The circular flow of income and expenditure refers to the continuous production of products and services, income and expense in an economy. The different parts of expense and national income, for instance, investment, saving, exports, imports, government expenditure, taxation, etc. are displayed as currents and cross-currents in the circular flow of income.
Importance of the Circular Flow
The central concept of a circular flow is that it gives a clear picture of the economy. It also helps in understanding whether the economy is operating efficiently, or there are any obstacles in its smooth operation.
Therefore, the circular flow is significant for the functioning of the economy and helping the government in formulating various policy measures. Apart from the economy, the other important factors are.
- Effects of Leakages and Inflows – The leakages allow us to study the national economy and its impact. For instance, imports are leakages going out of the circular flow of income, as it is paid to a foreign nation. To prevent this leakage, the government should acquire suitable measures such as decrease imports and increase exports.
- The connection between Consumers and Producers – It builds a link between consumers and producers.
- Builds a Network of Markets – After creating a link between the consumer and producer and a network of markets for various products and services, problems relating to purchasing and sales are solved automatically.
- Basis of Flow of Funds Accounts – It helps in evaluating a country’s income in terms of the flow of funds accounts. These accounts are concerned with transactions of the economy that are fulfilled by money transfers.
- Importance of Monetary Policy – It brings equality between investment and saving in the economy indicates the importance of fiscal policy.
- The base of the Multiplier – In case, in a circular flow of income, if the leakage exceeds the injections, the total income becomes less than the total output.
For more information on economics sample paper class 11, stay tuned to BYJU’S.
Reasons to Work with an Employee Benefits Consulting Firm
A competitive employee benefits package is critical to acquiring and retaining quality talent in your company. But, there may come a time when creating one becomes a tedious and complex task, especially for owners who are not as knowledgeable about dealing with its many factors. Other than brainstorming what to include, you need to know how much do employers pay for health insurance,so you don’t accidentally overspend.
When the going gets tough, employee benefits consulting firms are your solution. They know well how to maximize benefits while minimizing costs. To understand more about these firms and why you should hire them, check out our list below:
Create a Competitive Package
Many employers believe that a great salary is all it takes to land top talent. Little do they know; employees look beyond big paychecks and want to see the compensation and benefits a company can offer them. The better the benefits, the more likely they will accept your job offers and stay.
Various businesses strive to create the perfect employee benefits package to help them fish for the best workers. By hiring an employee benefits firm, you can receive guidance on making the most competitive package that works best for the employer and the workers. They’ll also ensure your benefits remain compliant with laws, offer tax advantages, and the types you should include.
Gain Access to Expertise
We all want to receive the most desirable advice when making crucial decisions for the sake of our organizations. Putting together an effective employee benefits package is no walk in the park, and because it plays a pivotal role in the competence of your business, you don’t want to make a mistake.
Employee benefits consulting firms have consultants with years of experience, knowledge, and hindsight on every prospect of compensation and plans that work best for your firm. They know the ins and outs of every insurance agency and give you all the information you need to understand the complexities. Employee benefits consultants can also show you practices to help you comply with various laws and regulations.
Partner with Health Compass Today!
You can save $1000 per employee through the right innovation and management. Do you want to know how? Schedule a free consultation with CEO and Founder Donovan Pyle from Health Compass through their website https://healthcompassconsulting.com/.
Can I implement ISO 9001 without a consultant?
Yes, it is absolutely possible to implement ISO 9001 in your organisation without the help of a consultant. However, here comes the mind blowing fact that might change your decision to hire a consultant- there is no guarantee about the efficiency of your Quality Management System (QMS) if you implement ISO 9001 on your own. In this article, we will talk about why hiring an ISO 9001 consultant is beneficial for you and your business.
Who is an ISO 9001 consultant?
Simply put, an ISO 9001 consultant is an individual who has undergone specific training in the development of a QMS as per the requirements of ISO 9001. This individual also has real-life experience of implementing, troubleshooting, modifying and evaluating QMS in different organisations. Therefore, it would not be wrong to call them experts of quality management and ISO 9001 requirements.
Why should you hire an ISO 9001 consultant?
It all boils down to expertise. If you, as a business owner, are familiar with the requirements of ISO 9001, then you will have no trouble understanding the clauses and selecting the ones that are relevant to your organisation. However, if you are a novice, you will find the same task excruciatingly painful.
Similarly, if you are familiar with quality management principles, you will be able to build a QMS that focuses on the needs of customers, has a lean approach and is continually improving. Unfortunately, without the real-world experience, your QMS will have rudimentary functionality.
1.Save time and effort
Hence, if we have to summarise why you should hire an ISO consultant, it can be said that an ISO 9001 consultant will save you precious time and effort, allowing you to achieve first-time compliance. Without their expertise, the certification process, especially aligning the documents and identifying hidden non-conformances, can become time consuming as well as overwhelming.
2. Professional performance
In addition, advocates of hiring ISO 9001 consultants also push forward another compelling argument. They say that even if business owners have the expertise or experience with ISO 9001, they should still hire an ISO 9001 consultant, as it helps conserve energy.
See, as a business owner, you are already have to juggle a lot. It makes no sense to focus your energy on a certification process that can easily be delegated to someone with expertise. Your energy is better utilised in envisioning your future aspirations.
3. Experience identifying opportunities
Lastly, the advocates of hiring ISO 9001 consultants also have another argument, stating that an ISO consultant will bring with them a “fresher set of eyes.” To understand the importance of this statement, it is necessary to know that a QMS is just not focused on identifying risks, but it also uncovers hidden opportunities.
So, something that is not so apparent to you, will be extremely evident to a consultant who has immense real-world experience in your industry. As a result, you will be able to explore opportunities and expand your business.
Benefits of ISO 9001 consultant
There are many benefits to hiring an ISO 9001 consultant, including:
Faster implementation: ISO 9001 consultant saves you precious time and speeds up the implementation process of your QMS. In fact, many ISO consultancy services claim to help you achieve certification in less than a month.
First time compliance: Due to their expertise and experience, there will be no non-conformances in your QMS, thereby guaranteeing first time compliance.
Identification of skill-gaps: ISO 9001 consultants conduct a gap analysis within your organisation to identify any inherent skill gaps. Additionally, they will suggest training programmes so that these skill gaps can be appropriately mitigated.
Better documentation: Their expertise helps you align your documents as per the requirements of ISO 9001.
Troubleshooting: As your QMS is in its infancy, it will encounter small obstacles. This is the nature of any management system that is absolutely new. With the help of a well experienced ISO 9001 consultant, you will be able to troubleshoot, modify and improve your QMS.
Better performance of your QMS: ISO 9001 consultants will suggest you industry-specific corrective actions that will further improve the efficiency of your QMS.
How to choose an ISO 9001 consultant?
With so many ISO 9001 consultancy services, it can become overwhelming to select an ISO consulting service that is a perfect fit for your organisation. Before you even begin your search, we recommend that you sit down, take a breath, and clarify your expectations.
Do you want an ISO 9001 consultant who acts as a leader and coordinates activities between your team members, or would you prefer someone who is willing to get their hands dirty and actually sit with you in every step.
This is highly dependent upon the current nature of your management system. If you already have a decent management system, you would require a consultant who acquires the role of leadership, whereas if your QMS is still rudimentary, you would need a subject matter expert. Additionally, the criterions that you should factor in include specialisation, experience and ethics. ISO 9001 consultant should have considerable amount of experience in your industry and should not be willing to take any shortcuts.
Yes, it is absolutely possible to implement ISO 9001 without a consultant, however, there is no guarantee about the efficiency of the QMS. Hiring an ISO 9001 consultant saves business owners time, effort and energy. Focus on the specialisation, experience, ethics as you select your ISO 9001 consultant and ensure that you have a good idea about what role you want the consultant to play in your business.
If you are looking for ISO 9001 consulting that has expertise, experience and commitment, we suggest you to use ISO Counsel services. For more information about cooperation, costs and time required for ISO 9001 implementation, visit isocouncil.com.au website.