Why Reverse Mortgage Can Be Beneficial for You

If you are over 62 and you want to find out how you can manage your post-retirement finance, reverse mortgage can be a great option. You don’t have to make monthly payment and as long as you remain the owner of your house, the cash will always be paid regularly to you.

Types of Accounting Careers

Luca Pacioli is known as the ‘Father of Accounting’. However, he did not invent the accounting system, but he codified it in the way accounts are done today. According to the American Institute of Certified Accountants (AICPA), accounting has been defined as “The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.”

Accounting Career Types

Any educated individual with an analytical understanding of finances can aspire to be an accountant. Interpersonal skills, ability to communicate and market awareness play a key role in understanding the complex and changing financial environment. Following are the different types of accounting careers.

Financial Accounting
Financial accounting is based on rules issued by the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB) and the International Accounting Standards Committee (IASC). The work of the financial accountant is to make analytical observations that would influence the investment and credit decisions of a company or firm.

Public Accounting
This type of accounting is the most varied type and includes bookkeeping, account management and financial analysis for individuals, private businesses, public firms, government or NGOs, which are either based nationally are internationally. A public accounting business can have one or more accountants and both certified and non-certified accountants can provide public accounting services to their clients. A public accountant can also be involved in external auditing and/or forensic accounting. In external auditing, auditors go through the financial records of their clients to make sure that they are in order and there are no discrepancies. Forensic accounting involves analyzing historical financial data to check for any illegal and questionable money transactions such as money laundering, embezzlement, securities frauds and any other illegal

Ideas For Creative Business Financing

Whether you are already a business owner, or are starting up new, the first thing that you will think about is finance. There are many ways of going about getting the money you need.

That said, you must also take into consideration several factors before you get the money. Have a look at the various options you have in front of you, and compare it with your business plan and projected revenues. Realistically speaking, identify how you would be able to repay the money that you are borrowing.

Here are some ideas that will help you get the money you want.

Savings Account: Here we are talking about your own savings account. Before you dip into your kitty of savings, consider the following: How much savings have you got in that account? Are you dependent on that money for your day-to-day expenses? How confident are you that your business venture will succeed? Be realistic while you make these considerations. If the savings account is not something you depend upon, and you can afford to forget about the money you take from it should you incur a loss, then go ahead and take the money from it. The upside to this is that you are taking an interest free loan from yourself and saving quite a bit of money on that end. You can even repay this loan in variable installments, and not suffer penalties for it.

Family and Friends: This is also a good option for you to acquire funds for your business venture. Depending upon what you discuss with your friends and family members, you can choose the method of repayment, and also if you are liable to pay interest. The downside to this is that if you cannot repay the money back in the time that

An Overview of Commercial Financing for Business

Financing a business, keeping the economic perspective in mind, is very different from obtaining a loan for personal reasons. From an economic perspective, the expenses that have to be borne by a business can be broadly classified into fixed costs and variable costs. Fixed costs remain the same, regardless of the level of production. In other words, whether or not a business is in operation, the amount of fixed costs will remain the same. Expenditure on machinery and equipment is an example of fixed cost. Variable costs, on the other hand, change, depending on the level of production. Variable costs are directly related to the level of production. The cost of raw materials is an example of variable cost. Hence, from the point of view of an economist: Total Cost = Total Fixed Cost + Total Variable Cost

From the perspective of accounting, costs can be classified as implicit or explicit. Explicit costs are expenses which can be accounted for in monetary terms. Both, rent and wages paid, are explicit costs. On the other hand, a businessman who does not pay his wife for assisting him in day-to-day workings of a business, is said to incur implicit costs. Hence, for the purpose of accounting, total cost can be defined as: Total Cost = Explicit Cost + Implicit Cost

Commercial financing is needed, not only during the start-up phase, but also during the development, operating, and growth phase.

Pioneer Phase/Start-up Phase

Seed Capitalists: Seed capital is usually provided by friends and family members of an entrepreneur. This funding is necessary for activities like market research in order to test the feasibility of the business venture. The amount of seed capital is usually small.

Angel Investors: A business can also be funded during the start-up phase by angel investors. Angel investors are affluent people who finance a

How to Establish Business Credit?

With the rapid change in the financial world, everything related to finance is changing, whether it is credit facilities or investments. Steps are being taken to make everything simple, convenient, and fast. There is a consensus among financiers that businesses have different financial requirements, and there is a need to resolve them. One such step taken by these, which may help businesses, small or big, is to establish business credit. This is an option which you can avail of, where financial institutions provide loans, without needing the credit rating or the personal assets of the owner as security. And, most importantly, the organizations of every size and age can avail of it, whether it’s old or new, big or small. Whether you need finance for setting up or expanding the business, purchasing material or equipment, or advertising, this facility is always there for you.

Steps

There are various steps involved in establishing it. The first point that you should remember is to ensure strong fundamentals of your business. Moreover, you should also take care to see to it that you meet the requirements of financiers. Ensuring this would make listing of your business with commercial credit reporting agencies easier.

The next step is to develop a connection with suppliers and vendors. These suppliers and vendors should be such that they not just extend credit payments, but most importantly, report the history of your payments to the respective agencies. You need to have the backing of at least five such vendors, and they should not tie your personal guarantee or social security number while giving you such credit.

Obtaining credit cards for the same is the next step. You should get three such cards, but make sure that they are not connected to your personal credit. Moreover, you should also ensure that these credit card

What is Tangible Net Worth?

One of the financial parameters which lenders care a lot about when deciding whether or not to finance a company is its tangible net worth. It represents the total of its tangible assets like land, building, machinery, inventory, etc.

Explanation

If there is any party which is most concerned with the tangible net worth, it is the lender. When a company approaches a lender and asks for a significant amount of money as a loan for expansion purposes, the lender will no doubt be a little wary.

The lender will view all the finances of the company, its performance, its ability to generate revenue and its ability to pay back the loan. Of the parameters it chooses to examine when they evaluate whether or not the company will pay back the loan, is the tangible net worth of the company.

One look at the word will tell you that it has got to do some thing with tangibility and the market value of the company. It is the amount of money that the company would realize, should it go into the market and sell all of its tangible assets. The distinction between tangible and intangible assets needs to be made here.

Tangible assets are those which can actually be touched, felt and sold. Intangible assets include goodwill, trademarks and patents which the company has. But, while intangible assets command a pretty good value, no one in the market will be willing to ‘buy’ goodwill, unless they buy the company outright. Therefore, tangible assets include all such items which have a resale value.

Importance

Let’s go back to the reference about the lender here. When a lender evaluates whether or not to give you a big loan, the lender no doubt wants to know if you will be able to pay it

How to Raise Money for a Business?

The capital is one of the first things that needs to be taken into consideration when one is setting out on a business venture, and there are many different sources to obtain this capital. It is not necessary to stick to one particular source rigidly; even a combination of various different sources can be used.

Anyone who is wondering how to raise money for a restaurant, a start-up, an advertising agency, or any other small-scale venture should keep these methods in mind. Approaching the right people for it is vitally important for the success of the business, and if this is not catered to properly, it will be doomed from the very beginning.

Personal Savings

This is the most obvious source of money for starting a business. If you have saved up enough money over the years, go ahead and make use of it to serve the underlying purpose. You will not be answerable to anyone, and you will not have to worry about repaying someone. If you choose this option, ensure that you are not using all your savings though. Many people neglect this option because if they lose it, they will have nothing left to live on.

Venture Capitalists

This is the next most obvious source for your initiative. Venture capitalists are professional agencies who put in venture capital into an upcoming business. What they get in return is either its share, or a share of the profits, or pretty high interest rates. It may sound like exploitation, but this is one of the best ways to get money. Venture capitalists are always looking for new and innovative business ideas that are likely to succeed.

Angel Investors

These are a refined form of venture capitalists, but many people think that they mean the same thing. Angel investors are less demanding than venture capitalists and remain

What is the Difference Between a Public and Private Corporation

Companies are generally classified as proprietary firms, private companies, and public companies. While proprietary firms have a single proprietor who looks after the business, private firms can have some members who sit on the board and run it. Public corporations, on the other hand, are listed entities which have full-time board of directors consisting of a chairman, chief executive officers, managing directors, chief financial officers, independent directors, and audit professionals.

Private Corporations

A private company is held or controlled by the founders or promoters of the company. A privately held corporation can start its operations once it gets incorporated. It is not listed on the stock exchange and hence cannot raise funds through equities. One of the biggest advantage for a private company is that such a company does not have to show its financial information to the public. It is not answerable to shareholders like in the case of a public corporation.

In a private corporation, the management has total control over the company’s operations and it can take decisions in favor of the organization without much consultation with parties like major shareholders and stakeholders. So, the chances of an investment proposal getting rejected because of non-approval by sources related to the company are zero. Private companies are not allowed to offer their shares to the public unless they complete the formalities and listing process. Many people think that private companies are always very small as compared to public companies. However, this is not true as there are private companies that are earning millions of dollars in profits every financial year.

Public Corporations

A public corporation is a business entity which is listed on the stock exchanges of the United States. This is a company which has sold a part of its stake to the common public through an Initial Public Offering (IPO). So,

Importance of Financial Planning

A broad definition of personal financial planning can be stated as, “a process of determining an individual’s financial goals, purpose in life, and life’s priorities, and after considering his resources, risk profile and current lifestyle, to detail a balanced and realistic plan to meet those goals.”

Financial Planning

It is a process which presents before an individual, organization, or even a country, the current financial position and the adjustments in the spending pattern, in order to meet the goals.

Importance of Financial Planning

It is important to plan finances in order to reap long term benefits through the assets in hand. The investments that one makes are structured properly, and managed by professionals through financial planning. Every decision regarding our finances can be monitored if a proper plan is devised in advance. The following points explain why financial planning is important.

Cash Flow: Financial planning helps in increasing cash flow as well as monitoring the spending pattern. The cash flow is increased by undertaking measures such as tax planning, prudent spending, and careful budgeting.

Capital: A strong capital base can be built with the help of efficient financial planning. Thus, one can think about investments, and thereby improve his financial position.
Income: It is possible to manage income effectively through planning. Managing income helps in segregating it into tax payments, other monthly expenditures, and savings.
Family Security: Financial planning is necessary from the point of view of family security. The various policies available in the market serve the purpose of financially securing the family.
Investment: A proper financial plan that considers the income and expenditure of a person, helps in choosing the right investment policy. It enables the person to reach the set goals.
Standard of Living: The savings created by through planning, come to the rescue in

The Financial Planning Process

It is essential that all of us have some goals in life. Short-term goals include a good job, great career, and small investments. Long-term goals include buying a house, children’s education, retirement policies, etc. Financial planning is one of the most crucial decision of one’s life. If you start planning early, you can get out of a financial mess that can arise later in life. It is very common to spend more than what you earn. Of course, there are facilities, like credit cards, buy now pay later schemes, installments, etc., which compel one to overlook their finances. At the end of the month, when bills keep pouring in your mail boxes, you find yourself in a sticky situation. And this mounting bill payment adds a semi-colon to your long-term dream of owning your own house. Sometimes, medical emergencies also forces you to dig into your children’s education fund. Marriage plans for your only daughter? You borrow some money from your retirement fund. There goes the trip to Egypt, you have planned all those years!

The answer to all the above mortifying financial situations is ‘Financial Planning’. The planning process helps give a direction to your financial decisions. It helps you decide various investments that can bail you out of your financial problems. For example, investment in mutual funds may help you repay the loan or save enough for your retirement. Once your financial goals are set, it helps make your life more secure and flexible for any financial emergency that may arise.

You can carry out your own financial planning by taking a guidance from self-help books, newspapers, magazines, the Internet, or discussing your financial needs with your spouse. If you feel, you can’t handle it yourself, then opt for a professional financial planner. This Buzzle article, will help explain process

How to Plan Financially for the Future

Well, living in today is alright but we also have to think about tomorrow and hence, it is important to plan for the future. Since there is apparently only one thing that seems to control the world, that is money, one has to plan his or her finances wisely to have a secure future after retirement. Though, everything that one needs to ‘live’ cannot be bought with money, certain things that one needs to ‘survive’ have to be bought in exchange for money. So, one has to carry out meticulous financial planning for the future. If you are also of the same opinion, then you must read this article further.

Financial Planning for the Future

Well, there are many things one needs to consider while planning for the future in terms of finances. Given below are some of the factors you need to look into:

Current Economic Status: You must analyze your current economic status including your annual income. It will give you a direction towards financial planning for the future.

Expenses: You must also consider the expenses you make on a yearly basis. It is suggested to make a list of your ‘needs’ and ‘wants’ and determine how you decide your priorities and make expenditures accordingly.

Asset Analysis: Yes, this is one of the important aspects of financial planning. You must know and ascertain the number, or quality, of your assets before you start financial planning.

Liabilities: Liabilities are as good as expenses. So, you must pay attention regarding how you would deal with liabilities, and how you would manage and sustain them.

These were some of the crucial factors one has to consider when it comes to financial planning for the future. Now let’s take a look at some of the ways and ideas that can help you plan

Career As a Financial Planner

With more and more people investing in the stock market, the demand for financial planners is increasing by the day. There is a lot of competition for jobs, with security brokers and dealers paying top dollar, for skilled financial planners. This profile is recognized by several names like financial planner, financial advisor and personal finance consultant, but it is rarely referred to by its ideal name: Financial Product Sales Representative.

Every small occurrence in our life has an effect on our financial planning, be it a thought to buy a car or start a new business. It is a famous misconception that financial planners are important only for businessmen, actors or other wealthy people, but in reality even the most average earner makes investments and takes the help of a financial planner for it.

Duties of a Financial Planner

These professionals make recommendations and give guidance to individual investors regarding financial planning. Financial planners have knowledge of tax laws and use it to provide tax advice.

Financial planners also help in estate planning. They use their knowledge to gauge the need for expansion of the estate or merger with another business entity. Every investment or expense goes through the hands of financial planners before the final approval.

A financial planner has to advise many clients in order to be considered successful. There is a difference between financial analysts and planners. Financial planners work with personal investors while financial analysts work with organizations.

If you want to know how to save money for a college education, you will need the services of this financial planning professional. If you want to write a will, or plan for a secure and comfortable retirement, you will need a financial manager.

They also sell life insurance to their customers. Private bankers also fall into this category,

Financial Planning Tips When Expecting a Baby

First time parents are expected to go overboard with preparations once their baby is on the way, be it expenses on baby clothes, accessories, nursery decorations, baby showers, etc. Shortly afterwards, the initial excitement wears down and the nine-month gestation clock starts ticking until D-day. This is when the realization of the extra cost of having a baby sinks in. This is the time when would-be parents start thinking about all the prenatal medical expenditure, expenses towards hospitalization and delivery, pediatric medical expenses, baby food expenses and money spent towards buying clothes, toys and education. I know the list is long and might seem like a money monster which will take away all the excitement of fine dining and shopping that you experienced before the baby came into picture, however, I wish to assure you that some of the financial planning tips listed below will surely ease your journey.
How to Save Money When Expecting a Baby
One of the biggest expenditures for children generally happen to be towards their education. But even before your baby is born, there are heaps of expenses to be dealt with. Here are some ideas to help you deal with these expenses.
Prenatal Medication
As soon as the pregnancy test is declared positive, would-be parents need to start shelling out money towards medical tests, ultrasounds, fees of gynecologists, nutrition supplements and so on. The uphill burden of expenditure can be reduced by opting for a health insurance policy right from the time you get married or start planning your baby. The health insurance company generally expects policyholders to pay a minimum amount towards each medical bill while the rest of the medical expenses are borne by the health insurance company. As a thumb rule, check if your hospitals, gynecologists and pharmacies

Money Mistakes Most Women Make

Money mistakes most women make
Money is important to all of us, and yet sometimes we are pretty ignorant about it. We all know that the economy is still in its struggling phase, and the uncertainty of employment is something that hangs on everyone’s head like a dangling sword.

The reason why the importance of money is highlighted here is because when it comes to the US dollar, many people just give it away without even blinking an eye. And, women do that more often.

Nothing against the fairer sex here, even men make financial blunders, but this article is aimed at the common money mistakes women make. Often, women let emotions take charge while spending money. It isn’t wrong to help a friend in need or pay your boyfriend’s bills, but just because you have the financial resources, it doesn’t mean that you should spend.

Financial Mistakes Women Make
Helping Others
Be nice with your neighbors and loved ones, but being overly helpful in lending money to them is a bad habit. Avoid fixing everyone else’s financial mistakes. In today’s times, no one can afford it. This means you should try to avoid buying a new house for your kids, paying the entire wedding bill for your daughter/son, or paying the college fees for your grandchildren if you do not have enough money for your retirement. It might be difficult to say no, but helping out others by sacrificing your own needs isn’t healthy.
Overspending on Designer Shoes and Bags
There is no need to emphasize how important these two things are, and it is not that looking good is a crime. The only thing to remember here is that you can look smashing even on a budget. However, if you can’t resist the temptation to buy designer stuff,

How to Get Financial Help for People with Disabilities

Financial aid for people with disabilities is of prime importance, as it can help them lead a good lifestyle and fulfill their daily needs. A person can suffer from disabilities at any time in his life, and they can be partial or permanent. In case the condition is very serious, the person might not be able to work, affecting his income. Considering this need, many governments around the world have come up with grants as financial help for the differently abled.

The Programs

There are many non-profit organizations, which provide financial help for such people without expecting anything in return. Some of these organizations are government controlled, while the rest are promoted by private business houses, or wealthy and successful individuals. Every year, these organizations seek contributions from people all round the world, so that they can meet the requirements of people who need help. They have their branches and zonal offices in almost all important cities and hence, you can consider contacting them, if you are in need. Another thing to note is that, help provided to the people is completely non-taxable.

Military service veterans can also benefit from such programs, especially the ones sponsored by the government. Handicapped veterans can take advantage of specially planned housing programs to build their own homes. Severely injured war veterans, who have suffered from burns can get full benefit of these housing grants. The U.S. Department of Veteran Affairs does the task of rating these veterans with disabilities by taking into consideration their medical history. The compensation, which is to be given to the veteran, will be decided on the basis of the number of dependents on the veteran. A scheme known as the ‘patriot express loan’ was useful for the veterans, who had an interest in setting up their own businesses. Under this scheme,