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Corporate Taxes: How to Prepare

As long as you are running a business, you are required to pay corporate tax. It is a direct tax imposed by the government on the income of corporations or any similar legal entities and often taxed at the minimal rate. It’s almost close to impossible to avoid paying taxes. However, with proper planning, a company can reduce its taxes and grow its working capital.

Who Is Required to Pay Corporate Tax?

Corporate taxes are taxed on corporations that are incorporated and operating in a given country, corporation operating on income from that particular country, and foreign corporations that have established permanent residence in a given state. However, not all corporation are taxed equitably. For instance, US Corporations working abroad can quickly shift their profits from the US to tax heavens when compared to wholly domesticated businesses. Again, corporations, which have numerous trademarks and patents, can also move their profits to tax havens.

Some companies (S corporations) are, however, exempted from paying taxes at the corporate level, and these lead to the corporate shareholders paying for individual income tax.

Tax Reduction through Proper Tax Planning

Proper corporate tax planning is essential for any business that wishes to increase their profits while still meeting their obligation to the government. Reduced taxes are achieved by employing various methods that include:

1. Inventory Control and Evaluation Method

Controlling a company’s inventory cost by knowing the appropriate times to make purchases and how to make them can positively impact the corporation’s tax deductions. This is where the skills of a good tax planning accountant come in handy.

A corporate can utilize the LIFO and FIFO inventory evaluation methods to cut down their taxes. LIFO (last in, first out) is best preferred in times of rising cost while FIFO (first in, first out) is useful in times of deflation.

2. Accounting Methods

Accounting methods also affect the taxes you are required to pay and the cash flow into your business. We usually have the accrual and cash methods. Through the cash method, taxes can be reduced by delaying billing, i.e., income is only recorded once received. Accrual method, on the other hand, recognizes debts and profits once they occur.

Corporate Tax Preparation

For corporate tax preparation, especially income tax return for your company, you will first be required to obtain your company’s balance sheet and income sheet. Next, you will need to get the corporate tax forms and schedules. Having troubles finding the forms and schedules? If yes, try checking with your State’s Revenue Agency website.

You will find all the types of schedules and forms with your Revenue agency that you would require for your company’s tax returns. It’s important to learn the basics and uses of each form and schedule.

If you are having troubles filling out the tax returns forms, you can consider outsourcing your tax preparations. Such firms that do tax returns on your behalf not only prepare taxes but also offer a range of services to ensure efficiency throughout the process. This can be attributed to their qualified, experienced and expert staff.

Finally, remember to meet the deadlines set to have your returns filled to avoid additional penalty costs. Also, remember to declare if you have nothing to pay.…

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Three Reasons that make Biotechnology Investments Attractive

Investing in biotechnology can seem scary and sexy at the same time, and this explains why most stocks of the biotech company get mixed reactions when these companies announce plans for developments. The biotech industry strives to save lives, and so many companies are seeking to achieve thing goal. For anyone who is new in this field, biotechnology refers to the concentration of developments in new drugs and clinical research. Biotechnology applications intend to find treatment for diseases and medical conditions. The increase in the number of identified new diseases and the demand for cures or better techniques of handling existing diseases inform future investments in this sector. The following are the reasons why you need to consider biotechnology investments.

 

labNumerous Options are Available

The biotechnology industry offers various entry points for an investor. The main form of being part of the sector is by buying stocks. However, you must differentiate the biotechnology and pharmaceutical stocks. The biotechnology companies take risks and focus on finding new breakthroughs. The payoff is huge, but the risks are also expensive. On the other hand, the pharmaceuticals mainly deal with production and processing or management of drug therapies. Biotechnology stocks are often affordable and require medium-term to long-term timelines in their risk analysis. Other entry options include ETFs which then hold stocks, commodities, and bonds. These ETFs offer an additional layer of protection, and they follow known market indexes for the biotech industry.

 

Payoffs in the Biotech Industry are Unconventional

The profitability of biotech industry follows a unique path. Most companies start with funds for research and development of their discoveries. They continue doing this as research facilities and then develop patents and other informational assets to help them continue their product development. The firms can sell their research to new or existing firms, or they can grow them to fruition. Either way, they offer significant points for capital appreciation. For investors, buying early and waiting until a discovery moves closer to the market production of therapy or drug can be profitable. The type of payoffs, variation in drug research outcomes, and the growing demand for health products continue to drive growth in the biotechnology industry, which can often disobey market recession.

 

External Factors Favor the Growth of the Industry

The world population is aging, and that increases the demand for drugs to cope with new health problems. Have a massive percentage of the population that demands drug therapies that make life better is sweet news for the biotech industry, and this extends to investors of stocks of the firms that have decent management and development strategies.

 

dnaGood Returns Overall

Biotechnology investment returned the excess of 14% annually in the last decade and showed possibilities for increasing. You should expect to get better returns than most other investors with mixed portfolios when you follow through with the indexing advise instead of picking single investments. Overall, the biotech industry is the current big thing, and the situation should persist for several decades. Most options are still selling at a discount, which gives investors a high potential for capital gains.…

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FAQs About Guarantor Loans

Have you ever heard of guarantor loans? Many people will say yes, but many of them are not familiar with how they work. Some cannot even explain what guarantor loans are. If you are planning to get such a loan, you must have the right information about the same. This article will discuss some of the frequently asked questions about guarantor loans. Read on.

How Does Guarantor Loans Work?

loans, guarantor loansThese loans are similar to unsecured loans because the borrower does not need to own a car, a piece of land or home because no collateral is needed. The borrower should get another person who will act as a guarantor for them. This happens because the borrower has a poor credit history or no credit history at all. The guarantor signs to pay the loan in case the borrower does not meet the agreed monthly repayments.

Who Is Eligible to Be a Guarantor?

Many people use a family member or a close friend. The only restriction is that you are not supposed to be sharing any credit items like bank accounts or credit cards with the person. The guarantor should have a good credit history as well. He or she must be a homeowner or anything else which acts as collateral.

What Does the Guarantor Do?

The guarantor’s job is to supply a credit score to enable the borrower to get guarantor loans. They will be required to sign some papers and make sure that they understand all the terms. Some lenders will ask for their pay slips and bank statements. The extreme requirement which rarely happens is that they will be held fully liable to pay the loan if the borrower fails to make payments as agreed.

How Fast Can I Get the Money?

guarantor loansThis depends on the lender, but normally, after the receipt of all the documents required, the lender starts the processing and releases the funds. This should take no more than seven working days. After the decision is made to release the loan, the lender enters all the documents required and sends money to the borrower in the form of a cheque. As mentioned earlier, the whole process should not take more than seven business days.

Any Prepayments Needed?

There are no fees required for these kinds of loans. Be sure to have made the right evaluations of your finances to be in a position to repay the loan.…

Wallet full of money and coins

Financial Inclusion: A Way to Grow the Economy

Whether running a home, company or a country, a healthy financial life is key as it plays a big part in growth and development. But challenges do come and shake the economy at one point or the other. Financial inclusion is one of the ways to bring prosperity in the current world. Which economy wouldn’t love to include some fine things that would bring growth, sustainability and progress? Here are some of the financial inclusion pillars every economy should think about

Financial knowledge and access

Finance informationThe fundamental way to develop an economy is first to educate people about the finances and then give them access to the financial opportunities and institutions. With a more people becoming financially literate, it will be easy for them to use the available financial avenues in their country.

This would result in greater returns as people exercise their financial knowledge to their benefit, which would benefit the country too. A country should consider educating their youth more so that they can make sustainable financial decisions which will affect the future of the country. This too will pass the knowledge better.

Mobile banking

The world has moved into the use of smartphones. The evolution of the smartphones has made the banking systems reach more people than they used to. Phones have made transactions easier. They have also made access to cash in remote regions easier.

Some companies have created opportunities to transfer cash in great worldwide networks. Having this in an economy creates a great impact on the financial standing of a country. With more money finding an easier medium for transfer, more revenues are generated in turn.

Microfinancing

This has an incredible effect on financial inclusion. Monetary financial institutions, MFI, are preferable to the old bank loan systems. The reason behind is that they issue more affordable financing. Whether it’s an individual business, a small or medium-sized enterprise, they can all benefit from the loans from an MFI.

Though some challenges are seen with the MFI, such as high transaction rates while some collect back their cash in a harsh manner, if done well they are a sure way to drive an economy forward. The advantage is that they significantly ease the financial needs of small entrepreneurs.

Consumer security

Financial securityFinancial literacy is a challenge to many individuals, especially in the developing world. This creates the need for the government to protect its individuals from the corrupt in the society. These are people whose aim, is to bring down development through violation of privacy and fraud. The right infrastructure and systems should be put in place to curb such violations. This will help the individual develop confidence and continually use financial services. It will grow the economy significantly.

Finally

Financial inclusion is a sure way to reach the challenged in any economy. Any country which decides to bring on board the challenged to utilize the available financial vehicles has made a step in the right direction. These are the people who will set solid the economy in the future and improve the country’s GDP. Why not include them?…

Tablet showing a finance report

Key Functions of a Financial Expert in an Organization

Finances are the lifeblood of a business and if they go wrong, your business may plummet or give you a lot of pain trying to recover from the losses. An eye to keep watch at the financial life of your business is required – the financial expert.

Whether a world ranking business chain or a startup business, the services of a financial expert are unavoidable. They ensure that you reach your financial goals best than you would do alone. Here is a glimpse of how they support the financial functions of your business.

Creating financial documents

Financial DocumentsManaging the finances of a business requires documents that relay statistics which inform all departments and the owner about the performance of the business. Your financial expert should ensure you get all the financial documents that help you make fundamental business decisions about your business.

In addition, they provide the data which can be used by the different departments to weigh performance. With this information, specific budgets can be created and sales analysis be done.

Manage accounts

Keeping and managing accounts also fall in the financial management docket. Company financial records are necessary as they serve different purposes: filing taxes, purchase decisions, creating investments plans, creating budgets and so on.

Good records will also tell how the company functions integrate as a whole. This means that they are a good aid to check against possible loopholes that create losses. The financial expert is responsible for collecting financial information that will aid managing the company accounts. Well managed accounts also create a basis of valuable information which they can use to offer relevant advice.

Offer financial advice

Making financial decisions is key to a business growth every day. From how you will pay creditors, make purchases, cut on budget costs, make capital investments and so on; the financial expert will offer informative advice to make suitable decisions. The capital structure or how a firm finances its growth and operations require the assistance of the financial advisor.

After the different sources of funds are established and the funding needs have been estimated, the experts help in deciding how the company will fund using its finances and available credit.

Investment

A good investment plan is a sure way of gaining good returns. The plan secures the company along with a path of less risk and helps achieve the goals with precision. Financial experts help create such plans which keep the business growing. They also help to identify new areas of investments which the company can patronize. In this way, the company’s growth is sure and sustainable.

Comply with tax laws

Every state has its own tax laws and it is the job of a financial expert to assist the company to comply with the tax laws. Failure to comply may incur the company huge fines or even closure. Compliance with tax also has other positive effects. For instance, for a company to win big tenders, one necessity is to be compliant with tax.

Financial experts are important to every company. Without their assistance, it is easy to have your company to miss the goals, lose track of finances and your business will eventually lose it.…