Category: Financial

5 Reasons your Startup Shouldn’t Take on Accounting Solo

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You can take easy steps to eliminate some of the stress and anxiety of launching a startup with small adjustments such as by hiring an outside accountant, which is recommended by Forbes. These are five reasons your startup should not do your accounting in house.

Low Overhead

Many entrepreneurs believe they can take on the accounting or to assign it to another founder or team member. This is one area that often overwhelms people because they do not anticipate that small business accounting will be so dramatically different from personal accounting. Also, when you hire an accountant are only paying for the time they actually work; therefore, you will save money. This allows your team, including yourself, to focus on other imperative areas of business.

On-Time Payments

Your reputation is of the utmost importance during your early days. You do not want to have the reputation of being a business that does not pay bills on time. This is an issue for many startups who simply do not have enough time for everything that needs to be done. Often times, accounting is overlooked. If bills are paid late, you will tarnish relationships with your preferred suppliers and potentially close your doors before they were ever really open.

Personal versus Professional

You must separate your personal banking from your company banking. You might think it to be easier to keep all the money in one place seeing as you will be paying yourself a salary, however this will cause more problems than you can imagine. If you hire a professional to do your taxes, it will help to minimize the temptation to pay yourself and others money that should remain in the business account until the appropriate time.Entrepreneur.com has compiled a list of resources that will help you understand your accountant and their decisions more easily.

Record Keeping

One of the best ways accounts help is that they will manage all of your transactions and records for you. When entrepreneurs try to maintain their books early on they rarely keep track of every transaction including money withdrawals at cash points and coffee for the break room. When you do not manage your accounts meticulously, you have no idea which bills you can and cannot pay at the end of the month. An accountant eliminates this guesswork.

Accounting Laws

Entrepreneurs are typically not experts in accounting practices nor accounting laws. If you do not follow accounting and tax laws properly, you could put your business in jeopardy at anytime throughout the year. You also must ensure you are making legal write-offs and that you are spending the appropriate amount of money at the end of the year to maximize your returns.

It may be tempting to try to complete your accounting in house during the startup phase, however it will most likely cost you more money in time, effort and errors than if you paid someone a few hours a week to manage your books. You will save money, time and stress which is all priceless as you work to create a sustainable business that will be profitable.

How to Make a Proper Offer on a Home: Guidelines to Follow

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The decision to buy a new house is a significant one, and you can spend a lot of time and energy trying to find the right home to purchase. After you have found your dream home, however, the last thing you may want is to have your offer denied by the seller. With this in mind, you may be wondering what it takes to structure a reasonable offer that the seller will accept. There are a few steps to follow that can help you to accomplish your goal of getting an offer accepted.

Get Prequalified
If you plan to use a home loan to pay for a portion of the property, an offer to purchase a property is stronger if it is accompanied by a pre-qualification letter. You can get pre-qualified for a mortgage through a lender, and the process typically only takes a few minutes to complete. Once you have a letter in your possession, you can hand it to your real estate agent to affix to the offer that he or she prepares on your behalf. Keep in mind that the sales contract will state whether you plan to pay with cash or if you are applying for a mortgage.

Decide On a Reasonable Asking Price
The next step is to work with your real estate agent to decide on a reasonable price. You may only have a limited budget that you are working with, and you may be inclined to submit a lower offer simply because you cannot afford to make a higher offer. While this strategy may be successful if the seller is getting desperate to sell the property, some sellers will immediately turn down a low ball offer. They likely know how much their property is worth, and they may be inclined to wait for a reasonable offer that is close to the asking price. In some cases, the comparable sales data may indicate that the asking price is too high. If this is the case, submitting an offer with comps to support it is reasonable.

Be Reasonable About Contingencies
All sales contracts have contingencies, such as those for the closing, the property inspection and more. For example, it is reasonable to allow ten days after the acceptance of the sales contract for the property inspection to be completed and 30 days for closing. This will vary by market, and some sellers may be more wary of accepting an offer with very long contingencies. On the other hand, some may not be ready to move out of the house for six or eight weeks, so a longer contingency may be preferred by some.

If you are structuring a sales offer, a smart idea is for your real estate agent to reach out to the seller’s real estate agent. This can provide you with additional information about what the seller is looking for in an offer. Through your efforts and with the help of your real estate agent, you may be able to structure a great deal that the seller will accept.

True or False? Five Myths About Title Loans

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There are many title loan myths out there that can be debunked with ease. This loan process works for many people. It has helped a lot of people get money that they need right away when they had no other options to turn to.

You Need Good Credit to Get Approved
This is a myth because title loan companies will not even check your credit score in most cases. The loan that you will get will be based on the value of your vehicle and not based on your past history. Many people with fair or bad credit have been approved for title loans.

You Have to Wait for Your Money
This is not true because title loan companies understand you are going to them for fast money. This is actually one of the biggest benefits to going to a title loan company. You will not have to wait days to see if you are approved for this type of loan. Instead, you can get a fast answer on the same day.

You Will Lose Your Vehicle
This is not true at all unless you fail to repay the loan. The title loan company wants you to keep your vehicle. As long as you make your payments on time, your car will stay in your possession and you will be the owner of it.

You Have to Have a Brand New Car to be Approved
This is another myth. The title loan you receive is based on the market value of your vehicle and not on how old it is. Your vehicle will be briefly looked at, and you will receive a loan offer based on the condition and value of the vehicle. You do not have to have a new model. Older model vehicles will work just as well.

There Will be Hidden Fees
This is not true either as long as you are dealing with a professional and trustworthy company. You should be shown exactly how much you are going to have to pay back before you sign any paper work. Title loans should not have any hidden fees. You should know all of the information that you need about repaying your loan upfront.

Once you understand the myths about getting a title loan, you can learn the truth about getting one. This type of loan helps many people to be able to afford what they need in an emergency situation, and a reputable company will make sure that you know all of the loan details before you agree to anything.

Why Long Term Financial Adjustments Win

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Budgeting and financial planning are two areas where many people struggle, and you may be looking for effective strategies to improve your financial situation. Some people will make short-term plans to reduce expenses or to make investments, but long-term financial adjustments are often a better option. With greater examination of why long-term adjustments are beneficial, you may be able to create new plans for your budget and investments that will help you to achieve your goals.

Cutting Expenses From Your Budget
Many who decide to take steps to improve their financial situation will do their best to cut expenses from their budget, but some changes are only short-term in nature. For example, you may decide to start using coupons at the grocery store or to take a brown bag lunch to work every day rather than eat out. These are ways to save money, but they require your regular effort in order to achieve savings. When you make long-term adjustments to your budget, you can enjoy having lower expenses each month without taking regular steps to do so. For example, you could refinance your car loan to set up a lower monthly payment. Generally, the long-term adjustments may also yield greater results than the short-term adjustments you may make.

Regular Savings and Investment Plans
Some will make savings and investments on a manual basis. For example, you may transfer money into your savings account when you have extra funds available to do so, or you may purchase investments without regularity. Inevitably, however, many people will not have the money available in their budget each month to save an ideal amount. Setting up an automated savings and investment plan and incorporating that into your budget will help to ensure that you always have funds available for this purpose. It also will eliminate the need to remember to save money each month, and the savings and investments will occur regularly regardless of how busy you are on any given month. If you are struggling to increase savings and investment account balances through your own efforts, making long-term adjustments can help you to achieve better results.

There are numerous steps that you can take to improve your financial situation. Some short-term adjustments may be necessary from time to time, but it is important to incorporate adjustments that make it easier for you to achieve your goals. You can begin by creating a plan that outlines your mid-range and long-term financial objectives that you want to meet. Then, you can make financial adjustments to your expenses, savings and investments so that you set yourself on a path to achieve success with your goals.

 

Leave the Past Behind: Focusing on a Financial Future

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Is there a purchase you’ve made that leaves you cringing when you think about it today? Was there a debt you took on that nearly crippled your finances? Perhaps there was a relationship that suffered due to financial stress.

First of all, you are not alone. Every person you see today has made a poor decision with his or her money – multiple times. Millions are battling debt fatigue or have already declared bankruptcy. Money fights have become the leading predictor of divorce,according to Kansas State University researching, Sonya Britt.

Perhaps you have experienced one or more of those things. They are difficult roads to travel, perhaps some of the most challenging of your life. Before you throw in the towel and say things will never improve, read these four steps to help you leave the past behind and reboot your plans for your financial future.

1. Reboot your financial goals. You’ve tried budget after budget and spreadsheet after spreadsheet. Still, your greatest chance of financial success lies in spending, saving and giving more intentionally. Start by simply writing out some new financial goals.

For example, what one expense can you reduce or eliminate from your budget? How much money would you like to save for emergencies in the next 30 days? In one year, how much debt would you like to have paid off?

2. Reboot your inspiration. There are so many families going through financial hardship today. Many who have overcome that hardship are telling their stories via the Web, either in blogs, vlogs, podcasts, e-books or other online resources. It’s amazing what a jolt of inspiration can do.

Here are nine inspiring stories of ultimate financial freedom to get you started.

3. Reboot your accountability. Whether you’re single, engaged, married, or single again, you need accountability as you pursue the financial goals you created on step #1. This can be your spouse or a trusted friend. It may be difficult to ask for help with something like money, which is so rarely talked about openly, but the person you ask will probalby respect you more for it. In fact, he or she needs just as much accountability as you.

4. Reboot your attitude. This is by far the most important step to take. It’s time to forgive yourself for past financial mistakes. It’s time to let go of the guilt you felt when that bankruptcy happened or your relationship ended or that foreclosure took place. It’s time to move away from the anger you’ve harbored against that person who hurt you financially.

Your past doesn’t define you. Don’t let it try. It’s time to think about tomorrow.

Car Title Loans: Can I Get Approved With Bad Credit?

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When desperate for cash, many consumers turn to car title loans. While these loans can provide you with the money you need, they’re not always the best option. One of the major pitfalls of getting a title loan is the interest rate.

It’s true that many lenders have lowered interest rates, but the amount of interest you’ll have to pay on a title loan is still significantly more than what you would pay on a traditional loan.

Understanding Car Title Loans

When you use the equity that you have in your vehicle to get a loan, it’s called a title loan. What you’re doing is borrowing money from a lender and using your vehicle’s title as collateral. If you don’t pay back the loan according to the loan agreement, the lender can take your vehicle and sell it at auction.

Unlike a traditional loan, which is primarily based on your credit score, a title loan is based on the value of your vehicle. One of the benefits of title loans is that you get to continue using your vehicle while you work to repay the loan.

How the Process Works

If you own a motorcycle or vehicle, you can get a title loan. Today’s lenders make the lending process very easy. You’ll find that many lenders allow you to complete almost all of the paperwork online. To get the loan, you’ll need a lien-free title and vehicle.

Before you can get approved for the loan, you’ll need to have your vehicle inspected and appraised by the lender. After some simple paperwork, you can get the loan money you’ve been approved for.

Can I Get A Title Loan With Bad Credit?

When you consider the fact that millions of Americans have poor credit, this is a very common question. Applicants want to know if they can still get a loan with bad credit.

The short answer to this question is yes. The reason why it’s possible is because title loan lenders don’t use your credit rating as a way to exclude you from being eligible for the loan. Lenders accept applicants with any type of credit rating because they don’t provide unsecured loans.

Title loans are what financial institutions would consider secured loans, which means they’re loans that are secured with a form of collateral. The collateral that is used to get the loan is the property title for your vehicle.

As long as you have a title and meet all other eligibility requirements, you should be able to get approved with no credit at all. Although it can be an excellent way to get quick money in a desperate situation, title loans aren’t for everyone, and they can be expensive to repay.