1. What Is an Account Plan?
An account plan is a system where you use your financial accounts to separate your money in categories to organize your finances more effectively.
Millions of individuals, households, self employed, and small businesses worldwide conveniently use this system to manage their money.
In this tutorial we will present an example for a business who hires international remote employees and uses Emerald to pay them.
2. Multiple Wallets on Emerald
First, let's start by explaining that Emerald supports multiple wallets. This means you can create your first wallet when you download Emerald (there are different ways of creating accounts explained in our other tutorials) and from there you can create more wallets at your convenience to manage your money in categories.
Below is an example of several wallets created using Emerald Wallet.
The cool thing is that you can actually name your wallets whichever way you want, so it is most convenient to manage your finances!
3. Example of a Business Who Hires International Remote Employees and Pays Them in Crypto
For example, a business in North America or Europe; who may hire software engineers, developers, or help desk agents from Argentina, Nigeria, Russia, India, or other countries; may have the following account plan:
The logic of this account plan is the following:
a. Business Income
Just for practical and administrative issues, the business may have a wallet dedicated to receive the income payments from its clients.
b. Remote Worker Payments
As it receives the income; on a daily, weekly, or monthly basis; the business may go separating the money that will be used to pay its remote workers in a different wallet called "remote worker payments".
In some cases it may pay some of the employees on a weekly basis, others on a bi-weekly basis, and others monthly. To separate these transactions and to keep track of them, it is useful to use an isolated wallet for theses purposes.
Also, the payments may have special tax treatments and conditions depending on the country of destination, so making this segregation for administrative purposes may be very convenient.
The business may have many remote employees, so in the future Emerald will offer scheduled batch and multi-payment options.
c. Working Capital
As any small business, it is useful to separate funds for continuing operations and payments.
d. Monthly Expenses
Another account may be dedicated just for non-remote worker payments and monthly expenses such as utilities, rent, professional services, cloud subscriptions, etc.
e. Reserve for Taxes
Finally, especially for small businesses, companies need to keep track and go accumulating tax reserves to pay taxes when the season comes. It may be very convenient to segregate these funds as they become available to make sure the business has sufficient funds for when the taxman comes!
4. Watch More Examples!
For more examples of account plans that may adjust to your personal needs, please watch this video:
To start using Emerald, download it here: https://emerald.cash/download