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.
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 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.
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
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
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
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
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.
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
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.
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.
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.
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
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.
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,
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.
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
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
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,
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
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.
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.
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,
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,