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When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method.

Accounting

AccountingWhen starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method.Cash MethodIf you are looking for simplicity, the cash method is probably your best accounting choice. Generally, income and deductions can be claimed when payment is actually received or made. This is best shown with an example.I open a small business and have to order business cards and stationary. I receive the products and pay the invoice on November 18, 2007. Under the cash method, I can deduct the cost on my 2007 tax return.Some businesses are restricted from using the cash method. C corporations may only use the cash method if they have less than $5 million in gross revenues for a particular year. Professional Service Corporations can use the cash method without limit, while farming corporations can due so if gross revenues are less than $25 million. Tax shelters are prohibited from using the cash method.Accrual MethodThe Accrual Method of accounting is a bit more complex. Under this method, the focus in on the date the expense is incurred, not paid. Although this may seem a small difference, it can play havoc with your books and piece of mind.Using our previous example, assume I order business cards and stationary on the December 18, 2006. I receive the products on December 30th, but dont pay the invoice until January 20, 2007. When can the expense be claimed? It depends on when economic performance occurred.Generally, economic performance occurs when goods or services are provided to you. In the above example, economic performance would arguably occur when the business cards and stationary were delivered with the invoice on December 30th. Thus, I would be able to deduct the expense for the 2007 tax year.In ClosingAs you can see, the cash method is the easier of the two accounting methods. To determine the best method for your business, speak with a tax professional.

Top 6 Reasons You Need a Website

Top 6 Reasons You Need a Website

Some business owners struggle with the idea of starting a business website. Why do you really need a website? Well, there are several solid reasons why every business, small or large, should have a website. It does not matter if you sell tangible products, or you offer a service, your business will benefit from having a website. Here are a few reasons why:1) Convenience for customers- Finding a good business to provide the service or product you need has never been easier for the customer. Today, it is as simple as looking up local businesses online. In fact, studies show that about 75% of all new customers begin their search online. If you do not have a website, then you are missing out on a big piece of the marketing pie.2)Provides Global Exposure- Since the Internet is available to everyone worldwide, you will no longer be limited to local business. Anyone can search for your product or service. Now, face to face meetings are not required in order to gain business, and you do not have to rely on customers driving by your business, or hearing a radio commercial.3) Post More Information- You can post so much more information about your business then you ever could in print ads, brochures, or on air commercials. You literally have unlimited space to work with.4) Always Available- Potential customers will be able to inquire about your business 24 hours a day, 7 days a week, no matter if your business is open, or not. If a potential customer is interested in your service, they will be able to send you an email, and then you can get back to them during the business day.5) Saves Time- You will save time by only getting inquires from customers that are genuinely interested in your business. You will no longer have to answer customer phone calls and meet with customers, only to find out that they are no interested in what you provide. Instead, they are able to read about your business online, and then decide whether or not they are interested in doing business with you.6) Saves Money- Print ads, and commercials can become very expensive, and often cost each time they are ran. A website usually cost a one time setup fee, and then a minimal hosting fee per month. In fact, the majority of small businesses only pay about 3-10 dollars a month for their website after the initial cost.For most business owners, they will simply not understand why you need a website until you actually have one and see the benefits you get from it.

Becoming an Expat with a New Job

Becoming an Expat with a New Job

One of the primary reasons why people are moving overseas is that they are offered jobs that are more competitive and is offering high salaries. This is why the number of those going abroad is continuing to grow. People in different countries have come to realize that there is no future where they are right now. So when they see some jobs being offered abroad, they are easily enticed by the high salary and compensations that they offer. Before they know it, they are off bringing their family and their belongings along to that certain country. And before long, they already have started a new life in that place with no regret of leaving their old home behind. While moving overseas can be a rewarding and an exciting experience, there are some things you have to check out first before you make your decision. These things will prove relevant in your new life and career. What are these?1. The employment. Make sure that what you are getting at is genuine. A lot of people have bad experiences regarding jobs that they are supposed to be getting into. In the process of deciding if you are suited for that position; check out the eligibility of the employer. Once you are assured that it is legible, consider the benefits that you will get from that company. Are they worth more than what you are getting right now? Is it something that you know you will be happy in and will make you stay for a long time?These are the questions that you need to have solid answers on. Keep in mind that once you have moved yourself and your family, you cannot get your old life and work back. Make sure that you will not regret your overseas move and your new job.2. The location.You probably would want to go back and visit your relative once in awhile. Is the location so far away that you will not get an opportunity to do that much? If you are from a close knit family, it will trouble you if you cannot visit them from time to time. So you should consider the location and see if it is possible for you to visit or them to visit sometime. Another thing to consider in the location is the condition in that place. You are better off avoiding those that are frequently visited by natural calamities. You should also avoid places that will put your safety at risk. Even if they are offering to pay you a lot of money, you need to think of your safety first. 3. The place you will move into.For sure, you would want your new house to be just like the one you have left. And you will want to make sure that you have all the necessities easily accessible.Be sure to check the place where you will be staying before you plunge on ahead. Check for electricity and water supply. See if it is located near business establishment and a school if you have your children with you. Also check for the mode of transportation from your place to other destinations.Make a checklist of these things before you accept that job and start moving overseas. If you think that all is well, then it will turn out to be the best decision you have made in your life.

How to Start an LLC in Nevada

How to Start an LLC in Nevada

Registering a limited liability company in Nevada is easy. There are a few basic processes which qualify organizations for LLC status. Any Nevada LLC formation must contain articles of organization that must be signed by at least two persons who are organizing the LLC. These articles should be delivered, along with a copy, to the Nevada Secretary of State, Corporations Division, for filing. Nevada law calls for the inclusion of certain information in the articles. This information to be included in the articles must include several things. The first item required is a business name. The name that is chosen must have either Limited-Liability Company, Limited Liability Company, Limited Company, or Limited at the end. Alternately, the name can also contain abbreviations like Ltd., L.L.C.,L.C., LLC or LC. Further, the word company can be abbreviated as Co. The names selected should also be clearly distinguishable from the names of any other Nevada limited liability company. Additionally, there are several other obligations to be adhered to in selecting a name. The details of these are available with the service agents or the Nevada government.The "Nevada LLC" application must also contain the resident agents name and address. The application should also carry the name and address of each of the organizers signing the articles. Furthermore, the application should carry the details such as the name, address and business details of any managers.After organizations file for a Nevada LLC along with all original articles of organization, a certificate of organization is issued by the state government and delivered along with the conformed copy to the LLC representative. The original articles of organization are filed with the Secretary of State, along with information such as the month, day and the year of filing.A Nevada LLC formation also requires the applicant to include some other documents like the Operating Agreement, a proven minimum 5 members, and adherence to rules on resignation of membership and the specificity of the mode of member contribution.

Are You A Business Opportunity Seeker?

If you are involved in any type of multi-level, network marketing program, home based business, or other type of direct sales program, then you are probably interested in building your business using business opportunity seekers. These are people who have expressed an interest in a home-based business, extra-income opportunity, multi-level marketing, or entrepreneurship by signing up on one or many websites that match "business opportunity seekers" with the type of offering they are looking for.There are also people who may not be interested in actually running a business of their own, but simply want to make some extra income working for someone else. In this instant, what they may be looking for is to get a second or part-time job. Those who are serious business builders are business opportunity seekers who want to be in charge of their own fate, and be able to make their own decisions on business matters, not simply do what someone else wants or tells them to do.There are a number of list providers on the internet that specialize in gathering information on perspective business opportunity seekers, by asking them to fill out a simple form about what type of money making venture they are looking for. The lead company then compiles this information for sale to multi-level marketers (MLM) and other types of businesses who need fresh responsive leads, not just lists that have been circulated to thousands of people.Making calls to these people will not be a positive experience because they have already been bombarded with calls from your competition. They dont want to hear what you have to say. On the contrary, actually speaking with a true business opportunity seeker is a refreshing experience, because this person really wants to listen to you about what you have to offer. Lead companies also sell pre-qualified leads that can greatly increase your efficiency and level of success. These pre-qualified business opportunity seekers have been contacted by the lead company to verify the type of opportunity they are looking for, so that they can be matched as closely as possible for just the right fit.Business opportunity seekers have always been the primary target for any MLM, direct sales, home based businesses. It is not always possible to continue recruiting new people from your warm market only. At some point, all multi-level marketers must search for business builders outside of their group of family, friends, and co-workers to connect with those people who are just waiting to be found. So, are you a business opportunity seeker?

Securely Connecting Health Care Communities

The health care industry is using evolving technologies to improve the practice of medicine and lower costs. One example is electronic health records, which are helping to save lives and reduce costs as more of the nation's hospitals and medical centers adopt such systems. Electronic health records enable providers to avoid the duplication of exams and procedures, shortening the time it takes for patients to get the treatment they need. Having access to complete patient information at the point of care also helps to improve patient safety, optimize clinical workflow, increase efficiency, and reduce administrative burdens such as faxes and phone calls to exchange patient information. Medical information networks are providing secure access to this information. Three nationally recognized leaders in health information technology recently teamed up to create a multistate health information network known as The NorthWest Health Information Network. Northwest Physicians Network (NPN) of Tacoma and St. Luke's Health System of Boise, supported by Siemens Medical Solutions, collaborated on this regional approach to bettering patient care and eliminating waste. "Patient care requires the right information at the right time at the right place," said Rick Mac-Cornack, Ph.D., director of Quality Improvement at NPN. "Right now, if a patient is in the emergency room with chest pains, that ER needs to get faxes, printouts and old charts from each of the patient's health providers before proper care can be delivered." Through the network, the patient's history and clinical information are immediately accessible online to both patient and provider-whether the ER is in Tacoma or Boise or whatever other communities will soon be connected to the system. "While technology has progressed significantly, the challenge is still the same: connect 'Main Street' physicians--who represent 80 percent of the nation's medical care providers--to information when and where it is needed," said MacCornack. What took place in New Orleans during Hurricane Katrina is an example of how frail paper records can be. Floodwaters rendered many patients' medical histories unavailable and unreadable. With secure, electronic records, this would not pose a problem. It is estimated that if 90 percent of doctors and hospitals successfully adopt health care IT and use it effectively, it could net savings of $77 billion annually. Health care information technology solutions such as Siemens Soarian Community Access encourage secure information sharing. As these networks adopt standardized ways of sharing data, community-based regional health information organizations will become the base for a nationwide system. Health care information technology has the ability to transform the way people regard their health and the way they participate in the health care system.

Summary

When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method.