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Differences Between Financial Accounting And Cost Accounting

The main differences between financial accounting and cost accounting are given as under.

1.Financial accounting provides information about the business in general way.Financial accounting tells about the profit and loss and financial position of the business.Cost accounting provides information to the management for proper planning,control and decision making.

2. Financial accounting classifies,records and analyses the transactions in subjective manner or according to the nature of expenses.Cost accounting records the expenditure in an objective manner or according to the purposes for which the cost are incurred.

3.Financial accounts are the accounts of the whole business.Cost accounting is only a part of financial accounts.

4. Financial accounts are relate to commercial transactions of the business.Cost accounts are related to transactions connected with the manufacture of goods and services.

5.Financial accounts disclose the net profit or loss of the business as a whole.Cost accounts disclose profit or loss of each product, job or service.

Dealing with Low Interest rates: Investing and Corporate Finance Lessons

A few months ago, I tagged along with my wife and daughter as they went on a tour of the Federal Reserve Building in downtown New York. While the highlight of the tour is that you get to see large stacks of US dollars in the basement of the building, I considered making myself persona non grata with my immediate family by asking the guide (a very nice Fed employee) about the location of the interest rate room. That, of course, is the room where Janet Yellen comes in every morning and sets interest rates. I am sure that you can visualize her pulling the levers that sets T.Bond rates, mortgage rates and corporate rates and the power that comes with that act. If that sounds over the top, that is the impression you are left with, not only from reading news stories about central banks, but also from opinion pieces from some economists and investment advisors. I know that investors, analysts and CFOs are all rendered off balance by low interest rates, but I will argue that the techniques that they use to compensate are more likely to get them in trouble than solve their problems.
The what: Interest rates are at historic lows across the globe
There is little to debate. Interest rates are lower than they have been in a generation and you can see it in this graph of the US 10-year treasury bond rate going back several decades:

US 10-year T.Bond rates at the end of each year
But it is not just the US dollar where low interest rates prevail, as illustrated by the German government 10-year Euro bond rate, the Japanese government 10-year Yen bond rate and the Swiss Government 10-year Swiss franc rate trend lines:

Ten-year Government Bond Rates: End of each period
In fact, on the Swiss Franc, the 10-year bond rates rates have not just dropped but have hit zero and kept going to -0.09%, leading to the almost unfathomable phenomenon of negative interest rates on long term borrowing. A world where savers have to pay banks to keep their savings and borrowers are paid money to borrow turns everything that we have learned in economics on its head and it is therefore no surprise that even seasoned investors and analysts are unsure of what to do next.
The why: Its not just central banks
Why are interest rates so low? I know that the conventional wisdom is that it is central bank policy that has driven them there, but is that true? To answer that question, I decided to do go back to basics.
The Fundamentals
While market interest rates are set by demand and supply, as they are in any other market, there are fundamentals that determine that rate. In particular, the interest rate on an investment with no default risk (a guaranteed or risk free investment) can be written as the sum of two components:
Interest rate on a guaranteed investment = Expected inflation + Expected real interest rate
This is the simplified version of the classic Fisher equation and it is true by construction. In fact, many analysts use it to decompose market interest rates; thus if the US treasury bond rate is at 2.00% and expected inflation is 1.25%, the real interest rate is backed out at 0.75%. In the long term, I would argue that a real interest rate has to be backed up by a real growth rate in the economy. After all, you cannot deliver a 2% real interest rate in an economy growing at only 1% a year in the long term, though you can get short term deviations between the two numbers. Thus, in the long term, the interest rate on a guaranteed investment can be rewritten as:
Interest rate on a guaranteed investment = Expected inflation + Expected real growth rate
How well does this simplistic equation hold up in practice? Testing it is hard, especially when you can observe only actual inflation and real growth but not expected inflation and real growth. However, we also know that expectations for inflation and real growth are driven, for better or worse, by recent history; thus expected inflation increases after periods of high inflation and decreases after periods of low inflation, thus making actual inflation and real growth reasonable proxies for expected values. The final number we need to test out this relationship is the interest rate on a guaranteed investment, and we use the US 10-year treasury bond rate as the stand in for that number, with the concession that the last 5 years have shaken investor faith in the guarantee.
Source: FRED (Federal Reserve in St. Louis)
Even if you take issue with my proxies for expected inflation (the actual inflation rate in the US each year, as measured by the CPI), real growth (the real growth rate in US GDP and the interest rate on a guaranteed investment, the graph sends a powerful message that risk free rates are driven by inflation and real growth expectations. If expected inflation is low and real growth is anemic, as has been the case since 2008, interest rates will be low as well and they would have been low, with or without central bank intervention.
The Central Bank Effect
Do central banks have influence over interest rates? Of course, but the mechanisms they use are surprisingly limited. In the United States, the only rate that the Fed sets is the Fed Funds rate, a rate at which banks can borrow or lend money overnight. Thus, if the Fed wants to raise (lower) interest rates, it has historically hiked (cut) the Fed Funds rate and hoped that bond markets (treasury and corporate) respond accordinly. One way to measure the effect of Fed action is to compute the difference between the actual US treasury bond rate each period and the “intrinsic” treasury bond rate (computed as the sum of inflation and real GDP growth that year):
Source: FRED
Note that the Fed Funds rate hit zero in 2009 and has stayed there for the last five years, effectively eliminating it as a tool for controlling rates. Perhaps driven by desperation and partly motivated by the savior complex, the Fed has turned to a relatively unused tool in its arsenal and bought large quantities of US treasury bond in the market for the last five years, the much-talked about Quantitative Easing (QE). While it is true that T.Bond rates have stayed below intrinsic interest rates over the last 5 years, the effect of QE (at least to my eyes) seems to modest.
As the economy comes back to life, all eyes have turned towards Janet Yellen and the Fed and Fed-watching has become the central focus for many investors. While that is understandable, it is worth remembering that in today’s economic environment, with low inflation and real growth, the removal of the Fed prop will not cause interest rates to pop to 5% or 6% . In fact, based upon the numbers in the most recent year, the intrinsic interest rate is 3.08% and if the central banking props disappear, that would be the number towards which US treasury bond rates move.

Given the evidence to the contrary, it is puzzling that investors continue to hold on to the belief that central banks set interest rates and can change them on whim, but I think that the delusion serves both sides (investors and central banks) well. Investors, whipsawed by market and economic forces that are uncontrollable, feel comfort in attributing the power to set interest rates to central banks. It also allows investors to attribute every phenomenon that they have trouble explaining to central banking machinations and interest rates that are either “too high” or “too low”. Quantitative Easing in all its forms has proved to be absolutely indispensable as a bogey man that you can blame for the failure of active investing, the rise and fall of gold, and bubbles of every type. Central banks, which are really more akin to the Wizard of Oz, in their powers, than Masters of the Universe, are glad to play along, since their power comes from the illusion that they have real power.

The Crisis Effect
There is another factor at play that may be more powerful than central banks, at least over short periods, and that is the perception of a crisis. Whatever the origins or form of the crisis, investors respond with fear, and flee to safety. That “flight to quality” often manifests itself in declining interest rates on bonds issued by governments that are perceived as “higher quality”, and may push those rates well below intrinsic levels. Looking at the chart where we outline the gap between the T.Bond rate and its intrinsic value, the quarter where we saw the US 10-year treasury bond rate drop the most, relative to its intrinsic value, was the last quarter of 2008, where the crisis in financial markets led to a rush into US treasuries. That translated into a precipitous drop in treasury rates across the board, with the 10-year rate dropping from 3.66% on September 12, 2008,  to 2.2% at the end of 2008, and the T. Bill rate declining from 1.62% to 0.02% over the same period.

Source: FRED- Constant Maturity Rates on 3-month and 10-year treasuries

One of the few constants over the last six years has been that we lurch from one crisis to another, with local problems quickly going global. While there are some who may argue that this is a passing phase, I believe that this is part and parcel of globalization, one of the negatives that need to get offset against its positives. As economies and markets become increasingly interconnected, I think that the recurring crisis mode will be a permanent feature of market. One consequence of that may be that market interest rates on government bonds will settle below their intrinsic values, a permanent “crisis discount”, with or without central banking intervention.

The Interest Rate Effect 
The level of interest rates matter for all of us, as investors, consumers and businesses. For investors, interest rates drive expected returns on investments of all types through a very simple process:
Expected Return (r) = Interest rate on a risk free investment + Risk Premium
That expected return then determines what we will be willing to pay for a risky asset, with lower expected returns translating into higher prices. For businesses, these expected return becomes hurdle rates (costs of equity and capital) that they use to decide not only whether and where they should invest their money but plays a role in how much they borrow and how much to return to stockholders (as dividends or buybacks).
If the risk free rate drops and you leave the risk premiums and cash flows unchanged, the effect on value is unambiguously positive, with value rising as risk free rates drop. Thus, if you have a business that has $100 million in expected cash flows next year, with a growth rate of 4% a year in perpetuity and an equity risk premium of 4%, changing the risk free rate from 6% down to 2% will have profound effects on value. It is this value effect that has led some to blame the Fed for creating a “stock market bubble” and analysts across the world to wonder whether they should be doing something to counter that effect, in their search for intrinsic value.
While the mathematics that show the link between value and interest rates is simple, it is misleading because it does not tell the whole story. As I argued in the last section, interest rate movements, up or down, almost never happen in a  vacuum. The same forces that cause significant shifts in interest rates affect other inputs into the valuation and those changes can reduce or even reverse the interest rate effect:
To illustrate, the 2008 crisis that caused the T.Bond rate to plummet in the last quarter of the year also caused equity risk premiums to surge from 4.37% on September 12, 2008 to 6.43% on December 31, 2008. In the figure below, I back out the expected return on stocks and the equity risk premium from the index level each day and the expected future cash flows for each month from September 2008 to April 2015. Note that the cost of equity for the median US company rose in the last quarter of 2008, even as risk free rates declined.
Source: (Implied ERP)
The expected return on equities has stayed surprisingly stable (around 8%) for much of the last 5 years, nullifying the impact of lower interest rates and casting doubt on the “Fed Bubble” story. As the crisis has receded, investor concerns have shifted to real growth, as the developed market economies (US, Euro Zone and Japan) have been slow to recover and inflation has not only stayed tame but turned to deflation in the EU and Japan. Thus, looking just at lower interest rates and making judgments on value misses the big picture.
Reacting to Low Interest Rates
Given that low interest rates have shaken up the equation, what should we do to respond? Broadly speaking, there are four responses to low interest rates:
  1. Normalize: In valuation, it is common practice to replace unusual numbers (earnings, capital expenditures and working capital) with more normalized values. Some analysts extend that lesson to risk free rates, replacing today’s “too low” rates with more normalized values. While I understand the impulse, I think it is dangerous for three reasons. The first is that “normal” is a subjective judgment. I argue, only half in jest, that you can tell how long an analyst has been in markets by looking at what he or she views as a normal riskfree rate, since normal requires a time frame and the longer that time frame, the higher normal interest rates become. The second is that if you decide to normalize the risk free rate, you have no choice but to normalize all your other macro variables as well. Consequently, you have to replace today’s equity risk premium with the premium that fits best with your normalized risk free rate and do the same with growth rates. Put differently, if you want to act like it is 2007, 1997 or 1987, when estimating the risk free rate, your risk premiums and growth rates will have to be adjusted accordingly. The third is that unlike earnings, cash flows or other company-specific variables, where you are free to make your judgment calls, the risk free rate is what you can earn on your money today, if you don’t invest in risky assets. Consequently, if you do your valuation, using a normalized risk free rate of 4% (instead of the actual risk free rate of 2%), and decide that stocks are over valued, I wish you the very best of luck putting your money in that normalized treasury bond, since it exists only in your estimation.
  2. Go intrinsic: The second option, if you believe that the market interest rate on government bonds is being skewed by central banking action to abnormally low or high levels is to replace that rate with an intrinsic interest rate. If you buy into my estimates for inflation and real growth in the last section, that would translate into using a 3.08% “intrinsic” US treasury bond rate. To preserve consistency, you should continue to use the same inflation rate and real growth as your basis for forecasting earnings and cash flow growth in your company and going the distance, you should estimate an intrinsic ERP, perhaps tying it to fundamentals.
  3. Leave it alone: The third option is to leave the risk free rate at its current levels, notwithstanding concerns that you might have about it being too low or too high. To keep your valuation in balance, though, your other inputs have to be consistent with that risk free rate. That implies using forward-looking prices for risk (equity risk premiums and default spreads) that reflect the market today and economy-wide growth and inflation rates that are consistent with the current risk free rate. Thus, if you decide to use 0.21% as the risk free rate in Euros, the combination of inflation and real growth rates you have to assume in the Euro economy have to combine to be less than 0.21%. Doing so does not imply that you believe that nominal growth will be that low but ensures that you are making the same assumptions about nominal growth in the numerator (cash flows) as you are in the denominator (through the risk free rate).
  4. Leave it alone (for now) : The last option is to leave the risk free rate at current levels for now but adjust the rate in the future (perhaps at the end of your high growth period) to your normalized or intrinsic levels. Here again, the key is to make sure that your other valuation inputs are consistent with your assumption. Thus, for the period you use the current risk free rate, you have to use equity risk premiums, growth rates and inflation expectations consistent with that rate, and as you adjust the risk free rate to its normalized or intrinsic levels, you have to adjust the rest of your inputs.
To illustrate the four options when it comes to risk free rates, I value a hypothetical average-risk company with an expected cash flow of $100 million next year, using all four options. The inputs I use for the company under each option are summarized below, with the value computed in the last column:

The four choices yield different values but the most interesting finding is that the value that I get with the “leave alone” option is lower than the values that I obtain with my other options. Consequently, those who argue that we need to replace the current risk free rate with more normalized versions because it is the “conservative” path may be ending up with estimates of value that are too high (not too low).

While I prefer the “leave alone” option, I think that the other approaches are defensible, if your macro views are significantly different from mine. The danger, as I see it, comes when you mismatch your assumptions, with two of the most egregious examples listed below:

Note that while each input into these mismatched valuations may be defensible, it is the combination that skews the value vastly downwards or upwards. If you use  or do intrinsic valuations, checking for input consistency is more critical than ever before.

Bottom line
So, what is the bottom line? Like almost everyone else, I find myself in uncharted territory, with interest rates approaching zero in many currencies and like most others, I feel the urge to “fix” the problem. There are three broad lessons that I take away from looking at the data.
  1. Central banks tweak interest rates. They don’t set them. Consequently, I am going to spend less time worrying about what Janet Yellen does in the interest rate room and more on the fundamentals that drive rates. I will also grant short shrift to anyone who uses central banks as either an excuse or looks to them as a savior in their investing.
  2. When risk free rates are abnormally low or high, it is because there are other components in the market that are abnormal, and I am not sure what is normal. For investors in the US and Europe who yearn for the normality of decades past, I am afraid that normal is not returning. We have to recalibrate our assumptions about what is normal (for interest rates, risk premiums, inflation and economic growth) and pay less heed to rules of thumb that were developed for another market (US in the 1900s) and another time.
  3. As investors, we can rage against interest rates being too low but it is what it is. We have to value companies in the markets that we are in, not the markets we wished we were in.

Financial Policy and the Role of the State

Does financial liberalization mean that LDC governments have no role to play in the financial sector? In an effort to identify how these governments can work effectively within the context of liberalized financial markets, some economists isolated seven major market failures that imply a potential role for state intervention. Their basic argument is “that (LDC) financial markets are markedly different from other markets”, “that market failures are likely to be more pervasive in these markets” and that “much of the rationale for liberalizing financial markets is based neither on a sound economic understanding of how these markets work nor on the potential scope for government intervention”. The seven market failures economists identified are the following:

(1) The “public good” nature of monitoring financial institutions: Investors need information about the solvency and management of financial institutions. Like other forms of information, monitoring is a public good – everyone who places savings in a particular financial institution would benefit from knowing that the institution was prospering or close to insolvency. But like other public goods in free-market economies, there is an undersupply of monitoring information, and consequently, risk-averse savers withhold their funds. The net result is fewer resources allocated through these institutions.

(2) Externalities of monitoring, selection, and lending: Benefits are often incurred by lenders who learn about the viability of potential projects from the monitoring, selection, and lending decisions of other lenders. Investors can also benefit from information generated by other investors on the quality of different financial institutions. Like other positive (or negative) externalities, the market provides too little information, and resources are under allocated or over allocated.

(3) Externalities of financial disruption: In the absence of government insurance (whether or not an explicit policy has been issued), the failure of one major financial institution can cause a run on the entire banking system and lead to long-term disruptions of the overall financial system.

(4) Missing and incomplete markets: In most developing countries, markets for insurance against a variety of financial (bank failure) or physical (e.g., crop failure) risks are missing. The basic problem is that information is imperfect and costly to obtain, so an LDC government has an important role in reducing these risks. It can, for example, force membership in insurance programs or require financial institutions as well as borrowers to disclose information about their assets, liabilities, and creditworthiness.

(5) Imperfect competition: Competition in the banking sector of most developing countries is extremely limited, meaning that potential borrowers usually face only a small number of suppliers of loanable funds, many of which are unwilling or unable to accommodate new and unknown customers. This is particularly true of small borrowers in the informal urban and rural sectors.

(6) Inefficiency of competitive markets in the financial sector: Theoretically, for perfectly competitive markets to function efficiently, financial markets must be complete (without uninsured risks) and information must be exogenous (freely available to all and not influenced by any one participant’s action in the market). Clearly, there are special advantages to individuals or entities with privileged information in LDC financial markets, and risk insurance is difficult, if not impossible, to obtain. As a result, unfettered financial markets may not allocate capital to its most profitable uses, and there can be substantial deviations between social and private returns to alternative investment projects. In such cases, direct government intervention – for example, by restricting certain kinds of loans and encouraging others – may partly or completely offset these imbalances.

(7) Uninformed investors: Contrary to the doctrine of consumer sovereignty, with its assumption of perfect knowledge, many investors in LDCs lack both the information and the appropriate means to acquire it in order to make rational investment decisions. Here again, governments can impose financial disclosure requirements on firms listed on local stock exchanges or require banks, for example, to inform customers of the differences between simple and compound interest rates or of the nature of penalties for early withdrawals of savings.

LDC governments have a proper role to play in regulating financial institutions, creating new institutions to fill gaps in the kinds of credit provided by private institutions (e.g., micro loans to small farmers and trades people), providing consumer protection, ensuring bank solvency, encouraging fair competition, and ultimately improving the allocation of financial resources and promoting macroeconomic stability. As in other areas of economic development, the critical issue for financial policy is not about free markets versus government intervention but rather about how both can work together (along with the NGO sector) to meet the urgent needs of poor people.


Rashid Javed is an Asian author. He writes articles about various topics of accounting and economics such as elasticity of demand and cash book.

Installment Loans for Bad Credit-Rapid cash assistance despite of bad credits

Are you suffering from uncertain monetary issues that are affecting your financial standing? Unexpected financial troubles can come up any next hours without letting you having prior knowledge. If you are not prepared of meeting your unforeseen financial pressures and looking for the swift fiscal remedy, here are installment loans for bad credit for you. This is the affordable financial assistance that comes with convenient terms and conditions. If you are having several bad credit factors, you can still enjoy this loan aid to get comfortable support.

Using the internet to get applied with installment loans for bad credit let you turn the application feasible and swift. Having a PC with internet connection does not let you leave the comfort of your home or office. Just complete a single online application form with few personal details regarding your income and checking account number. The funds that you had borrowed will send to your bank account without making much effort. Get this loan assistance with the ease of online way for trouble free and instant response.

Moreover, to get the deal with affordable rates, making comparisons and negotiation with the lender will be helpful. It is necessary for you to got though the terms and conditions of the lender associated with it before taking any decision. You can get this financial deal with least hassle of paper work.

As the name says, installment loans no credit check can also be approved by bad creditors without any snub. This loan is meant for bad creditors to offer them fiscal help to remove the financial issues right within least possible time. So, it does not matter if you are tagged with several bad factors like insolvency, foreclosures, bankruptcy, CCJ, arrears, late payments, missed payments etc., you can enjoy this loan aid with no snub.

Do not turn down if you are unaffordable to pledge anything as collateral, installment loans for bad credit are short term loan assistance. This is the suitable source of finance that offers you small money with the feasible repayment terms. You can simply avail the money to fulfill any of your financial expenses and desires without any fuss of collateral assessment and lots of faxing hassle.


When you find your monthly income mismatching with your expenses and desires, apply with installment loans no credit check for comfortable financial support. This is the affordable and swift financial aid that comes with better terms. Now, remove your monetary issues by applying with this loan for hassle free and quick financial support.

How Business Cash Advance Can Save Your Business from Financial Crux

Cash flow is the interior and exterior of your business and is the lifeline for all businesses. Income could be referred to as cycle: your company uses cash to get assets which are then used to create products or services. They are then offered to get some funds and so the cycle is repeated. But what’s most important is that you positively manage and control these cash inflows and outflows.

Sometimes, when individuals are battling for capital to help keep businesses running, they get eccentric assets for financial help. Many banking institutions don’t really extend cash rather offer assistance and counseling that increase the cost of caring the client.

Cash advances and unsecured loans really are a better option to get your business quick money in crunch financial situations. The micro-banking companies offer several kinds of loans and cash advances to businesses for all needed reasons. Financing might be granted as secured or unsecured. In secured loan, collateral is provided to assist guarantee payment in case of default. In unsecured loan, no collateral is provided except just the borrower signature being a legal promise to pay back the loan amount as contracted.

Unsecured business loans and cash advances come in good belief that the borrower will repay the loan amount as contracted. Such cash advances can be for a lot of productive reasons including purchasing equipment and appliances, renovation, paying for bills or financing that dream franchise.

The opportunity to pay back the current and proposed obligations is crucial while approving financing. Cash advance loans are usually declined to those who’ve a present past due advance. Generally cash advance schemes the borrower’s ability to pay back is dependent upon the borrower’s monthly credit card sales receipts.

There are many benefits of business cash advance lending. The cash advance lenders are very flexible while approving this type of business loan. Even if your business has a low credit score, you can still get cash advance financing. Also the process of getting a business cash advance is instant. The loan application process is very simple, you just have to fill an online application form and the money will be transferred to you in just few business days. The cash advance can also be used for any business purpose without any restrictions. This way you can distribute the cash any where you deems fit.

NJ Financial Planning 908 889 4604

Madison NJ Financial Planning

For years, Sean Duffy, CPA, CFP has been providing quality, personalized financial guidance to local individuals and businesses Sean Duffy, CPA, CFP ‘s expertise ranges from basic tax management and accounting services to more in-depth services such as financial statements and financial planninging

Sean Duffy, CPA, CFP is one of the leading firms in and throughout Westfield By combining our expertise, experience and the team mentality of our staff, we assure that every client receives the close analysis and attention they deserve Our dedication to high standards, hiring of seasoned tax professionals, and work ethic is the reason our client base returns year after year
Sean Duffy, CPA, CFP
533 South Ave
Westfield, New Jersey 07090
Phone 908-889-4604
Fax 908-889-4607

08822 NJ Bookkeeping
Random Tax Facts for Businesses And Individuals

Tax Suggestions for Individual Tax Incentives for Higher Education
You might be capable to declare a Credit (formerly known as the Hope Credit) or Lifetime Studying Credit for the certified tuition and associated bills of the students in your family (i.e. If you don’t qualify for the credit, you may possibly be able to state the “tuition & charges deduction” for competent educational bills.

You might be in a position to deduct interest you shell out on a qualified student mortgage. The deduction is claimed as an adjustment to income so you do not have to itemize your deductions on Schedule A Form 1040. Nevertheless, this deduction is also phased out at Higher income ranges.
If you receive $20 or more in Tips in any 1 30 days, you ought to report all your Tips to your employer. Your employer is needed to withhold federal income, Interpersonal Safety and Medicare taxes and to report the appropriate quantity of your earnings to the Interpersonal Security Administration (which will have an effect on your advantages when you retire or if you turn out to be disabled, or your family’s rewards if you die). Speak to us so your wages are effectively reported!


Your Homeoffice will qualify as your principal location of company if you use it completely and regularly for the administrative or management activities linked with your trade or company. There should be no other fixed place exactly where you conduct substantial administrative or management actions. If the relative significance element doesn’t establish your principle spot of enterprise, you can also think about the time spent at every place.

If you are an employee, you have further specifications to meet. Also, you can’t take deductions for space you are renting to your company.

Usually, the sum you can deduct depends on the proportion of your Homeemployed for company. Your deduction will be restricted if your gross income from your business is significantly less than your whole enterprise expenses. Please get in touch with us for more!
Regardless of whether you are self-employed or an worker, if you use a piece of your Homesolely and often for business purposes, you might be in a position to acquire a Homebusiness office deduction.

Refund, Where’s My Refund?

You can have a Refund check mailed to you, or you may be able to have your Refund electronically deposited straight into your traditional bank account. And it requires the U.S. Treasury much less time than issuing a newspaper check. If you put together a paper return, fill in the immediate deposit information in the “Refund” segment of the tax form, making positive that the routing and account amounts are precise. Incorrect quantities can result in your Refund to be misdirected or delayed. Direct deposit is also obtainable if you electronically file your return.

check with your financial institution or other financial institution to make positive your immediate deposit will be taken.

A Refund can be delayed for a selection of reasons. For instance, a title and Interpersonal Safety quantity listed on the tax return might not match the IRS records. You might have failed to sign the return or to include a needed attachment, this kind of as Form W-2, Wage and Tax Assertion. Or you may possibly have created math problems that require further time for the IRS to right.

As soon as the information is processed, results could be one of a number of responses.
Are you expecting a tax Refund from the Internal Revenue Service this yr? If you file a full and precise paper tax return, your Refund ought to be issued in about six to 8 months from the date IRS receives your return. If you file your return electronically, your Refund ought to be issued in about half the time it would take if you filed a daily news return even quicker when you select direct deposit.

07401 College Planning For years, Sean Duffy, CPA, CFP has been providing quality, personalized financial guidance to local individuals and businesses Sean Duffy, CPA

XBRL Backup Software for Managing Financial Data

XBRL is a type of software that facilitates you to file your financial statement as per MCA mandate. Many medium to big organizations make use of this software as it reduces plenty of work pressure from one’s head. It is handled mainly by the accountant of the company who maintains all the accounting details in this software without any waste of time in summing up. This software is used widely by companies across the world to keep financial information are stored with their regulators, businesses, analysts and investors.

The XBRL document that is used in the process is also very easy to use and understand, save, transfer, and analyze. The work can be presented in different ways with increased speed. In fact, the best part that makes this software much more appealing is the changes or error that occurs more in other types of financial setup. Error-free work is delivered from this software due to the option of auto checking. Companies deploying this XBRL software enjoy much of the benefits as it not only reduces cost, but also reduce the collection as well as reporting process of the financial data. In fact, the financial information can be read by the company’s clients or consumers such as investors, regulators and analysts. They can easily, quickly and proficiently receive, scrutinize and compare the information stored in this Backup Software.

There is one more benefit of this backup software and that is the XBRL can easily manage information in different accounting standards as well as languages. The software can be used to cater different financial reporting requirements from user’s end and saves a lot of time, especially in converting the data into XBRL with the help of some easy mapping tools. In fact, the software is available to transform the data into this software.

Various companies are available to provide Xbrl Training so that people could use and handle this software pretty effectively. Despite this, many companies also provide completely free training at a specific destination where many can come and learn about this software.

Pack your financial seminar with the right seminar invitation

Pack Your Financial Seminar with the Right Invitation

Match your message to your market

The first issue is how to match your financial seminar message to your target market. It’s a simple idea that many professionals skip, assuming they know their audience. For example, let’s assume you want to market a financial seminar to people age 60 and over. To develop a winning financial seminar invitation, you need to know how these people think. You cannot assume that your market thinks like you do. If you’re 40 years old, you probably want to know about opportunities to make money. But people over 60 (in most cases) are not motivated to make more money. They care about preserving capital and their biggest fear is losing principal (their “hot button”). So is it any wonder that your opportunity-oriented seminar titled, “How to Triple Your Money with Stocks,” doesn’t get much of a response?

What does your audience really want?

You could triple your attendance with the right financial seminar title, such as, “Six Ways Retirees Ruin Their Finances.” This financial seminar title appeals directly to their fear and will pull in the attendance (I have very successfully tested this title over a dozen times). Whichever target market you choose, you really need to know their most significant emotional concern. If you can title a financial seminar addressing that concern, you’re half the way home. If you’re not sure, don’t make any assumptions.

For example, do business owners care most about making a profit (which would be an easy assumption to make)? Or is their greatest concern having more free time with the family? Until you really know the answer, your marketing and your financial seminar cannot be very effective because you don’t know your market’s hot button. To learn what motivates your market, you need to speak with several members of your audience, one on one. Do some interviews and really listen and clear your mind of preconceived assumptions.

Once you know what motivates your audience (and you may have several items), list them. These will be the “bullet points” on your financial seminar invitation. Pick your strongest bullet point and this one will be your financial seminar title (you can test this by using a different bullet point as your title each time you hold a seminar and see which gets your best response).

State your bullet points as benefits, secrets or information to be revealed

My firm’s clients are financial professionals. Following are titles and bullet points I use in marketing materials to my prospects and you can use the same philosophy in marketing to your prospects:

Title: “Open 15 New Accounts Every Month”


How I Built a $50 Million Book Doing One Seminar a Month

Secrets Of Making Your Seminars Consistently Profitable

Pack The Seminar Room Every Time

See More Prospects Face to Face in 90 Minutes than You Can Qualify by Phone in a Month

Know The 6 Critical Factors of Seminar Success

The Error on Your Invitation Which Cuts Attendance in HALF!

One Small Change to Any Invitation Which Boosts Attendance By 25%!

Seminar Topics To Never Discuss (if you want to close business)

Where To Find The Most Qualified Prospects For The Best Mailing List

How to Avoid the Error in Mailing Which Gets 50% of Your Invitations Tossed In The Trash, Unopened!

How to Close Appointments Right At the Seminar Rather Than Beg for Them on the Phone the Next Day

How to Pack 60-70 People in the Room Every Month Even in Areas Where “Every Broker is Doing Seminars”

It’s the bullet points that make you want to know more, to take action and attend the seminar. When you can do the same on your financial seminar invitations for your prospects, you will have a full audience.

Appeal to subgroups

Each bullet point captures a “sub group.” While all of your prospects should be from a qualified list (more about this in an article you can find on my web site), there are groups within the list who have distinct concerns.

For example, I deal with financial planners who get good seminar attendance, but do not close appointments. They would respond to the above bullet point, “How to close appointments right at the financial seminar.” Another sub group might be planners who get plenty of appointments, but do not have sufficient financial seminar attendance. They will respond most to the bullet point, “One small change in the invitation which boosts attendance by 25%.”

Therefore, the more relevant bullet points you have, the more sub groups you will capture, the larger your financial seminar attendance. In fact, if I send 3000 invitations for an investor seminar, I have calculated that each bullet point is responsible for six buying units in attendance.

How can you learn to write bullet points like this? It will take some study, but some excellent references are:

The Ultimate Sales Letter by Dan Kennedy Words That Bring You Riches by Ted Nicholas

Alternatively, hire a professional copywriter. You cannot underestimate the power of effective language. The right words can boost your attendance by 500%.

About The Author:

Get the other 12 articles on making your financial seminar, or any seminar, a success? Access the article library at

Selling For Maximum Value

By Eran Salu, JD, MBA, CPA

When I talk with business owners who are thinking of selling their business, they often present a host of issues, ranging from how their current employees will be treated by the buyer of their business to whether or not they will be able to keep their office furnishings when the deal is done. In the end, however, the one issue business owners always come back to and focus on is how to obtain maximum value for their business. If you are thinking of selling your business, keep these key considerations in mind:

Focus valuation discussions on the future potential of a business

? A buyer will gain confidence and comfort in a business by performing analysis and thoroughly understanding its historical financial performance. However, when negotiating valuation, it is important to focus the discussions on the future cash flow potential of the business.

? Conducting rigorous industry research and analysis, developing defensible financial projections and presenting the pro-forma financial and strategic benefits (revenue and cost synergies) of the transaction are all steps a seller must take to be effective in valuation negotiations.

Don’t leave money on the table by neglecting the intangible value of a business

? At a minimum, a buyer ought to be willing to pay the baseline intrinsic value of a business.

? In many cases, however, sellers forego the opportunity to obtain appropriate compensation for the intangible value of the business. This is caused by the inability of inexperienced sellers to properly substantiate, support and quantify the intangible value of their business.

? Employing proper valuation methodologies and techniques can help sellers maximize value. It is also important to recast historical financial statements in order to show the effect the purchase of the business will have on the buyer’s financial results.

Negotiate a winning deal structure

? Properly structuring a transaction is just as important as negotiating valuation. Being experienced in deal structuring and effectively negotiating the terms and conditions of the transaction are critical to securing and preserving the maximum value for a company.

Mr. Salu has been representing clients in merger, acquisition and restructuring transactions since 1993 and has executed deals totaling over $20 billion of transaction value. In 2001, Mr. Salu founded a boutique investment bank, providing financial-based analyses and advisory services in connection with selling and buying businesses, organizing joint ventures / partnerships, restructuring existing businesses, determining business valuations and developing financial projections. Mr. Salu began his investment banking career with Morgan Stanley & Co. in its Mergers and Acquisitions Group in both New York and Menlo Park. Previously, he worked for Ernst & Young in its Financial Transactions Group.

For additional small business information, please visit

CFA from ICFAI (India) Vs CFA from CFAI (US)

Below are some important facts :

(a) The Institute of Chartered Financial Analysts of India (ICFAI) was established in 1984 as a non-profit society, with the objective of providing training in finance and management. It offers a certification program for financial analysts known as CFA (originally Certified Financial Analyst, later becoming Chartered Financial Analyst).

(b) Now, ICFAI is in NO way affiliated with the CFA Institute nor other awards, such as CA or ICWA and both the institutes have broken their partnerships and running their courses separately.

(c) The Indian Trademark registry recognises ICFAI’s right to use the CFA trademark and does not recognise the CFA Institute’s sole right to use the CFA trademark.

(d) Indian CFA Course Curriculum: This course is designed for the Indian financial system and is therefore offers more localised than the CFA Institute’s (USA) program. ICFAI is a Private Institute and Indian CFAs need not be employed mandatorily by Indian companies. The Indian CFA Program focuses on Financial Analysis as applicable to Investment Management. The CFA Program offered by ICFAI has been developed and is consistently reviewed in the context of the present and future needs of the corporate sector, the investment industry and the financial services sector in India.

History of Trademark Dispute between CFAI and ICFAI :

The CFA program was first delivered through AIMR in the USA and later in India with the partnership of the then Institute of Certified Financial Analysts.

The ICFA and AIMR came together in 1990 to have a common uniform curriculum and bring all the societies under one umbrella. ICFAI had brought out its academic curriculum to suit Indian finance professionals, though it had global content. ICFAI wanted to function independently and had established working relationships with the European Federation of Financial Analysts (EFFAS) and the ASAF (Asian Securities Analysts Federation) with regard to development of the Profession of Security Analysts and its course content. ICFAI also wanted to bring its CFA as an Indian Statutory Charter. All this led to the dispute with AIMR, the parent body of CFA Institute which wanted a uniform curriculum or body of Knowledge through out the world for CFA program whereas ICFAI wanted changes in CFA charter to suit Indian regulations as finance professional used to work in an extremely regulated capital markets. AIMR eventually broke its working relationship with ICFAI and CCFA.

Pristine is an institution focused on creating world class professionals in the area of finance and particularly risk management & investment banking. It has been started by team with significant experience in the field of risk management/ Private Equity/Consulting and Investment Banking, with educational background of IIT/IIMs and SIBM.

No Social Security Number You can finance a home with your ITIN

If you don’t have a Social Security Number, but you do have an ITIN (Individual Taxpayer Identification Number), you may qualify for an ACORN program that offers 30-year fixed-rate financing with a very competitive interest rate. You can also use alternative lines of credit, such as rent and utilities, to qualify.

An ITIN loan, for homebuyers who may be new to this country, who do not have a Social Security number, gets its name from “Individual Tax Identification Number.”

Adriana Vasquez, a housing counselor for ACORN, said her organization works with CitiBank and other lenders to make ITIN loans available for first-time homebuyers who do not have Social Security identification.

“For those seeking an ITIN loan, the first step is to attend one of our first-time homebuyer seminars – which are offered in Spanish, English and Vietnamese,” Vasquez said. “These are held on Saturdays, last four hours and provide information about buying a home for the first time buyers. During the seminar, Realtors and loan officers explain the steps to home buying and how to qualify for a home mortgage loan.”

Download from (c)

After first-time homebuyers attend the four-hour seminar, their second step is to schedule a one-on-one meeting with an ACORN housing counselor.

“During this meeting, we go over their credit, their finances and determine what they can afford,” Vasquez said. “If we find financial or credit problems, we show them how to solve these problems, and we tell them about their rights when working with Realtors and loan officers.”

When they come to ACORN for their one-on-one meeting, first-time homebuyers must bring two year’s worth of tax returns as well as a good credit history and a stable job history.

“If they don’t have a credit history, we use alternative credit,” Vasquez explained. “One of their most important payment histories is their 24-month rental history, and we help them get letters from their landlords to verify their payment record,” she said. “We also use their utility bills to show they have a good payment history.”

The paperwork the ACORN counselor will want to see for ITIN loan applicants includes the following:

# Two year’s tax returns, a W-2 or, if self-employed, the equivalent of a two-year work history.

# Three most recent bank statements

# One month of most current paycheck stubs

# A 24-month rental history plus three alternative credit references for 12-months each. These must be verifiable, such as utilities, and they can be used in place of a traditional credit report.

“Once the homebuyer meets with the ACORN counselor and is pre-approved for an ITIN loan, the next step is to work with a loan officer,” said Brian Ellis, area manager with CitiMortgage. “Because the homebuyer is pre-approved by ACORN, their loan will automatically be a 30-year, fixed-rate mortgage loan with no PMI.”

PMI, or Private Mortgage Insurance, is usually required when financing a home with less than 20 percent down. Not having PMI can save the borrower as much as $18,000 over the life of a 30-year loan, Ellis explained.

CitiMortgage, as well as several other lenders, works with pre-approved ACORN clients through a national agreement with ACORN. “Because of our agreement, we can get applicants the best interest rates available for ITIN loans. Currently, those rates range from 6 to 6.5 percent, which is excellent anywhere in the market,” Ellis pointed out.

Once the client has been pre-approved through ACORN’s program, has met with a loan officer and is approved for the loan, they only need a minimum of $500 out-of-pocket for the transaction.

This fee covers any costs of the bank’s origination of the loan as well as a full appraisal of the property the client wants to purchase.

Said Ellis, “The ITIN loan program is for the purchase or refinance of a property. It is not to buy second homes or investment properties,” Ellis said. “If you own a property and want to buy another property through the ACORN program, you must sell your existing property first.”

Vasquez said that ACORN also does refinancing. “We can help clients who have become involved with high-interest loans and who need relief. We’re here to help anyone who wants to become a homeowner,” she said.

For more information, or to get started, call ACORN’s Houston office at 713-863-9002.

Are you considering a second home or relocating to the United States?

Video Source: Youtube

Online Financial Services Best Way To Keep Track Of Your Money

A tax imposed on the income of individuals or corporations is termed as income tax. It can be proportional, progressive or regressive. Income tax is also called as corporate income tax or profit tax, when the tax is charged on the income of companies.

Income tax is also paid on income from savings and investments, which may includes:
1.Bank and building society interest and dividends from shares. It means tax is deducted before they are paid to you such as tax on bank and building society amounts, tax on UK dividends and tax on rental income.
2.Income tax is also paid on certain types of transaction such as capital Gains Tax if you sell or give away assets, stamp duty when you buy property or shares and inheritance tax on your estate.
3.There are various types of taxes that may have to be paid like: Value added tax (VAT) on various everyday purchases, fuel duty on petrol, diesel and LPG, excise duty on alcohol and tobacco etc.

There are various Online financial planning and investment services available that refers to the planning involved with your income and expenditures to ensure that you survive financially. These services also offer information, suggestions and tips to the people to help them plan for their future finances in a proper manner. A well-evaluated plan is the best way to keep track of your money and will therefore improve your financial situation.

A best financial investments advice is to arrange the affairs of clients so that they are able to take advantage of the variations that exist between the applicable tax jurisdictions. Various major investment houses and institutions are also connected with these Online financial services. This helps the financial services to offer investment vehicles whose return is allocated on a Tax-Free basis.

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Approaches a Non-Financial Company Uses to Address New Projects

Approaches a Non-Financial Company Uses to Address New Projects


There are several trends that have emerged in the financial market over the recent past due to the impact of globalization, advancement in technology, deregulation, innovation and disintermediation. The non-financial firms on the other had have also developed with the same competitiveness though their risk assessment and management is slightly different. This paper will address the insights into the monetary approaches non-financial companies employ inasmuch as the approaches relate to the risk management and the financial structure of the company. Basically the paper will also address the way the approaches to defining, measuring and efficiently managing the risks inherent in a Prospective new project evaluation. There are essential principle issues and faced by the non-financial institution particularly in the context of the owners of the company (shareholders). The function of finance in the operation of a non-financial company is still critical. There are non-financial risks as well which will be addressed in the paper though it’s pertinent to note that finance may not the elemental part of everybody’s responsibility but it is increasingly difficult to survive, let alone struggle without an understanding of the core concepts.

Why Management of Inherent Risk is Crucial

Risk is very important to businesses since it adds value, though this will depend on the individual managing the firm and the nature of the company itself and its tax profile (Carlton 2008), cost of financial endurance, opportunities for investment and the design of the business ownership. Thus the optimum strategies for this achievement are company-specific (Crouhy et al 2006).

Being able to accept that risk is critical. This inevitably translates to the conclusion that that risk should therefore be managed on the basis of the entire company. Financial companies assess the risk and the capital needs that are intimately connected. Non-financial firms however the connection is very little. Conventionally the risk in such firms is usually management on segment basis but in concert with the objective of the business and the functional responsibility of the company like establishing a new project in this instance (Carlton 2008). Coming up with strategies that recognize the total risk that the company faces requires intensive and broad perspective assessment of the possible risk that integrates the comprehension of the dynamics of every business. For a new project, concentrating on the short – term strategies does not increase or enhance the cash flow in a considerable manner; the best tactic is therefore the focus on the risk assessment in the long term perspective(Crouhy et al 2006).

In order to be able to achieve success in the risk definition and identification, then the firm should be able tom establish the following:

Put more prominence on the process of risk management, particularly identification, comprehending and measuring of the exposures (Crouhy et al 2006). Considering that fact that solutions to the many of the problems currently are obtained by derivative techniques, the focus should therefore be on making sure that the correct issues are resolved. This assessment should not only include the new project but also the entire business in terms of the financial risks and managing these risks at the level of the company as a whole (Carlton 2008).

The company’s management should be able to focus the greater energy of working on the measurement. The concentration on the risk management performance is a comparatively new and developed from several developments which comprise better external reporting responsibility, some expensive business derivatives losses and wider range of derived products. Regardless of the type of performance assessment method employed, its imperative to align the desired outcomes of the process and the related benchmarks and motivation scheme with the creation of shareholder value (Carlton 2008).

It’s also important to make sure that the company is adopting a down to business and satisfactorily aggressive strategy to management of capital. A better understanding of the possible connections between the structure strategies, risk management tactics and management enticement schemes is pertinent (Carlton 2008). There need to be use of the risk managements that are relevant for the non-specific firm. Whereas the value -at -risk procedures are turning out to be more and more popular, such methods are only relevant for non-financial companies under restricted situations (El-Masry 2006). An approach to assessment of risks with concentrates on the assessment of the cash-flow-at-risk’ or ‘cash-flow-shortfall’, rather than the inconsistency in the market value is possibly more suitable (Crouhy et al 2006).

Why Non-Financial Companies Need Different Strategies

The differences in the way risk assessment and management is approached in non-financial versus the financial companies is very critical (El-Masry 2006). The differences that are important to bear in mind when carrying out the assessment include; regulatory – the financial firms only do this in order to safeguard the systems of payment and the systemic risk while non-financial concentrates on corporate governance; nature of assents in financial firms are tradable, highly diversified, financial assets, contractual cash flows while diversification increases quality of the product portfolio (Carlton 2008). The non-financial assets are risk concentration, illiquid assets on balance sheet, non-contractual cash flow and diversification has minimal impact on value: Risk – the function of risk in financial firms is key focus and strategy of the management, it also helps in incorporation of company-wide risks while non-financial risk emerge from physical aspect of the business with little focus on skill. It employs fragmented approach. Risk measurement is the ability to measure risk statistically in financial firms while in the non-financial firms; this is limited capability of measuring most of the risk as a consequence of inadequate observation, and casual relationships (Crouhy et al 2006).

Managing the Risk

There are several changes in the recent past that that have impacted on the management of risks in non-financial companies. the major ones include; changed regulatory environment – among other advances, the changes in the way non-financial firms are regulated has enabled application of share buy-backs and permitted greater way in for offshore markets; globalization – this has enable most firms to reach international market (Crouhy et al 2006). Though this is beneficial, it’s often adversely affected by the changes in the global market situations and also progressively more prone to competitors pressure; innovation – this facilitates transfer of risk and also even more tailored capital structures(Carlton 2008); disintermediation – this has totally transformed the function of conventional commercial banks, offering firms with direct access to end-investors. Additionally the function of corporate lending has also changed. Technology advancement facilitates more efficient means of payment and money transfers. On the other hand advanced technology on computer offers a way of carrying out accurate analyses and pricing of derivative transactions (Crouhy et al 2006).

The combined impact of the above-mentioned factors on the financial markets has been an increase in the availability of competitively prices products. Mangers are able to get solutions to a two fold problem. Application and implementation of the current best practices is paramount though these practices vary widely (Carlton 2008). For instance, the stress-testing and value at risk (VaR) approaches have for along time been the preferred tools for assessment during the process of risk management. These core methods are widely used and have been very successful. However poor model design and wrong choices can and have of caused serious, unexpected and possibly preventable losses. For firms whose assets are basically intangible, establishing that value and the associated risks of the assets is a very big problem. Managers also face a challenge of keeping abreast of the excellent practices as they emerge (Crouhy et al 2006).

Cash at Risk (CaR): each derivative and security is made up of cash flows that are anticipated to emerge in future. In this regard CaR financial tools employed on a corresponding foothold with the contractual and expected cash flows of the firm. CaR pushes that corporate treasury further than transaction and bookkeeping experience management to financial experience management (Jorion 2001). The theoretical foundation of the CaR is the arbitrage-free yield curve and FX connection in every currency in which the corporation has experience. Significantly, variable market prices have a great impact on the business elemental elasticities like currency prices on the process of sourcing and pricing (El-Masry 2006). Generalization is very hard to make as the elasticities are firm specific. Hence every model should deal with elasticities and the time of these elasticities since the cash flows in the future are not resolved exactingly by the evolution of rates and pieces in the market (Crouhy et al 2006).

Stress – Testing: in order to compliment the CaR test, the non-financial firm should emphasize cash flow and carry out a stress-test on the impact this would have on the balance sheet in the event of severe market circumstances. The stress -test is a theoretical market rates and pricing circumstances to mirror probable close to terms changes in these prices and rates; For instance, re-pricing a firm’s value (Jorion 2001). Correlations between market pricing are not practically dealt with and this presents a Major setback with stress-testing technique as they are with CaR (El-Masry 2006).

Free Cash Flow at Risk (FCFaR): even though the new SEC prerequisite can be fulfilled with stress test and the CaR techniques above, to considerably increase the shareholder value especially when venturing to new project through risk-adjusted capital allotment between the firm need a powerful approach that can account for market and other risks like legal requirements, credit, operational cost and company reputation (Jorion 2001). Free Cash flow (FCF) is a very effective tool that is available to managers, lenders and hence integrates the impact of all the possible risks the firm faces in its performances. FCF is the pay before interests and taxation as well as depreciation minus the NWC (net working capital) changes minus investment (capital expenditures) plus the Tax advantage. (FCFaR) is hence an arithmetic approximation given an exacting probability of how much FCF a certain division risks loosing in a definite period of time because of the changes in the cash-flows (Jorion 2001). The duration of holding is in most cases one quarter of the year since corporate performers are performed on same duration and FCF estimates are habitually made quarterly or yearly.

Shareholder Value Ratio (SVR): this is just like the Risk-Adjusted Performance model that is employed by the financial firms. Shareholders Value Ratio permits the non-financial organizations to allot capital between sections on a risk-adjusted foundation (El-Masry 2006). Normal shareholders value analysis focuses risk only in the alternative of risk-adjusted discount rate for anticipated cash-flows and distributes capital to projects with positive value. The SVR methodology distinguishes that like discounted cash flow (DCF) Analysis only focuses on the expected return side of the setback and does not take into account the explicit correlations between functions (Jorion 2001).


It’s imperative that the non-financial companies develop risk management strategies and implement them efficiently in order to be able to manage capital well especially when starting out a new project. The demands of the shareholder have to be met. When developing approaches to define, measure and manage risks for especially for a new project being developed by a non-financial company, it’s pertinent for the company to strictly stick to a methodological process to decide the appropriate types of risk measures, policies, controls, and procedures for their specific organization.


Carlton T (2008). Risk And Capital In The Non-Financial Firms.

Crouhy M, Galai D & Mark R. (2006). The Essentials Of Risk Management. McGraw-Hill Professional Publishers

El-Masry, A. (2006). UK Non-Financial Companies. Best Risk Management Approaches. Management Finance. 32: 2, pp 136 -158.

Jorion P. (2001). Value At Risk- The New Target For Management of Financial Risk. McGraw-Hill Professional Publishers

Money Advance With a Financial savings Account

Now there are other popular lawsuit payout procedures. A so called dollars advance structured settlement is not a authentic dollars advance, you don’t have to pay it back again and it is an exchange for long run payments. With the enhance in law fits and the advancements with settlement laws, now much more lawsuits are compensated in long phrase structured settlements. The structured settlement can not be used as collateral either. So what can a person due if unanticipated linked bills come up or price ranges go up on solutions or services that you need to recover or rehab. Well the laws have been up-to-date to now enable a structured settlement owner go to a finance factoring firm and get big amounts of cash in exchange for long term payments tax totally free. This is rather very helpful in tiding over emergency predicaments.

Most men and women who utilize for a dollars advance do so mainly because the financial institutions refuse to lend to them due to their negative credit score scores or they simply do not wait for numerous days just to get the mortgage accepted. Quite a few money advance lenders supply on-line facility to make it easy for buyers submit their mortgage application quickly by way of the World-wide-web. This on line facility has manufactured the course of action so simple and quick, it is superior than traveling to the nearby pawn store or borrowing from your friends when you are in need to have of emergency

About The Method

So they will need to be compensated off as quickly as achievable. Also you need to store around for the finest feasible prices if you want to save cash.

A money advance with financial savings account is a mortgage that can be transferred to your account within hours of applying for it. A cash advance with savings account can variety from $500 to $one thousand and is provided for a quick time period. This is rather handy in tiding over emergency situations.

Most people who utilize for a money advance do so because the banking institutions refuse to lend to them due to their poor credit scores or they just do not wait for several days just to get the loan authorized. Numerous cash advance loan companies present on-line facility to let shoppers submit their loan software easily as a result of the World-wide-web. This adds to the convenience of finding the mortgage as you will then merely withdraw the dollars through any ATM or transfer the funds to pay out off your charges.

These loans typically cost a a single time charge and the borrower desires to repay the quantity on his subsequent payday. The greatest benefit of cash advance is that it is very straightforward to qualify for them. You just will need to have a evidence of employment and a cost savings account.

You need to often continue to keep in brain that these types of loans are really expensive. So they require to be paid off as quickly as attainable. Also you will need to store all over for the very best achievable prices if you want to save funds.

Money advance credit score cards have been designed to assistance people today who discover on their own in want of quick loans from time to time, but don’t want to shell out the exorbitant curiosity rates and costs that credit score cards charge for dollars withdrawals. If you’ve received a constant position, an established checking account and verifiable contact info, you are usually in. A money advance credit score card brings together this ease with the safety and convenience of a credit card.

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Right here is how it will work. You go by the regular practice of getting a payday mortgage and are accredited. This provides a couple of rewards to the consumer. In the initial site, you have the peace of brain of recognizing you’ve obtained a cash loan prepared for you when you require it, with no actually obtaining the dollars in your hand. Secondly, simply because this is a single, quick expression mortgage the rates are lower than a normal credit card money advance, which normally have substantial costs and special terms. Make your life less difficult with a money advance credit score card today!

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How Employment Discrimination Lawsuit Plaintiffs Can Get Lawsuit Funding, How to get lawsuit cash advances

Characteristics of a Good Financial Advisor

Good financial advisors are compared to “life coaches”, because they can help you with many of your complex financial decisions throughout your life. A financial advisor can offer tips on buying a car, saving for college and refinancing your home mortgage, just to name a few. They deal with other financial professionals on a daily basis, and they typically know if you’re paying too much for something or not getting a competitive rate. Great financial advisors will not only help you make money on your investments, but will also help you reach your goals and save money on insurance and other major decisions throughout your lifetime. To maximize your experience with your advisor, you should meet with the person quarterly, share your concerns and goals, and allow your advisor to review all of your financial and legal documents. After all, it’s all about trust.

So how would you identify a good financial advisor? Look for the following:

Integrity. It seems as if every week a new financial scandal pops up. Some of the worlds most trusted banks and investment firms seem to have been engaging in deceptive and possibly illegal practices. Many individuals and organizations have lost a great deal of money. Just like people go to lawyers for help because they dont know the ins and outs of the laws and legal system, people need help from investment professionals. But its hard to know who to trust. Success as a professional financial advisor means conducting yourself with integrity and honesty and behaving ethically its not just about the money.

Discipline and perseverance. A financial advisor doesnt build a client base and a business overnight; it takes time, hard work, discipline, and focus. The advisor must set goals and develop strategies for his or her success. For the first year or two the income may not be enough to make ends meet. Advisors can expect to work long hours, including nights and weekends, which are the only times many clients are available. They will have experience repeat rejections for each successful. It takes discipline and perseverance to keep at it until the tide turns.

Analytical thinking. These days it takes an expert to make sense of the world of investment and devise apt strategies. We all have access to pretty much the same investment information. What separates the pros from the novices is the ability to logically analyze that information using specific knowledge and skills. No one can predict the future as our wild economic times show us but good financial advisors can look at financial data and make the kinds of recommendations that help clients reach their financial goals.

Communication skills. A financial advisor needs superb interpersonal skills, both to attract and to maintain clients. The advisor must be a convincing salesperson able to engage prospective clients. He or she must be able to listen actively, convey information effectively, and communicate information and ideas so their clients will understand it. They must be able to tailor the presentation of advice to each investors personality and communication style. Excellent communication skills pave the way to success in this profession.

Dependability. Money is as personal and significant to people as is their health and their family life. A client who comes to a financial advisor expects to be treated professionally. Advisors are responsible for the advice they give and the strategies they recommend. They must consistently do what they say they are going to do within a set timeframe. And they must always disclose the advantages and disadvantages of the each investment option. Clients must be confident that both the advisor and the advice are reliable and dependable.

Finally, remember that this is your money and you’re in control. Question and challenge your advisors if you’re feeling any vagueness and discomfort. Feel free to seek out second opinions. Stay educated and stay in power. A good financial advisor will make you feel relaxed, will listen intently and interpret your needs. You will know a good financial advisor by the questions he or she asks.

Self employed loans financial assistance for self employed

Self employed people generally face difficulties in fulfilling their various financial requirements as they don’t posses a regular income source. But now you can easily finance your needs such as consolidate your debts, finance education, buy car or renovate your home. You can easily fulfill your financial requirements.

The significant feature of these loans is flexible repayment option. Self employed people don’t have a stable income source and therefore are offered various benefits such as under payment, over payment and payment leave. They are not even charged with any penalty or extra fee considering their financial standing. Underpayment refers to paying less than the due amount for a month. Similarly you may over pay as per your financial conditions and payment leave allows you to skip monthly payments after making few initial regular payments. self employed loans are provided at relatively higher rate of interest.

To entail self employed loans you must show some proof of your being self employed. Creditors check income in two ways:-

Self certification – you must give your income details yourself and no other proof of the income is required. Sometimes you have to show your audited accounts and credit score as well.

Audited accounts – these accounts generally include your income details which are verified by the creditors.

Self employed loans can be entailed in two forms secured and unsecured. Secured self employed loans can be grabbed by pledging any of your valuable assets. You can pledge your property, car and valuable documents as security. Whereas, in case of unsecured self employed loans you need not pledge any of your valuable assets as security. You can borrow anything suiting your requirements and financial standing. Loan amount depends on your annual income or profits you make, financial standing and credit scores.

Self employed people with low credit scores can also easily entail these funds. Those having poor credit such as CCJs, IVA, late payments, arrears, defaults and bankruptcy can easily qualify for these loans.

You can easily apply online by filling up a simple online form. Also you can search around for lucrative deals with lower rates of interest that suit your financial standing.

Ashley P Lewis is a debt consolidator and advisor and has been dealing with various finance programs. If you want to know more about self employed loans, no equity loans, debt consolidation loans, fast loans you can visit

Financial Freedom

Financial freedom gives you the flexibility to pursue your dreams, enjoy your family and free time, or enjoy your retirement. Financial freedom doesn’t simply mean being out of debt. It means being comfortable with your income and financial future, knowing how to live within your means, and having enough money to accomplish your goals. The first step to financial freedom is getting out of debt.

Gaining Debt Freedom
The first step to achieving financial freedom is to resolve your debt. Make a list of all of your debts, and rank them according to type, amount, and interest rate.

Your goal should be to pay off all of the credit card and personal loans as quickly as possible. Car loans can either be paid off next or paid off over time. If your student loans have a low interest rate (below 6%), then paying them off doesn’t need to be a priority. Your mortgage is considered a good debt. Paying it off early isn’t necessary for financial freedom unless you’ve completed the other steps.

If you need help paying off your debts, you may need to consider getting some sort of debt help such as debt consolidation or debt settlement.

Controlling Your Expenses
Learning to manage your expenses is a big part of paying down debt, but it’s also important for people who don’t have debt. Your expenses should be at least 20% lower than your income. That allows you to respond to any financial surprises, as well as save and invest money for the future.

If you’re currently living paycheck to paycheck, or are close to it, list all of your expenses and income and see where you can make cuts or improve your income. Accomplishing both would give you the most benefit. Once you’ve reduced your expenses, use the difference to pay down debt, contribute to savings, or invest in your retirement.

Saving for the Future
Once your debt is eliminated and your expenses are manageable, the next step is saving for the future. There are three aspects to saving:
Retirement investments

The emergency fund
If you have a retirement plan at work that offers matching funds, contribute at least enough to receive the full match. From there you can decide how much more to contribute. If you don’t have matching, contribute to the plan anyway. Due to the wonders of compounded interest, you’ll be amazed by how your money will grow.
In addition to retirement, you should establish an emergency fund. Ideally, your fund should contain enough to cover three month’s expenses, but you can save more.

Once your retirement and savings plans are in place, start investing in the stock market. Index funds are the best way to get your feet wet.

Enjoying Financial Freedom
Once you’ve achieved financial freedom, you’ll no longer experience the day-to-day stress of worrying about paying bills and you’ll have the financial flexibility to take a vacation, retire early, or support your children and grandchildren. Financial freedom is more than a financial status, though. It’s also a mindset. Once you attain it, you can only keep it by maintaining the practices that got you there.


Payday Loans Can Be Financial Lifesaver

Wouldn’t it feel great to never have to worry again about having enough money to meet expenses? Payday loans are the answer to any individual’s financial worries. An individual never has to fear not being able to meet an unexpected expense when they know about the benefits offered by payday loans. Payday loan companies specialize in providing access to ready cash to take care of a wide array of financial emergencies, from a broken tooth or flat tire to a leaking roof or equipment breakdown.

Whenever our weekly paycheck won’t stretch far enough to accommodate an unexpected expense, payday loans allow individuals to pay their bills on time and face those uncomfortable financial emergencies that always seem to happen at the end of the month when all your money has already been budgeted. Payday loans in the UK are designed to provide fast cash, usually within 24 to 48 hours of filling out a payday loan application.

Most payday loans can be approved even if the applicant has bad credit, doesn’t want to have to submit to a credit check or has bad credit. A quick application can be made right online to save time and to speed up the loan process so that the required money can be deposited as soon as possible into the applicant’s debit account.

Unlike many other types of loans which must be justified to the lender for a specific reason, payday loans can be used for any purpose by the borrower. The reasons for getting payday loans can range from taking a vacation trip or travelling to see family members to buying new computer equipment or paying for automobile repairs. No explanation for how an individual wants to use the money is necessary when making application for payday loans.

The turnaround for payday loans is also the quickest of any loan programme. A traditional loan from a bank may take a week or more between the time the application is made and the time that the loan is funded, which doesn’t help much when there is an emergency financial need. Using payday loans, cash can be in the borrower’s hands in as little as 24 hours.

Since payday loans are repaid when the borrower’s next paycheck is deposited, the kind of debt is very short term and does not affect an individual’s credit rating or draw on the borrower’s available credit card limits. Payday loans can prove to be a financial lifesaver in order to handle any type of unexpected expense.

No upfront fee loans-Additional funds with no additional charges

Do you want to have additional finances? Is your payday inadequate to meet your monthly expenditures and desires? Moreover, paying huge application and upfront fee are the reason that makes you scared to get applied for external financial aid, here are no upfront fee loans for you. These are the loans that offer instant financial aid to the people with no extra or additional charges. Therefore, when you are facing some financial crunches and have no money to pay them off, rely on this deal for superior loan support.

No upfront fee loans are beneficial financial aid that can be accessed to take care of your bad financial time with ease. It would let you live a life removing all the financial distress. Find out the best suitable deal for you with the proper research at online financial market. Comparing the loan quotes and making little negotiation with the lender will be fruitful in lowering down the rates. Apply with the loan and grab the finance right in your checking account to use.

The assistance of no upfront fee loans can be grabbed once you get eligibility with the eligibility criteria demanded by the lender:

1. The applicant should hold a valid and active checking account.
2. He should be in regular employment in reputed organization
3. Citizenship of USA is needed
4. He should be an adult with eighteen years or above.
5. You need to earn at least $1000 per month.

If you are affected with some bad factors like insolvency, foreclosures, skipped payments, arrears, defaults, late payments and so on, you can still get the assistance of installment loans. This loan does not follow any credit checking process that allows all the applicants to get applied with this loan aid. So, anyone can get benefitted with this loan aid irrespective of holding any type of credit scores. Lender does not discriminate the applicants on the basis of your credit scores.

Log in to the online financial market to choose the better and affordable deal of no upfront fee loans. This is a small loan aid that does not borrow any collateral to pledge. Therefore, you will be free from all the mess related to collateral assessment and extensive documents to fax. You can borrow the loan money depending upon your monthly income. Swiftly cover all your monetary troubles by paying off your emergency right away.

Vasuli Ale is a professional guru and has been commerce with different finance programs. For more information about same day loans, bad credit loans, installment loans, no upfront fee loans, no credit check payday loans visit