Accounting and Tax Guide Accounting and Tax Guide Copyright by en Mon, 15 Aug 2022 18:43:46 -0400 What's the Difference Between a Certified Financial Planner and a Personal Financial Planner?

If you need to manage your money, you will usually seek a professional's help. A certified financial planner and a personal financial planner or financial advisor are both specialized in managing the consumer's money.

There are numerous financial professionals, starting from accountants and insurance agents to brokers, financial planners, and investment advisors. Each and every planner is a kind of advisor, but every advisor is not considered a planner. A personal financial planner might attain more than a hundred certifications. Key difference points are:

  • A certified financial planner is a type of professional who can help organizations or individuals to meet their long-term goals by creating a financial strategy.
  • A personal financial planner or a financial advisor is a wide category that might also include money managers, bankers, insurance agents, or brokers.
  • Certified financial planners are not regulated by anybody and are regulated entirely based on the kind of services they can provide.
  • If a personal financial planner works with the common public, they should clear the licensing exam of the FINRA (Financial Industry Regulatory Authority) 65 series.
  • Amidst various financial proliferation in the industry, many personal financial planners (advisors) and certified financial planners might perform the same task. Thus, you should do proper homework prior to hiring a professional to guide you financially.

Certified Financial Planner

A certified financial planner is a financial professional who can help organizations or individuals meet or accomplish their long-term goals by creating a financial strategy. A certified financial clanner will typically help you to map a plan for saving, budgeting, retirement planning, and investing. There are certified financial planners who assist people or clients with the help of their individual practice, but the certified financial planners might also work for a non-profit organization, wealth management company, or a bank.

While selecting a Certified Financial Planner, it is very essential for you to understand and acknowledge the landscape of financial planning. According to FINRA, almost anybody can also claim to be a certified financial planner if they are from different backgrounds. Certified financial planners can be investment advisors or brokers, practicing accountants, individuals without any financial credentials, or insurance agents. This is the reason why a consumer should check their due diligence prior to giving the money to any financial advisor.

The certified financial planner might be specialized in taxes, investments, estate planning, and retirement. There are different designations or licenses like CFP (Certified Financial Planner), CFA (Chartered Financial Analyst), CHFC (Chartered Financial Consultant), or CIMA (Certified Investment Management Analyst).

To achieve all these different qualifications, a Certified Financial Planner should complete a whole different requirement of examination, work history, and education.

Personal financial planner or financial advisor

This professional individual should know a wide range of terms that will help in managing your money. One needs to pay the Personal Financial Planner, and in lieu, they will help with multiple money-related jobs or tasks. A personal financial planner or advisor can help you to sell or buy stocks, plan taxes, create a comprehensive estate, and manage investments.

If the personal financial planner works with the common public, they should have the FINRA 65 series license. Additionally, there are multiple personal financial planner credentials that a financial advisor must hold, entirely depending on the services they provide.

A financial advisor or Personal Financial Planner generally denotes multiple professionals like insurance agents, stockbrokers, money managers, bankers, estate planners, and many more. A Personal Financial Planner is a kind of advisor who has a specialty in financial securities.


These two terms might overlap, but a certified financial planner is a type of personal financial planner or advisor. Specifically, a certified financial planner is an individual professional who helps people or organizations achieve their financial goals. The goals can include college education, retirement, home down payment, etc. A certified financial planner depends upon the strategic allocation of the portfolio for investments that have a long-term horizon, and they ensure that the risk tolerances and expected returns should stay in balance.

Whereas a personal financial planner is a comprehensive term for someone, who is involved in this type of plan but also in different aspects of money management. For example, they might offer life insurance, accounting, real estate, banking, or short-term trades.

Accounting Basics Editor Sun, 14 Aug 2022 23:39:44 -0400
6 Tips for Growing a Successful Business Starting a business is very different from ensuring it grows and becomes successful. While starting one has become much easier thanks to the growth of ecommerce, a business owner needs to be organised, good at planning, and have the business skills required to grow a successful business. Although you can transfer most of the skills you need to start a business to running it, there are a few things you will need to learn as your business grows.

Understand Better How Entrepreneurship Works

The definition of entrepreneurship is straightforward; it is the process of creating a business based on a product or service, ensuring it operates successfully, assuming financial risk for its success, and selling it off or enjoying the profits.

However, this definition does not cover the underlying challenges that come with being an entrepreneur.  For example, entrepreneurs have to be strategic thinkers or learn how to be because they need to know when to pursue opportunities, where to invest, whether these opportunities and investments are worth their time, when to expand their business, and so on.

They also have to come up with sustainability plans not only for the profitability of their business but to also ensure its success. Entrepreneurs also have to hire and manage people, something that can be challenging if you do not have the right skills to do so.

Lastly, entrepreneurs have to not only assess their market when starting their business, but they also have to continuously do so throughout its life.

For new entrepreneurs, the best way to gain this knowledge is by investing in additional education. When you register for the online MBA programme at Aston University, for example, you can choose the entrepreneurship path that will teach you the strategic, analytical and additional skills to not only start a small business but also ensure it is successful.

Invest In Marketing

Once your business enters the growth phase, marketing becomes something you need to think about. This is the stage where you should be trying to get as many customers as possible while keeping your overall expenses low.

Start by setting aside a marketing budget that the business can afford. How much you can afford to spend will determine the marketing strategies you employ. For example, businesses with larger budgets might consider PPC and paid marketing while those with smaller budgets might go with direct or social media marketing.

Next, find out which marketing strategies will work best for your business. This will largely be informed by your market research and the types of customers you would like to target. Targeting younger people? Why not try TikTok advertising? Trying to reach those between 40 and 65? Facebook and direct marketing might work for you. For everyone else, there is social media marketing and email marketing.

Keep a close eye on your marketing return on investment, and always be ready to switch things up so you are continuously getting better results.

Hire the Right People

Never underestimate the value of hiring the right people. These are people who will see your vision, take it, and run with it to ensure the success of the business. As a small business, start by hiring people for essential positions such as accounting and marketing if you have a limited budget. Once you start growing, you can start considering positions like product developers and employees for niche roles.

Get Organised

The number of things you need to take care of and that need your attention will increase as your business grows. If you do not have organisational skills, you will find it increasingly harder to stay on top of things and complete all the tasks that require your attention and input.

You can learn how to be organised as you grow and there are a lot of materials and courses that can help you gain this skill. The second option is using software to stay on top of things. There are numerous calendar and to-do apps that will help you make lists of what you need to do and even remind you of things you have not taken care of yet.

The last option is to hire someone to handle this for you. Outsourcing this task to a personal assistant is a great option because they may take care of some things on your list. For example, they can reply to emails and answer calls that are not critical to the business and tell you about the ones that are so you can take care of them.

They can also handle things like booking hotel rooms for you so you can concentrate on running the business instead of these smaller tasks.

Learn How to Keep Records

Every business owner should keep detailed records. There are some records you know you need to keep such as those involving your business’s finances. These are the records that will tell you how the business is doing regarding your costs and revenues, and they will also help you when calculating tax.

Some other records you need to keep include all records of contracts and agreements you have entered into, crucial communications between you and business partners and other records that have to do with the running of the business.

In addition to physical copies, also store some of your records in the cloud. When you take advantage of the cloud, you do not have to think or worry about losing your business records. You can also integrate different software you use with cloud hosting providers so all your documents are saved on secure servers.

This last option provides automatic uploads so that you do not forget to upload and store any crucial documents.

Keep an Eye on Your Competition

Although you have already done competitor research when starting your business, it is essential to keep an eye on them. They might have some insight that you may not and could be responding to something that you might not be seeing. Keeping an eye on them allows you to take advantage of their insights, data and implementations without investing in them.

Once your business enters the growth phase, you know it is time to start putting even more effort into the business. That might mean investing in different things, hiring the right people, and marketing the business to increase customers.

Financial Guide Editor Fri, 15 Jul 2022 23:47:13 -0400
What Is the Difference Between an Operational CFO and a Strategic CFO? Strategic CFOs and operational CFOs can both be valuable additions to your company. But while both positions occupy many of the same responsibilities, there are some key differences you should be aware of when deciding which one fits your company best. 

Operational CFOs typically aid your company in the procedural and operational aspects of your finances. They examine what methods are working for the business and the methods that are failing. Strategic CFOs, on the other hand, are more concerned with your company's overall financial strategies and how they will play out in the long-term to affect your business. Both of these positions have critical functions, and this article examines some of the differences. 

What Is an Operational Chief Financial Officer?

Operational CFOs develop more holistic approaches to your company operations rather than strictly focusing on cash flow. This is because operational CFOs have a deeper understanding of how your company creates processes and systems. This gives them a deeper understanding of how cash flow can be affected by operational risk, reporting methods, and accounting functions.

Financial management skills are critical for the long-term success of any company. Traditional CFOs can tell you the exact costs you stand to incur from business decisions but operational CFOs will be able to give you more context around what the figures mean for the overall financial health of your business. They can check for inefficiencies and search for ways to reduce expenses. This added layer of analysis will save you time and money. 

What Is a Strategic Chief Financial Officer?

Just like an operational CFO, strategic CFOs will understand your financial operations inside out. However, strategic and operational CFOs will have different objectives and job initiatives. Operational CFOs are concerned with past and present analysis but strategic CFOs are more concerned with future objectives. Strategic CFOs work closely with chief executive officers to develop goals for companies for their next three, five, and ten years. These financial initiatives come in the form of launching new products and services or deciding what capital the company should focus on procuring. 

How Are Operational and Strategic CFOs DIfferent?

Operational CFOs and strategic CFOs share some responsibilities but they are quite different in a lot of respects. Operational CFOs help companies fully understand their procedures and how they affect the overall financial health of the company. Operational CFOs can help you:

  1. Understand your company’s operations. 
  2. Provide you with long-term financial planning. 
  3. Eliminate unnecessary spending. 
  4. Increase your ROI. 
  5. Identify ways to improve the efficiency of your operations. 
  6. Understand the full scope of your company’s financial operations. 

Strategic CFOs can help in the following ways:

  1. Understand your company’s profit trends and how they can impact the future of your business. 
  2. Determine areas where your business should either contract or expand. 
  3. Provide information and analysis regarding all of your strategic objectives. 
  4. Provide information and analysis for strategic decisions. 
  5. Analyze areas where your business can expand further. 
  6. Predict company future growth. 

When Should You Hire an Operational CFO?

You should hire an operational CFO during times when you need to assess your company’s efficiency and production methods. The business intelligence operational CFOs provide can help mitigate your financial risks and they will also help you deal with merger or acquisitions. Dealing with liquidation or equity and debt negotiations will always be a challenging situation. Operational CFOs can help simplify these processes.

Why Do You Need Strategic CFOs

Strategic CFOs can provide a roadmap to your company's future while providing a strategy for your CEO to improve your company’s profitability. Strategic CFO services also provide stakeholders with the assurance that your finances are stable. With a strategic CFO, existing stakeholders will be able to invest more money into the company while helping you acquire new investors. 

Signature Analytics

Signature analytics identify the advantages of hiring operational or strategic CFOs, but if you run a small to medium-sized business, you might feel like an executive is beyond your budget. One solution is outsourcing your CFO position, which gives you the opportunity to scale your business. With strategic outsourced CFO services, you avoid the expenses of advertising, interviewing, vetting, and training new staff members. You also gain confidence that you’re working with fully qualified professionals who specialize in various industries. 

Deciding whether a strategic or operational CFO is right for you will come down to where you need the most attention. If your company is having trouble preserving its cash flow and operational inefficiencies are hindering its profitability, an operational CFO might be the best option. If your company is lacking foresight into the strategic initiatives that will help it take control of its future progress, then a strategic CFO should offer the most benefits. 

What Questions Should You Ask Your Strategic CFO?

Below are some of the questions you should consider asking your CFO if you plan to optimize their services. 

How Can They Help You Grow Your Company?

You should ask your prospective CFO whether they plan to grow your company using organic growth, M&A, or a combination of both. Your prospective CFO should understand the plan that fits your growth needs. After choosing the right plan, your prospective CFO should ensure the capital is available at the right cost for your choices to be profitable. 

What Constraints Hold Your Company Back from Achieving Success?

The dominant issues your company faces must be brought to light if you are going to achieve success. Prospective CFOs should be able to identify these constraints and communicate them to you clearly and effectively. For example, if your company has a heavy debt burden and is paying interest rates at more than twice the rate available to your competitors, it should consider shifting. The prospective CFO should be able to lay out the plan in a clear and concise manner. 

What Is the Greatest Uncertainty Your Company Faces?

Prospective CFOs should be able to look at your company and identify the weakest point so you can achieve results quickly and measurably. Whether your company faces problems with its operations or overall financial strategy, a CFO such as Fully Accountable should be able to identify your weak points and create strategies that eliminate those weaknesses. 

Conclusion- What Is the Difference Between an Operational CFO and a Strategic CFO?

Operational CFOs are more concerned with how your operational inefficiencies and procedures can hinder your financial progress. Strategic CFOs, on the other hand, will be more concerned with your overall financial strategy. They will identify long-term financial directives that can improve your company’s financial stability and performance. 

Choosing one or the other comes down to how well you can identify where your company lacks. If your company has efficient operations and procedures but struggles with financial vision, a strategic CFO will likely be the most important need. On the other hand, if your company has a well thought-out vision for the future but struggles identifying operational inefficiencies, an operational CFO will likely be the more important need. 

Accounting Basics Editor Wed, 06 Jul 2022 23:32:24 -0400
5 Tips to Drive Up the Value of Your Properties for Sale Perth When selling your property, it must be appealing to buyers and priced competitively.

Here are some tips to help drive up the value of your property for sale in Perth. Following these simple tips ensures that your home sells quickly and for a reasonable price.

1) Consider the Surrounding Suburbs

When selling your property in Perth, it's essential to consider the surrounding suburbs. After all, potential buyers look at the whole area, not just your individual property.

Here are a few considerations that help drive up the value of your property:

  • If your land is in a desirable suburb, it will be worth more than similar properties in less desirable areas. Also, people are willing to pay more to live in an area with nice houses and services, better schools, and less crime.
  • Buyers will want to know what's nearby, such as schools and transportation. After all, if your property has everything people need, it will be more valuable.
  • Growth potential. If the area attracts new businesses and residents, it will cost more.

2) Create Real Estate Listings

Estate listings are one of the best ways to showcase your property for sale in Perth. Creating a listing can highlight the features that attract potential buyers.

For example, you can showcase the land size, amenities, and other selling points. Plus, listing allows potential buyers to see the property before making an offer.

Doing so ensures you get the best possible price for your property.

Here are a few things you should keep in mind when creating your listing.

  • Start with the basics. Include the address, number of bedrooms and bathrooms, and other essential information.
  • Write a compelling description. Take this chance to sell the property. Highlight its best features and use keywords that will appeal to buyers.
  • Choose attractive photos. First impressions matter, so ensure the listing photos are clear and inviting. Work with a professional photographer if possible.
  • Promote the listing. Once it's live, share it on social media and with your network of potential buyers.

3) Search Properties on Sale in Perth, WA

Looking for for-sale properties in the area is a great way to define what your house is worth.

By searching properties, you can get full details of the property rates in your vicinity. This information can serve as your price guide for your property and ensure your asking price is competitive.

You can use the details you get to negotiate with buyers. If a buyer offers a low price, you can point to a similar property with a higher price. Use them to support your asking price.

Also, searching properties can give you some great ideas for improving your property. Thus, it helps maximise the value of your home for sale in Perth, Western Australia.

4) Contact an Agent Specialising in Specific Property Types

The market is strong, and values are on the rise. If you're considering selling your property, getting the best possible price is vital.

One way to help ensure this is to contact an agent specialising in your property type. Their experience can help make your property more appealing to potential buyers.

For example, they might suggest renovating, which can make a big difference in selling. And they might also have some great marketing ideas to help make your property stand out from the rest.

Here's a quick rundown of some of the most common types of agents and how to find them.

  • Buyer's agent. These agents can help you find the right property and negotiate the best price on your behalf. You can find a buyer's agent by contacting the National Association of Realtors.
  • Listing agent. These agents work with potential buyers and answer their questions. You can find listing agents through your state's real estate commission.
  • Property management company. These companies manage all aspects of rental properties. You can find property management companies by browsing online or asking reliable friends.

5) Pay Attention to the Market Trends in Perth, WA, 6000

When it comes to real estate, paying attention to market trends is essential. After all, the local market's health influences your property's value.

By keeping tabs on market trends, you can ensure that you're buying low and selling high.

Here's how paying attention to market trends drives your property's value.

  • If prices in your area rise, holding onto your property for a longer time results in a higher sale price.
  • If prices are dropping, it may be a good idea to sell sooner than later.
  • Keeping an eye on market trends can also help you identify potential problems and avoid them.

So if you want to sell your property, following these tips should help increase its value.

Also, consulting with an agent who can give you more specific advice tailored to the Perth market is crucial. By doing so, you'll be well on your way to getting the best price for your home.

Financial Guide Editor Wed, 06 Jul 2022 03:00:27 -0400
What You Need to Know Before Getting a Mortgage Broker Buying a home or financing a mortgage can be difficult. Since there are more mortgage lenders now than ever, the process is even more complicated than it used to be.

Licensed mortgage brokers who give outstanding service can help people who want to buy a home and those who already own one. When it comes to getting a mortgage, these professionals have a lot to offer, but there are also a lot of things to think about before working with one.

First, doing your homework and taking a look at a review for Mortgage broker is a good start. But to help you further, we share these few tips.

What Is a Mortgage Broker?

A mortgage broker is like a go-between for you and a mortgage lender. Brokers are not the ones who give you the money. You don't have to worry about this; instead, they'll shop around for the greatest deal and ensure everything is in order so you can close a deal on time.

A loan officer is not the same as a mortgage broker. Loan officers work for different lenders and can only help you get a personal loan from that lender. Brokers can help you get in touch with many different lenders offering many kinds of mortgages.

With this information, it is possible to determine what sort of mortgage you are eligible for or how much money you can put down, such as an FHA mortgage or a lender that accepts low-down-payment loans.

Why Should You Use a Mortgage Broker?

Know-How of the Market

The best approach to guarantee that you receive the best possible bargain on a home purchase or loan refinancing is to work with a broker. Mortgage brokers have a lot of experience in the industry, specifically on investment property, which they can use to help their clients find mortgage solutions.

They also have a good understanding of the current housing and lending markets and the different types of mortgage loans that may be best for different borrowers based on their own needs. This knowledge can be very helpful in getting the best loan for the long term.

Better Interest Rates

Mortgage brokers can also get home loan rates set at the wholesale level. This interest rate can be lower than retail rates, which can save borrowers money over the life of a home loan. Even if a borrower has bad credit or doesn't have much money, lower rates can make the difference between getting a mortgage that they can afford and one that they can't.


Being pre-qualified means that you are likely to get a mortgage up to a certain amount based on your current finances. But the process of pre-qualification can be hard. To get pre-qualified for a home loan, you would have to go to every bank and give them the necessary information and documents if you were doing everything on your own.

If you use a mortgage broker, you might not even have to go to the bank. They'll do the legwork and check to see if you qualify for different home loans. Even better, the process can be done in minutes instead of days.

How to Look for a Mortgage Broker

How do you find a reliable, patient mortgage broker who knows the entire process? The best thing to do is ask people you trust for recommendations or read mortgage broker reviews.

You can also look for local brokers and read customer reviews on online reviews sites like WalletHub, Yelp, and Google Reviews or simply follow these suggestions:

1)    Read online reviews on the web

You can look for a broker on websites like or brokers near you. Check out reviews on Google, Yelp, and other sites to find out how different people felt about a place.

When you look at a review for mortgage broker, make sure to read what people have said about:

  • When things close
  • Loan process success
  • List of property purchase
  • How responsive customer service is

By comparing these, you'll get a better sense of the transparency and helpfulness of each brokerage.

2)    Suggestions from family and friends

Ask your loved ones whether they've ever dealt with a mortgage broker and if they'd suggest them since this is valuable information.

People you know well will tell you honestly if they liked a broker and what their overall experience was like when they worked with them because they gave a fantastic experience on the whole process.

They might also tell you things about the person's professionalism or personality that you won't find in other reviews, but that could have a big impact on your choice.

You should ask them if they felt the broker put their needs first. If a friend or family member says their broker pushed them towards a certain lender or loan option even though the buyer didn't want it, that's a red flag.

You are the borrower, so you should trust that your broker is helping you find the best mortgage lender for your situation and not just looking out for themselves.

3)    Referrals from a real estate agent

Your real estate agent can be a good source of information about a mortgage broker. Your agent probably knows what kind of home and mortgage you want, and they can suggest brokers who work with buyers like you.

They may even have worked with brokers for a long time and be able to give trustworthy advice based on their years of experience. Real estate agents have a personal reason to suggest a good broker. If the broker can't close the loan on time, the sale might not go through, and the agent wouldn't get their commission.

Find a few mortgage brokers who interest you, and talk to each before you decide. Make sure they answer questions about their certifications, how long they've been in business, how much they charge, and how getting a mortgage or refinancing will work with them.

Bottom Line

So, what are the key things to look for when choosing a mortgage broker? We’ve summarized them here.

Keep in mind, though, that this list is not exhaustive, and you should always do your own research before making any decisions. How does this information help you as you search for the best mortgage broker for your needs?

Financial Guide Editor Fri, 01 Jul 2022 02:48:47 -0400
Car Accident Loans in Texas: 5 Aspects to Consider A lot of Texians travel on the roads every day. Many drive their cars, while others commute to work or school. Annually, 3,478 people die in car accidents across Texas.

If you've been injured in a Texas car accident, you may be wondering how you will pay for your medical bills and other expenses. You may be considering taking out a loan to cover these costs.

While car accident loans can be helpful in a time of need, it's essential to understand the conditions of any loan you take out. Here are five things to consider when looking for Texas car accident loans.

  1. The Interest Rate

The interest rate is one of the essential aspects to consider when taking out a car accident loan in Texas. Ensure to shop around and compare rates from different lenders before choosing one.

The interest rate may differ based on various factors:

-The severity of your injuries

-The amount of money you are borrowing

-The length of time you need to repay the loan

-Your credit score

Ask about all fees associated with the loan before signing anything. Any extra fees can add up quickly, so it's important to know what you're getting into before making any decisions.

  1. The Loan Term

Because of the high traffic volume, approximately three out of every 100 drivers in Dallas are involved in car accidents. The average cost of an auto accident is $612. If you cannot work and earn an income because of your injuries, you may need a loan to cover these costs.

The loan term is determined by the severity of your injuries and how long it takes for you to recover. Some lenders will offer loans with terms as short as six months, while others may offer terms of up to five years.

  1. The Fees

Some factors will affect the fees you'll be charged for your car accident loan. The primary factor is the amount of money you borrow. Most companies will charge between 20 and 30% of the total loan amount in fees. So, if you borrow $17,000, you can expect to pay between $3,400 and $5,000 in fees.

The other factor that will affect your expenses is the length of time you take to repay the loan. You'll likely be charged lower fees if you can repay the loan quickly. However, some companies offer discounts for early repayment, so be sure to ask about that.

  1. How the Loan is Repaid

There are different conditions for each loan, but you will only have to repay the loan if you win your case. If you lose your case, you will not be required to repay the loan.

These are called non-recourse lawsuit loans and are only given to people with a robust legal case with a good chance of winning.

  1. What are the Eligibility Criteria for Car Accident Loans in Texas?

The eligibility criteria for Texas car accident loans vary from lender to lender. Some documents include:

-A copy of the police report

-Medical records

-Bills and expenses related to the accident

-Insurance information

-The contact information of any witnesses

To get a better idea of what is required by each lender, it is best to fill out an online form.


Whether you're struggling to pay bills or need help with your medical expenses, a car accident loan can give you financial relief. But before applying for a loan, it's essential to consider all your options and ensure you understand the terms of your loan.

Financial Guide Editor Thu, 23 Jun 2022 01:01:40 -0400
5 Great Accounting Tips for Lawyers Accounting, as intimidating as it may be, can be of huge importance to a law firm's success.

It's essential in ensuring that your financial statements are accurate and up-to-date, but also in assessing the financial well-being of your firm.

However, legal accounting comes with many challenges that can make your life a nightmare if not handled properly.

Luckily, we’ve got you covered with these 5 great accounting tips for lawyers. Check them out!

1. Stay compliant in your trust accounting management

Trust accounting requires lawyers to keep their client's money in a special trust account, separate from his personal bank account. This is because the money still belongs to the client, even though the lawyer can be given the right to use the money under special circumstances.

For example, a lawyer can use trust money to charge a retainer at the beginning of the representation, distribute settlement money, or when handling real estate transactions. Just make sure to clearly define the purpose with the client.

State bars have strict compliance regulations regarding how much money can be put in and taken out of a lawyer's trust account and for which reasons.

That's why you should reconcile all of your client's funds at the end of the month, to ensure that your trust accounts are audit-ready in case the State Bar randomly selects you for an examination.

Expert tip: abstain from withdrawing the "earned" fees prematurely, even if you intend to pay them back. It's not worth the monetary penalties and potential disbarment.

2. Set a clear budget

At the end of the year, you should do an overview of your law firm's financial aspects. That includes your loans, outstanding debt, interest expenses, annual bar association dues, IT upgrades expenses, etc.

Figure out which of your expenses are mandatory and where you have the space to make some cuts to save money. This will help you have a clearer idea of your cash outflow.

If you want to predict your cash inflow, try monitoring your A/R aging report. This way, you’ll know which outstanding invoices to follow up on and when you can expect your share proceeds.

In the end, create a financial strategy regarding future investments, prioritizing the most realistic and efficient goals.

3. Use a customized legal accounting software

Legal accounting software is a great way of making law firm accounting management easy.

Using customized accounting software, instead of a generic one, can make your accounting process more efficient and effective.

If you have customized accounting software, you can use it for the automatic allocation of revenue as income, in the case when client invoices are only partially paid. Just make sure that your liabilities and expenses are paid first!

But even if you have a generic version of the accounting software, you can use it to issue and change client invoices, split legal fees, pay your staff, track your expenses, handle and reconsolidate separate client trust accounts and so much more.

Besides saving time, using accounting software will allow you to track the overall financial health of your law firm.

How? By assessing various key performance indicators of your law firm, including your average revenue per attorney, employee, the weight of different expenses on your gross revenue and others.

4. Keep your accounting up-to-date

Predictions are pointing towards an incoming recession and falling behind on your accounting records contributes to unnecessary costs that you really don't need right now.

Unless you have a hefty cash reserve, you should perform regular accounting as the consequences of doing the opposite are just not worth the risk.

In Law S&B Law offices, keeping records up-to-date is a tactic used for monitoring of the business progress, identification of the income sources, tracking of the expenses and preparing the financial statements.

Timely accounting ensures accuracy, which can help you create a budget strategy and increase your chances of running a successful business.

5. Track your firm’s revenue by area of practice

Separating your revenue by area of practice has a huge potential in showing your which practice areas you might be overlooking, that may generate you a lot of revenue.

Apart from that, it can also help you identify unprofitable practice areas and types of cases.

By understanding this, you'll be able to make informed and fact-based financial decisions about moving forward with your law practice.

You might also consider different billing depending on the case type. For example, if your law firm is dealing with torts, you might introduce separate billing systems for personal injuries and property damage.

Accounting Basics Editor Mon, 20 Jun 2022 04:50:45 -0400
Top 5 Accounting Tips for Your Medical Practice Every business needs a sturdy management system to run smoothly, and medical facilities are no exception. But, managing a medical facility is not a walk in the park for professionals trained to treat people. There are many demands that come along.

First, you may need to hire a physician contract lawyer to ensure you’re compliant with the law and then you’ll need a proper accounting system to stay in business. How do you overcome accounting hurdles as a medical practitioner?

This post covers the top 5 accounting tips for your medical practice. They are:

  1. Select your method of accounting
  2. Use cloud-computing accounting software
  3. Schedule your income statement
  4. Maintain separate business and personal accounts
  5. Hire a professional accountant

Let's dive in.

1.     Select Your Method of Accounting

One of the essential practices in accounting for medical practice is defining which method of accounting you want to use. There are two methods available:

  •  Cash accounting
  •  Accrual accounting

Under cash accounting, you record expenses when you pay for them and record receivables when you receive cash. It is common for private-owned health facilities to use this method as it gives the actual cash in hand the facility has.

On the other hand, accrual accounting allows you to record expenses when you incur them and revenues when you earn them. You record expenses and receivables regardless of whether cash has changed hands.

Accrual accounting gives a more accurate status of an organization because it accounts for receivables and payables. Whichever method you choose, ensure you thoroughly understand how to apply it in daily transactions.

2.     Use Cloud-Computing Accounting Software

Are you still using spreadsheets to prepare your financial statements? Then you're missing on the best accounting treat technology has to offer yet. Cloud-based accounting is a secure way of keeping your records centralized and accessible from anywhere.

It reduces paperwork and saves time when you need records for budgeting and forecasting purposes. If you are afraid of cyber threats, you should use a VPN to keep your account secure.

Cloud accounting software updates financial records in real-time, ensuring your accounting balances are accurate and up to date. Examples include:

  •  QuickBooks Online
  •  Xero
  • FreshBooks
  •  Zoho Books
  • Waves

3.     Schedule Your Income Statement

Your primary role as a physician is to keep your patient's records, so you can monitor their health and help them make an improvement. The same should apply to your bookkeeping for healthy financial results. Scheduling your income statement helps you assess whether you are making profits or losses.

You can validate your daily recommendations with an income statement where necessary. In the long run, you'll be able to:

  •  Make better decisions- Preparing an income statement gives you accurate information about how much money you have. It guides you on how much you should spend and invest.
  • Track your profitability- An income statement informs the stakeholders, such as financiers and shareholders, of the state of operations. You can tell when you are making profits or losses.
  •  Stay compliant with the law- Every business has to pay tax to the government. An income statement provides relevant information necessary for tax computation.

4.     Maintain Separate Personal and Business Accounts

One mistake you should avoid is combining your personal income and business income. It complicates the accounting process and presents you as unprofessional. When filing for tax deductions, it’s hard to separate personal and business expenses.

Also, you set yourself up for audit by the Internal Audit Service, which may deny business losses and deductions. To avoid such incidents, maintain two separate accounts and label and adjust all transactions between business and personal accounts.

5.     Hire a Professional Accountant

Keeping proper books of accounting in medical practice can be overwhelming. And because of the high demands of your profession, you may miss out on the details of every transaction. Hiring a professional accountant ensures your books are updated, and you're compliant with obligations.

Are you concerned about incurring the extra cost of maintaining a full-time accountant? You don't have to. You can outsource bookkeeping services at affordable prices.

Wrapping Up

Like any other business, a medical facility should maintain proper books of accounts. Doing so helps you track your financial status and keep improving your performance. With these tips, your accounting process should be seamless.

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Naomi Olson [Website TwitterHeadshot]

I am a CFP® (Certified Financial Planner).

I have a severe phobia of bridges and dirty balance sheets.

Hobbies: blogging, meditation, and loving Bull Market (my dog).

Accounting Basics Editor Thu, 09 Jun 2022 05:10:03 -0400
How are Gambling Winnings Taxed? How are Gambling Winnings Taxed?

You might think that the only thing you’ll lose when gambling is your money – but that’s not entirely true. You’ll also lose some of your cash as tax. While different states have different taxes on gambling winnings, there are generally three types of taxation involved in gambling: Intentional loss, general income, and specific source. When you gamble, you might win a little or a lot. However, no matter how much you win, you must report it as income. The good news is the IRS doesn’t consider gambling to be a hobby; they treat it like any other source of income. Therefore, all winnings must be reported and taxed appropriately. Keep reading to find out more about how the IRS taxes your gambling winnings.

Tax on Gambling Winnings

The first thing to know about taxes on gambling winnings is that the IRS expects you to pay tax on all winnings. You don’t have the option to decide which winnings to report or not. All gambling winnings must be reported on your tax return. Gambling winnings are taxable as ordinary income. This means that you’ll be taxed at your normal income tax rate. For example, if you file as single, your ordinary income tax rate will be between 10 percent and 39.6 percent. Winnings are also subject to state and local taxes. If you live in a state that doesn’t have an income tax, you’ll still have to pay federal taxes on your gambling winnings.

Losses from Gambling are tax-deductible

Gambling can be a risky business. However, you can minimize your losses by using gambling systems such as poker card counting. If you’re really unlucky, you might go through all your money before you have a chance to win anything back. Don’t worry: losing money while gambling is tax-deductible. When you go through all your money and lose, the IRS still considers that gambling winnings. You can, therefore, subtract your losses from the winnings. For example, if you lose $100, but win $300, you can only report $200 as gambling winnings. You’re allowed to deduct your losses, even if they’re more than your winnings.

General Income Tax on Winnings

When you gamble and win, you’re taxed on your winnings as ordinary income. That means that you’ll be taxed at your normal income tax rate. For example, if you file as single, your ordinary income tax rate will be between 10 percent and 39.6 percent. Winning is great, but you’ll have to pay taxes on it. Some people think that they can avoid paying taxes on their winnings by not reporting them. However, the IRS is keenly aware of this tactic. You may be audited if you don’t report your winnings. To minimize the risk of an audit, you should report all your income, including gambling winnings. You don’t need to report the amount of your winnings, just that you won something.

Specific Source Tax on Winnings

Gambling winnings also have a specific source tax. This means that you’re taxed on winnings from specific sources. For example, if you win at the dog track, you must report that win as income from the dog track. If you win from blackjack, you must report the win as income from blackjack. Winnings from specific sources are taxed at a different rate. For example, winnings from blackjack are taxed at the normal income tax rate. Winning from the dog track is taxed at the special rate for gambling. Winning from a specific source is also reported differently. You don’t need to report specific source winnings as income on your tax return. Instead, you report the amount you won on your W2. You also need to list the source of the winnings on your W-2.

Final Words: Is Gambling for Money Still Worth It?

Gambling may be a great way to make money, but it’s a terrible way to save money. When you gamble at casinos, you’ll lose money if you don’t know what you’re doing. Gambling is a risky business and it’s not something that you can do casually. You’re putting your money on the line and there are no guarantees. If you’re really unlucky, you could go through all your money before you have a chance to win anything back. Gambling is fun as a hobby, but it’s a terrible way to make money. You can’t depend on it for a steady income and there’s no way to know how much you’ll win each time. If you want to make money from gambling, you must be willing to lose money in the process.

Tax Guide Editor Wed, 08 Jun 2022 05:59:23 -0400
Are Consumer Proposal Payments Tax Deductible?

There are many different legal ways and methods through which people can save taxes. Some of the most popular measures for saving taxes include investing in municipal bonds, making long-term investments, starting a business, and making maximum contributions to retirement accounts. A consumer proposal is not a tax-deductible instrument that can help you save on taxes. However, it may provide some relief (including relief from tax debt) in certain conditions.

Know More About Consumer Proposals

Consumer proposals are administered by LIT (Licensed Insolvency Trustee) and are a legally binding and formal agreement. The LIT works with the individual/business (the debtor) to develop the proposal, which is essentially the offer to pay the creditors in percentage. The proposal may also be for extending the time duration that is available to a person and debtor for paying off the debts that he or she owes to the creditor. In some cases, the consumer proposals may be agreements involving a percentage repayment as well as a repayment time-duration extension.

The consumer proposals are usually initiated when a business or an individual is near to being bankrupt and does not have enough capacity to repay the debt to the creditors. It can also be a suitable alternative when a person is close to insolvency/bankruptcy. When you are choosing a consumer proposal for debt repayment, you will have to first reach out to the LIT, which is a professional regulated by the government.

These regulated professionals can provide consultation services to both individuals and parties when they face problems related to debt. The LIT will also draft your consumer proposal. The proposal will outline the way the business or individual is going to repay the debt to the creditors. Once the LIT drafts the proposal, it will be sent to the creditors, who may reject or approve it. Creditors get a maximum of 45 days to decide on the proposal. A consumer proposal can be used for a variety of unsecured debts, including credit card debt, lines of credit, collection accounts, and unsecured personal loans. A secure debt like a mortgage or car loan cannot be resolved based on a consumer proposal.

Are Consumer Proposals Tax Deductible?

An individual may not gain any tax deduction based on the filing of a consumer proposal. It is not associated with taxes in any way. However, most of your income details will be included in a consumer proposal and will have the same priority as the other debts. When a consumer proposal is filed, the proceedings stay. Therefore, the creditors cannot take a collection action after you file a consumer proposal. But taxes are not the same as, say, charitable contributions, which are tax-deductible.

A consumer proposal can offer you relief when you have an income tax debt while not possessing the ability to repay the money due to consumer debts. A debtor can use a consumer proposal to repay the money (including tax debt) at more reasonable/favourable terms by using the proposal. However, you must file your tax returns before you can file a consumer proposal. If it is not done, the regulatory standards do not permit you to get out of your taxes.

Acceptance & Refusal of Consumer Proposal

 If your proposal is accepted, you will have to repay the debt in the form of periodic payments or lump sum amounts in the timeframes outlined by the proposal and agreement. The debtor will also have to fulfill the other conditions of the proposal. However, the debtors can retain their assets. They may have to undergo two sessions of financial counselling. The debtor may also make changes to the consumer proposal and submit it again if it is not accepted by the creditors initially. If nothing works out, bankruptcy has to be declared.

The debtor will be released from all the debt if he/she meets the repayment conditions of the consumer proposal entirely. The proposal will be annulled in cases when the debtor misses on 3 payments or when the payment schedule does not follow the proposal conditions of a consumer proposal.

Most of the consumer proposals are based on a lesser amount than the original credit. Many of the creditors may agree to the consumer proposals as they will be able to receive money on a more regular schedule. It is a better option for them when compared to receiving no money at all. However, the consumer proposal and the repayments are not tax-deductible. Taxes are levied on your income, and the two are not connected in any way. However, consumer proposals may provide you relief in cases when you are struggling with your tax debt.

Tax Guide Editor Sat, 04 Jun 2022 23:00:21 -0400
5 Ways to Keep Costs Under Control As Your Business Scales Growing a business isn’t as simple as launching a high-ticket product and placing vague estimates around costs. With the rising cost of goods and services and instability in the labor market, it’s challenging to pinpoint where expenses will land.

But it’s possible and oh so necessary.

Inflation isn’t dropping anytime soon, so it’s unclear where things will stand. But, not managing your costs can be the difference between going under financially and finally scaling your company. So don’t worry; below are ways to reduce business spending roadblocks that stand in your way and achieve projected growth.

Automate Your Accounts Payable

Say you’ve been managing accounts payable manually for some time. Your mountains of spreadsheets manage payroll, vendor payments, and inventory. But somehow, your team found themselves in a deficit and unable to pay your vendor for the consecutive months.

Now that you know how much “in the red” your business is, you try to pinpoint where the money went. Accounting can’t come up with a straight answer because your employees have been scanning several different spreadsheets.

Before you call yourself in, you decide to get everyone on the same page (pun intended). You’re frustrated that your company hasn’t been accurately managing expenses because of multiple touchpoints.

Don’t throw in the towel yet. The solution to your problem isn’t more meetings or covering extra action items. Instead, your business could be lacking steady automation that could simplify invoicing. 

Finding the right automation service is a no-frills alternative to unnecessary meetings, paperwork, and headaches. This service should have integrations that connect your team's documents and work well with your programs. With the right tool in place, you can stop throwing money out because of the slog and unpredictability of handling accounts payable manually and invest more money in your business.

Streamline Your Thinking About Important Business Functions

Your company has been using a popular internal software to onboard new hires for the last few months, and the process has been a breeze. However, months into using this new software, you’re aware of the initial costs of purchasing this product, but you haven’t calculated how much it will cost you over the long haul.

One thing is for sure: you know that this software has onboarded new hires, organized their paperwork, and saved your company considerably. As a result, sales have doubled, and profits are through the roof.

However, you’re uneasy because you don’t know how much revenue the new installment will potentially cost across its lifetime. So you could continue to ignore the future expenses related to new developments and features.

Or you could calculate the money that your company will use as an asset.

Deciding to classify it as an asset instead of an expense gives you the advantage of seeing how much money will come out of your pocket. With every upgrade, you’ll see how much money you’ll spend using the lens of depreciation and amortization.

Using a time tracking system is a great way to understand how the time your team is spending on the resources being expended and if that can be made more efficient.

Use SEO to Eliminate Big Ad Spends

When people search for their next favorite restaurant, they often turn to the “almighty" Google. They see the five stars, the glowing reviews, and human pictures, and now they’ve won a potential new customer.

And they’ve saved a ton of money using organic search. The ad industry is not only competitive but extremely expensive. This year alone, companies expect to shell out around $566 billion to attract more customers to the business.

Fortunately, restaurants (like other businesses) don’t have to secure dependency on paid search when organic search is at their fingertips.

With some research and help from an SEO specialist, your restaurant can rank well on Google like Red Lobster, McDonald’s, and P.F. Changs do. 

The only catch is that instead of money directed at advertising, you’re getting people to discover you and conduct business. In other words:

SEO - Ad Spends = Cost Control

Control Spending Creep

Even your best employees could fall prey to sketchy overspending streaks. For example, if they’re using business for a marketing campaign, but you found a trail of Starbucks charges, you could cut down the cost by setting firm limits.

Before you have to print out the bank statement of project spending, you should begin with planning. First, consider what materials are genuinely needed (like inventory, vendor charges, software development, etc.) and what items are luxuries rather than necessities.

Next, start brainstorming what the cost will look like? But, again, this isn’t the point where you land on an exact figure, just an approximate number.

When you finally arrive at the budgeting stage, you can start to position every dollar in its proper place. Instead of relying on heavy spreadsheets to manage your budget, you could issue your team a business card. The beauty of having an expense card to control costs is that every spend will be a click away when it comes time to monitor expenses. Having a database of spending and fees comes in handy when looking to manage individual employee expenses.

Use Data to Predict Expenses

If you haven’t taken a peek at your data, you might not understand your spending trends. We're not just talking about the vendor updates, the inventory, or the payroll that’s to be expected. 

You could be losing money by miscalculating how much a product costs, relying on paper receipts, and failing to incorporate travel and products into total costs.

And we understand. It’s not fun to input every expense line-by-line into a spreadsheet, gather data around those expenses, and make the change.

By the time you’ve done all of those steps, I’m sure another spend has occurred, which has added a couple more zeros to your budget.

But, you can make your life a lot easier by gathering information about your expenses even before it happens. Imagine having an easy-to-understand dashboard that shows you every increase in spending with full access to your reports at your fingertips. With that tool available, it’s much easier to pull back data that helps you predict fluctuations in revenue and better control costs.

In Conclusion

Business spending, much like today's economy, has become quite unpredictable. With the rising cost of goods and services and the shifting labor market, it’s unclear what your company will expect moving forward. However, if you find yourself consistently over budget and wondering where you can reduce costs, you’ve come to the right place. We hope you get a clearer picture of where your money is going so you can cut costs and considerably scale.

Financial Guide Editor Wed, 25 May 2022 23:33:45 -0400
How to Plan Your Retirement Years Nowadays, people are increasingly aware of how important it is to carefully plan their retirement years. This does not only mean planning life from an economic point of view, but also asking yourself some important questions regarding the future. “Will I be able to retire at 55?”, “how much do I need to deposit every month to get a significant income in the future?”, “how much pension will I get?”: these are the most common questions people ask themselves frequently.

The first step to better planning your retirement is to understand what a pension is. A pension is nothing more than a long-term plan designed to provide you with an income that you can live on when you stop working. By starting to set aside money for your retirement years, you are simply investing in your future and in the future of your loved ones to try to ensure an economically stable life. You should also have a small fund to handle any emergencies that may happen in life. Depending on the pension plan you choose, your employer (if you are an employee) and the government will contribute to your future as well by applying tax relief. In fact, in the United Kingdom all employers are required to deposit a minimum amount every month to contribute to their employee’s future. But there’s also a pension scheme designed for independent workers that lets them decide how much and how often to deposit on the fund. Whichever retirement scheme you decide to open, you’ll always be able to enjoy many tax and contribution benefits. Let’s have a closer look on this matter.

Pensions in the UK: how do they work?

Let’s see how the most common pension schemes available in the United Kingdom work. Even though every single one of them has been specifically designed to meet the needs of certain categories of people, all pension schemes comply to some common rules. For instance, you will always be able to rely on the government’s contribution to your future, which, in any case, will apply tax relief. Another important thing you should keep in mind before opening a pension fund, is that you won’t be able to access your savings until you reach the retirement age. This rule has been set to delete the temptation to withdraw money before the time and to grant you a significant income when you stop working. Nowadays, the retirement age is set at 55 years old for personal pension and workplace pension. On the contrary, for the state pension, your retirement age will be set at 66. You should also never forget that, when putting money on a retirement fund, the pension provider will be investing it. This will give it of course money the chance to grow, but will also put it at constant risk. As a matter of fact, all investments are risky and subject to the market’s constant ups and downs, so the chance to get less than you expected is always around the corner.

How does retirement planning work?

Once you know how pensions work, it’s time to investigate your life and financial goals. This is a crucial part of the whole process, because it makes you aware of what your ambitions for the future are. Most people open a pension scheme without asking themselves where will they want to live when they stop working, if their children will need financial help, if they will want to buy a new house, or move to another country. These are all important questions to ask yourself before opening a pension fund: identifying your life goals is crucial to build a stable and peaceful life for when you stop working.

Financial Guide Editor Thu, 12 May 2022 04:00:09 -0400
Everything You Need to be Aware of About E-Commerce Accounting Trying to do your own accounting is a task that gets complicated very fast. If you've ever tried doing it, you'll be aware that e-commerce accounting has its challenges. Now it is important to hire an accounting firm that specializes in e-Commerce and will help you minimize your tax bill. Undoubtedly eCommerce has a long cash flow cycle when compared to other industries. It is because the flow of inventory and cash is indirect to both the customer and the seller.   

Running your venture is fun and exciting, but it can also be quite overwhelming. Financing is one of the important aspects of your business which is definitely not fun which is why you need eCommerce accountants to deal with it. Though doing finance is stressful and challenging at the same time, it is one of the 

More About E-Commerce Accounting and Bookkeeping

E-commerce accounting and bookkeeping are altogether new for businesses aiming to gain new customers and engage them to be long-term clients. Thus, there are a plethora of things that go into it to provide the assurance accountants, and bookkeepers know their way right into customer engagement. Well, this might seem to be a complicated task, but it is quite simple with all the right tips. And when you know about the issues, it becomes even easier. Let's learn more about E-Commerce accounting and bookkeeping services and how to do them correctly? Keep reading!

The Future Vision 

Accrual accounting (in contrast to cash-based accounting – extra on that here) is critical for getting a comprehensive image of your books. Because inventory and cash flow are external to both the buyer and the seller, e-commerce has a very extended cash flow loop relative to most sectors.

E-commerce data is challenging to create clean accrual-based accounts because of its complexity. There are numerous more areas that e-commerce demands you to consider in addition to the conventional statistics inventory-related, cash, and overhead.

Parting Payments 

Amazon payments arrive every two weeks on average, although each deposit includes several weeks of sales, returns, reimbursements, and fees owing to those mentioned above extremely lengthy cash cycles.

It is critical that these donations are divided in a manner that enables you to classify each trade into the period it happened – which is not always the month wherein you accepted the deposit – in order to appropriately reconcile your accounts month over month.

There are various software tools that handle this problem (see our evaluation of A2X), but parsing out these deposits correctly still requires a while and the sharp eye of a trained accountant.

Managing Inventory Right 

The accounting for inventory at brick-and-mortar businesses is usually quite straightforward: amazon seller accountant can glance around at what's in stock and add anything held in a backroom or maybe a secondary storehouse. Also, it combines the purchase cost with the cost of resources used to produce or obtain the things.

On top of these expenses, e-commerce vendors must account for shipping, storage, taxes, customs, and any other additional expenses connected with making sales. COGS, or Costs of Products Sold, are the costs that make e-commerce bookkeeping more difficult than it does for a traditional vendor.

Your e-commerce CPA will be able to maintain track of your stock holding account — a line item that compensates for merchandise that has been acquired but not yet delivered to a customer. In addition to determining which expenditures to include as Moving parts on your P&L statement.


Advertising is a part of any business, but e-commerce enterprises typically advertise across several media. Amazon advertising may consume a large percentage of a seller's budget. Many sellers also spend on PPC (pay-per-click) advertisements, SEO tools, email, social networks, and affiliate marketing to improve the effectiveness of their ads.

Advertising is usually part of an e-commerce P&L. Create a post-advertising gross (PAG) way of calculating your monthly earnings relative to your advertising costs. Furthermore, which offers you a clearer view of how much money you'll truly take home month after month.


Overhead refers to any aspects of your business that aren't directly linked to your products. Salaries, space leasing charges, office equipment, technology and utility subscriptions, and security expenditures are all included.

Website hosting, shipping charges, inventory management systems, storage costs, transactional service charges from payment systems, and computer security and VPN memberships are all part of an e-commerce company's overhead.

What Are Some Minimal E-Commerce Expenses? 

Aside from the aforementioned concerns, e-commerce companies must also cope with a few more areas that contribute to data complexity.

  • For both sellers and accountants, the e-commerce tax rate is a big source of uncertainty. E-commerce enterprises deal with an even more complicated tax issue that often changes based on the state in which the consumer lives, whereas brick-and-mortar retailers simply cope with sales tax in the area they're selling. More information regarding state taxes for e-commerce businesses may be found here.
  • Inventory finance loans, through both Amazon and other lenders, are a common occurrence for e-commerce entrepreneurs. These loans generate a continuous line of credit, which makes accounting even more difficult.
  • Accounts Payable is a difficult task. Payable keeps track of short-term financial commitments, and e-commerce vendors may have many loans due at the same time. This adds to the accountant's workload, as money going in and out of the account can have a significant impact on whether or not a firm seems profitable at any particular time.

How to Optimize Business For Outsourcing? 

Depending on your brand's strategy and demands, it may sound right to outsource the entire arm or just a piece of the management and operation. Any duties that overburden your in-house team or divert your attention away from your main mission may and should be delegated to someone with experience and understanding in that field. You can outsource the following e-commerce functions:

Order Processing and Fulfillment

The top two aspects of a successful online retail experience are fast shipment and a simple delivery process. Businesses must figure out how to handle rising order volume while retaining customer happiness.

Order fulfillment and processing, in practice, demand large investments in warehouses, shipping logistics, and other associated systems. The proper outsourcing partners do have the systems in place to manage all of these responsibilities for you, and they can help you avoid the financial strain of doing it alone.

Product Listing and Catalog Management

When potential customers go online to shop, the first thing they see is your collection page and product listings. Each element implicated in the title, picture, and description—must be carefully created to entice, inform, and encourage clients to make a purchase. With the rise of smart speakers, these postings must also be optimized for voice search.

Approximately 42% of e-commerce businesses provide insufficient information about the product in their item portfolios, making it hard for buyers to decide whether a price is good. You can guarantee that your web catalog is comprehensive, well-written, & search-engine-friendly by delegating product page optimization and catalog maintenance.

Customer Service

Excellent customer service is a strategic edge. It generates positive comments and testimonials, which helps to raise brand recognition and extend your customer base. Half of the struggle for your eCommerce business's success is providing high-quality items. The remainder is handled by the customer service staff. Angry clients may air their grievances in public, perhaps costing you money over the long term. Customer service outsourcing has been found to lower the number of unhappy customers and negative comments.

People read and trust reviews to find out how happy other consumers were with a service or product. According to statistics, if a consumer has a terrible experience, more than half of them would stop buying from that company. Client service outsourcing mitigates these risks while also enhancing customer loyalty.

Businesses that outsource customer service may respond to customer issues, fix problems, and gather feedback from consumers with exceptional care and consistency. To effectively serve an overseas client base, outsourced customer service personnel may work outside of usual business hours.

Accounting and Bookkeeping

Financial records & bookkeeping are necessary for any firm to operate. Regular monitoring of your income and costs is critical for discovering chances for development and avoiding possible problems. However, corporate financial management needs a high degree of knowledge.

Exporting your bookkeeping and accounting reduces the chance of human mistakes and guarantees that your business' funds are in order. You may also be confident that your business follows all financial and tax requirements.

Free Cash Flow: Aiding the Needs of Modern Business With Bookkeeping Services 

Ecommerce accountants do need to go through a lot of struggles for the businesses of their clients. Thus, one of those is the bookkeeping services. Well, you would also want to get help from the best one in the business. At Free Cash Flow, you can avail the finest accounting and bookkeeping services without any fuss. Our experienced professionals carry extensive knowledge in providing top-notch solutions to customers. For more, get along to our website now!

Accounting Basics Editor Thu, 28 Apr 2022 09:52:42 -0400
How Human Resources Departments Deal with Drug Taking Drug taking is a problem that companies have to deal with every day. Indiana employee drug testing laws are also something for firms to think about, especially if you are based in this area. Some companies choose to drug test all of their employees, while others take a more lenient approach.

There are pros and cons to both methods, and it ultimately comes down to the company's preference.


Drug testing is an effective way to deter employees from using drugs.

Testing is a deterrent to employees because it can lead to them being fired. Drug testing also helps to maintain a safe and drug-free workplace. Everyone ultimately wants that. Staff will want to feel safe and not fear those around them taking drugs that have the potential to injure them in some way.

There are a few different ways that human resources departments can drug test employees to ensure that they do not escape the net. The most common way is through urine drug tests, but hair drug tests and blood drug tests are also used. The important thing is to test randomly and regularly, or just test everyone if the budget allows. It can save money in the long run to do that.

Urine drug tests are considered by many to be the most reliable. This is because urine drug tests can detect drugs that have been used in the last few days. Hair drug tests can detect drug use that occurred up to 90 days ago, and blood drug tests can detect drug use from up to a week ago. All the tests have their different uses as deterrents and in terms of keeping the working environment safe.


An advantage of drug testing is that it is a cost-effective approach. Drug testing is cheaper than other methods of drug detection, such as polygraph tests.

It pays to identify any drug users and deal effectively with them, whether that means helping or dismissing them. Many companies will collaborate with employees to help them, but most will stay clear of employing those with a drug habit in the first place.

Certain types of businesses have no decision to make about eliminating drug users from their workforce. For instance, when a patient’s or customer’s health might be at stake or a dangerous piece of machinery is being operated.

Identifying Drug Users

Setting up a drug testing regime allows companies to identify drug users sooner rather than later and get them some help if they need it.

It makes sense to identify drug users before employing them but when they are identified among your existing staff, who you have already invested time and money in training, it makes sense to see if they can be helped first before simply letting them go.

You will, with this approach, want to identify staff who are becoming addicted to drugs before it is too late so that you can quickly deal with the problem. It is a useful thing to achieve and the morally right thing to do as a business if you are able. We cannot, however, ignore the cost implications to a business that may already be struggling to survive in a competitive world.

The Practicalities of Administering a Drug Testing System

However, drug testing can be expensive and time-consuming. Additionally, some employees may feel that drug testing is a violation of their privacy. Human resources, alongside finance departments, will have to juggle all this to decide on the best way forward. It might vary from one business type or size to the next. It is good to know that drug testing facilities are there to help protect employers and their employees.

Companies that choose not to drug test their staff run the risk of increased accidents, high staff turnover rates, and low productivity levels. It makes sense to have a system in place that tests potential employees as well as regularly testing existing ones for banned substances and drug misuse.

It is the responsible and safe thing to do as an employer, as well as being a tool to increase productivity.

Accounting Basics Editor Wed, 27 Apr 2022 05:38:12 -0400
4 Business Strategies You Probably Haven't Thought About In 2022 All know that when the covid-19 pandemic hit the world it affected everything very badly especially it rocked the business sector and the industries were also affected. So this means that the last two years were very disturbing but now as we have moved on to 2022 businesses are also preparing themselves for different growth opportunities.  This year is considered a strong year for businesses because we can expand our partnerships,  grow our customers and also make links with new clients.  To do all this we need to have an effective business strategy or a business plan.  If you have a new year's resolution that also includes business growth, this article contains some important business strategies that you can choose to apply to become the future experts in the related industry.

Strong E-Commerce Presence

There is no doubt in this that entrepreneurs are the beauty of the world and to improve your standard you should always focus on E-Commerce business growth and interact with new people.  The people who own small businesses can easily make a unique niche in today's market and that will benefit them if they establish a strong online presence. Since we know that nowadays many customers prefer to shop online, incorporating a good E-Commerce business strategy is a good way of starting your future brand.  if you work hard on developing your online present send it will make the people aware of your product,   and it will attract more customers to you

Focus On Your Team

It is an important thing to focus on your team and develop an environment that has creativity, empowerment, and collaboration which can help to improve your performance and this is how you will be able to achieve maximum profit.  you need to know that investing your time and resources in your team is very important and this thing is often neglected. By doing this you will analyze the level of interaction of your employees and in addition to this the workers will also feel very empowered and they will deal with their mistakes very easily.

Focus On Video Content

You might be unaware of this fact but you need to know that nowadays graphics and videos are very powerful marketing tools for a business and by using these tools you will continuously rise.  There are many platforms such as Facebook,  YouTube, and Instagram,  that are effective and efficient ways to connect with the consumers and audience in the best possible way.  By making videos and by connecting with them you are telling your brand story to them.  so this is why businesses should always prioritize making short videos that will help them to gain organic traffic

Focus On Digital Marketing

After dealing with the pandemic people came to know the importance of online presence and jobs.  You need to know that digital space is a major part of our lives now, It is everywhere no matter if you are shopping for interacting with your friends you are living in a digital space.  There are many businesses for which the shift to the digital system has not been very easy and there are many others who are still reluctant to adopt changes themselves. By building your website, for designing a good newsletter you can improve your social media campaigns and in this manner, you would increase your brand visibility to attract organic traffic

Accounting Basics Editor Sun, 17 Apr 2022 08:05:12 -0400
Landlord Guide to Property Tax Assessment

Running a rental business is not cheap, and there are several costs that property owners have to account for at the end of the year. Thankfully, the IRS knows, and many expenses are eligible for deduction according to their policy. Despite that leverage, many landlords still miss out on the opportunity to keep some money in their pocket or spend a lot of money on a professional to help them. If you read our article on 2021 rental property tax tips, you might have picked up on some helpful tricks real estate investors should know.

Well, in this article, we'll be revealing more tips and giving you a detailed landlord guide to property tax assessment. So if you'd like to start doing your taxes like a pro or save some extra cash on outsourcing to accountants, read till the end.

Section A: Eligible Rental Deductibles

●     Property Taxes

Since property taxes often cost a lot of money, eliminating them from your taxable income could be a huge relief. These are taxes payable to your municipality, and it varies depending on your rental type and location. In other words, having a single-family unit in neighborhood A could cost you $4,000 in property taxes, but only $2,000 in neighborhood B. Generally, these amounts are calculated using the average income. Thus, low-income areas pay less. The acquired funds are then funneled into schools, hospitals, and other communal needs[1]

●     Mortgage Interest

Considering that most property owners have to take out a loan to purchase their investment, many landlords can take advantage of the fact that mortgage interests are deductible. Thus, it's safe to say this expense is pretty much standard. However, if you're unsure how much interest you're paying on your loan because the payments are automated, there's a simple way to find out. Usually, when you borrow the money, you receive an annual tax form called 1098. This form is your mortgage interest statement and shows you the total interest you paid. Since you typically receive this document from your lender, you can go ahead and input the full amount as it would be accurate. The same applies to landlords with impounded property taxes. Besides that, Maine landlords can also count on getting some more cashback through the proposed increase in taxpayer rebate by 2023.

●     Travel

Landlords rarely live on the same properties as their tenants, which means they have to transport themselves when there's a need for them to be physically present. Sometimes the trip could be a short car ride away from one district to another, and other times it could mean traveling to another state. In either case, these necessary travel expenses are tax-deductible. You might want to look at publication 463 by the IRS, which specifies the latest requirements for travel, gift, and car expenses[2].

●     Advertising

Experts usually recommend that you make room for at least two months of vacancy in your budget. That tells you vacancies are tightly tethered to running a real estate business, and every landlord should anticipate it. However, filling up vacancies is no easy task, and it often costs money to advertise online and in traditional media. Then there might be other associated costs such as virtual staging or tours to reach a bigger market. Of course, we can't exclude the commission you might have to pay to your real estate agent and other professionals. They can get quite hefty when you sum up all these costs, so it's great to know that they're also tax-deductible.

●     Salaries

Many landlords can get by with managing their units themselves, but it takes a team for property owners with a vast portfolio. Thus, if you have everyday employees such as property managers, cleaners, and stand-by repair workers, you need to pay them weekly or monthly. So you can legally deduct their wages, compensation, and other gifts from your taxes.

●     Utilities

Gas, water, electricity, and other appliance or furniture-based property costs fall under utilities. If you are responsible for these payments, you may also deduct them from your taxable income.

●     Depreciation

Landlords also receive an allowance for depreciation. Although real estate is good at edging the effects of inflation and gaining value over time, one can still expect sufficient wear and tear. After all, you can't compare the integrity of a new building to one that's fifty years old. Thus, you can remove a certain amount annually from your taxable income to make up for that loss. Most landlords struggle with calculating depreciation accurately, but a tax calculator can take care of the rest if your property meets the criteria.

Section B: Filling your Schedule E Document

When you decide to become a landlord, you should prepare to pay taxes on your returns. Following the Department of Treasury and Internal Revenue Service, the proper way to account for supplemental income and loss is to fill out a Schedule E document. This paperwork is mandatory for both residential and commercial rental real estate. Here's some of the information you would have to provide:

You'll have to answer questions about your physical address, type of property, expenses, fair rental days, and more at the first stage. An optional section of this part that often confuses people is the question about 1099[3]. To clarify, a 1099 form is a document for the internal revenue code that collects information on miscellaneous rental income and nonemployee compensation. For example, if you contract someone to do your landscaping for a specific period, you have to report how much you pay them in the 1099 form.

Tip: Under the section that inquires about fair rental days and personal use days, you have to fill in how many days your property is up for lease in a year. For example, if the apartment is a vacation rental, you might use it as a second home or getaway during some parts of the year. Note that those days will not count towards fair rental days and thus will reduce your deductibility. As a rule of thumb, you're typically entitled to a maximum of fourteen personal use days before the IRS starts discounting your deductibles. You should also note that their tenancy period will not count towards fair rental days if you charge your tenants significantly below fair market value. So if you're putting up a family member or friend at half the rent, you could also be losing on your eligible deductibles.

To illustrate what we've highlighted, let's create a hypothetical scenario. If your annual rent on a property is $24,000, that will come down to $2000 per month. Some expenses you might incur include advertisement ($150), cleaning and maintenance ($400),  insurance ($950), legal fees ($350), mortgage repayment ($2200), utilities ($2000), and more. That boils down to a total of $6,050. Mind you, most properties incur a lot more expenses, and you can include other costs such as repairs, commissions, supplies, depreciation, etc. One of the reasons you should get help from professionals is that a good property manager can help with accounting. Since their job is to monitor your investment operations, they can create a detailed tracking sheet of all these costs you incur over the year. Once you have your total value, you can deduct it from your annual rental income, which in this scenario would give us $17,950. However, passive income loss is another relevant terminology for landlords filing their taxes. It refers to the income you might have lost from previous years and applies to landlords who aren't real estate professionals. In other words, if you still have a day job, then you can further deduct this expense after filling out form 8582.

For this example, we're going to assume that our passive loss income is $1000, so if we deduct that from $17,950, we'll arrive at $16,950. That would represent the final value of your annual income that is eligible for a tax deduction. As you can see, it's beneficial to keep organized records of your expenses. Not only will it make it easier for you to figure out your deductibles, but it'll also save you money auditors might charge to help you straighten out the problem. Of course, that value would be smaller if we included more expenses such as depreciation.

It's not uncommon for people to get hung up on depreciation and input the wrong amount. A good way out of that problem is to remember that you can only deduct depreciation related to the building itself. In other words, you can't include the fall in the value of your appliances, but your foundation is fair game. Many tax accountants often associate 75% to the structure and 25% to the land. You might not bother with the math as tax calculators can take care of it once you input the relevant information. But if you're curious about how the numbers work, you can refer to the publication 9486 on the IRS website.


We hope you found it easy to follow this detailed landlord guide to property tax assessment. Although filing your taxes can be a dull and mundane task, it's significantly easier to complete a self-assessment if you keep proper track of your rental expenses. If you don't have a property manager or accountant who can help you, feel free to look for a profit/loss summary template that works for you. You could easily download one online, create a spreadsheet document, or rely on a property management app including accounting features. It would be best to start and build this habit at the beginning of the year because it might feel overwhelming if you wait till the last quarter.

[1] San Antonio Independent School Dist. v. Rodriguez, 411 U.S. 1, 93 S. Ct. 1278, 36 L. Ed. 2d 16 (1973).

[2] Silverton v. Commissioner, 37 T.C.M. (CCH) 142, 1978 T.C. Memo 22 (T.C. 1978).

[3] IN RE FUSTOLO, No. 13-12692-JNF, Adv. P (Bankr. D. Mass. Feb. 4, 2019).

Tax Guide Editor Mon, 21 Mar 2022 11:05:47 -0400
Detecting & Preventing Accounts Payable Fraud – Explained Businesses run on finances that accumulate to a large number of transactions, and there comes the accounting department's responsibility to organize, reconcile, and manage complete records of each transaction. Narrowing down the duties, vendor and supplier payments are handled by the accounts payable department, which usually remains vulnerable to the risk of theft, to be precise – accounts payable fraud.

Since this type of fraud can be committed by anyone, for instance, external vendors or in-house employees, it is usually challenging to hold someone responsible, which can also be an outside party seeking access to the company's payment systems.

The Impact of AP Fraud

Each year, fraud causes a typical organization to lose 5% of its revenue – a median loss of $125,000 – Association of Certified Fraud Examiners (ACFE) - Source

On average, fraud can take around 14 months to be detected, accounting for an average loss of $8,300 per month.

The impact of fraud can be small or big. Still, a loss is a loss that must be prevented, and this is why many businesses outsource accounts payable services to a trusted and reliable AP service provider firm. Accounts payable fraud can be committed via a wide variety of schemes and tricks; getting further, let's discuss some of its broad types.

Common Types of AP frauds:

Billing Schemes

Billing schemes are the most common type of method fraudsters or financial scammers use to attack a firm's accounts payable department. While an employee can intentionally perpetrate these, it is not limited to them as other parties can be involved.

For example, an AP employee might create an invoice in the name of a fake corporation and process it using the company accounts for products or services that were never received. Similarly, with the help of an external party, an AP employee might pay for an invoice twice.

Check Fraud

According to the Association for Finance Professionals (AFP) report, 75% of organizations experienced check fraud in 2016. Let's read some of the examples of check fraud. Check fraud might include;

  • Adjusting the amount on a check
  • Changing the name of the payee
  • Writing checks (AP staff member) for personal expenses using the company's checking accounts

ACH Fraud

Automated clearing house fraud (in short – ACH fraud) is fast becoming one of the top AP frauds around the globe. This, in most cases, is committed by in-house AP employees. An AP person can set their name in the company systems as an automatic bill payee (where authentication is not required). Now they get the authority to process invoices that might have been created by them only for fraud purposes. No doubt why many companies outsource invoice processing services to firms that use stringent data confidentiality and security measures.

Fraud related to Expense Reimbursement

Expense reimbursement fraud involves using business-related reimbursable costs and can be committed by any employee. This typical fraud can take two years (averagely) to be detected, according to the ACFE.

Here are some factors that increase the risk of expense reimbursement fraud;

  • Incorrect or improper characterization of reimbursable expenses
  • Overstating expenses (claiming $50 instead of the actual expense of $40)
  • Fake expenses (claiming expenses via fake invoices)
  • Repeating claims (claiming an expense reimbursement twice or more)

Kickback Schemes

Kickback schemes are one of those frauds that can damage your business in multiple ways. With the involvement of an insider infringing company norms, this fraud can be dangerous. It happens when an external party offers money to an employee, and in return, they want them to sway certain decisions. For example, your vendor manager can close a deal with a firm that has paid the manager for choosing their firm.

Detecting and Preventing Accounts Payable Fraud

Detecting an AP fraud is challenging and time-consuming, but the bigger problem is that companies don't take adequate measures to prevent one. According to The Association of Certified Fraud Examiners (ACFE), a lack of controls can be attributed to around one-third of frauds. 71% of surveyed organizations cite AP frauds as a huge concern - Beanworks.

As a business owner, if you are looking for ways to enhance your firm's protection against AP frauds, here are a few solutions you can consider.

Track Stolen and Lost Checks

It is always a good habit to keep track of checks by maintaining a list of check numbers. It helps to detect mission checks so that when in need, you would know which ones are stolen or lost, and the best way to identify them is to perform reconciliation of AP records against bank statements. If there's a discrepancy, it must be sent for further investigation.

Closely Check Invoices & Detect Oddities

Have someone from your finance team dedicatedly work on invoice checking and look for the indications of a red flag, such as;

  • Invoices are not numbered in a sequence
  • Some invoices are skipped
  • One number on two or more invoices

Besides, paper invoices that have correction fluid on them, invoices that are photocopied, or those that have traces of being edited, these invoices should be investigated further.

Conduct Audit Regularly and at times, Surprisingly

Regular audits are paramount to check for inaccuracies, and the best thing is that they can also help detect and prevent fraud. While you might already audit accounts regularly, try conducting an unscheduled audit can be of great help. With this, if your employees are plotting a fraud, a surprise audit will ensure they don't get time to sweep it under the rug.

Use AP Tools or Software

Using AP software and integration plugins can help prevent most frauds. These applications allow you to put in fixed payments to be made automatically. Moreover, they have small tools you can use to reconcile statements against transactions and transactions against invoices. However, you may need someone experienced to operate the software effectively.


While tightening control over payments management can be a great way to detect and prevent fraud, outsourcing accounts payable services to a reliable provider can make a huge difference. This is because they are specialists and have years of experience handling invoices and payments for various businesses. They also have strict data protection policies and sign NDA forms before onboarding any accounting project. Now, if we compare the cost of establishing an in-house AP team with the cost of AP outsourcing, you would be surprised to see the difference.

Yes, you can save a lot by outsourcing AP services to companies in other parts of the world. All things considered, it would be fair to say that AP outsourcing can be the best way to prevent payments fraud.

Author Bio:

Stacey Howard has 6 years of experience in accounting & bookkeeping. She has been working as an accountant with reputable firm Cogneesol– accounting and bookkeeping service provider. Due to her passion, she has contributed significantly through her write-ups about multiple accounting industries.

Accounting Basics Editor Wed, 16 Mar 2022 09:58:42 -0400
5 Investment Ratios Everyone Should Know What comes to your mind when you hear the word ‘ratio,’ most probably your boring math classes in the school, which you hated the most and usually like to skip! Well, don’t worry, that’s not the case here. 

When it comes to investing your money, there are certain ratios that will help you in assessing the value of the company's stock and are used as a primary tool for fundamental analysis. 

It is always good to know about these different types of investment ratios while performing fundamental analysis. However, if you want to have an in-detail understanding, you can   click here for investment guides

Section of financial statement

Before starting to calculate any financial ratio, it is important to understand different financial statements first. These statements include various sections like:

  • Assets and liabilities
  • Sales revenue
  • Gross profits
  • Operating expenses
  • Operating profits
  • Net profits before taxes and after
  • And stock dividends

Types of financial ratios

First, let’s understand the types of ratios before jumping towards the investment ratio section.

  1. Price ratios

The relative value of a stock is basically called the price ratio. Such ratios are great for comparing within the same zone.

  1. Profitability ratios

 As the name describes, the profitability ratio is all about your individual or company's profit.

  1. Liquidity ratio

If a business is able to meet its short-term obligations, the liquidity ratio will display it.

  1. Debt ratios

This ratio controls the long-term health of a business and the effect of the capital and financing structure of the business.

  1. Efficiency ratios

This ratio shows how a business uses its resources that are invested in fixed assets like machines and equipment, property, etc.

Well-known financial ratios

Now, it is time to know the different types of financial ratios available in the market.

  1. Price-to-earnings or P/E ratio

According to Michael Fairbourn, education coach at TD Ameritrade, the price-to-earning or P/E ratio is the “most heavily used stock ratio in the world.” How much an investor is willing to pay for a stock above its per-share earnings is known as  the P/E ratio.

For instance, if a P/E ratio of a stock is 10, it simply means that investors are ready to pay up to 10 times their  earnings per share for owning it i. But is it an expensive or cheap option?

Whether the P/E ratio of 10 is cheap or expensive depends on the capability of the company if it is  ready to fulfill them in terms of future earnings. However, you can check a stock's P/E ratio by comparing it with that of the S&P 500 historical average.

Michael explains that “if a company with 35 P/E has a higher growth rate than a company with a 10 P/E,  the company on the higher end of the ratio might actually be ‘cheaper.’”

  1. Price/earnings-to-growth or PEG ratio

In terms of popularity, price/earnings-to-growth or PEG is not like the P/E ratio, but it may provide an even clearer picture of a stock’s future growth prospects. 

So, now you are able to know a stock’s P/E ratio. Now you are thinking, how does that number stand relative to its projected growth rate? So, if the company’s P/E is ‘cheap’ and it doesn’t grow, what is the point of holding that stock with a low P/E? 

Fairborn stated that “in this ratio, you are comparing the P/E to the analyst consensus estimate of projected earnings, which typically project as early as quarterly to as long as five years.” So, how will you know about that value? 

As per Fairbourn, investors will generally consider it undervalued if the PEG ratio is less than one.

So, why is it important to know the growth component? “You don’t want to buy something that will forever be a bargain,” Michael said. He further added that “investors will often want to see a history of growth combined with projected growth. This could help to validate an undervalued PEG ratio.”

  1. Price-to-sales ratio or P/S ratio

Let’s understand this P/S ratio. So there is a company with strong quarterly sales, but still, they aren’t getting enough earnings because you might be spending too much.

Then there are investors who are ready to give up their profits now for stronger returns. Companies share their quarterly sales or most of their profits to build a bigger and better company for the future because sales are the most important thing.

Here the P/S ratio shows how much investors are ready to pay above a company’s “revenues” (here, revenue is without liabilities means gross revenue).

  1. Price-to-book or P/B ratio

The price-to-book or P/B ratio is the worth of a company’s stock in relation to its net asset value, or book value. 

Talking about the P/B ratio, it’s an effective metric that can compare a stock’s market cap to “what it owns versus what it owes,” said Fairborn. 

  1. Debt-to-equity or D/B Ratio

The D/E ratio should be less than one, according to the investors. While  a reading of  two or more might translate as carrying more risk, at the same time, it also depends on the industry.

Michael Fairbourn says that “some companies like big industrial energy and mining companies, tend to carry more debt than businesses in other industries.”

So, if you know any companies that carry a higher debt, it might offer greater return, but that carries more risk.


Analysing stocks may look simple but are very complicated in nature. Sometimes, even calculations don’t give you a clear answer. In such situations, you can get answers from experts. So it is best to hire an expert to work for you.

Financial Guide Editor Mon, 14 Mar 2022 02:52:02 -0400
Mortgage Refinancing: Options Available

Mortgage refinancing means renegotiating the current mortgage loan agreement. This gives you the liberty to access the equity and reduce the cost of borrowing by leveraging at lower interest rates. When you refinance your mortgage it increases the mortgage loan for financing larger expenses. You can use the loan for renovation or purchasing a newer house. There are moments in life when you consider refinancing your mortgage. That is the moment when you wonder what are mortgage refinancing options in Toronto ? It can be a daunting question. We are here to make it easier for you. Following are some of the refinancing options you could consider.

Early Closing of the current mortgage

If you wish, you can pay off your current mortgage earlier than anticipated. Along with that, the other debts that you have against the property. Once that has been done, you can take a new mortgage at a more suitable rate and term.

Adding a home equity line of credit HELOC

HELOC lets you borrow about 65% against the equity of the house. This is done through a home-equity line of credit. When you choose this refinancing option, you can use what you need. As you are not making use of the whole amount, you only have to pay interest on the amount that you have borrowed. You can easily borrow and pay back from the HELOC. You could also get a HELOC along with the existing mortgage. This can be done without paying any prepayment penalties or breaking the mortgage.

Blend and extend

Some lenders will let you renegotiate the interest rates before the mortgage term ends. This is also referred to as an early renewal. It allows you to blend the current rate with the existing rates. This lowers the number because of which you can enjoy a lower interest rate when there is an extension of your existing mortgage term. This refinancing option also lets you save on prepayment fees.

Adjusting the amortization period

You can save thousands of dollars by shortening the amortization period. This option should only be used when your financial situation allows you to. You could also consider extending the amortization period in the favor of reducing the monthly payouts.

Reach out to the experts

Deciding which mortgage refinancing option would be the best for you can be quite a task. Each person has their own needs that they aim to reach through this refinancing. Hence, the option should always be chosen according to the requirement. It is best to reach out to a Certified Mortgage Broker. A consultation with them will help you gain more clarity. Based on your situation, they will educate you about the various refinancing options available for you and would be best suited. This will help you to make a more informed decision. Once you have decided, they will help you to get the best possible deal. It can be daunting considering mortgage refinancing. Having an expert by your side can make it easier.

Financial Guide Editor Fri, 04 Mar 2022 22:24:44 -0500
Orlando King’s Accounting Tips For Entrepreneurs According to statistics, about half of all companies will close in their first five years of operation and one of the most common reasons for closure is mismanagement of funds and running out of money.

After running several businesses in Atlanta, Orlando King learned that instead of malicious scams or extremely low sales, it is the minor accounting errors that come with the passage of time that usually leads to a financial crisis.

Most business owners are not good at accounting and most new businesses do not have the resources to have a dedicated accounting team, so mistakes can be made, but remembering these five accounting tips for entrepreneurs will help you to keep expenses minimal and keep your business growing for years to come.

Orlando King shares 5 accounting tips for entrepreneurs that will help them get started.

1) Open a Business Account

One of the first things you need to do when starting a new business is to open a special corporate bank account.

While it may seem more convenient to trade through a personal bank account when you are expanding your business for the first time, this can lead to serious tax return conflicts and can affect your assets. Leave your staff at risk if your business goes financially or legally. problem.

It is also important to ensure that companies and private finances are completely separate.

2) Prepare for Taxes Early

If you have experience automatically deducting taxes from your payroll and tax returns, the world of corporate and self-employment taxes can be extremely important.

One of the main differences between W2 (employee) and self-employed taxes is that instead of filing at the end of the year, self-employed people are subject to an estimated quarterly tax, based on their estimated net income for the year.

3) Save for Big Expenses and Emergencies

As your business grows, your business expenses will rise too. You can update your software to better manage users, upgrade your hardware, or expand your product portfolio.

You should also plan for the worst-case scenario, such as a natural disaster, an infectious disease, or even a family crisis that could cause your business to shut down for weeks or even months.

Most financial advisers recommend keeping a minimum of three to six months on savings. It should be easy to get liquid money in a security account for a company, so you can use it without any worries if your business goes into disaster.

4) Keep Every Receipt

Keeping track of every transaction you make or receive is one of the most important things you can do to protect your business finances. Having all your receipts can help you get the right withholding tax and save even more after the tax period ends.

They are also important to keep in mind when tracking your business, to prove that the deductions are valid.

5) Find the Right Software

If you're still using spreadsheets for accounting, you're missing out on the necessary tools that can promote your account and save time and money for your business.

Software packages are designed to make your business financially easier and even help newcomers to the financial world to make their business more profitable and get out of financial or legal trouble.


So these are 5 major accounting tips for entrepreneurs, it will definitely help you to grow your business if you implemented them correctly.

Accounting Basics Editor Thu, 03 Mar 2022 22:54:24 -0500