Accountants are pictured in TV and the movies as generally living dull and boring lives until they figure out how to embezzle millions from the company and flee to Brazil. Stodgy is the word that comes to mind when picturing accountants. Be that as it may, accounting in the USA has undergone changes in this new age of technology that we live in. Today, online accounting is offered through individual computer programs and Inter companies which work with businesses in a number of different ways.

Once, online accounting services were viewed as experimental. Today they are now widely accepted. Some, like TAD Accounting, offer complete financial managing packages, including bookkeeping, quarterly taxes, general ledger maintenance, monthly financial reports, cash flow management and a number of other services. Other, like CBIZ, restrict themselves to providing only information on employee benefit programs

TAD Accounting, for example, has established a system for a number of Blockbuster stores in several regions of the US. All stores are processed in the same manner to provide consistent reporting to the owners. The information is broken into daily, weekly, monthly, quarterly and annual reports. Within each time bracket, the data is broken down into each accounting cycle. This gives owners, at a glance, information regarding procedures being performed. They can also see when specific tasks and reports should be completed. The owners get quick, up to date information sales, payroll, expenditures, deposits, payment of invoices, vacation hours and many other things in highly specialized reports.

As well, TAD offers services to help a company catch up on back work or prepare for the annual audit. This includes a financial trend analysis, budget preparation and planning computer software conversion and many other things. It is generally quite cheaper for the business owner to outsource the bookkeeping and accounting to TAD Accounting than to hire and supervise it in-house. It is the responsibility of the accounting firm to bring on extra staff when needed, not the client. Savings for the business owner can be as much as 30% for some clients.

CBIZsolutions.com is an example of an online accounting firm which uses technology to provide a company’s employees with access to their personal financial information, improves company service and communications with its employees, and gives the company timely reports to help to effectively manage employee benefits.

By outsourcing work and engaging online accounting firms, businesses save money and get rapid access to the data they need in the format they want to make the correct financial decisions. Online accounting very effectively reduces the time required to exchange information between the clients and the accounting firm. The accounting firm no longer has to wait for the client to physically deliver its financial records. It is able to access to the client’s data base anytime information is needed.

Accounting services are moving from billable hours to a fixed fee for services rendered. This has forced them to become more efficient and more competitive. Online accounting gives clients immediate access to their financial information, in reports customized to their needs. This allows the client to make more accurate financial decisions. This translates into increased profits and happier clients.

Joe Goertz
http://www.articlesbase.com/advice-articles/how-to-increase-your-profits-with-online-accounting-69316.html

When investing in property, take care to structure your finances correctly or you could find yourself in a worse financial situation than where you started, especially in times of stagnant or declining property prices.

Example

Take Bob and Sarah Smith as an example. After 10 years of running their own small businesses, they are both now working full time, Bob as a clerk, earning $60,000 (Aust.) and Sarah as a cashier, earning $20,000 (Aust.). Being employed full time gave them the time and impetus to consider property investing.

Their first purchase was a 2 bedroom apartment in the outskirts of town. They borrowed $313,000 against the property which was valued at $303,000, using their own home as additional security. It is rented out at $240 (Aust.) per week.

Their second property was an “off the plan” purchase which wasn’t due for completion for 2 years. They paid the 10% deposit up front by way of a personal loan at the advice of an inexperienced broker.

Both their initial home loan and the loan on their first investment property had been set up incorrectly as Principal and Interest loans over 25 years. Adding the personal loan and a credit card debt to these meant that their outgoings were huge, compared to their income and the loans they were servicing. They were headed for a financial disaster when the time came to settle on the second property. To add to the mix Mrs Smith and her daughter wanted to buy into a small franchise and draw on the equity in their home.

Original Scenario

DESCRIPTION Original Valuation Value of loan Interest Rate Repayments/month

Own home $380,000 $220,000 6.9% $1,547

Property 1 $303,000 $313,000 6.9% $2,198

Property 2 $283,000 (deposit) $28,800 11.5% $637

Credit Cards $15,000 16% $450

TOTAL $576,000 $4,832

Result

Bob and Sarah were facing four possible options if they retained the above loan structure:

1. Being forced to sell the second investment property upon settlement as they couldn’t cope with the repayments.

2. Not be able to obtain finance or even settle the second property and losing their deposit and the $27,000 capital gain.

3. If they had kept going as they were and managed to settle the second property they may have started defaulting on loan repayments and paid more interest through the debt consolidation process by having to apply for a bad credit loan.*

4. Work harder and more hours to cope with the additional financial stress of an additional $1743 per month of outgoings.

Restructuring Issues

In the process of restructuring their portfolio there were a number of issues to consider:

1. There had been a recent interest rate rise and another imminent. Not only did this add to the size of their repayments but also negatively impacted the valuations on their own home and the first investment property, dropping $55,000 and $13,000 in value respectively. The second investment property increased in value by $27,000. This pushed the loan to value ratio (LVR) above 80%.

2. Sarah and her daughter’s intention to purchase the franchise business.

3. Limited incomes to service the loans.

New Scenario

DESCRIPTION New Valuation Value of loan Interest Rate Repayments/month

Own Home $325,000 $235,000 7.29% $1,427

Property 1 $290,000 $338,000 7.29% $2,053

Property 2 $310,000 $279,000 7.5% $1,743

TOTAL $925,000 $825,000 $5,223

Note:

Credit card debts were consolidated into the loan on their own home increasing it from $220,000 to $235,000.

The $28,000 personal loan for the deposit on the second investment property was consolidated to the investment side of the loan on the first property increasing it from $313,000 to $338,000 (the personal loan had reduced over the 2 years from approx $28,000 to $25,000).

These loan figures did not have Mortgage Insurance (LMI) premiums included. The premium was approx. $15,000 and the total LMI was capitalised to the investment portion of the loans. This allowed for tax effective structuring, (established in conjunction with accountant’s advice).

The second investment property was put to a different lender as this lender was able to lend against the recent valuation of the property, not the original purchase price.

New Result

The end result was Bob and Sarah settled on the second investment property with only a $400 per month increase in total outgoings. This was more than offset by a rental return on this property of $1213.00 per month.

Sarah obtained an unsecured business loan to buy the franchise. This eliminated $30,000 from being included in the calculations meaning Bob and Sarah were left with their portfolio being completely property related, apart from the consolidation of the credit cards.

* If you have defaulted on repayments this could have a negative affect on your credit rating. There are many websites that will provide a free credit report so you can assess your situation.

Colin Kidd, is the CEO of The Loan Saver Network a financial services company specialising in helping families who have been turned down by the banks.

Colin Kidd
http://www.articlesbase.com/real-estate-articles/restructuring-for-investment-success-80712.html

Sometimes it is the little things in life that really make the difference. That’s especially true then when it comes to dealing with financial matters. Decisions about who to trust, what to invest in, making gifts or the type of insurance to buy all have long-term consequences–and often unintended results. There are many times that a simple answer from a professional would have made all the difference. And now you can get that answer free of charge.

I’ve written over 160 articles since Guarding Your Wealth was nationally-syndicated over two years ago. Based on the comments from readers, these articles contain information they find very helpful, allowing them to answer many of life’s financial questions. You can freely explore this wealth of information at my website.

But sometimes it can be difficult to make the connection from a general news article to your own specific situation. Sure, that reader from Florida needed a Living Trust, but what about me? Those articles about Equity Indexed Annuities are informative, but what do I do about my elderly mother that just sunk all her money into one? It’s obvious that retirement portfolios need to be well diversified, but what do I do with my nest egg?

That’s where my ‘Ask Jeff’ can be of such a benefit. I can take my advice to readers nationwide and personalize it specifically for you. Many times you’ll hear back from me in a couple of hours. Other times it may take a day or so–it all depends on how tied up I am at the time.

How do I make money doing this? (My wife asks me that question all the time!) 99% of the time I don’t. I make a living serving as a personal, private money manager for a small group of clients nationwide. I provide a service they can’t find anywhere else for a fraction of what others charge.

Most of those who ask me questions will never need or use my services. Occasionally someone will and, if they become a client, I receive a fee for managing money on their behalf. But the only payback for nearly all of the questions I answer is the knowledge that I am able to provide unbiased, honest advice that can’t easily be found elsewhere. It’s that I’m doing what’s right.

Turning to the traditional financial services industry for answers to these kinds of questions isn’t easy. If you go to an insurance agent, their answer will involve an insurance product. If the advisor makes money selling stocks or bonds, don’t be surprised if their answer involves investing in them. Remember, if all you have is a hammer, everything begins looking like a nail! And you don’t want to get nailed!

I’m not saying that most advisors are dishonest. They aren’t. They are hard-working professionals with the best of intentions. But they work in an industry that values sales of products over all else. And consumers are typically kept in the dark about the tremendous conflicts of interest coloring their advisor’s recommendations.

For instance, I’ve been researching a product pitched to seniors that has an 80% market share. But if someone were given all the information on this investment, no one would buy it! Of course those selling it are going to give you only the information you need to arrive at the conclusion they desire.

That’s the way it usually works in the financial services industry. And that’s a shame. It does a great disservice to industry professionals who should be highly regarded, and to those the industry is supposed to serve.

Nationally-syndicated financial columnist and Certified Financial Planner Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He will answer your financial question FREE.

Readers find my articles refreshing because they provide straight-forward, tell-it-like-it-is advice. Since I don’t have a financial incentive in the outcome there isn’t a reason for me to mislead you.

You will be sent an email to verify your email address. It is very frustrating for me to take the time to write a detailed answer to someone’s question only to find out that the answer didn’t reach them.

Remember, today’s financial decisions may have long-term unintended consequences. So take me up on my offer, it won’t cost you a thing.

Jeffrey Voudrie
http://www.articlesbase.com/non-fiction-articles/investing-get-free-answers-to-your-financial-questions-140490.html

Practically everyone in the United States has credit cards. From teenagers to retirees, almost everyone has at least one credit card. Everywhere we go we see ads – in the television, radio, newspapers, billboard advertisements – on credit cards. Some credit cards are even mailed directly to our homes. But what are credit cards and why should you have one?

Simply stated, a credit card (or for many, just known as credit, is a financial arrangement between you, the consumer or the card user, and an institution (in most instances a bank), that you have to borrow instant money from them and promises that you will repay them back in the future. The institution agrees to that it will give the money you need and expects you to pay them over a certain time period, like on a monthly basis. Your payment will include not just the entire money you owed the group or institution but also an additional charge that is known as an interest rate, if you are unable to pay your full balance on time monthly.

Credit can provide various services, making it an indispensable tool for today’s consumers. These include:

Convenience. You saw this wonderful dress in a shop. Perfect for tonight’s party, you thought. But you don’t have money right now. Thanks to your card, you can buy anything you want right now. Credit cards give you that wonderful allowance not to bring that much cash and to order goods from catalogs. In addition, many of the online-based shops and stores, such as Amazon.com, mainly accept payment using credit.

Emergency Protection. For emergency situation, credit cards can be an extremely helpful tool that could be your friend that could pay for your emergency needs, like when your car conked out in the road, or your mother gets hospitalized, or any emergency situations that you need money but can’t get it from the usual means.

Putting you in the right budget. Want to keep a detailed record of your expenditures? Credit cards can do that.

Security. In today’s world, carrying large cash has become a problem. If your cash gets lost, there’s no way you can retrieve it. Compared with credit cards, money cannot be returned back when it got lost or stolen. If your card, for example, got broken or it got lost or someone stole it from you, you can always ask for a credit card termination or cancellation. You will have another card, a new one that will replace it in a few days.

Traveling. If you’re quite a traveler, whether across the town or country, or outside the US, it is relatively easier to travel with a credit card.

When used responsibly, credit cards are can help improve our daily lives. With cards, life could be so much easier.

Nicky Pilkington
http://www.articlesbase.com/debt-consolidation-articles/credit-card-services-and-why-we-need-those-little-cards-10708.html

There is a common misconception that people who cannot store their unaccounted wealth in their own country open accounts in Swiss banks. Even though this may be true to an extent, Swiss banks are well known for their sophisticated and discreet banking services.

Many of the rich and famous like film stars, business entrepreneurs, top government officials, presidents, etc, are reputed to have Swiss bank accounts. Then again, it is also said one need not be a multi-millionaire to open a Swiss bank account.

Brief Background of the Swiss Banking System

One of the most prosperous and economically advanced nations, Switzerland has the world’s largest gross domestic product (GDP). There are nearly 400 banks in Switzerland, which range from the “Two Big Banks”, to smaller banks, serving single communities or selective clients. Considered as the world’s largest offshore financial center, the Swiss banking sector is renowned for its privacy, stability and protection of their customer’s information and assets. The Federal Banking Commission (FBC) regulates these banks.

Opening a Swiss Account

Often freely available, a Swiss bank account provides total confidentiality, strict privacy, and is tax-free. However, certain documents are required as proof to open a Swiss account. For example, people who are not residents of Switzerland need to furnish their passports, along with a passport size photograph. Depending on the profession, a current bank statement would be required to determine the client’s current financial condition. Along with this, certain personal information, like the date of birth, country of origin, etc., is also required.

A useful feature of Swiss banking is that it can also be done via correspondence as long as the customers follow bank rules and regulations. The bank and customer could interact through the Internet, telephone or snail mail.

However, a drawback of Swiss banking is that non-residents are expected to pay a hefty amount as deposit, and, the smaller accounts are more expensive to maintain. There is a clause especially for US citizens wherein they are expected to refrain from making any business transaction through their Swiss accounts, to keep their account privacy intact.

Deposit

A security deposit is needed in case the customer wants to obtain a credit card. Approximately 1.5 to 2 times the monthly credit limit is demanded, depending on the bank the customer chooses. This deposit is returned when the customer decides to discontinue the credit card, and has paid all outstanding bills.

Confidentiality

There are legends about mysterious numbered accounts in Swiss banks. Some high security bank accounts are given pseudonyms or special names instead of issuing them in the name of the customer, to preserve the anonymity of the customer. This number or name is used wherever the customer is referred. Moreover, even bank employees are expected to respect the customer’s privacy, the failure of which could land them in prison for several months.

However, Swiss banks, being very particular about preventing money laundering, crosscheck the authenticity of the information provided by the customer. If, during the scrutiny, the bank finds the information of a potential or existing customer connected to some criminal activity, a Swiss judge or prosecutor issues a lifting order. These investigations could include international criminal investigation for tax fraud, insider trading, or the infamous terrorist financing of recent times.

Closing of an Account

Despite a few negative notions about Swiss banking, closing an account is said to be easier than expected. No financial penalty is demanded, and neither is the money held hostage, like it is done in other off shore banking.

To conclude, the secrecy and discreet nature of Swiss banking makes them convenient and dependable. This not only helps customers to save money, but also is a viable means of attaining economic superiority in the business world and society as a whole.

Joseph Kenny
http://www.articlesbase.com/finance-articles/all-you-need-to-know-about-swiss-banking-69562.html