Cost Recovery Method: Example & When to Use

Cost Recovery Method: Example & When to Use

      First off, so you dont get confused, there is something called the accelerated cost recovery system (ACRS) that is used more by tax professionals and certified public accountants (CPAs). It is basically a way to schedule depreciation rates in an accelerated way to reap the reward of tax credits at tax time as depreciation is an expense. Read more

How a Company Fuel Card Program Can Help Control Driver Expenses

How a Company Fuel Card Program Can Help Control Driver Expenses

If your company does a large part of its business on the road, then you know how important it is to keep an eye on your drivers. Drivers out there need to be in the right places at the right times. There is no space in the sales world for lateness. Conversely, drivers who are scouting, or conducting any kind of speculative work, need to maximize their time and not take advantage of having free time. Read more

3 Main Areas of Public Accountants

3 Main Areas of Public Accountants

Public accounting firms are extremely useful when it comes to helping your business succeed. They provide a variety of services in multiple areas of commerce and can be a great resource when it comes to business assistance. Although these large public firms are very diversified, they mainly specialize in three specific areas of business.

1. Advisory services. In the current business market, many companies are facing short-term issues such as cutting costs, inventory management, and overall improved efficiency. Read more

Capital Gains Tax – The What and the Why

Capital Gains Tax - The What and the Why

In the UK when we profit from selling something, or even from giving something away, there is a tax attached to that profit; this tax is called ‘Capital Gains Tax’ and every time we dispose of things like shares or property there is a chance that we may need to pay it. When we get rid of an asset and make a profit, whether we sell it, gift it, put it into someone else’s name, swap it for something else or receive a payout in lieu of something that has been stolen or destroyed, the profit that we make may be subject to Capital Gains Tax.

However, the assets subject to CGT do not include our personal car or the home where we live or any personal possessions up to 6,000. Read more

Lets Learn Personal Finance

Lets Learn Personal Finance

It is not about how much money we make, but it is about how we use the money. Or you can simplified it by. Its Not How Much, but where and how you save is important.

One of the most basic things about personal finance is the concept of saving. No matter how much you make, you must put aside a little money as your saving. Is is very important for you to have your own saving. Read more

Determine Interest Rates on Notes Receivable

Determine Interest Rates on Notes Receivable

    Different Documents as Resources for Data on Receivables

    A receivable represents an amount loaned out, or a purchase extended to a customer on credit. It is payable on a specific date and usually earns interest from the date the transaction transpired through the date the amount becomes due. Read more

I Need Help To Consolidate Payday Loans

Taking out a payday loan probably seemed like a great idea at the time, you had a financial emergency pop up and you just didn’t have the resources to cover it.

If youre like most people you tried to get a traditional short term loan but with the crackdown at all major financial institutions getting a short term loan is a lot harder to get then it used to be.

Now you have to have great credit where before average credit would do, and of course you need a substantial amount of collateral to support the loan which many people do not have.

Oh sure you may have a car or truck but in most cases those are not accepted because in many cases they have been financed and you cant use property that has a lien on it as collateral.

So what do you do? You get a payday loan the loan gets you out of the financial emergency but without really knowing it you have set yourself up for the payday loan trap.

Most financial emergencies are under $500 so getting a payday loan for that amount seems like no big deal but remember (well you know this now) on average it will cost you $650 (this includes the fees and interest) to pay that loan off in full in two weeks time.

Then two weeks comes around and you dont have the $650 to pay the loan off because you have other bills to pay, so you’re offered a roll over.

A rollover is where you pay just the interest and fees plus a roll over fee and you can now extend your loan for two more weeks and this is how the payday loan trap works.

Many people end up continuing to roll over their loan for as many times as they can hoping to come up with the money to pay it off when they cant many people will go get another payday loan from another company to pay off the first loan but now they have a new payday loan but they are still in the same mess as when they started.

Some people even have two, three or even more payday loans now all they are doing is paying fees and interest on all these loans and never paying them off it turns into a nightmare. Read more

An a to M of UK Tax Jargon – Accounting Terms Explained

When it comes to understanding the strange language spoken by most accountants, and/or your average financial advisor, you would be forgiven for believing that it was something other than English that was being used; it is not uncommon for those professionals dealing with tax issues on a daily basis to forget that most of us do not speak ‘Tax Jargon’ and would find an interpretation pretty handy.

So here goes:

Abbreviated Accounts

Smaller businesses are allowed to file a condensed version of their annual accounts with Companies House, whilst filing a full set with their ‘Company Tax Return’; these ‘condensed accounts’ are known as ‘Abbreviated Accounts’.

Bad Debt Relief

If after charging a customer VAT on a product or service and then paying HMRC the VAT, you find that said customer has not paid you, it is possible to claim that VAT back from HMRC to aid your cash flow; once the debtor pays you, you will of course need to pay HMRC once more.

Chargeable Asset

Under ‘Capital Gains Tax’ rules, tax is due on all profit over the threshold set, made from the sale or disposal of assets. Read more