Friday, July 27, 2012

Be Sure to Find The Tax Accountant That Can Do The Job Spot On

It cannot be stated clearly enough how important it is to properly prepare your taxes each year. At the beginning of every year, governments around the world require individuals and businesses to file tax forms declaring various financial figures. Most of these figures focus on income, though there are a number of items that may be taxable, or may be written off to reduce an overall tax bill.

Of course, proper filing of taxes is important to stay within existing tax laws, but also to ensure that any potential refunds are also received. For this, you may wish to enlist the help of bookkeeping services in Melbourne or any other city where professional bookkeeping services are offered.

A skilled and knowledgeable tax professional can be a tremendous asset, but there are some points to consider before making a business arrangement and turning over the necessary financial documents.

The first consideration that should be made is whether a particular accountant has the needed specialization for a particular case. Those with a broad range of investments, or businesses in certain sectors of the economy may have long and complicated tax filings each year. Can the accountant keep up with the workload, fully understand rules and regulations to ensure that there will be no tax penalty, and also ensure that they maximize any refunds that may be warranted in certain cases?

Second is to do a bit of background checking on the firm a particular bookkeeper may work for. This includes positives and negatives, as well as whether the firm itself has a particular tax and accounting specialty. Some firms may be more acquainted with personal tax regulations, making them a less attractive candidate for individuals and families.

Third, it is wise to ask whether the accountant that is the first point of contact will actually be your accountant, or if the job will go to another member of the accounting staff. If so, getting an idea of this person's background and credentials is a good idea as well.

Finally, it is important to remember that even though an accountant may be responsible for filing a tax return and attempting to get the maximum refund, each individual is still responsible for their own taxes. If there is any question regarding ethics, or questions that may not be easily answered, it may be best to seek additional accountants and accounting firms to give your business to.

Spending the time to find a good and reliable accountant can help to save quite a bit of money and stress, so choose wisely and deliberately.

Tuesday, July 24, 2012

A Few Investment Options

The prudent investor always analyses the pros and cons of any scheme before putting his money into it. The following are some investment options that he could consider carefully:

Investing in real estate like a house, apartment or a villa is quite rewarding. You may purchase it for your own or lease it to others as a landlord. In the latter case, you must have it in you to face any dour -faced or brazen tenant who refuses to pay the rent; you may have to force him to leave the place; many a time by physical means, if the need arises.

Evaluate the various insurance plans. Some insurance plans not only involve modest installments, but also ensure death benefits. A few insurance plans that give you lifetime returns can be considered. Annuities and whole-life insurance are some popular choices of many. In case of Company retirement plans, funds are generally tax-deferred.

You could deposit your money into checking accounts. As this account is easily accessible, you can withdraw it anytime. But if you keep it there for a considerable period, in the long run, you stand to lose interest on this money which you would have gained had you deposited it in some other better option. Similar is the case with savings account. Here also, withdrawal is fast but it would not be advisable to keep a large amount of money for a considerable period of time in this account as, once again here, you will not earn interest on your money as much as you would have got if it would have been kept in a fixed deposit or the- like account.

Investing in a Money Market Account in the bank gives better returns that that in a savings account, but the investor has to consider that this account requires a minimum stipulated balance and a maximum number of withdrawals and hence is not as flexible.

Investing in Certificates of Deposit gives you returns on the amount for the pre-specified period, with rates of interest better than those for savings accounts. The disadvantage here is that you have to pay penalty for pre-mature withdrawals, but your money is secure here if the deposit is held by a FDIC bank and the balance is within $100,000. Similarly, U.S. Saving Bond investments involve keeping the money for a fixed term and earning interest on the same for the kept period, without paying any state income taxes on the same.

When corporation requires funds for a new forthcoming project, it issues bonds so that money can thus be raised. When you purchase such bonds, you get interest on the money over the period kept for and as per the prevailing rate of interest. There are no taxes on such an interest.

Another good option is that of investing in mutual funds, where one can periodically add more money to the amount initially invested. Funds can be shifted between many investment assets, which is the reason why this type of flexibility is so preferred by many. The fact that management of this type of investment is quite professional also adds to its importance.

There are myriad investment options available. You have but to evaluate and act wisely.

For more details, visit this link:

Tuesday, July 17, 2012

Recession: Proofing your assets

For a long time it seemed like it could never happen, but in the past few years the chance of a bank completely failing has become a real one. On September 14, 2007, panicking British depositors withdrew £1bn from their Northern Rock accounts, and over the course of the next year other banks including Bradford & Bingley, RBS and HBOS all fell victim to the credit crunch.

Fortunately for the individual, the chances of actually losing money if their bank goes down are slim. All UK-regulated accounts are covered for up to £85,000 by the Financial Services Compensation Scheme (FSCS), and if your bank collapses you should get 100% of your money back within seven days, up to this maximum limit.
Yet this still leaves account holders with one week of complete exposure. That being the case, it is important to prepare yourself now for the day you may find you have no access to cash.
Begin by comparing your earnings against your outgoings. In this way you will know exactly how much ready cash you need access to in the event of your banks collapse. Then, spread your savings across more than one bank. In this way your two accounts will act as a back-up to each other, should one of them fail. Ideally you should not have more than £85,000 in each account, to ensure that all of your money is covered by the FSCS.
Another step you can take is to re-examine your personal finance. If your bank collapses, it will be easier to cope if you have less immediate expenses. Energy bills can often be greatly reduced by cancelling paper statements, paying by direct debit, combining gas and electric bills and ordering online. The other obvious step is to turn off lights and appliances when you leave the home.
For internet, telephone and TV, consider buying a package that includes all of these services. This will usually be cheaper than paying for each service individually.
Other bills to reduce include your insurance premiums, although you should ensure that any savings made do not come at the expense of your cover. Shop around for a better offer on your existing insurance, and search for multi car insurance UK online to find out if you can bring costs down by combining your cars on to one policy.
In the very worst case scenario, your last line of defence may well become your credit card. If this is your only access to cash, you will want to make sure that the credit limit on it is such that it can get you by. If you are able to, it would be a good idea to pay off some of your credit card debt to avoid interest charges.
Finally, take steps to make sure that a sudden lack of cash will not have you starving to death. Stockpiling non-perishable food may seem like an over-reaction, but it is better to have it and not need it, then need it and not have it.

Monday, July 9, 2012

How to Get Debt Relief with Payday Loans Online

It is not surprising to see many families buried in debt due to the current economic situation. As these families struggle to make the ends meet, the needs for payday loans are on the rise. 

Payday loans online are the best source to get out of your debts. These loans don’t have any effect on your credit score. So, you can borrow these loans to pay off all your debts that are affecting your credit score and you can also improve the credit score. Some debts come with lots of tension and stress to get relief from debts payday loans online will lend you a helping hand. 

They are the best way to pay off your immediate debts as they provide instant cash. You can get your required amount within hours by just filling the application form online. It will usually take around 48 hours to credit your account with the amount requested. One can easily get approved for these loans in spite of any bad credit scores. Getting approved for these loans is very easy as they are approved regardless of the reason for the amount and do not require any collateral or proof to be submitted.

You can also implement some programs like a debt consolidation program or a debt settlement program to get rid of your debts. 

Debt consolidation program: This is the smart plan that aids you to get out of your debts and to overcome the burden of managing various debts. Gather all your debts and calculate the required amount to repay all your debts. Get the required amount from a single credit lender and pay off all your debts. This will allow you to pay a single payment a month to the loan lender and you cvan use this amount to pay off all your other debts. Generally these types of credit lenders will offer a lower interest rate to help you to come out of debts as soon as possible. 

Debt settlement plans: For this plan, you need to hire a credit counsellor who can better communicate with your creditors on your behalf to reduce the interest amount on your debt or reduce the amount of debt you owe. These are mainly useful to pay off your credit card payments and debts.
Along with the help of debt programs or payday loans online one must gain financial discipline to get out debts. If you lack this financial discipline you will end up in worse situation.

Author Bio:
My name is Michelle. I am a tech writer from UK. I am into Finance. Catch me @financeport

Sunday, July 8, 2012

Why Investing Your Money Is Better Than Saving It In The Bank?

Because of the world economic status today and the past blows of the recession, many of us have become aware of how important it is to not just save for the rainy day, but to also make our savings grow so that we won’t have to worry too much when the time comes that our income is no longer sufficient to sustain our cost of living and our leisurely activities.

For the more financially literate, saving and investing money are powerful tools to help a person attain financial freedom. To define the terms, saving entails putting the money in the bank for safekeeping, high liquidity, and minimal growth, while investing money is using your money to buy company shares or participating in mutual funds ventures in order for your money to grow at a faster rate while taking risks into consideration. To make it clearer, saving is the choice for funds safety, while investing is for wealth growth.

In the past, only well-to-do individuals and firms participate in investment because of its high principal and lower liquidity. These were the people who don’t really need the money in the near future, so they use it to fund companies, loans and purchase shares in order to yield more wealth with little physical effort in the long term. But for those that don’t have the luxury of having a spare of tens of thousands of dollars, they would just have to stick with their savings account and time deposits.

However, many financial firms now understand the need for private individuals to be more involved in the financial market, and they have devised ways to ensure both the growth and the security of the private individual’s funds. There are also programs, such as Money Market Funds that offer almost the same ease of access to your money, or liquidity, as most banks. Thus, the presence of these types of financial programs pretty much gives investing an advantage over keeping a regular savings account.

The risk in investing your hard earned money could also be easily leveled out by arming oneself with vital economic knowledge. Knowing and keeping track of your investments will help you decide whether you should increase your risk appetite and invest more money to yield better results, or to take your money out to avoid incurring losses.

When you come to think of it, just by comparing the interest rate between a savings account and an investment account, the former will only give you a yield of 0.1% to 1.7%, while the latter can yield anywhere from 1%-3% for the lower risk option (Money Market Funds). This alone gives us an overview of how much potential our money has if we entrust them in the right hands. 

Amy C. Fountain is a businesswoman and a writer who likes to help people gain vital financial education by sharing her knowledge and experiences through blogs. She owns a couple of websites that help people make use of Accent Tables and Desk Fountains for home decoration.