Author: Finance Tips

3 Types of Loans You Might Need Right Now

    Finance Tips

Loans have garnered a bad reputation of burying you in debt when you least expect it. However, these banking services really are designed to help you. There are many different types of loans that are offered including small business loans, mortgages and home loans, student loans, and even car loans. Below are the three most common types of loans that you might need to consider.

The most common type of loans that people get are home loans, also known as mortgage loans. These loans have actually started becoming less common today as fewer people actually own a house compared to the past several years. However, the current available home equity rate is at an all-time high at more than $13 trillion meaning you can get a higher loan than in years past. For a comparison, this number was only at approximately $6 trillion in 2011. These loans have the Continue reading 3 Types of Loans You Might Need Right Now →

The Facts On Luxury Living Spaces

    Finance Tips

Luxury living spaces are the preferred types of living places for most consumers in the United States. Once you enter the real estate area where you are looking at luxury homes and luxury apartments, most new properties are similar in terms of design. They will often have new appliances, nice amenities, and spacious floor plans. However, it is everything outside of the luxury living spaces that deserve attention.

Finding new houses or luxury apartments for sale often comes down to what is around the luxury living spaces and not what is inside. As an example, most people will want to live in an area that directly caters to their needs. This can come in the form of a beach, for instance, if they are buying a vacation home.

A poll was conducted amongst vacation home buyers which revealed that just about 36% of all vacation buyers ended up purchasing a property in a beach area. It also revealed Continue reading The Facts On Luxury Living Spaces →

Why a Credit Union Might Be the Best Choice for You

    Finance Tips

Credit union auto loan

If you?re making financial decisions, it might be worth thinking about the possible advantages of using a credit union over a bank. If you?ve never heard of credit union auto financing, or didn?t know anything other than a bank was possible to use for savings accounts, checking accounts, and loans, read on to learn about what makes a credit union different, and then three ways to save money using a credit union bank rather than a standard bank:

How is a Credit Union Bank Different From a Regular Bank?

Banks are owned by investors who are storing your money, serving you in various ways, and maybe even paying you interest in exchange for using your money to make money for themselves. A credit union is owned by the customers, which often allows them to offer more interest on savings and lower loan rates. Banks are taxed as for-profit organizations, while credit unions are considered not-for-profit.

Try Credit Union Auto Financing

If you?re trying to get a car loan, you want to get the lowest interest rates you can. A credit union is more likely to listen to you than a commercial bank, so if you?ve been turned down in the past because of credit history, they might be more amenable to your request. They also typically offer lower rates. The average rate of interest with a commercial bank is 4.16%, which the average credit union auto financing rate is 2.82%. For a $30,000 loan, that?s a savings of $215 a year.

A Credit Union Theoretically Has Your Best Interests At Heart

This is of course not universally true. There are bad credit unions just as there are some great commercial banks. But looking at motives, credit unions have a lot of motivation to do what?s best for you and no real ?institution? that?s looking after itself primarily. Big banks are motivated primarily, and often only, by the turning a profit.

Credit Unions Usually Save and Make Your More Money

Credit unions have much lower expenses and have a more favorable tax situation than a commercial bank, since they are not-for-profit organizations. This means the fees on accounts and ATMs are usually lower or non-existent. In fact, a lot of credit unions will reimburse their members for ATM fees they might incur by using a machine in another area. They also allow members voting rights in how the union is managed, and return surplus income in the form of dividends.

There?s a lot of good reasons to consider moving your savings account out of that big Wall Street bank and into a local credit union. You?ll save on fees, get better home loan rates, and credit union auto financing is often the best available. If you?re tired of keeping all your eggs in one basket, consider taking some of your money out of that commercial bank and look into joining a credit union near you.

How to Prepare for Tax Season Now

    Finance Tips

Tax

The holiday season has flown up on us and before we know it, it will be a new year. Soon after, comes tax season. Tax season can be overwhelming for both individual filers and business filers. Preparing now can reduce some of the stress associated with tax preparation season. These are some steps you can take now to prepare for the upcoming tax season.

Organize all of your documents

One of the most time consuming parts of tax season is gathering all of your needed documents to file. While you may not yet have your W2s and 1099s from employers, you can organize any other needed documents. These include documents that you will use to write off any expenses. If you purchase a new vehicle, house, or any business supplies during the year, you will need receipts in order to write them off. If you own a business, this retrieval process can be even more overwhelming and you will want to start gathering this information as soon as possible.

Choose an accounting firm

While some individuals and businesses choose to file their taxes alone, others prefer to have an accounting firm handle it. Although accounting firms cost money to work with, they can usually get you a bigger refund or a smaller tax payment. They are aware of expenses deductions that many are not. They can also file for extensions when you need more time to gather your necessary documents. One of the most important benefits of working with an accounting firm is the protection you receive during an audit.

Protection from audits

The IRS can audit any businesses tax return within three years of filing, and it can collect back taxes owed for up to 10 years. If you were audited from a tax return many years ago, it is unlikely that you even have those documents around anymore. Most accounting firms are aware of these time limits and keep customers records on file for the required time. If you are audited, they can handle the process for you. Additionally, audits are probably more common than you think. Individuals that filed a Schedule C (Profit or Loss from Business) with gross receipts of $25,000 to $100,000 were audited at a 1.9% rate in 2014, while those with gross receipts of $100,000 or more faced a 2.3% audit rate.

Save up for owed taxes

You can start your filing process at the beginning of January. Otherwise, tax forms and tax payments are due somewhere around April 15, depending on what day it falls on. If you wait until the last minute and find out that you owe, this could be a significant financial strain on some families and businesses. When you file early or let an accounting firm crunch your tax numbers early, you have more time to save up for the upcoming tax payment.

To research business tax requirements

Owning a business often requires a lot of research. Additionally, once tax time rolls around, you will find that there is even more research involved with business tax. For example, the R and D (research and development) tax credit can amount to up to 13.5 cents of credit for every qualified dollar. This could fall under another advantage for using a tax accounting firm

Tax season is closer than you realize. In the next month, you will begin receiving tax documents from any source of income from the last year. Right now is the time to begin organizing your tax documents and getting ready to file. If you are going to work with a tax professional, you will want to secure one as soon as possible, as they are going into their busiest season of the year.

6 Tips for Surviving an IRS Audit

    Finance Tips

Help with your taxes

If you are like most Americans, you may worry about getting a letter from the Internal Revenue Service (IRS). Many people live in fear of having their taxes audited. Whether or not you file on your own to go to tax advisers for help, there is always the chance that the government will want to do a tax audit on your. This is not the time to panic. Here are some things you can do to get through it.

  1. Make sure your records are in order. You do not have to be surrounded by tax advisers to know that it is always in your best interests to keep good records. If you keep track of your spending and other records throughout the year, when tax season rolls around, you will have everything you need to either do your taxes or get some help. Having all of your documents in order will also help if the IRS wants to do an audit on you. You should keep all of your tax records and receipts for three years. That should be extended to seven years if you take a loss for a bad investment.
  2. Do not panic if you do not have your records. If something has happened to your records or if you were not great at keeping everything, do not panic. There are ways to go back and recreate the records of your spending and tax payments. If some of your expenses are related to your business, think about how you paid. If you used a credit card, you can get the receipts. If you are looking to make deductions for medical bills, you can get copies of those.
  3. Learn about the process. Your tax advisers can help you negotiate the process but if you go into the process with some idea about what will happen and how, you will be in a much better position. In the first place, it will reduce your stress level. There is a lot of information on the IRS website to help tax payers understand the process.
  4. Get professional help. If you have received a notice that you are the subject of an audit by the IRS, you should talk to your tax advisers about hiring someone to help you deal with the government. You need to understand the process but also need a professional to get you through. A person who has been trained in tax law and will know what your options are. Tax law is very complicated so you want an expert who has worked in this area a lot to help you make it through your audit.
  5. Do not lose your composure. When you get a notice from the IRS, they will set a date and time. If you and your tax advisers are not able to make that time, you should be able to change it. The IRS may be frustrating to deal with but you will do yourself no favors by getting upset with the agents who are working on your case. Be as polite as you can be. When you go in to meet with the IRS, dress professionally and try to be as organized as you can be. You want the very first impression you make on them to be a good one.
  6. Never think you can win the IRS personnel over. Some people go into their meetings with the IRS and are surprised to see that they really like the people working on their case. That is fine, there is no reason to not like them. By the same token, you should not get the mistaken view that these people are on your side or that you should become friends with them. They believe that you have made some grave mistake on your taxes, whether this was on purpose or by accident does not matter. Never fill any silences with more information. Having an expert by your side can prevent you from talking your way into more trouble.

The IRS audit process can be scary. Having good tax advisers by your side can help you a lot. Another point to remember is that the IRS agents make mistakes, too. You will make it through your audit.

Tips Every Company Should Know About Auto Lead Generation

    Finance Tips

Subprime car leads

if you’re trying to secure more leads for your auto company, there are several ways that you can achieve this. Generating auto leads does not need to be time-consuming and difficult, and it can really help grow your business.

Did you know that auto financing interest generates a whopping $98 billion in revenue each year? The average borrower has $17,966 in debt, and 43% of people choose to finance their vehicle. Which means lots of leads are available out there, we just need to pull them in. Auto lead generation is actually pretty simple.

Here are some ways your business can find low credit score auto leads.

1. Have a blog content strategy

One of the easiest ways to reel in individuals looking for auto loans is to post thoughtful and engaging content on your blog. Put yourself in the shoes of the consumer, and think about what kind of information you would want to be reading about if you were in their situation. Write smart pieces about this information and share it with them on a blog. This way, it shows that not only you understand them, but you have the knowledge to help them out and to help them understand what your role in helping them is.

Starting a blog is quite simple and doesn’t need to cost a lot of money. You can hire a freelance writer to write 1-2 articles per week, or even less frequently, but you want to make sure you have enough content on your blog to keep readers engaged.

2. Email promos

If you’ve has past customers, you need to be sure that your sales team is keeping in regular contact with them. Offer promos through email blasts to try and reel these customers back in. You could also offer referral bonuses or some kind of reward for people bringing your company friends and family they know can benefit from a car loan. This method of auto lead generation is great because it’s very cost-effective, and you can track the feedback on your email to see what is working and what is not (some email systems even offer analytics to show the open rate. etc.), which can help with future auto lead generation.

3. Cold calls

Of all the auto lead generation strategies, this could be the most difficult, just because it takes people with thick skin to make cold calls. You know there are going to be people who do not want to be bothered with sales calls and can be pretty nasty in their responses. Know that you are just doing your job and do not need to be pushy, however, if an individual is being difficult, thank them for their time and simply move on. With people being so busy these days caring for their family, working, and taking care of other properties, it might be hard to catch people on the phone. This is why email messages work great for auto lead generation because they can view it whenever they want.

Do you have any other ideas for auto lead generation? Let us know in the comments!

Four Reasons, Besides Selling, that you Might Need a Business Valuation

    Finance Tips

Comparables valuation

You don?t plan on selling your business anytime soon. In fact, you are still growing your business and you are excited to see where it will go and how large you can make it. Why then, do you need a business valuation report? Isn?t a business valuation report primarily for selling your business? Not always. Business owners go through the process of a full business valuation analysis for the following reasons.

To create a growth business plan

If your business plan is to grow 50% or even 100% within the next two years, what are you measuring your growth success on? It can be difficult to measure results, without first getting a business valuation report. The information from the business valuation report will give you a starting number that you can base future business growth results on. You can also use this information later on if you do decide to sell, to show how quickly you were able to grow. A solid business plan is one that shows hard numbers and comparisons and a business valuation report can help you do just that.

To obtain financing

Many business owners rely on financing to expand a business. However, you will find that most banks or lenders are not willing to give you funding unless you can prove your business success. You will need a strong business valuation calculation to prove your worthiness of funding. When you apply for financing, you will be required to provide specific documents. Creating a business valuation report requires many of these same documents, so you will already have access to them. Business valuation is actually a largely economic analysis exercise. The company financial information provides key inputs into the entire process. The two main financial statements you will need are the income statement and the balance sheet. To do a proper job of valuing your small business, you should have about 3 to 5 years of historic income statements and balance sheets available.

To understand business growth struggles

Many small businesses will face a number of struggles, especially in the first couple of years of business. There are few methods for overcoming these struggles and for preventing them from failing the business. One of these is by doing a competitive analysis. Look at your competitor?s success and compare it to your own. What are you doing the same? What are you doing differently? Can you take any of their methods and apply it to your business to overcome the struggle?

When you use business appraisal services, you can get an even better idea of how well your business is doing when compared to your competitor. You can often determine the value of your business by using these three approaches, by comparison to recent sales of similar businesses, based on the businesses earning power and risk assessment, and based on the company?s assets. Specifically looking at the comparison of recent sales of similar businesses, you can accurately gauge your current business worth.

Important factors that might influence your business valuation report

It is important to understand, however, that there are many factors that can influence your business valuation report. The specific comps valuation method or business valuation resources used can affect the outcome. Additionally, it might seem surprising at first that the valuation results are influenced by your need for the valuation, but business value is not absolute. It is a process of measuring business worth, which depends on two main key elements, how you measure business value and under what circumstance. In formal terms, these elements are known as the standard of value and the premise of value.

While the majority of business valuation reports are obtained with the intent of selling the business, there are also many other reasons that a business might order a report. Determining the business valuation number of your business can help with your business growth, allow you to compare to competitors, and give you insight into current growth struggles as a business.

How Signage Can Make a Difference in Your Grocery Store

    Finance Tips

Door sign holder

When you own or manage a grocery store, you have quite a few customers coming through the door every day to make purchases. A 2011 report revealed that 86% of customers will actually pay more when they have a better experience at a store.

While each customer will likely have their own definition of what constitutes a quality experience, it tends to include the ability to easily locate the items they want or need. Customers also like to have a variety of product choices as well as ready access to sales associates when they have a question. The check-out experience is also an area that influences how a customer perceives whether or not they are a valued customer.

Most shoppers will make their final purchase decisions when they’re actually at the grocery store. In fact, studies show that 82% of purchases fall within this category. Since the average consumer is exposed on a daily basis to 3,000 advertisements and promotional messages, this creates space for impulse buys.

Shoppers will usually decide whether to purchase their usual brand or a competitor’s within 3 to 7 seconds. Given that 6 to 10 store purchases may be impulse buys, display signage makes a difference in this regard. If your store offers its own brand along with competing brands, this is something to consider.

A 2014 Mass Merchant Study showed that 16% of these purchases were made as a result of seeing a display sign during a shopping trip. Whether these were clear plastic hanging signs, deli signs, picture display stands, or a poster stand, it’s clear that signage does make a difference in what sells and what doesn’t.

Brigham Young University, among others, recently conducted surveys related to these issues. The combined results of these studies showed that merchandise with signs outsells those without by 20%. Furthermore, full-priced items performed 18% better when they had a sign.

Given that there are approximately 30,000 SKUs launched every year, according to data from 2014, labeling product sections and bins with clear plastic hanging signs and other types of signage can make a significant impact on the customer experience and sales.

Three Importance Advances in the Banking Industry

    Finance Tips

Coin counter machines

Banks have evolved in many ways over the years. Traditional banks many years ago relied on a type of honesty system. If you wanted to deposit your money into the bank, you simply walked into the nearest one and received a deposit slip that was written on a sheet of paper. The bank could easily go out of business or lose track of who they owed money to. Fortunately, over the years the banking industry has grown, both in accuracy and in timely transactions.

The use of cash management software programs
Cash management system software programs significantly increased the accuracy in banks. Bank tellers now had to record all transactions with cash management system software programs. There was a reduction in human error and tellers were told the exact amount to deposit or the exact amount to give to the customer. At the end of the business day, tellers were told how much should be in their drawer, and some advanced machines could even tell if that number was short or over.

The introduction of automatic coin sorters
Banks are tasked with all money needs. People started collecting their change because it was easy to save. When they collected large amounts of it, they would bring it into their local bank and cash it in. The bank teller would have to sit and physically count every single coin. In many cases, they would have to count and then recount for accuracy. Still, mistakes were common. Once the customer was given their money, the bank teller would have to individually wrap all of the coins into coin wraps for easy storage.

The cash recycler machine made this common task easier and quicker. The auto coin wraps made it so tellers no longer had to wrap loose coins. The cash counters actually took the process entirely away from the teller. Instead, these cash and coin counters are placed at the entrance of the bank, away from the tellers. Customers insert their own coins into the coin recycler machine. When the machine is finished counting, it spits out a slip with the amount. The customer then brings this amount to the teller, who will hand them the cash, in much larger of bills. This cash management solution drastically changed the speed of the traditional banking service.

Automated drive through machines
One of the biggest complaints traditionally about banks was their lack of hours. Most banks were open during normal business hours, so if you had a regular day job you might find it difficult to make it to the bank. You might even have to take off work to gain access to your funds. This problem was solved with the automated drive through machine. Using the same cash management system software programs, automated machines had the ability to identify how much money a person had in their account. The machine could then count and spit out a requested amount.

Additionally, automated teller machines could also receive deposits. This helped people who were worried about transactions hitting or not being able to use their banking card because of a lack of funds. These advanced machines have evolved to allow customers to insert actual cash. Currency counters allow for cash deposits, even without envelopes, because they can identify which bills have been inserted instead of just how many. Cash counting machines allow a business to maintain 100% assured accuracy for cash transactions, even when using an automated machine.

Banks have come a long way from traditional banking practices. The entire banking visit used to be extremely time consuming, inconvenient, and not always completely accurate. Today, cash management system software programs and automated machines have greatly improved the speed and accuracy of the banking transaction.