid-19 a global pandemic that affected the whole world and took down the world’s economy as seen only in the great depression of World War 2. The disadvantage here was that the enemy wasn't visible to fight with as compared to world war. The pandemic unenthusiastically affected global economic growth beyond anything experienced in nearly a century. Estimates so far indicated that the virus could cut down global economic growth by 3.0% to 6.0% approximately in 2020, with a partial recovery in 2021, assuming there is not a second wave of infections. Economic growth for the second quarter of 2020 was between -3.1% -5.1% (approx.).The main sectors that have been hit by the pandemic are trade, manufacturing, mining, recreation, and transportation. The median of -4.3% means that growth has been lower than predictions made by the government and independent institutions. The Indonesian government has issued a Regulation Number 25/2020 on the Implementation of Public Housing that will deduct 2.5% of workers’ wages, plus a contribution from employers of 0.5%. The trade unions said that the policy was announced at the wrong time since the workers currently have lost their income and jobs. Local organizations are more focused on doing research and capacity-building with trade unions and workers. In addition to that, some charities have been initiated to support the most vulnerable groups, such as homeworkers and daily wagers. Money management is important at all times, but it becomes essential during a crisis like coronavirus pandemic. We are starting to see some economic consequences already, but what is less visible is the financial-induced stress caused by the uncertainty. Worrying about your finances can affect your mental health and well-being. Following are some suggestions to be considered during these crises 1. Inspect changes in your expenses. 2. Identify the decrease in expenses. 3. Figure out the best areas of investment. The full impact will be unknown until the effects of the pandemic peak but one must remember that life goals are more important than a little higher or lower profit. It is far more important to make sure that you have the required amount in your hands at the right time. It is always better to be safe than sorry. This is extremely true during these unsure times.

Since the inception of the year 2020, the world has been struggling with a life-threatening crisis from a global pandemic of ‘coronavirus’. The virus has not only created economic crises but also has taken the lives of countless people all over the world. The virus outbreak started in a small town of Wuhan in China and gradually impacted about 188 countries all over the world. Several countries had to implement lockdowns to flatten the infection curve, therefore confining millions of people to their homes and ceasing all kinds of economic activities. As per reports from the IMF (International Monetary Fund), the global economy is expected to decline by 3 to 4 per cent in 2020. The economy has seen a major downfall since the beginning of this year, giving rise to some key issues such as unemployment, rising expenses, job cuts, declining health infrastructure, shrinking businesses to name a few. Let's take a deep look into the issues mentioned above: 1. Unemployment and the risk of recession One of the most ill effects of coronavirus is the loss of jobs and rise in the unemployment graph, many people have lost their sources of incomes and are struggling to earn daily bread. Major economies around the world like the USA, UK, Germany, Italy, France are facing the issue of feeding the millions of mouths in their countries. Millions of workers have been put into government-aided shelters and are under government schemes. The risk of recession has been warned by some popular economists around the globe, many professionals from fields like education, global business, travel industry have seen a downfall in their work. 2. Crashing GDP Coronavirus took a major hit at the GDP’s of many rising and successful economies, many sectors have seen a drop in their outputs, for example, the tourism industry alone saw a decrease in a trade from 70% to 50%. The global trade such as exports and imports have declined drastically, with lockdown being implemented all the trading has ceased and saw huge losses. Economies of countries such as the US, Japan, the UK, France, Italy, Germany and Spain are expected to contract this year by 5.9, 5.2, 6.5, 7, 7.2, 9.1 and 8 percent respectively. India is expected to see a negative fall of 4.5% this fiscal year of 2020. 3. Decline in global trade The world has seen a major setback in the global trade of numerous fields, the worst-hit industries are oil and gas, metals, food and beverages. Due to lockdown, oil prices fell dramatically, the gulf countries saw a major fall in their oil exports. The demand for heavy metals, chemicals declined as all the factories were shut down. Export and import of several seafoods stopped because people are not preferring any kinds of processed foods which might be touched by several hands and increase the threat of virus spread. However the prices of grains like cereals, wheat, seafoods, tea, coffee has increased. According to the world economic forum (WEF) many SMEs have crashed since the pandemic broke out. Apart from all the unfavorable impacts of the coronavirus, we need to stand strong and cope up with the current situation in order to recover the economy, manage finances and bring back lives to a previous normal. Here's how to manage your finances in these tough times: 1. Keep track of your money: Tracking your monthly expenses is very important in these times of financial distress, keep your cash handy and do not overspend unless important. Never ignore the fear of losing your job or being out of money, keep saving your money in your bank accounts for future requirements. Analyse your weekly and monthly expenses so that you know where you are spending the money. 2. Avoid debts: Try not to borrow money from your friends or relatives, even stop using your credit cards for some time, as it will only increase the financial burden on you. Look out for easy instalment plans if you are planning to apply for a loan. 3. Invest in beneficial schemes: Start investing your money in some beneficial way such as investing in government schemes, health insurances, look out for smart stock markets schemes where you will be able to make simple money without investing much initially. Try to invest in buying lands so that you may resell later in case of any emergency in the future. 4. Focus on your mental and physical health: Since we are talking about our priorities during the pandemic, nothing can be more vital than your own and your family's health. Despite the pandemic aftereffects, your priority should be your own mental health. Start your day with a 30-minute exercise such as aerobics, walking and running. that will help your body to remain fit and your mind calm. Maintain a healthy diet, do not overeat or overstress about things. Keep yourself organized and maintain hygiene everywhere near you. However, one positive conclusion which can be drawn from the pandemic is that it has taught us how important it is to manage your finances and keep your savings and jobs intact.