Accomplished Promotion

If you are a small business owner, you know there was welcome relief in the American Recovery and Reinvestment Act of 2009, popularly known as the Stimulus Act. So what was so great about the Act? Among other things, section 501 reduced the fees paid by borrowers so they did not have to pay the dreaded “SBA loan guarantee fee”. This was traditionally 2% of 75% of the loan amount on the large 7(a) loans. Also, section 502 increased the guarantee percentage which pays banks their losses upon default, from 75 to 90%. Cause for celebration? Absolutely. But we must temper our excitement with the fact these benefits may no longer be in effect if Congress does not appropriate more money. In fact, some pundits think it may run out in December based on the volume of SBA loans.

To understand this, you have to get a grasp on why more money is needed. Prior to the Act, banks were given more incentive to make loans because the SBA would step in and pay their losses by a certain percentage. When the guarantee rate went from 75% to 90%, coupled with a higher default rate because of the economy, the Feds had to shell out more money to the banks. And then there was the waiver of SBA guarantee fees which are subsidized by taxpayers-you and I. Without the money, those incentives go way.

So, things were really percolating along as a result of these incentives. In the beginning of 2009, the SBA approved approximately 165 million loans. But by July and August, the figure had risen to 320 million and 400 million respectively. More loans simply meant more risk-increased expenditures by the government.

And so what is Congress doing to find the extra funds? It is probably unlikely to secure additional appropriation in the new Stimulus Act amendments since they have already passed committee and did not include such measures. Instead, Congress is looking into any unused money under our friend (depending on what political aisle you’re sitting on) the Troubled Asset Relief Program (TARP). This originally allocated funds to prop up the secondary market. Amendments to that bill could provide some of the appropriation necessary.

Translation: as small business owners we don’t care what you call it or who’s doing it, just as long as these incentives continue. The fact that there are actually banks making small business loans does wonders to provide needed capital and at least keep our hopes alive in this anguishing financial market.

So what does that mean to me as a small business owner? I’m not interested in a large loan with a lot of paperwork. I simply want a streamlined loan application where I can receive unsecured monies in the neighborhood of 5K to 50K . The last thing anyone wants to see is this type of loan going away. Well, you are in luck. Because of these incentives, banks are actually making these loans under a popular program called SBA Community Express. It does not require business plans, tax returns, or financials , and is now running at the rate of approximately 7.75% or $60 per month for every $5,000 borrowed. We can only keep our fingers crossed that this golden egg laid by Congress remains available.

By: Sue B. Malone

About the Author:

Kansieo.com

When you are worried about your income tax returns and unable to get any substantial help you must look at online options to resolve your tax issues. Sometimes filing taxes may require a lot of time, especially if it is done in the standard filing manner. You may opt for professional help when you are unable to understand the complex tax issues but for any kind of IRS help, you would have to spend substantial amount of money. However, if you opt for online tax return software you can easily find IRS help at reasonable cost and the time spent on assessing your returns would also be substantially less than the regular time required for standard filing of taxes.

E-filing of taxes has opened up a vast online market of cheap software that help in filing taxes automatically. Most people who have online businesses also opt for automatic IRS help because they realize that these software are secure and accurately file their income tax returns. Free help from the IRS will help you to analyze your income and would also give you several options to help you in deductions and filing your income tax accurately through the online portals.

Help can also be acquired from several online attorney and tax accountants. These people would provide you free advice for the initial assessment of your income and later they might charge you a nominal fee to file your income tax return. Online tax counseling and advice can be the right choice for you because you don’t need to meet the persons and spend extra time with them in useless conversation.

However, while applying for help, always look for an experienced online IRS tax attorney with good track record who is willing to give you free advice regarding your online payment of taxes. It is always advisable not to dish out money anytime without getting the help that you require. There are several fraud schemes that are available online so you must avoid falling into such traps.

The best way to file your taxes remains the e-filing of taxes and you can also get back your refunds within 10-14 days by this process. E-filing would also provide you IRS help if you are unable understand any clause of the agreements or documents. The e-filing software that is available online would also provide you extra information about your income that would help you in cutting down your taxes. So for all these reasons getting IRS help online stands out as the best advice for all you people.

By: Elijah James

About the Author:

Create a video blog…instantly.

A person acquires ownership in a corporation by purchasing some of its stock certificates. For example, if Unique Beach Towel Corporation has sold 100 shares of stock to various persons and if Bed Linens Company has acquired 40 of these shares, Bed Linens Company has 40% ownership of Unique Beach Towel Corporation.

When a corporation has accumulated a certain amount of profits, its directors may choose to take some of the funds generated by the profits and to divide them up proportionately among the stockholders. The amount so divided is called dividend.

There is no obligation for the directors to pay a dividend to the common stockholders each year. Also, when dividends are declared, there is no requirement that the amount of dividends be related to the amount of net income in the current year; that is, the declaration of dividends is optional.

A share of stock entitles the holder to:

(1) A share of ownership,

(2) Dividends, if and when declared, and

(3) A vote on certain matters.

Sometimes a corporation may issue two or more classes of stock. For example, sometimes there may be one class entitled only to the privileges mentioned above, and a second class entitled to preferential treatment with regard to dividends or with regard to the distribution of assets in the event of liquidation. The former is called common stock; the latter is called preferred stock.

Preferred stockholders usually have preference to a stated amount of annual dividends. For example, if Unique Beach Towel Corporation has issued $100,000 of 6% preferred stock, the common stockholders usually do not receive dividends until the preferred stockholders have received their full dividend, amounting to 6% of their investment.

Because the common stockholders’ participation in dividends and in claims against assets in the event of liquidation is always penultimate to other classes of stockholders, they are called the residual owners.

Sometimes stock is issued with a specific amount printed on the face of each certificate. This amount is called the par value. Stock that has a par value printed on its face is not necessarily purchased at that amount (at par). Instead, it is often purchased at a premium (for an amount more than par).

Par value stock could theoretically be sold by the corporation to an investor at a discount (that is, at less than par). However, since the individual stockholders may be required to contribute the amount of the discount in cash if the company later goes bankrupt, stock that is sold at a discount from par value is unpopular with investors and is therefore rare.

For this reason, it has become customary in recent years to make the par value a nominal amount, such as $1 per share, or even less. This is done so that the stock can be sold at a premium. It is clear that such par values have little practical meaning.

Many states require or permit the directors to state a value for the stock sold to subscribers. This value, called the stated value, is usually set near the amount the corporation actually receives from the sale.

Which value is closer to the amount paid for stock at the time it is originally sold by the corporation – par value or stated value? Stated value.

Stock is recorded on the balance sheet at the stated value. Thus, if Unique Beach Towel Corporation sells 1,000 shares of $1 par value common stock to the public and if the stated value of the stock is $15,000, how will the common stock item on its balance sheet look?

Common stock.. $15,000

At the start of a corporation, its directors meet to authorize a certain number of shares of stock and to issue a portion of this authorized stock, that is, to sell it to investors or key management personnel. Thus at any given time the amount of stock authorized is generally larger than the amount issued.

Sometimes a corporation may buy back stock that it has previously issued. Such stock is then called treasury stock. The outstanding stock consists of the issued stock less the treasury stock.

The equation that shows the relation between issued, treasury, and outstanding stock:

Outstanding stock = issued stock – treasury stock

The balance sheet amount for capital stock is the amount for the number of shares outstanding.

Quilts & Shams Company has authorized 100,000 shares of stock at a stated value of $10 per share. 60,000 shares have been issued at various times. On January 1, 2009, there are 10,000 shares of treasury stock. What will be the balance sheet amount for common stock? $500,000

A stockholder may sell his stock to a third party. Such a sale would not affect the balance sheet of the corporation.

When a stockholder sells his stock to a third party, the price at which the sale takes place is determined by the “market” for that stock – the extent of supply and demand for it. Thus the value at which a stock is sold in such a transaction is called the market value.

In the case of a going business the market value of the company’s stock has no necessary relation to the par value or stated value. Thus if the par value of a certain issue is $1, and the stated value $10, the market value can be any value whatsoever.

The total of the owners’ equity is defined as the assets less liabilities. It is not likely to be equal to the total market value of all stock outstanding. Evidently, accounting does not attempt to measure the real value of the owners’ equity.

By: Marivic Malinao

About the Author:

Kansieo.com

When it comes to running your own business, everyone seems to have a plan to make you successful. You can read and study and even mimic the greats but that doesn’t necessarily mean you will succeed. To really rock the business world, you need both strategy and tactics that work and you need them to work effectively together. This is where many people in business fail because they miss one or both parts of this equation. A better understanding of strategy and tactics as well as how they work together will help you prepare properly for your business.

Your strategy is the plan of action you want to take to achieve success in your business. Your business tactics are the specific steps you take to achieve those goals. It is important that you know and understand the difference between the two and how they are applied to business. When it comes to your business, before you start any marketing or advertising campaign, you need to have a strategy and you need to implement that strategy into your techniques.

What is Strategy?

Your strategy is the act of creating decisions that will benefit the future outcome of your business. Strategy is the set of directions you make or your situation and position within the business community. Strategy often also refers to your timing in the marketplace and strategically choosing the most beneficial time to launch your business or your campaign.

1. Strategy is your overall goal in your business.

2. Strategy is your standing within the marketplace.

3. Strategy is your position in your niche.

What are Tactics?

Tactics should work with your strategy and they are the set of requirements need for your plan to take place. Your tactic is your device used for meeting your goals set by your strategy. Strategy and tactics should always be relative to one another because the tactics are the set of actions needed to fulfill your strategy.

1. Tactics are the tools you use to achieve your goals.

2. Tactics include things like advertising and marketing.

3. Tactics are the steps taken to achieve your goals.

Strategy vs. Tactics

To be successful in your business, you need to have a plan and a strategy. This strategy will include your goals and objectives for your business. They may be short term and long term. You will need to have a goal for where you want to be with your business in the future. Your tactics are what you will use to ensure that plan happens as it should.

If your plan is to have x amount of sales by x date, then you need to have tactics that will help you carry out that goal. You don’t want to just run wildly into your business hoping that luck will be in your favor and you will succeed. You need to have a direct set of directions and plans for meeting each goal. Your strategy will include many goals and you will want to have a tactical plan for meeting each and every one of them. These tactics will be step-by-step directions on how to meet each business goal. With proper planning and strategy and tactics that work together, you can be a business success story.

(c) 2007, Doug and Claudia Brown of http://www.whatisyourplan.com All rights reserved. Reprint rights granted so long as article and by-line are published intact and with all links made live.

By: Claudia Brown

About the Author:

Caffeinated Content – Members-Only Content for WordPress

As a manager of a team you will have many important roles to play and duties to attend to. One important duty is appraising your individual teams performance. Performance appraisals are a great opportunity for a manager to provide feedback on how well employees are performing, delegating tasks and to motivate.

The following are why performance appraisals are important:

1. An effective manager has a good and supportive relationship with each member of the team. The performance appraisal is a good opportunity to meet on a consistent basis. It provides an opportunity for the employee to express their views and for the manager to provide support when needed.

2. The performance appraisal is an opportunity for employees to understand how well they are progressing in their job. They need to know if they are performing well and what areas of their work need to be improved upon. It also enables the manager to work with each employee to set and agree new targets.

3. One of the key aspects of the managers role is to ensure team members are being challenged with the work that they do. The development of staff is very important for motivation and loyalty. Therefore, the appraisal is a good opportunity to discuss career development and training needs.

4. The appraisal also helps to identify if both the employees priorities match the expectations of the manager. The appraisal can reveal that certain tasks that are being undertaken by the employee are not a priority in the eyes of the manager. Therefore, the appraisal allows both to sit down and work out a clear set of priorities to work on.

5. Performance appraisals enable the manager to document the progress of each team member. This documentation is used to record the performance of each person and will be very important when a promotion or dismissal arises. This written documentation can be used as evidence to support the case and help decide upon the most appropriate action.

As you can see performance appraisals are very important and useful for both the manager and the employee. They enable a closer working relationship between the manager and the employee. This in the long term will help to improve relations and morale within the team.

By: Seamus Deere

About the Author:

Create a video blog…instantly.

No matter how large or small your business is, the proper accounting services and programs are essential to start a successful business in any industry. Business owners should take proactive steps in generating a successful accounting program that will ensure profitable cash flow. Owners should gain the knowledge needed in small business accounting and take all the steps necessary in developing business plan.

For everyone making the commitment of going in business for themselves, they must know how to keep an accurate score. To gain the proper knowledge, potential business owners must go to school to learn about both accounting and computer programs that are used to support the type of business you are dealing in. With this knowledge, even if you are hiring a professional, you will be able to communicate intelligently about your needs with your personal accounting.

The financial aspects of smaller business are diverse, and very different than those of large corporations. With this, financial tools taught in basic accounting classes will assist you with the proper management of your business assets. Without this knowledge you will reduce your chances of success and can become just one more failing small business statistic.

All small businesses are measured by the performance of three different financial tallies: the balance sheet, the profit and loss statement, and the cash flow statement. In reviewing the of these statements a proper diagnosis of your company’s financial health can be obtained. Basic classes in business accounting will teach the purpose of each of these financial statements.

Once you have gained a further in depth knowledge of accounting, you will be able to evaluate your businesses state in terms of other competitors. Knowing your competitors financial state will give you a heads up on areas you can improve in and those you are excelling in. Finding an accountant that has an expertise in many areas including enrolled agents who have passed a taxation test administered by the IRS.

Be aware there are not currently certificates required for bookkeepers like there are for EAs and CPAs. So when you are in search of a accounting services, generally a low cost bookkeeper will only provide services such as paying bills and processing receipts. Full charge bookkeepers are those who will summarize annual receipts for CPAs and tax accountants to offer a faster tax return preparation.

When you are starting or running a small business, you definitely start this project with success in mind. Taking the proper steps to ensure your business is successful and profitable will better your future and that of your family. Keep yourself updated with the laws of small business taxes and accounting procedures.

By: Garkin Foster

About the Author:

business accounting