February 28, 2007
what is the difference between realized gains and unrealized gains?
The topic of this article is the answer to the following question: what is the difference between realized gains and unrealized gains?
Let's start by giving a basic definition of what realized gains and unrealized gains are, and then we will go more in depth in discussing the differences between realized gains and unrealized gains and what they mean for you as an investor.
Continue reading "what is the difference between realized gains and unrealized gains?"Accountancy Recruitment - Where to Find the Best Staff
Your accounting staff will undoubtedly be a vital part of your business. The duties of your accounting staff will be varied and include:
a. Bill payment. The accounting staff will generally prepare you cash disbursement checks where required
b. Record receipts. In addition to keeping track of your receipts, they will prepare bank deposits and input credits
c. Payroll. Accounting will also compute and prepare your company's payroll checks as well as payroll tax deposits
d. Analysis and review of quarterly financial results
e. Tax preparation, such as W2s and 1099s, W3 and state reconciliations, and prepare and review federal and state corporate tax returns
February 27, 2007
What is the difference in tax rates between ordinary income and capital gains?
The topic of this article is the answer to the following question: what is the difference in tax rates between ordinary income and capital gains?
Let's start the article by going over what exactly capital gains are.Capital gains is the term for the profit that you get when you sell an asset, like a stock, that you bought at a lower price than you sold it for.Capital gains can be achieved on stocks, on bonds, on property, and on precious metals like gold or silver.While many countries out there actually do not levy a capital gains tax, the United States does have a capital gains tax.It is important for you to know about capital gains and capital gains tax so that you can arrange your investments and your tax strategy accordingly.
The Advantages and Costs of Accepting Payments Online
Nowadays, more and more people are skipping the shopping malls and opting to shop online instead. Online sales jumped over 20% from last year alone, and this wasn't just in the consumer industry either - more businesses are opting to purchase products and services online rather than wait in long phone queues and then recite information repeatedly to the operator.
Knowing this, if you're not already accepting payments online for your products and services, you may want to start.
February 26, 2007
What rate of return should I expect on my stocks?
The topic of this article is the answer to the following question: What rate of return should I expect on my stocks?
The rate of return you should expect on your stocks is a complicated question, and there is no one pat answer that will tell you what you should expect from all of your stocks.You buy different stocks for different reasons, and everybody has their own investment style that will allow them to accept different rates of returns.It's pretty easy to find the expected rate of return on a stock-all that you need to do is look up a stock analyst's report on the company that you're considering investing in.Make sure that you do your research on the company to make sure that it's the kind of company that you want to invest in, but along with your research, you will come across the expert-predicted expected rate of return.
Continue reading "What rate of return should I expect on my stocks?"1031 Tax Exchanges
A 1031 tax exchange is actually Internal Revenue Code 1031, which states that property owners can sell their property, then reinvest the money they earned from it in ownership of like-kind property while deferring the capital gains taxes. The 1031 tax exchange is often overlooked in real estate. This is unfortunate, as it can offer quite a few significant tax advantages to those who buy and invest in real estate.
Continue reading "1031 Tax Exchanges"February 25, 2007
What are stops and how should I use them?
Stops are one of the most important things that traders should know about, whether you are a small time investor, or a big time investor.Stops are one of the most important ways of protecting your investments and insuring that you don't lose too much money.
Stop stands for the term stop-loss.Stop loss measures are a way to set a limit on how low your stocks can go before you sell them.A stop-loss order is a bottom line that you set when you buy a stock.When the stock reaches a particular place, or when it drops a certain percentage or amount, then it will automatically sell.
What should you look for in a merchant account provider?
You have at this point gotten your company up and running. It is going great, but it could be better. You are losing business because you do not take credit cards. Now you need to look for a merchant account provider. However, which one, there are so many?
A merchant account will allow your company to accept credit cards. In this current day and age, plastic is all the more popular. There colored cards, cards with picture, cards with art, cards with family, even see through cards. They are all plastic and almost all of us use them. With the pluses and minuses, it is faster, easier and subsequently safer.
Continue reading "What should you look for in a merchant account provider?"February 24, 2007
What is a good rule for setting stops?
The topic of this article is the answer to the following question: what is a good rule for setting stops?If you are an investor, no matter how many investments you have, a little or a lot, or how much money you have invested in your stocks, you need to know about stop-losses and how to set stops, or stop-losses.A stop-loss is one of the most important tools for an investor, and so you need to know exactly what a stop loss is and how you should set it.
There is no catch-all rule for setting stop losses.Where you set your stop loss depends on your personal portfolio, your investment strategy and approach, and how much risk you are comfortable taking with your stocks.However, there are some general guidelines that you can follow when you are deciding where to set your stop loss, and that's what we will cover in this article.
When you set a stop loss, you are essentially saying that when your stock falls a certain amount, that you specify, then you will automatically sell your stocks.Essentially, when a stock falls by a certain amount, then there really isn't any sort of value waiting around hoping for a recovery.Chances are that when stocks fall that far, they are not going to recover their value, and you'll just be losing money as you wait for the stocks to rise again anyway.Now, when you are deciding where you are going to set your stop loss, there are a few things that you need to take into consideration.If you set your stop loss level too small, then what is going to happen is that your portfolio will end up liquidating, and you will lose money on it.However, if you set your stop loss level that is too high, then you are going to end up with massively huge losses on your stocks.Probably the wisest place for you to set your stop loss is 10pc.But once you set your stop loss, then you have to stick to it the entire time or else your stop loss is not going to work.
What are the 10 things you can do to prevent being audited by the IRS?
1. The most important thing is to file a professional, meticulous looking return. Whether you use a professional tax preparation service or computer software like TurboTax you want to make sure your return looks carefully prepared. Hand written is a no-no and says "Hey, audit me please!"
2. Make sure you double check for math errors. Another reason to use professional or computer software to help you avoid calculation mistakes.
3. Know your tax preparer- if you file a return with a professional make sure you know them because if they are found to have errors all of their clients will be audited along with them. Do your homework and make sure you find someone who is on the up and up. If you have doubts make sure you have a second opinion before you go on.
Continue reading "What are the 10 things you can do to prevent being audited by the IRS?"February 23, 2007
What is the difference in tax rates between ordinary income and capital gains?
The topic of this article is the answer to the following question: what is the difference in tax rates between ordinary income and capital gains?
Let's start the article by going over what exactly capital gains are.Capital gains is the term for the profit that you get when you sell an asset, like a stock, that you bought at a lower price than you sold it for.Capital gains can be achieved on stocks, on bonds, on property, and on precious metals like gold or silver.While many countries out there actually do not levy a capital gains tax, the United States does have a capital gains tax.It is important for you to know about capital gains and capital gains tax so that you can arrange your investments and your tax strategy accordingly.
What percentage of money owed is typically recovered by a collection agency?
What percentage of money owed is typically recovered by a collection agency? The percentage of debt recovered is determined by how old the debt is, the percentage of commission, and the percentage recovered.
Most debts less than 3 months old recover about three-quarters of the amount owed. As the length of time increases the amount recovered decreases. At six months the average drops to close to half and by 1 year only about one third of the debt will be recovered. These numbers reflect the need to start your collection proceedings as soon as possible after the loan becomes delinquent.
February 22, 2007
What rate of return should I expect on my stocks?
The topic of this article is the answer to the following question: What rate of return should I expect on my stocks?
The rate of return you should expect on your stocks is a complicated question, and there is no one pat answer that will tell you what you should expect from all of your stocks.You buy different stocks for different reasons, and everybody has their own investment style that will allow them to accept different rates of returns.It's pretty easy to find the expected rate of return on a stock-all that you need to do is look up a stock analyst's report on the company that you're considering investing in.Make sure that you do your research on the company to make sure that it's the kind of company that you want to invest in, but along with your research, you will come across the expert-predicted expected rate of return.
February 21, 2007
When the market is strong but my stock is low, when should I call it quits and sell?
The topic of this article is the answer to the following question: When the market is strong but my stock is low, when should I call it quits and sell?
Now, even the most financially-challenged person can tell you the basic idea behind succeeding in playing the stock market.You buy when stocks are low, and you sell when stocks are high.Pretty easy, right?Well, actually, thinking that it's easy is actually pretty wrong.Even though all traders know that this is the basic idea behind playing the stock market, a lot of the time it doesn't quite work out that way for them.Why?Because they don't look at the really important indicators and factors that tell you when a stock is low and when a stock is high.For example, you might look at a stock that you're thinking of buying.The price is pretty high, so you pass on it, and snap up a low priced stock instead.This could be a big mistake.Or maybe you hear about a really popular stock, so you buy it anyway.You buy it even though it's at a high price, and you don't research whether or not its popularity will last.This could be a big mistake.Or maybe your stock is still pretty low, still around the price you bought it, but the market is pretty strong.Should you sell your stock or not?Well, it all depends on a lot of different factors, including whether or not you are a growth investor-you want short term, high yield in vestments-or a value investor, who makes long term investments designed to pay off big sometime in the future by buying stocks that the market has forgotten.
What is lean accounting and how can you make it work for your company?
No matter what you call it, lean accounting is a philosophy that has been around for a long time. It is focusing on the customer and eliminating waste,
Creating goals for your company to comply with in changing from the traditional types of standard types of accounting to the lean more efficient accounting plan is important. Here are some suggestions you can follow to implement changes.
- Provide accurate, timely, and understandable information to motivate a simple lean transformation through out your business. With real information, people tend to have an easier time following through with goals.
Continue reading "What is lean accounting and how can you make it work for your company?"February 20, 2007
How can I participate in a stock market simulation to practice before investing real money?
How can I participate in a stock market simulation to practice before investing real money?
The stock market is a risky place. It is very easy to lose a lot of money in the stock market if you do not know what you are doing and if you do not have a lot of experience investing. It is true that when there is a higher risk there is a higher chance of return, but if you do not have experience there is also a high chance of loss. You do not want to invest if you do not know what you are doing.
Continue reading "How can I participate in a stock market simulation to practice before investing real money?"What do bookkeepers do and are they worth it?
Bookkeepers used to keep ledger books for businesses thus their name. Of course with the invention of computers and programs like QuickBooks very few people keep literal books in a ledger anymore although it is a great way to learn bookkeeping for children. So why not just use QuickBooks and do your own accounting? This is a matter of how much you value your time and what other things especially money making things you could be doing if you hire a bookkeeper to do it for you. What is a few hours walk on the beach worth to you? or if you are a workaholic, how much more business could you pull in if you were freed up of the record keeping aspect of your business? If you can pull in double the amount it costs to hire someone to do the record keeping aspect then you have paid for them and made your business more successful.
Continue reading "What do bookkeepers do and are they worth it?"February 19, 2007
How to calculate your breakeven point?
Knowing your breakeven point is crucial to any business venture it changes the risks involved with starting a company and can help you make good decisions with a company that is already running. The breakeven point is a crucial piece of information and calculating it as accurately as possible changes the future from a guess to a plan.
First let's define the breakeven point- breakeven point is when you are back to 0 in your business. Most of us know a products profit margin or the amount over the cost of the product that we make for each item that sells. Let's take a hamburger restaurant as our example. We are great shoppers and find our hamburger for $2 a pound so our ΒΌ pd hamburger costs .50 plus the bun and toppings lets say we are up to $1 per burger. We sell the burger for $2 and that makes our profit margin per unit $1. But we have to pay Sally and Susie to work at the hamburger restaurant and we have to pay for lights and rent on the building and energy to heat the burgers, these are all our overhead costs. Let's say all those things come to $1000 a month more. That means for our business to get back to 0. We aren't losing any money or making any money we have to sell 1000 burgers a month. That is our breakeven point.
Continue reading "How to calculate your breakeven point?"February 18, 2007
How to build a small company using credit cards.
Using Credit cards to build a small company can be sufficient, and convenient. If you take the time to shop for a fair interest rate, understand and avoid fees, carefully manage your credit score and create a solid payment plan, you could be well on your way to entrepreneurial success.
There have been many companies started and maintained in the beginning by using credit cards. There have also been many companies sunk literally by the weight of the credit card fees and interest rates.
Continue reading "How to build a small company using credit cards."February 17, 2007
How much do collection agencies cost?
How much do collection agencies cost? There are two ways that collection agencies charge for their services. The first is a flat or fixed fee for services. An example would be Agency A will send out 3 letters and make one phone call for $10. This is the usual method for smaller debts. For larger debts the company charges on a contingency basis. This means that they charge a percentage of the money collected. The fees also go up if the agency involves a lawyer in the proceedings. This can raise the percentage from an average of 20-35% to about 50%. A good agency will first exhaust all methods available to them to persuade your debtor to pay without legal involvement.
Obviously the contingency basis is to your advantage because you only pay if they collect, giving them incentive in the outcome as well as you. This is a good insurance that the company will do their best to recover your money. This percentage plan is probably more expensive in the actual amount paid to the agency but because they have an interest in the debt on contingency you can't measure how much more they will collect.
Continue reading "How much do collection agencies cost?"February 16, 2007
How much interest can a lender charge?
How much interest can a lender charge? Interest is the money a lender charges to borrow their money. The amount of interest a lender can charge is governed by federal and state laws. There is a special law called Usury law that prevents lenders from charging too much for interest. There are many exceptions to this Usury law. Each state and each lending situation has its own laws governing the amount of interest that can be charged.
As you have probably noticed usually a home mortgage is the lowest interest rate at least in recent years. It is common to find interest rates for 30 year mortgages as low as 7%. Credit cards usually charge the most interest from 9-25% interest. These are called "retail installment transactions" and included department store cards, Visas, and MasterCard's.
Continue reading "How much interest can a lender charge?"February 15, 2007
How do lenders decide what interest rate to charge?
How do lenders decide what interest rate to charge? As with most things a lender is just a person trying to make money so just like gas prices are determined by many factors including state and federal laws. Interest is determined by many factors.Some of those factors include what price people will pay. Obviously if a lender has enough competition charging less than him he will bring his interest down. Also if there are no borrowers looking for loans than the lender will bring his interest rates down to attract more borrowers or have a great starting interest rate to get you hooked. Some less scrupulous lenders will also have hidden fees that don't show up on their initial disclosure of the interest rate.
The Congress enacted a law called the Truth in Lending Act and it helps us have an equal way to measure different loan offers. Every lender must give you a truth in lending statement which is where the accurate comparison numbers can be found. This document must include 4 key points of information.
Continue reading "How do lenders decide what interest rate to charge?"February 14, 2007
what is the difference between realized gains and unrealized gains?
The topic of this article is the answer to the following question: what is the difference between realized gains and unrealized gains?
Let's start by giving a basic definition of what realized gains and unrealized gains are, and then we will go more in depth in discussing the differences between realized gains and unrealized gains and what they mean for you as an investor.
Realized gains and unrealized gains (or loss) are two different classifications of capital gain.Capital gain is the income that you make on assets that you sell for more than the amount for which you purchsed them, assets like stocks, bonds, different kinds of properties, and precious metals.
The first thing that you need to know is that you have to pay income tax on your realized gains, but you do not have to pay income tax on unrealized gains.
So, first of all, let's talk about realized gains.The realized gains is the capital gain that you make on an investment that you receive in the form of cash.So, the investment can actually be when you sell a security, when you receive interest or dividends on a security or cash accounts that is sent to you as cash.If you are looking for where you can find realized gains, there are a few places where you can find them.You can look on the Distribution of Earnings Statement, the Income and Expense Statement, the Withdrawal Earnings Report, and the Balance Sheet.They will not be listed as "Realized Gains."Instead, you will find them reported under the names of Taxable Interest, Miscellaneous Income, Dividends, Capital Gains, and so on.
Second, the basic definition of unrealized gains is that unrealized gains are the capital gain on an investment for which you do not receive cash.Unrealized gains are also defined to as referred to as paper profits.So, the unrealized gain is the amount that your stock's value increases, but you have not sold the stock and you haven't received the cash, so the gain is still unrealized.Or, in other ways, the gain is not yet translated into something physical, like cash.It is still a potential gain, and as soon as you sell the stock, then the gain will become realized when you receive your cash.
The opposite of realized gain is realized loss.Realized loss is any loss that you have when you sell a stock.So if you sell a stock at a lower price than you bought it for, then it is a realized gain.Another way to talk about unrealized gain and unrealized loss is that the unrealized gain/loss is the difference between the current market value of a stock or investment and the book value of that investment.
So why is it important for you to know the difference between realized gains and unrealized gains, and/or losses?Well, you do need to know what you are going to be taxed on when it is time for you to turn in your income tax forms.You will have to pay taxes on your realized gains, but you will pay those taxes at a different rate than the regular income tax.There is a particular capital gains income tax rate.So, keep track of all of your realized gains-even if it is just the $4 per share that you make on your annual dividends.You will have to pay capital gains tax on that dividend.Similarly, when figuring in how much return you will make on a stock when you sell it, don't go and buy that boat before you figure in how much you are going to have to pay in capital gains income tax on that realized gain.
What are the Top 10 ways to get my customers to pay on a more timely basis?
1. Use the carrot and the stick method or reward your customers who pay on time. Using a clause in your billing that offers those who pay within 10 days of receipt of the bill a 2% discount is a small incentive for them to pay on time and could increase their desire to do so.
2. Use a punishment and consequence method. Use a clause in your billing that states the consequence of 1.5% added to their bill each month that the account goes unpaid.
3. Make it easy for your customers to pay. Give them many options of methods of payment and don't charge them for paying with credit card or over the phone. Make it easy to pay you by having more hours available for customers to pay and phone methods available for them to pay.
Continue reading "What are the Top 10 ways to get my customers to pay on a more timely basis?"February 13, 2007
Top 10 ways to choose a good collection agency
Choosing a collection agency is a very important decision and one that must be made with careful planning. Here are 10 things you should consider when choosing a collection agency
1. Does the collection agency have licenses in the states your debtors reside? Each state has different rules about licensing collection agencies. Make sure that the agencies you consider have the proper licensing for the location you are in.
2. Check out the form letters your clients will be sent. Make sure you are comfortable with the wording and that it works for the type of accounts you are wanting collected. Make sure the letter reflects the urgency yet professional attitude you want to portray without offending your clients.
February 12, 2007
Free cash flow - what it means and how to build it.
Money comes and goes in a business. Equaling income and expenses, this is free cash flow. Keeping track of your cash flow and making sure you do not run out is the way to build it.
Your company will need to be able to have enough money coming in to cover the expenses going and then have a little money at the end of the month left over to build an increase in the cash flow.
February 11, 2007
What are five key metrics every manager should watch to guarantee their company's financial health?
A manager needs to watch five key metrics to guarantee their company's financial health.
Business leaders and managers have to develop at least basic skills in financial management. Basic skills in financial management start in the critical areas of cash management and bookkeeping, which should be done according to certain financial controls to ensure integrity in the bookkeeping process.
The best way to start looking at the five key metrics, we need to understand how we come up with what they are. The best metrics bring to light opportunities for improvement and drive the results needed. The metrics will provide a way to measure different types of performance. The metrics will help create change. These metrics must be tailored for your business needs.
What are five key metrics every manager should watch to guarantee their company's financial health?
A manager needs to watch five key metrics to guarantee their company's financial health.
Business leaders and managers have to develop at least basic skills in financial management. Basic skills in financial management start in the critical areas of cash management and bookkeeping, which should be done according to certain financial controls to ensure integrity in the bookkeeping process.
The best way to start looking at the five key metrics, we need to understand how we come up with what they are. The best metrics bring to light opportunities for improvement and drive the results needed. The metrics will provide a way to measure different types of performance. The metrics will help create change. These metrics must be tailored for your business needs.
February 10, 2007
There is a better way than financing your company on credit cards?
Financing your company in other ways than that with credit cards is very possible. Some options might be, factoring, mezzanine financing, asset based lending, purchase order financing last but not least family and friends.
Seeing first hand the challenges facing the small business community and knowing that entrepreneurs need more than just cash to grow their business, there have been many options come available to help businesses grow.
February9, 2007
What are some important question when deciding which bank to use for your business?
Choosing a business bank is like choosing a business partner and must be handled with care. Your bank can be a great asset to your business or add to your problems. Determining your needs is a crucial element in choosing which bank to go with.
So what are some things you might need from your bank? Loans of course are a major thing you could need your bank for, so finding a bank with low interest rates and friendly loan officers. Getting to know the loan personnel on a first name basis could help you get your loan needs met quickly. This could be very important to your business. Small local banks have a more personal feel and therefore could be what you are looking for to help with the getting to know the staff problem.
February7, 2007
Should I choose a local bank or a national bank for my business?
There are many differences between a national bank and a local. Which you choose depends on your businesses needs and what is important to you. Here are the five differences and some information about each to help you in your decision.
The first is customer support. Large national banks have a less personal approach to customer support but may also have more branches for your banking transactions. Local banks have a more personal feel to them you could even get on a first name basis with the manager of a local bank much more quickly than with a large national bank. Local banks change their policies more readily to meet the needs of the local customers. One draw back for local banks is there are fewer locations to do your banking. As the old saying goes it's not what you know but who can also apply to banking. Usually the local bank is prominent people in your community who would be good networking contacts for your business.
February5, 2007
How do I decide whether to offer credit to a specific customer?
Having a standard policy that applies to all customers is a good idea for any business when deciding when to offer credit. But each customer's specific needs could influence your decision as well as your general policy.As always a decisions about offering credit must begin with a credit score and report. But what if your best customer, some one who loves your product and really wants it, has a lower score? Should you make exceptions to the standard rules?
This decision can get you in trouble with the Equal Credit Opportunity Act which prohibits the use of race, religion, gender, marital status, birthplace, or because an applicant receives income from a public assistance program in determining credit approval. If you start making exceptions to your standard rules you could find your self in a serious lawsuit for up to $500,000 or one percent of your business's net worth, whichever is less. It can get costly to make exceptions.
Continue reading "How do I decide whether to offer credit to a specific customer?"How do I decide whether to offer credit to a specific customer?
Having a standard policy that applies to all customers is a good idea for any business when deciding when to offer credit. But each customer's specific needs could influence your decision as well as your general policy.As always a decisions about offering credit must begin with a credit score and report. But what if your best customer, some one who loves your product and really wants it, has a lower score? Should you make exceptions to the standard rules?
This decision can get you in trouble with the Equal Credit Opportunity Act which prohibits the use of race, religion, gender, marital status, birthplace, or because an applicant receives income from a public assistance program in determining credit approval. If you start making exceptions to your standard rules you could find your self in a serious lawsuit for up to $500,000 or one percent of your business's net worth, whichever is less. It can get costly to make exceptions.
Continue reading "How do I decide whether to offer credit to a specific customer?"February4, 2007
How do I decide whether to offer my customers credit?
Everyone knows that offering credit can increase sales. People spend more when it is on credit and also it can establish a business relationship with that customer who will shop with you more often if they have a credit account for convenience. But offering credit is also a risk if your customer doesn't pay. This can cost you not only the amount borrowed but also any fees used to collect the money from them later.
So it is important to establish a policy in your company determining when to offer credit to your customers. Here are some things to look for in a potentially good credit customer and ways to help them stay good credit risks.
Continue reading "How do I decide whether to offer my customers credit?"How do I decide whether to offer my customers credit?
Everyone knows that offering credit can increase sales. People spend more when it is on credit and also it can establish a business relationship with that customer who will shop with you more often if they have a credit account for convenience. But offering credit is also a risk if your customer doesn't pay. This can cost you not only the amount borrowed but also any fees used to collect the money from them later.
So it is important to establish a policy in your company determining when to offer credit to your customers. Here are some things to look for in a potentially good credit customer and ways to help them stay good credit risks.
Continue reading "How do I decide whether to offer my customers credit?"February3, 2007
Do I need an accountant?
Can I personally be liable for a business loan? Yes, there are several ways you can be personally liable for a business loan. If you are the owner of a sole proprietorship or partner in a general partnership you are personally responsible for all loans your business takes out. If you personally guarantee a business loan, it means that you are personally liable as well.
Some people get business loans without thinking about how it will affect their personal credit. If your business is structured as either a sole proprietorMeta Description: Do I need an accountant?
Continue reading "Do I need an accountant?"February2, 2007
Can I personally be liable for a business loan?
Can I personally be liable for a business loan? Yes, there are several ways you can be personally liable for a business loan. If you are the owner of a sole proprietorship or partner in a general partnership you are personally responsible for all loans your business takes out. If you personally guarantee a business loan, it means that you are personally liable as well.
Some people get business loans without thinking about how it will affect their personal credit. If your business is structured as either a sole proprietorship or general partnership that loan is not just going on your business but your personal credit. If your business defaults you will have to pay the loan or declare bankruptcy. It is a serious commitment and whether you personally sign the paper work or agree to guarantee the loan you do.
Continue reading "Can I personally be liable for a business loan?"The Cash versus accrual methods of accounting and which is right for me?
There are basically two methods of accounting expenses and income. One is cash basis and the other is accrual. The difference between the two is basically time. With the cash system you only account for an expense or earning when you actually get the money or pay it not when you accrue the sale or expense. This can get inaccurate when you are paying with credit or other ways to prolong the payment or if you use a collection service to do your accounts receivable you only count income when it actually hits your account not when you have done the service or given the product.
Here is an example of each type of system
Continue reading "The Cash versus accrual methods of accounting and which is right for me?"The Cash versus accrual methods of accounting and which is right for me?
There are basically two methods of accounting expenses and income. One is cash basis and the other is accrual. The difference between the two is basically time. With the cash system you only account for an expense or earning when you actually get the money or pay it not when you accrue the sale or expense. This can get inaccurate when you are paying with credit or other ways to prolong the payment or if you use a collection service to do your accounts receivable you only count income when it actually hits your account not when you have done the service or given the product.
Here is an example of each type of system
Continue reading "The Cash versus accrual methods of accounting and which is right for me?"February1, 2007
How can I get angels to invest in my company?
How can I get angels to invest in my company? Angels are private investors who look for promising new companies to invest their money in. Generally they invest in businesses close to where they live and there are many local angel groups in many areas. They are investors with their own money who are looking for promising businesses to help start up for an equity in the business. They usually want to have an exit plan once the company is firmly on its feet.
In 2004 it was estimated that angels invested 24 billion dollars in 55,000 businesses. Most groups meet on a regular basis to review businesses looking for financing and they decide as a group whether to invest with the business presented.