http://www.independent.ie/business/personal-finance/eight-golden-tips-for-longterm-investors-29991911.html

There are some rules of thumb to adopt. I can't promise to make you rich but in time, you should be a bit better off. If you are investing for the long term - 10 years or more - these eight tips might help:

1 How much risk are you truly willing to take? Peace of mind is priceless. If you can't bear losing a quarter of your money in a year or two, don't invest in shares. They can plummet.

2 Many people do not realise they need to save a good chunk of money over a significant period of time to end up with a decent nest egg. Magic shares that go up 50 or 100 fold are extremely rare. Compound interest is your best friend and will multiply your money over time, preferably feeding it through regular savings or top-ups if your income is variable. Saving €50 to €100 per month might feel virtuous but is it enough for your investment goals?

You need a fund of approximately €350,000 to give you an income of €18,000 per annum (half the average industrial wage) at the age of 65.

Even €200 a month over 30 years wouldn't get you to a €350,000 target. If you saved €200 a month into an average managed fund from January 1984 to January 2014, you would have built up a fund of €268,000 at the start of this year - that's assuming the fund made a return of 9.4 per cent a year and had an annual management fee of 1.7 per cent.

3 If you're a taxpayer, don't forget that long-term investment is a no-brainer. Saving through a pension gives you a tax break of either 20 or 41 per cent, depending on how much you earn. Why give the taxman 20 or 41 per cent of your hard-earned money?

4 Don't try to time the stock market. Many people won't have the time or the money to seize opportunities, so regularly drip-feeding your money into stock markets eliminates worries about buying at market highs or selling at lows.

5 Read widely. Money journalists tend to be very knowledgeable and bang up-to-date for investors, with insights on good value for money, latest trends, hottest products, things to avoid and so on.

6 Diversify - don't have all your money invested in a handful of stocks, one country, one sector and so on. Many unfortunate Irish investors were heavily, if not entirely, weighted in Irish banks - with hazardous results. Don't miss out on exposure to different returns - include small companies as well as large, emerging markets in your investment porfolio.

7 Don't buy because the fees are cheap or the investment has performed well in the past. Charges are definite - future performance is not. The most expensive investment provider is not always the best. Active funds can out-perform or under-perform passive funds; the issue is not choosing one approach or the other but using both.

8 Good professional advice is invaluable if you're not financially literate enough to make prudent investments decisions. for the longer-term This is particularly the case as you get older and need to decide on the timing of moving out of shares into safer assets.

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DEAR SAVVY SENIOR: Can you give me some tips on how to choose a good financial planner or adviser? My wife and I are five or six years away from retiring and could use some professional help to get us on track.

DEAR SEEKING: With all the different financial advisers and services available today, choosing a trusted professional that can meet your needs can be a bit confusing. Here are some suggestions that can help.

A good place to start your search is by asking friends or relatives for recommendations. If you don't know anyone who can give you a referral, and you're looking for broad-based financial advice, hire a Certified Financial Planner, or CFP. CFPs are considered the "gold standard" in the industry. To get the CFP credential, they must have a college degree and be educated in a wide range of personal finance subjects, pass a two-day exam, have at least three years' experience, meet continuing-education requirements and abide by a code of ethics.

CFPs are taught to look at the big-picture view of your finances, talking you through your goals, as well as advising you on the details of your financial life.

You're also probably better off hiring a CFP that's a fee-only planner, verses one who earns a commission by selling you financial products. Fee-only planners charge only for their services - for example you might pay $150 to $300 an hour for a financial tune-up, a flat fee per project or an asset-based fee.

To find a fee-only planner in your area, use the Financial Planning Association (fpanet.org) or the National Association of Personal Financial Advisors (napfa.org), which has online directories. Or try the Garrett Planning Network (garrettplanningnetwork.com), which is a network of fee-only advisers.

If your needs are more specific, some other financial professionals to consider are a Registered Investment Adviser who is registered with the Securities and Exchange Commission or a state securities regulator to manage investment portfolios; a Chartered Financial Consultant, specializing in insurance and estate planning; and a Certified Public Accountant, who can help with tax planning.

Be leery of many other financial advising titles, designations and certifications that are out there, like the Certified Financial Consultant or the Wealth Management Specialist. Many of these require no more than a few courses at a seminar or online, which means they're not worth much. You can read more about nearly every certification or designation at finra.org/investors - click on "Tools & Calculators," then on "Understanding Investment Professional Designations."

After you find a few candidates in your area, call them up and schedule an appointment to meet and interview them. Find out about their experience, expertise and the types of services they provide; how they charge and how much; their investment philosophy; and how will they handle your ongoing questions or financial needs. Look for someone whose clients are in situations similar to yours and who's available as often as you need him or her.

It's also wise to do a background check on your potential adviser. You can look up firms and individuals at finra.org or sec.gov, and even check state financial regulation departments (see nasaa.org for state contact information) and Better Business Bureau records at bbb.org. Also, ask to see the adviser's ADV Form, part 2. This is a form on which the SEC requires advisers to list their education, services, fees, disciplinary actions and conflicts of interest.

At the end of your meeting, ask yourself: Do I like this person? If you have any reservations, move on. There are plenty of qualified advisers out there who can help you.

Small business tax expert Robert Stone, of Ilminster, shares his tips on what Somerset's new business start ups need to know about working from home

Micro and small businesses account for 95% of all UK companies and employ more than seven million people.

"The majority of new business owners will be working from their own homes," said Chartered accountant Robert Stone who knows only too well what it is like setting up a business from home. He started Robert Stone & Co 20 years ago with a desk sandwiched between a freezer cabinet and a washing machine, but now employs four people at his office in Ilminster. "With a young family, working from home meant that I could put plenty of hours in, but still see my two boys growing up."

As a tax expert specialising in small businesses, Robert Stone has advised many entrepreneurs on the practical issues of working from home, whether they are in a spare bedroom or a garden shed. Here he shares his top tips in a simple guide to starting out in business.

Robert Stone's 2014 guide to working from home

1. Inform HMRC. One of the first things you must do is inform HM Revenue & Customs that you have started a business. This is to ensure that you are paying the right amount of National Insurance and are prepared for Self Assessment.

2. Check with your Mortgage lender or landlord. Whether you decide to use a spare bedroom, a corner of your dining room or your garage, you must first ascertain whether there any restrictions on your mortgage. If you are a tenant, you must check with your landlord.

3. Consult your local planning office. Depending on what business activities you will be carrying out at home and whether customers will be visiting you there, you may need planning permission for change of use.

4. Change your insurance. Your home insurance policy won't cover your business activities or business equipment within the home, so speak to your insurer about upgrading your policy to ensure you are fully protected.

5. Business rates eligibility. You may have to pay business rates if you use a building or part of a building specifically for non-domestic purposes. Check with your local council whether you will be liable. However, the following reliefs are available and should be applied for as appropriate: small business rate relief, rural rate relief, business rates deferral scheme, enterprise zone relief. Some councils provide an additional hardship relief.

6. Be organised. You need to keep the right records and that includes receipts, even if you are just selling items on eBay. HMRC can impose a penalty of up to £3,000 for not keeping proper records, so it is worth your while investing in suitable storage, such as a filing cabinet, storage boxes or shelving with box files, to keep all your paperwork in order and readily accessible.

7. Keep work and home life separate. As well as having a dedicated work space it may be worth while investing in a separate phone line for your business. Try to structure your working day properly, with fixed working hours and have a proper lunch break at a set time each day. It will help you focus better. Make sure friends and family respect your working hours and don't just drop in.

8. Claiming expenses. All businesses have expenses that can be claimed legitimately and it's a good way of reducing your annual tax bill. Even though working from home is a cheap way of starting a business you will still need to claim for items such as office furniture, a separate telephone line or broadband. Split your household expenses between business and personal use and divide them into two categories: fixed costs and running costs. Remember you are allowed to claim a standard mileage rate for business use of cars or motorcycles and a flat rate business expense for your home.

9. Don't become isolated - remember to socialise. It's vitally important if you are working from home on your own that you keep in touch with other people. Rather than just communicating by email, remember to pick up the telephone and have real conversations. Also get out and network. There are numerous networking organisations for small businesses and you can choose whether to attend breakfast, lunch or evening sessions. Networking will stop you stagnating as well as helping you make fresh business contacts and even win new business.

10. Health & Safety. If you intend to have customers and employees at your home, then you will need to carry out a health and safety check and have public liability as well as employer's liability insurance. If you don't want customers visiting you at home, then find a local meeting place or café where you can meet them in comfort.

11. Keeping accurate accounts. Unless you are already an accountant or a bookkeeper, then it is far better (and quite likely cheaper) to outsource your accounts, VAT returns or monthly payroll to a qualified accountant. They will ensure that you are claiming for everything you should, as well as alerting you to any changes in legislation that may impact on you or your business.

If you are struggling to make sense of the cost of investment shops, use our tool to cut through the detail and find the cheapest

If you are struggling to work out whether you would save money by switching your self-managed pension to another provider, we have just the help you need.

Rather than wade through pages of numbers from each company, or type all your details into an online comparison tool, just take a look at the image, above.

At a glance, it will show you whether your existing investment shop is cheap (green), expensive (red) or somewhere in the middle. This table shows your costs in pounds and pence; the one below displays them as percentages.

As you can see, the results vary greatly according to how much money you have invested. Very few companies - iWeb, part of Halifax, seems to be the exception - are cheap for small and large amounts alike.

While the tables, which were compiled by Lang Cat, a specialist consultancy, offer an instantly understandable guide to the cost of running your Sipp, they do rely on certain assumptions, which are shown on the graphic, so you may need to dig a little deeper to uncover the full costs that apply in your own circumstances.

They also assume that the

What if one of your parents needs assisted living and the other doesn't want to leave their spouse's side? Read our tips on finding AL for couples.

There are a lot of how-to guides out there to help you through the senior care process; most of them focusing on what it's like to place one loved one into assisted living. But what if you are faced with finding a place for both parents? As life spans continue to increase, this situation is becoming more and more familiar to those caring for aging parents. According to the U.S. Census Bureau, the percentage of those aged 60 and over who reported being married has increased over the past several decades, while the number reporting widowhood has decreased. Many of those couples find it necessary to look for assisted living as they age - and they want to do so without being separated.

Of course, this presents a number of challenges beyond those involved with searching for senior housing for one parent only. What if one partner has drastically different health care requirements than the other? How can you ensure that both of your parents' emotional and social needs are met? Recently, researchers have begun delving into the topic of married life in assisted living, and there are a few tips you can follow to make the process run smoothly for both you and your loved ones.

Guidelines for Placing Couples in Assisted Living

1. Research Facilities Ahead of Time

Health transitions are one of the most common reasons prompting individuals or couples to begin the search for assisted living, according to a study by Candace Kemp, Ph.D., an Associate Professor in Gerontology and Sociology at Georgia State University. The key to not getting caught off guard by a sudden health change is to start the planning process ahead of time. Being proactive in this way is associated with greater satisfaction in the long run, because it allows families and seniors to take the time to find a facility that's a good fit and it gives everyone more control over the decision-making process. If you're not prepared and there's a crisis situation, it limits the facility options available to you.

2. Have a Financial Plan in Place

Especially for those without a family that is able to contribute to long-term care, the prospect of putting both members of a couple into assisted living can be financially daunting. Some facilities are very expensive, especially for those with differing health status or those requiring memory care, and in many cases assisted living facilities do not work with Medicaid. Properly planning for long-term care can be the key to stretching the resources you do have and enabling your aging parents to continue residing together.

3. Prepare for The Realities of The New Space

While more and more couples are entering older age together, couples are still the minority in assisted-living settings, and most facilities are designed with a single occupant in mind rather than two. When there are two-person apartments available, they are often more costly. Beyond the personal space issue are the realities of living in a community environment. "Although each couple had a private room of varying size," says Kemp's study, "the comings and goings of care staff, the regulation of daily life, and the public nature of assisted living meant, according to one husband, that 'no one has privacy.'" Being aware of the differences between your parents' current environment and an assisted living facility can help everyone prepare better for the transition.

4. Consider Both Individual and Shared Needs

Different couples have different relationship needs - and, likewise, individuals within a couple may have different social and health needs. If one member of a couple is healthier, more mobile, and/or more sociable, it will help with their day-to-day well-being if the assisted living facility offers leisure activities that are appealing and fulfilling for both parties. If the healthier partner wants to take a fitness class, will they feel comfortable leaving their spouse in the care of staff? Can both parties get their social needs met? Be sure to research the amenities and care provided by an assisted living facility ahead of time, to ensure that it will offer a pleasant quality of life for both members of the couple.

5. Make Arrangements for Future Health Changes

Monitoring not one, but two parents in assisted living can be an added challenge when you throw in the very real likelihood that one or both of them may have unforeseen health changes in the future. In another study, Kemp found that adult children often take on a greater magnitude of responsibility when overseeing two parents in AL, a particularly challenging task when the two parents had differing levels of infirmity, or different needs at different times. One way to minimize stress in this situation is to familiarize yourself with the facility's policies regarding resident retention in the face of health changes. If you'll need to pay for additional outside services, or move your parents to a different facility such as a nursing home, be well aware of that possibility in advance.

One last bonus tip: arranging senior care for a couple can be hard, requiring families to consider individual and shared needs of both spouses - but don't forget to consider the needs of the caregiver, and don't be afraid to ask for help from a Senior Living Advisor, financial planner, or other expert when it comes to finding the best fit for your loved ones.

Salespeople as well as customer service reps and contact center staffers need to always remember that customer care and providing a positive customer experience are their top priorities. Aside from that basic understanding, they need to be given the tools and authority to get the job done right.

Fail. Fail. Fail. That's what plenty of customers had to say about their shopping experiences this past holiday season. And, poor customer Relevant Products/Services service is just as big a problem in the B2B world of business Relevant Products/Services-to-business, where even more dollars can be at stake with each interaction.

How often have you tried to get help and couldn't? How often have sales and service people been too busy to answer your call or assist you in person? How often have you been disconnected in the middle of a service call, leaving you frustrated and needing to call back and start the whole loop again?

Outstanding customer service doesn't just happen. It requires firm policy at the top, starting in the C-Suite, followed by clear procedures for management and staff. And, above all else -- it requires careful, consistent, and ongoing training and monitoring.

Undercover Boss

There's a great reality TV series running in the U.S. and U.K. called Undercover Boss, where CEOs of nation-wide corporations are filmed going undercover as entry-level employees to see what's working and what's not in their own companies.

Time and time again, they find front-line staffers quoting "company policy" as the reason they can't give better service or accommodate customer requests. Outstanding customer service and a true dedication to customer care starts at the top, but can't stop there.

Salespeople as well as customer service reps and contact center Relevant Products/Services staffers need to always remember that customer care and providing a positive customer experience are their top priorities. Aside from that basic understanding, they need to be given the tools and authority to get the job done right.

Managing the Customer Experience

In 2013, we started to see a major shift toward focusing on "customer experience management" (CEM) along with "customer relationship management" (CRM Relevant Products/Services). "Customer engagement" also became a key focus for marketers and salespeople alike.

Indeed, social media has opened up a whole new realm of possibilities for engaging customers, building customer loyalty, and ultimately, boosting sales through repeat business and referrals.

But even the most sophisticated marketing Relevant Products/Services and engagement programs can be undermined by one bad experience with a customer service rep or sales person. And when a disgruntled customer takes his or her complaints to social media, it can set off a firestorm of negative consequences and a PR nightmare.

The 2013 tax filing season opens on Jan. 31, but it's not just the IRS that is ready for your returns--so are scammers.

Tax-related scams are becoming more popular and complicated, making it hard for filers to stay protected. The IRS offers the following warnings to help spot potential fraud and reduce your exposure:

1. Be wary of any unexpected communications claiming to be from the IRS at the start of tax season. If you receive any tax notices, take them to the person who prepared your income tax return to determine their validity and to create a necessary course of action if the notice is legitimate.
2. Don't talk to anyone claiming to be from the IRS on the phone. The agency will not call you on the phone. Identity thieves will pose as IRS collection personnel or a customer service representative offering you a refund-all you need to do is provide your personal information. Don't fall for it.
3. The IRS does not send emails to taxpayers. Never! If you receive an email supposedly from the IRS forward it to phishing@irs.gov. And do not open any attachments.
4. The IRS will never ask you for your bank account PIN number, passwords or other similar confidential information such as mother's maiden name for bank accounts or credit card accounts.

To help keep your personal information safe, the IRS suggests taking the following actions:

1. Don't carry your Social Security card or any documents that include your Social Security number or Individual Taxpayer Identification Number. Keep them stored in a safe place away from the eyes of others.
2. Don't give a business your Social Security number or ITIN just because they ask. Give it only when required. If you are self-employed providing services to other businesses, you may be required to provide this information on IRS Form W9 for 1099 purposes. For this reason, it may be prudent to apply for a Federal ID number to further ensure the security of your Social Security number.
3. Secure personal information in your home in a safe place.
4. Check your credit report every 12 months to make sure there's no unusual activity or illegitimate credit lines.
5. Protect your personal computers by using firewalls and anti-spam/virus software, updating security patches and changing passwords for Internet accounts.
6. Don't give personal information over the phone, through the mail or on the Internet unless you have initiated the contact and are sure of the recipient.
7. Be careful when you choose a tax preparer. Most preparers provide excellent service, but there are a few who are unscrupulous. Refer to Tips to Help you Choose a Tax Preparer for more details.

Shipping Notification Scam

Possible targets were sent an email that encloses fallacious shipping information, frequently from a well-known delivery company such as DHL, UPS or FedEx, or a major retailer like Amazon. There are a small number of differences to this holiday scam, like as a "delivery failure notification" message that says that a company attempted to deliver a package while you were out.

It is more often to contain a file attached to the message. A file attached is an indication that you've just received a fraudulent phishing email.

Unwary recipients click on the file, opening a virus download that aims to "phish" (i.e. scan) through their computer. Throughout this phishing stage, sensitive information like bank account numbers and passwords were then all gotten. Worst is that even some viruses even go so far as to hijack access to your computer. Then, it can only be returned after a payment is made. The FBI reports that this type of "ransomware" has experienced resurgence of late.

Mobile App Scam

Malicious mobile apps are produced with a technology known as "near field communication" (NFC) encoded into the app. This permits two NFC-capable devices to share data with one another; the trouble is that various credit cards have built-in NFC technology.

The tainted app maintains to scan for credit card information in the background, despite when the phone is not being used. What happens next is as soon as the compromised smartphone is put in close proximity to a wallet; it collects credit card credentials and emails it to the perpetrator.

Criminals will use this information for purchases online and even in stores that have a tap-and-go payment device. To prevent yourself from becoming a victim of this online identity theft, make a research about the developer beforehand by confirming that their website is legitimate and reading through user reviews.

Text Message Scams

This particular ploy disguises in many different shapes as it operates. Some recommends that you've signed up for a service that will cost some amount of dollars while the others ask for the identity of your bank and ask you to "verify your PIN" to reactivate your debit card if you don't cancel the subscription by clicking through to a link in the message.

In the end, victims then gave up their information to perpetrators, or downloading a Trojan that tracks and stores all activity on the device. .

Delete the message at once subsequent to when the time you've reported it, but be certain not to respond to any prompts like "text message STOP" to end the messages. Because by doing these the scammers will get the confirmation that the number is active. Better yet, call your bank to alert them of the incident.

Charity Scams

Fraudsters wait until someone will fall for their bait, this bait is the unsolicited email they sent out. Usually the message will appear as a narrative of how the alleged traveler got caught up in midst of the Typhoon and is in immediate distress without access to his funds. And of course the email will end to the sender requesting a temporary "loan" from the would-be victim, with the promise to repay it as soon as the sender gets home.

Recipients are asked to send out money thru Western Union or MoneyGram, then finding out later that the one the recipient is dealing with just got away with their cash. This emotional appeal also takes the form of an email soliciting donations under a well-known charity organization, like the Red Cross.

Gift Card Scams

Rip Mason, CEO and director of LegalShield, a legal services and identity theft protection provider, explained how thieves get away with this scam. "The way these scams work is that a lot of retailers will display their gift cards at the checkout aisle or leave them out in the open for consumers to browse through," said Mason. "This makes them vulnerable to thieves who take the cards, obtain the pertinent numbers listed on them, and then place them back on the store rack."

"Afterwards, the thieves electronically track the gift cards and wait for money to be activated. Once a customer adds money and activates the card, the thieves promptly drain the funds electronically, leaving the person receiving the gift card with a balance of zero and dismay at the checkout aisle."

To keep away from having you and your gift recipient become a victim of this unknown holiday scam, Mason recommends the following tips:

1.Be suspicious of and avoid buying any gift cards that are in packaging which appears to be tampered with.

2.If a retail outlet keeps its gift cards out in the open and not in any packaging, ask the clerk or manager if they have any gift cards behind the counter or in the back of store.

3.Only purchase gift cards from trusted retailers or their websites; avoid purchasing them from a third party vendor you aren't familiar with.

Hva er bokført verdi? Bokført verdi kan bety forskjellige ting for forskjellige personer. For eksempel har bokført verdi på invest pedia bloggen, samtidig med å skrive, tre betydninger. Som investor er en mening som betyr noe andre definisjonen: "(Book Value is) netto forvaltningskapital i et selskap, beregnet de totale eiendelene minus immaterielle eiendeler (patenter, goodwill) og." Denne definisjonen er greit hvis du liker sjargong. La meg illustrere det med en annen tilnærming. Bokført verdi er beregnet fra balansen. Balansen er en av tre sett av regnskaper som investorer vurdere som en del av evalueringsprosessen før du investerer i et selskap. Andre to gjenværende regnskapet er resultatregnskapet og kontantstrømutdraget. Hvordan pris-til-bok forholdet kan gjøre deg en vellykket Investor Er prisen-til-bok forholdet nærmeste til en holy grail? Døm selv: Tweedy, Browne Company LLC rapportert at en vellykket aksjemarkedet strategi (side 3) basert på forholdet pris-til-bok med eksepsjonelle resultater. Den dype blå publikasjoner Group LLC benytter pris-til-bok forholdet i vurdering prosessen. Hva er forholdet pris-til-bok? Pris-til-bok er den første nøkkeltall jeg vise når du analyserer en bedrift for potensielle investeringer. Pris-til-bok er en gage av hvor mye aksjene er handel i forhold til den bokførte verdien. Som en spiss, en praktisk metode for å beregne bokført verdi er å finne den totale egenkapital figuren (eller totale egenkapital for USA) funnet helt i bunnen av balansen og trekke (minus) goodwill og immaterielle eiendeler, funnet på toppen av balansen under anleggsmidler. For å runde den av, har jeg presentert Tesco balansen nedenfor. Du kan beregne bokført verdi selv. Hvis du ikke har tid, fortsette; Du kan prøve det når som helst i fremtiden. Markedsandel og stordriftsfordeler Siden studere aksjekurs bevegelser gir svært lite hjelp i å forutsi langsiktige resultater, foretrekker jeg å snakke om to svært

According to an analysis by economists at Goldman Sachs, nearly half of all mortgage defaults from the housing bust might have been prevented by forthcoming consumer-protection regulations, but another 25% of loans that didn't default might not have been made.

The Goldman analysis attempts to calculate the effect of the forthcoming "qualified mortgage" regulations, these were part of the 2010 Dodd-Frank financial-regulatory repair. The law altered lending rules hence the mortgage lenders will be lawfully responsible for ensuring a borrower can pay back a loan. For writing rules for a "qualified mortgage", the Consumer Financial Protection Bureau was assigned the task, the rules sates that lenders could make that would automatically satisfy the new ability-to-repay mandate.

Not until next month, the "QM" rules will not take effect. Lenders are allowed from making loans that are not from the QM rules but they could encounter greater legal liability on those loans. Tuesday's WSJ examined how some banks had come into a decision where they will offer some "non-QM" loans on one occasion that the rules start next year, primarily by making loans to affluent customers that will stay on banks' balance sheets.

The Goldman study presupposed that whichever loan that wasn't a QM wouldn't have been made. Nontraditional loan products are not incorporated from the QM definition, which means loans with interest-only terms, an instance is, which don't necessitate instant principal payments, wouldn't qualify.

Loans from between 2005 and 2008, almost 47% of loans that defaulted had at least one product feature that isn't allowed under the QM rule while nearly 59% of loans created 2007 that entirely defaulted had at least one nontraditional product feature that doesn't congregate the QM standard.

However the study demonstrates that approximately 25% of mortgages made between 2005 and 2008 that didn't default might also have been disqualified from the market, including 30% of loans made in 2007.

Loans with those nontraditional product features were focused in the "sand states". These states had some of the bubbliest housing markets. There were nine out of ten interests only loans in 2006 were in those states, together with almost seven in ten so-called "option" adjustable-rate mortgages. These require low minimum payments before resetting to sharply higher levels.

Adding up to limiting QM to entirely amortizing mortgages, lenders have to show that borrowers' total debt payments are not exceeding 43% of their pretax income.

The debt-to-income cap could restrain lending for borrowers looking for "jumbo" mortgages that are excessively large for government support and who have uneven incomes or harder-to-document incomes.

"Self-employment income is harder to underwrite than is wage income, and lenders may become incrementally less willing to make loans to such borrowers given new legal obligations," said the Goldman report. Borrowers that make a noteworthy share of their wages from unstable sources of income, like bonuses, tips, commissions, and investment income, could also stumble upon greater difficulty.

By AMI KASSAR
Searching for Capital
A broker evaluates the small-business financing market.
Source: http://deepbluegroup.org/blog/in-small-business-lending-the-devil-is-often-in-the-lien/
When small-business owners plan to acquire business capital, the usual primary issues expected would be: How much is the interest rate? What is the size of the loan? How much are the monthly amortizations?

But another concern hides at the back, more often than not, and gets neglected. What collaterals will the lender require and what will that mean to the owner's capacity to borrow in the future? At times, the answers to these questions can be adversely critical.

When a lender submits a lien, it gives the lender the potential to acquire a borrower's assets in the event of non-payment. Occasionally, additional liens are provided by other creditors in line with the lender's initial lien - but these creditors take subordinate positions and would be able to avail of proceeds in a liquidation only when the holder of the first lien has already been paid off.

Obviously, lenders would opt to be in the first lien position. If a lender does take a second or third lien position, the debt is more unstable - and usually involves a much higher interest rate. Hence, paying very close attention to the lien is vital. When you surrender a first-lien position on some or all of your assets, you certainly want to guarantee that you are getting the money you need at the right price - because additional loans tend to be either higher-priced or very difficult to acquire. Regrettably, many small-company owners do not take this issue seriously.

My loan brokerage company recently assisted a fast-growing customer that had overreached its credit line with a bank. It was growing rapidly; but it was not viable enough for the bank to provide additional funds. Instead, the company opted to acquire money from an accounts-receivable factoring firm. We informed our client of the higher cost related to factoring; but considering the firm's comparatively high margins and growth potentials, the owner was open to shouldering the higher cost for faster release of capital.

Within the procedure of establishing the factoring relationship, we learned that the company's present lender had put a blanket lien against all assets of the firm, including the accounts receivable. We consulted with the customer to assess the avenue of utilizing some of the proceeds of factoring to cover the outstanding bank credit line. The factoring arrangement was still reasonable, and our client negotiated to settle the existing line of credit at closing, at which point the bank would take out its lien on the receivables, to be substituted by a fresh lien owned by the factoring firm.

But as we approached closing, we were stunned to learn that the firm had entered into a purchase-finance deal for a small equipment item several months previously, and the equipment seller had put a blanket lien on all of our client's assets, including its receivables. Without removing this lien, the deal could not progress because the factor, obviously, insisted on having the first position on the asset they were attaching with the loan. Surprisingly, the equipment company would not give in, and the customer had to make the hard decision to settle the equipment loan with funds from the factoring contract at a much higher rate and on less affordable terms.

We are also presently trying to assist a borrower that is running two franchises and plans to initiate a third. Thus far, this small franchisee has coped to prop its business with just a single loan - a relatively small Small Business Administration loan for the purpose of buying a trailer truck for its events.

While the loan covered merely 20 percent of the amount needed for the new site, the business was now stalled because the new lender required a blanket first position lien, which the Small Business Administration would not agree to. In this case, the customer is liable to refinance its equipment at a higher rate with a lender that will take a lien only on the equipment and allow the business to pursue its business expansion.

Hopefully, these illustrations will exhibit how vital it is to consider seriously the lien and collateral requirements of your lender to assure yourself that when you are giving up first lien position on some or all of your assets, you expect the highest possible loan benefits.

Have you ever gotten entangled by a lien? Let us know your story and how you handled the situation?

Ami Kassar established MultiFunding, which is based near Philadelphia and assists small companies who seek the appropriate sources of funding for their business needs.

Source: http://deepbluegroup.org/blog/eurozone-recovery-fades-as-growth-stalls/

Europe's revival from 18 months of recession caught up in the third quarter as exports slowed and the region's second-biggest economy turnaround.

Over the preceding quarter the 17-nation eurozone's initial estimate of GDP demonstrated growth of just 0.1%, when the economy grew by 0.3% subsequent to the contracting for six successive quarters through the depths of the region's debt crisis.

Analysts were foreseeing growth would deliberate as one-off factors like a seasonal bounce back in German construction dull, but the regional figures were getting frailer compare to some had expected. Germany's rate of growth more than halved to 0.3%, while the French economy shrank by 0.1%.

The numbers verifies doubts that the eurozone is currently under pressure to generate any actual momentum, as record levels of unemployment, weak investment, tight credit conditions and government austerity are weighing on demand.

In September, industrial production and retail sales both drop, and price rises plunged to 0.7%. That encouraged the European Central Bank to slash interest rates to a fresh record low preceding week in an attempt to stop the region falling into deflation and stagnation.

And ECB President Mario Draghi said the bank was ready to take further measures, including another rate cut, if the move fails to have the desired effect.

Unemployment won't start falling until 2015 at the earliest, according to recent EU forecasts. The European Commission has trimmed its estimate of GDP growth next year to 1.1%, and said it was too early to declare an end to the region's crisis.

Domestic demand in the eurozone is still very weak with 19 million out of work and wages hardly rising.

"While there's not much difference between the second and third quarter GDP figures, the deceleration is, psychologically speaking, a major setback for the eurozone," said Nicholas Spiro, managing director of Spiro Sovereign Strategy.

German domestic demand was accountable for most of the thin growth, with a recovery in exports from countries like Spain and Portugal also helping.

Italy's economy had a constant decline, while by much less than in prior quarters, but France was weaker compared to what was anticipated.

In the previous week, ratings agency S&P downgraded France on fears the government will be not capable to reinstate the economy's competitiveness, and the Organization for Economic Cooperation and Development weighed in Thursday, influencing the country to be more determined with its reforms.

It emphasized reasonably high tax rates, insufficient research and development, strict product market regulation and barriers to competition in business services.

The uncertain temperament of the eurozone recovery compares strongly with speedy growth and a surge in confidence in the U.K., where the topic is now concerning when the Bank of England will move to constrict monetary policy.

The central bank raised its growth forecasts on Wednesday and said it expected unemployment to fall much faster than expected just a few months back. Governor Mark Carney said he would be prepared to raise interest rates before May 2015 if it was the right decision for the economy.

Source: http://deepbluegroup.org/blog/struggling-businesses-can-avail-of-half-priced-loans-from-german-bank/

SMALL companies will now acquire funding from Germany at 50% the interest rate charged in Ireland under a program certified by Chancellor Angela Merkel.

The German Chancellor has told her state investment bank to coordinate closely with Irish officials to enhance loans for the economy, to include availability to funds for small and medium businesses.

But funds may also be provided for investment, for construction and for bigger companies.

The development is designed to allow Irish businesses seeking capital at a lower interest rate than the one provided by Irish banks.

At present, the average interest rate applicable for a small Irish business is approximately 4.5pc - over 100% more than the rate for a similar business in Germany, where loans are provided at merely 2pc.

SUPPORT

The plan to provide further loans at lower rates is likewise seen to motivate more businesses to invest.

"The need for loans depends on the affordability. There will be higher demand for funding if we can reduce the rate," a Government official said.

The arrangement came as a result of negotiations between Taoiseach Enda Kenny and Chancellor Merkel regarding steps to aid the economy.

The German development bank, KFW, will determine possible steps to provide the loans.

The funds come at a lower rate because KFW is a triple-A rated bank; hence, it can acquire money at a lower rate and pass on the benefit to its clients.

The credit will be channeled through the National Treasury Management Agency and the new Strategic Investment Fund or the state-operated banks, AIB and Permanent TSB.

The Taoiseach said Ms. Merkel personally promised to coordinate hand-in-hand with Ireland to enhance funding processes.

In a report, Ms. Merkel said the German development bank will work with the Irish officials "rapidly, so as to fulfil its goals on this program as quickly as possible".

After the announcement, the Irish Bankers Federation (IBF) released a report pointing to a marked decrease in lending to companies in the first part of this year; but banks insist this is a result of companies being reluctant to take out loans.

IBF director Felix O'Regan stated that any improvement in credit availability should be encouraged.

However, he said financiers operating here are suffering due to falling demand.

Driving business activity, by encouraging consumer spending, is the best means for achieving that, Mr O'Regan said.

Bank of Ireland head of small business, Gerry Prizeman, stated that firms are wary of fresh loans.

Business owners only took out half of the €3.6bn of funds the bank had intended to provide in 2012, for instance. Those who have availed are presently utilizing below 40pc of the cash accessible on their overdrafts.

Source: http://deepbluegroup.org/book.html

Book value can mean various things to various people. For instance, book value on the invest pedia blog, at the time of writing, has three meanings.

As an investor, the one meaning that matters is the second definition:

"(Book value is) the net asset value of a company, computed as the total assets minus intangible assets (patents, goodwill) and liabilities."

This definition is fine if you like jargon. Let me illustrate it using a different approach.

Book value is computed from the balance sheet. The balance sheet is one of three sets of financial statements that investors assess as part of the evaluation process before investing in a company.

The other two remaining financial statements are the income statement and the cash flow statement.

How the Price-to-Book Ratio Can Make You a Successful Investor

Is the price-to-book ratio the closest thing to a holy grail?

Judge for yourself: Tweedy, Browne Company LLC reported that a successful stock market strategy (page 3) based on the price-to-book ratio with exceptional results. The Deep Blue Publications Group LLC utilizes the price-to-book ratio in the valuation process.

What Is The Price-To-Book Ratio?

The price-to-book ratio is the first financial ratio I view when analyzing a business for prospective investment.

The price-to-book ratio is a gage of how much the shares are trading as compared to its book value.

As a tip, a handy method to compute book value is to find the total equity figure (or total stockholders' equity for the US) found right at the bottom of the balance sheet and subtract (minus) goodwill and intangibles, found at the top of the balance sheet under non-current assets.

To round it off, I have presented the Tesco balance sheet below. You can compute book value for yourself. If you do not have time, keep going; you can try it anytime in the future.

Market Share and Economies of Scale

Since studying stock price movements provides very little help in predicting long-term results, I prefer to talk about two very closely connected things that are intrinsic in business which I consider in order to guide investment decisions:

The first: high variability - is something that is existing in businesses that my partnership, more often than not, will try to avoid.

The second: economies of scale - is a key characteristic we search for in companies that we eagerly seek to be a part of.

Before the year 2008 ended, 36% of cell phones purchased around the world were made by Nokia.

Samsung was a far second holding 15% of the market share; but the difference between the two companies was much greater when it came to a unique category of cell phone we now know as smart-phones which were designed as portable mini-computers with Internet capability.

At the same period of time, Nokia had an even more commanding 41% market share of smart-phones than Samsung which had a pitifully small share of 2%.

By 2012, just less than three years later, smart-phones had become the ruling kings and what previously was known as regular cell phones are rapidly becoming ancient relics with practically no profit margins left to show.

Today, business schools ordinarily teach us that "economies of scale" often means that there is an inherent benefit in being the company with the biggest market share because that company has the advantage of having the lowest operational cost.

Market leadership can be utilized to undercut competitors in price (or get a price premium without sacrificing volume), create better product features, increase budget for marketing and distribute products over a wider marketing network.

In short, economies of scale make it very difficult to outpace a market leader.

Obviously, the opposite is just as true.

Nokia's market share in smart-phones has dipped to 5%, while Samsung is now the global leader at over 30%. What happened? Why was Nokia overtaken? And, perhaps, equally as vital, why was Nokia outclassed so overwhelmingly within a short period of time?

The simple answer is that during this period, Samsung opted to build up their phones based on an exceptional computing platform created by Google, called Android, while Nokia did not.

While this is essentially true, it is a partial explanation.

Since a smart-phone basically means the addition of a many more computer features to one phone, there are now far more obstacles that you have to hurdle simultaneously to keep on selling phones.

At present, the operating system, the graphic interface, the screen resolution, the hardware design, the camera resolution, the energy efficiency, the computing power, and the support of the service provider are all equally essential to a new phone buyer.

Even if you obtain a 95% chance of getting each of these eight features right for any particular phone, this still leaves you with about a 34% chance of market failure (1 - 0.95^8), if we considered all variables as equally important.

This does not even take into consideration variables not related to the product itself, such as marketing and retail strategy.

To complicate the matter, the average length of time of ownership of a cell phone is only 20.5 months, meaning to say that a cell phone company has to not only be consistent in getting all of these many variables right every time, they also have to hope that new features are not introduced by other players and that they can better predict the right mix of delightful variables year after year.

At the same time, the prices of previous year's products decrease by 50%, removing all margins for error for new products.

In contrast to this is a product like Coca-Cola, which customers actually demand to remain constant decade after decade even though they drink it on a daily basis.

It comes as no surprise then that the consumer electronics industry is littered with many past market leaders that are now radically weaker like Nokia, Sony, Motorola, Nintendo, HP and RIM, while the beverage industry continues ever more to be dominated by Coca-Cola and Pepsi.

You have probably noticed that the general media are often overly thrilled to cover high-variable industries, such as consumer electronics, consumer internet services, video gaming, teen fashion retail, hotels, restaurants, airlines and motion pictures. The reason is that these industries are continually evolving, thus creating so much hype, intrigue and anticipation for the public at large.

These industries can always be depended upon to create breakthroughs into fresh innovations that can determine the fortunes of the various participants in an instant.

Naturally, this is the exact opposite of what we desire to have.

As long-term investors, we are on the look-out for businesses with high degrees of predictability. We want companies that can dependably remain dominant over the long-term.

One of the best ways to pinpoint such companies is to find those that do possess economies of scale.

Hence, it follows that to possess a sustainable advantage of scale; a business must have very few variables to consider.

The cost structure of the business should also be inclined towards having fixed expenses (e.g. electricity, factory overhead) that do not rise in proportion to rising sales. In short, there should be few variables that will affect both the revenue side and the cost side. And if you look at industries where these two conditions exist, the winners are quite often expectedly the same and new players hardly ever appear.

Source: http://deepbluegroup.org/market.html

The stock market is an online trader.

Centers of finance, such as London and New York, have their own stock exchanges - that is, their own retail shops or venues where investors, whether they are private individuals or banks or pension and hedge funds, can purchase and sell shares of stock.

Remember: One share is a part-ownership of a company.

At present, stocks and shares can be more commonly acquired on the Internet through a stockbrokers' website, in the same way that Amazon conducts sales through its website.

You can acquire or sell shares in businesses from the US, UK, Europe, India, Japan and other nations over the stockbroker's website.

The Stock Market - The Traditional View

When people mention the stock market, they often refer to the stock exchange (retail outlet) in their own country. For instance, my stock market is the London Stock Exchange.

Through my stockbroker's website, I gain access to exchanges globally and buy and sell shares on the London Stock Exchange as well as The New York Stock Exchange, The NASDAQ and The American Stock Exchange.

Like Amazon, a stock market is a venue where buying and selling takes place but the only goods available offers are shares.

As you can see in particular, the stock market and stock exchanges are retail shops for the acquiring and trading shares.

How You Can Profit From the Stock Market

Customarily, people earn from the stock market through their membership of a pension plan either privately or through a company they work for. In the US, this is traditionally done through the 401(k).

At times, people will invest money into mutual funds to make money off the stock market and assign somebody else do the job of selecting stocks. The advantages of stock picking by mutual fund managers have not been that commendatory.

And this is not merely a phenomenon that occurs in the US.

The UK pension industry has been often criticized for making profit, not from the stock market, but from the fees they charge their clients.

The only way to earn from the stock market is to take ownership and control of your involvement in it. Allowing others to do it for you will lead to an erosion of the wealth you have worked so hard to create.

What Is The Stock Market? The Real Answer Deep Blue Publications Group LLC

Deep Blue Publications Group LLC provides the investor the potential to earn from the folly of other stock market players. In short, stock market is basically composed of the participants in it, such as private persons and institutions like hedge funds, pension funds, banks and mutual funds, who acquire and sell shares.

The stock market, ultimately, is not the millions of share-price figures flashing across the display monitors of day traders.

The "folly of others" simply refers to the stock markets' strange capacity to drive up and shrink the values of companies - they undervalue and overvalue them.

You can earn from their folly by:

* Purchasing shares in businesses when they are undervalued and;
* Selling them when they reach their full value and
* Keep away from the stock market when and if they are overvalued.
* This is entirely in contrast to the gamblers mentality of attempting to buy in bear markets and attempting to sell in bull markets.

Source: http://deepbluegroup.org/blog/eurozone-recovery-fades-as-growth-stalls/

Europe's revival from 18 months of recession caught up in the third quarter as exports slowed and the region's second-biggest economy turnaround.

Over the preceding quarter the 17-nation eurozone's initial estimate of GDP demonstrated growth of just 0.1%, when the economy grew by 0.3% subsequent to the contracting for six successive quarters through the depths of the region's debt crisis.

Analysts were foreseeing growth would deliberate as one-off factors like a seasonal bounce back in German construction dull, but the regional figures were getting frailer compare to some had expected. Germany's rate of growth more than halved to 0.3%, while the French economy shrank by 0.1%.

The numbers verifies doubts that the eurozone is currently under pressure to generate any actual momentum, as record levels of unemployment, weak investment, tight credit conditions and government austerity are weighing on demand.

In September, industrial production and retail sales both drop, and price rises plunged to 0.7%. That encouraged the European Central Bank to slash interest rates to a fresh record low preceding week in an attempt to stop the region falling into deflation and stagnation.

And ECB President Mario Draghi said the bank was ready to take further measures, including another rate cut, if the move fails to have the desired effect.

Unemployment won't start falling until 2015 at the earliest, according to recent EU forecasts. The European Commission has trimmed its estimate of GDP growth next year to 1.1%, and said it was too early to declare an end to the region's crisis.

Domestic demand in the eurozone is still very weak with 19 million out of work and wages hardly rising.

"While there's not much difference between the second and third quarter GDP figures, the deceleration is, psychologically speaking, a major setback for the eurozone," said Nicholas Spiro, managing director of Spiro Sovereign Strategy.

German domestic demand was accountable for most of the thin growth, with a recovery in exports from countries like Spain and Portugal also helping.

Italy's economy had a constant decline, while by much less than in prior quarters, but France was weaker compared to what was anticipated.

In the previous week, ratings agency S&P downgraded France on fears the government will be not capable to reinstate the economy's competitiveness, and the Organization for Economic Cooperation and Development weighed in Thursday, influencing the country to be more determined with its reforms.

It emphasized reasonably high tax rates, insufficient research and development, strict product market regulation and barriers to competition in business services.

The uncertain temperament of the eurozone recovery compares strongly with speedy growth and a surge in confidence in the U.K., where the topic is now concerning when the Bank of England will move to constrict monetary policy.

The central bank raised its growth forecasts on Wednesday and said it expected unemployment to fall much faster than expected just a few months back. Governor Mark Carney said he would be prepared to raise interest rates before May 2015 if it was the right decision for the economy.

A share essentially means a part ownership of a business registered on the stock market.

An individual who owns shares is called a shareholder. Stocks and shares do not merely refer to numbers on a stock monitor screen.

Share prices correspond to the present price for a company's stock.

You may ask: What about the value of the business? Is the share price an accurate measure of the worth of the business?

The whole idea I would like to focus on is this:

If a share means part-ownership of a business, then as a shareholder, one needs to analyze a certain company for investment as if one were going to acquire the entire business.

This applies even if a share refers to partial ownership of a company.

Obviously, we cannot do partial evaluation of a company corresponding to that fractional stake in a business.

The public's awareness about shares

For many years, people have voiced out their opinion to me in diverse manners about the stock market being nothing but a huge casino and that shares and stock are practically poker chips to be purchased and traded for the delightful experience.

An educated, smart investor will view things in another way.

Quantitative analysis means evaluating a business, its cash flow, its liabilities, its debts, how it generates money and many more.

The purpose is to ascertain that:

You do not gamble your money away but make an informed decision about your investments
You do not lose, or, as much as possible, you reduce the danger of losing your money.
This may appear like very difficult work.
If so, gambling is much easier.

Why a company issues shares by Deep Blue Publications Group LLC

They issue a slice, not all, but a piece of their company to be apportioned into tiny bits we refer to as shares.

In exchange, company gets paid by investors who acquire the shares through a stock exchange.

Companies who issue shares have the obligation to shell out dividends to their shareholders, as cash amounts drawn from the earnings of the company.

Not every company pays a dividend and some usually do not, particularly if they encounter rough financial weather or plan to withhold money from shareholders to plow back into building up or maintaining the business.

Shares can be purchased and sold by investors any time during the trading hours of the stock exchange on which the shares are listed, often online through a stockbroker's website.

Share prices and what they represent to value investors

As an example, if a share price is quoted today at £2.20 per share but by using quantitative analysis you figured that the business was valued at £4.00 per share, then you have found an undervalued business.

For value investors, therefore, stock market quotes and share prices provides an occasion for a person to weigh price against value. That is, the current price of the share versus the current value of the business.

However, it is more often the case that this kind of an assessment through meticulous quantitative analysis leads to the discovery of a fairly valued or overvalued stock.

Occasionally, an investor will discover an undervalued company in relation to the share price.

As such, a share is a chance to buy a stake in a business that is undervalued.

Source : http://deepbluegroup.org/share.html

A global survey showed that consumer confidence in the United States reached a six-year high in the third quarter, as prospects for jobs and personal finances improved, and also rose sharply in Europe.

In a quarterly survey by global information and insights company Nielsen, Americans were among the majority optimistic consumers, this reflects rising confidence that the world's leading economy is a on a continuous growth path. U.S. stockmarkets have lifted record highs, generating a wealth result that has also made consumers more enthusiastic to spend.

Released Wednesday last week, the survey was taken before a 16-day partial government shutdown early this month which economists expect will hurt U.S. economic growth in the fourth quarter.

"In the United States, the labor market is slowly healing, and low interest rates are helping the housing market come back and bringing up the stock market, which is perhaps especially beneficial to higher-income consumers with more assets," said Venkatesh Bala, chief economist at The Cambridge Group, a part of Nielsen.

"It's still going to be a slow climb - we're not going to see huge growth rates - but this improvement is recurring and it is sustainable."

Indonesia continued to be the most bullish consumer market worldwide, next are the Philippines and India, as in the preceding quarter, but confidence levels in all three up-and-coming markets hollowed. It also dipped in Brazil.

From the previous three months at 94, up 2 points from the same period a year earlier, the Nielsen Global Consumer Confidence Index was unchanged in the third quarter. A reading below 100, yet, signals still comparatively low consumer morale.

Portugal saw the biggest leap in consumer confidence worldwide in the third quarter, by a hefty 22 points, while Ukraine saw the biggest drop, by 13 points.

Portugal's bounce back led a pick-up in consumer attitude in peripheral euro zone countries that have been wrestling with tough soberness measures as they required cutting heavy debt levels.

While the recovery is encouraging and tied with other latest economic data signifying the euro zone economy has curved the corner, Portugal, Italy, Greece, and also as France, were still among the most miserable consumer markets globally.

"In Europe, we've seen a change in mindset as policymakers have moved away from austerity measures and toward growth policies," said Bala.

"While recovery is still uneven, many consumers - especially in countries such as Germany and the United Kingdom - are feeling that the worst is behind them, and their confidence is improving as they sense growth returning."

Non-euro zone member Hungary was the one thinking the most negative market globally even though it illustrated a development from the third quarter.

Non-euro zone member Hungary was the one thinking the most negative market globally even though it illustrated a development from the third quarter.

Source: http://deepbluegroup.org/blog/u-s-consumer-confidence-at-six-year-high-europeans-also-more-upbeat-survey/

Like everyone else, you probably also would like to make more money - which is totally alright. We all know that there is no such thing as a free lunch and that building wealth requires a lot of perseverance and diligent work.

You might have already taken a look at some stock market systems or subscribed to highly-reputed tip sheets and realized they just don't cut it. There are many scammers out there, whether online or offline -- who will give worthless advice to individual investors. This is merely one of many reasons I do not give advice - just my own personal insight founded on statistical analysis and conservative intrinsic assessment.

At Deep Blue Publications Group LLC, we show you how we are creating wealth for the long-term, a single day at a time, by following simple stock market investing principles. If you already have an operating portfolio, we do hope that our track record - gains as well as losses - can aid you attain your goals.

If you have not invested in the stock market investing but just now planning on doing so, you can see what it is all about, what you can derive from it and find out what it takes to make proper decisions on your own without risking any money: follow Deep Blue Publications Group LLC without having to constantly check for updates as you will be notified by email whenever new content is uploaded.

Source: http://deepbluegroup.org/index.html

Plan for major expenses. You will probably overlook business opportunities or have to mix up for a loan when the expenses become inescapable.

A year in advance or, preferably, three to five years ahead, put events like a major computer upgrade on the calendar. Admit the cyclic ups and downs, something many entrepreneurs are unwilling to do.

"This helps you to be honest about the fact that it's coming and plan for it," says James LeMay, a director with the accounting firm Daigle & Associates in Boston.

Track expenses. You or else could fail to spot some tax write-offs and might lose out on others.

A credit card that you use solely for business can be a basic accounting system, says Raffaele Mari, an accountant in Newport Beach, Calif., who teaches a financial course for entrepreneurs at Pepperdine University.

For you to be able to see which outlays relate to which business activities, most card statements categorize expenses. If you always use your business credit card for business expenses you're less likely to pay cash.

Additionally, Mari says, routinely jot down business trips, lunches, coffee dates and other events with cash outlays in your electronic or paper day planner. This habit can go a long way toward substantiating those items for your tax records in the event of an audit.

"Often on tax returns, those numbers are too round. No one drives exactly 5,000 miles for business in a year, so the IRS knows this is an estimate," Mari says. "In an audit, if you can't substantiate those numbers, the whole category [of write-offs] can get thrown out."

That data, along with a day planner recording the trip, are usually enough record keeping to satisfy the IRS, Mari says.

Record deposits correctly. You may be less likely to pay taxes on money that isn't income.

Implement a system for keeping your financial activities straight. Business owners normally make a diversity of deposits into their bank account through the year, counting loans, revenue from sales and cash infusions from their personal savings. The trouble, Mari says, is that at the end of the year, you or your bookkeeper might erroneously record some deposits as income, and consequently pay taxes on more money than you've actually made.

Set aside money for paying taxes. The IRS can charge penalties and interest for not filing quarterly tax returns on time.

Thoroughly put part of money aside throughout the year for taxes. Next, note tax deadlines on your calendar, together with prep time if you need it, to be certain you in fact make payments when they're due.

Payroll taxes that go unpaid can be especially problematic, Mari says. He often sees cash-crunched entrepreneurs get through a down cycle by dipping into employee withholdings that they should have sent to the IRS.

Keep a close eye on your invoices. Late and unpaid bills harm your cash flow.

Hand over someone in your organizations to monitor your billing. After this, put a process in place for issuing a second invoice, making a phone call and perhaps charging penalties like extra fees at definite deadlines.

"You want to have a plan for what happens if they're 30, 60 or 90 days late," Mari says.
Some entrepreneurs believe that once they've sent out an invoice, they've taken care of billing. Not so, Mari says. "Every late payment is an interest-free loan and hurts your cash flow."

Source Link: http://deepbluegroup.org/blog/bookkeeping-tips-for-business-owners/