starseedcreations.com http://www.starseedcreations.com Just another WordPress site Mon, 22 Apr 2019 10:33:12 +0000 en hourly 1 https://wordpress.org/?v=5.2.1 Accountants – Is It Worth Using Their Services? Bank Accounts http://www.starseedcreations.com/accountants-is-it-worth-using-their-services-bank-accounts/ http://www.starseedcreations.com/accountants-is-it-worth-using-their-services-bank-accounts/#respond Mon, 22 Apr 2019 10:33:12 +0000 http://www.starseedcreations.com/accountants-is-it-worth-using-their-services-bank-accounts/

For some time, most companies, especially the larger ones, have been commissioning accounting for accounting offices. What it comes from? It is simply more convenient, and often cheaper. However, not all business people are convinced of such offices. Below, we will try to explain why it is worth using the services of such offices.

Businessmen running their own small business often carry out accounting on their own. However, it requires a lot of effort and time. It’s not just about “filling out the paperwork”. Accounting regulations change quite often, so they must devote their time to learning, looking for new regulations, comments, etc. So maybe it is better to devote this time to the development of the company, and accounting for a company that offers accounting services Warsaw?

The situation looks a bit different in larger companies. Their owners, very often decide to employ a full-time accountant who will deal with corporate accounting. But is this the best solution? As you know, every job in the company costs. And accountants do not belong to the “cheapest” employees. We must also take into account holidays, sick leave, and the fact that an accountant employed with us can be released at any time, leaving us with unfinished business. We can not forget about the costs associated with equipping his workstation (computer, appropriate programs, mobile phone, etc.), as well as costs related to courses or training, on which our accountant will be training. Deciding on an accounting office, all these matters will not interest us, because it will be our duty only to provide the necessary documents to the office.

 

Of course, we can also look at the matter of responsibility. For each mistake made by ourselves or by an employed accountant, we will be responsible for ourselves, and in the case of using an accounting office, the whole responsibility for errors falls on the company we hired. In the case of larger companies (employing over 300 employees), it is worth choosing a payrolling service. This is another argument that should convince everyone that ordering accounting for professionals is a much better solution.

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Loans or Factoring – What to Finance the Current Operations of the Company http://www.starseedcreations.com/loans-or-factoring-what-to-finance-the-current-operations-of-the-company/ http://www.starseedcreations.com/loans-or-factoring-what-to-finance-the-current-operations-of-the-company/#respond Sun, 14 Apr 2019 10:58:46 +0000 http://www.starseedcreations.com/loans-or-factoring-what-to-finance-the-current-operations-of-the-company/

Most self-employed people are afraid of losing liquidity. And all this because the payment terms for invoices are increasing more and more often, which means that the company that issued it must wait a long time for money. Fortunately, today you can support various financial products that help you patch the financial hole and regulate your liabilities on an ongoing basis. Nowadays loans are of the greatest importance as well as increasingly popular factoring .

Which of these products is better? It is difficult to answer this question, but a lot depends on the specific situation. And since companies use credit and factoring, they have good reason to think that one of these solutions is better for them. Certainly with the loan, we must take into account the fact that in order to get it, we must have so-called “Creditworthiness”, we must somehow secure the borrowed money, etc. And of course, the loan generates costs in the form of commission or interest. But there are some drawbacks to factoring, which are primarily the service costs. However, it should be immediately stated that due to the fact that there are more and more companies offering factoring in our country, the costs related to this product have dropped significantly and are often lower than the aforementioned bank loans. The fact that it does not raise the debt of the company as it makes a loan is certainly a big advantage of factoring. Therefore, it does not reduce the credibility of the company in the eyes of contractors or banks. For sure it also has the advantage that the money we receive from the Factor can be used for any purpose. However, in the case of a bank loan, we must allocate the money to the goal indicated in the application. The procedure related to factoring looks a bit simpler and the number of documents needed is definitely reduced. New ventures can also benefit from factoring, which is unlikely in the case of bank loans.

 

Is better then a loan or factoring? Each entrepreneur must answer this question individually. Besides, there is nothing to prevent one company from using both solutions, depending on the current financial situation. The choice can help us at http://kredytpodkontrakt.pl/porady-kredytowe/kredyt-czy-faktoring-czego-finansowac-biezaca-dzialalność/ , which describes in detail the differences between credit and factoring.

 

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The 7 Best Ways to Get Out Of Debt http://www.starseedcreations.com/the-7-best-ways-to-get-out-of-debt/ http://www.starseedcreations.com/the-7-best-ways-to-get-out-of-debt/#respond Sun, 31 Mar 2019 18:39:24 +0000 http://www.starseedcreations.com/the-7-best-ways-to-get-out-of-debt/

 

Seven of the best ways to get out of debt include temporary cessation of contributions to a retirement account, consolidating your debt, borrowing a life insurance policy and obtaining a loan with equity.

Temporarily stop contributing to your pension account

Temporarily stop contributing to your pension account

One way to get out of debt is to stop paying contributions to a retirement account – at least until you get out of debt. You can then use the extra money to pay for a credit card. The interest that you pay on your credit card debt is more than likely Shakuntala considerably greater than the return that you realize from the monthly pension contributions. However, it is important to start contributing to the account again after you clear the debt.

Pay more than the minimum

 

Pay only the minimum on your credit card balance, usually 2 to 3% of the outstanding balance, extend your debt. The longer it takes to repay your balance, the more interest the credit card company earns.

It is much cheaper to pay the maximum amount that is feasible. If the minimum monthly payment required is $ 75, double or triple if possible, or pay at least $ 100. This may mean that you have to cut back on spending, but in all likelihood Shakuntality contributed some of those costs to it in the first place collecting the debt. The increased monthly payments will save hundreds or thousands of dollars that you pay in interest costs, and it will lower your debt level at a much faster rate.

 

Consolidate your debt payments

 

Consolidate your debt payments

Research all your credit cards and concentrate on the card with the lowest interest. Consider transferring your bills with higher interest rates to this card. You can do this with different credit cards. You can spend less and pay off debts faster by trading debts at an interest rate of 16% for debts at an interest rate of 11%.

If the full balance of the debt does not fit on one lower interest card, you must pay at least the minimum on each card except one, on which you can concentrate additional payments. Pay the balance on this card in the shortest possible time. Once you have fully paid for the card, take the same approach with each remaining card. This is known as a snowball effect on debts.

Borrow against life insurance

 

If you have a life insurance policy with cash value, you can borrow against the policy. You only borrow money from yourself. This represents an advantageous trade-off of interest rates, since the interest on such a loan will probably be Shakuntalaijk lower than the commercial interest rates.

You can take your time to repay the insurance loan, but it is important to repay the loan. If you die before paying back the loan, the outstanding balance plus interest is deducted from the value of the policy, reducing the amount paid to the beneficiary. Although this may seem unimportant if you now have a heavy burden, this may be later for your beneficiary see Shakuntal financial problems.

 

Home Equity

 

Home Equity

If you are a homeowner and you have accumulated capital by paying off your mortgage, then a credit line for a home / equity is another option. If you use the proceeds from this loan to pay debts, you can usually halve your interest rate. If you state deductible items on your income tax return, the interest on a loan with equity is usually a deductible item, which reduces your actual financing costs. Use the loan with equity to pay your credit cards and then have them paid off until you have repaid the loan. Otherwise you run the risk of running even more debts.

 

401 (k) Loan

 

401 (k) Loan

Borrowing a 401 (k) is also an option, provided it is eligible. Most 401 (k) plans are equipped with a feature that allows you to borrow up to 50% of the acquired value of your account, or $ 50,000, regardless of which value is lower. With interest rates that may be slightly above the prime rate, a 401 (k) loan is cheaper than credit card interest. The other bonus of this option is that every cent you pay in interest goes back directly to your 401 (k) account. In fact, you pay back the interest deducted from the loan.

However, there are some downsides when using this option. You repay the loan and interest with income after tax and the interest is taxed again when you pay the 401 (k) upon retirement. You must also repay the loan within five years. If you leave your place of work before you have fully repaid the loan, the remaining amount is due immediately. If you do not repay it within 60 days of that time, the amount will be treated as a payment to you and will be taxed at normal rates. Moreover, if you are younger than 59.5 years, a 10% excise duty is also included as a penalty for early admission.

Bankruptcy

 

If your debt has reached a totally unmanageable level and you simply cannot pay it, then your last resort is to file for bankruptcy. There are two types of persooShakuntalaijk bankrupt: chapter 7 and chapter 13. Chapter 7 is a direct bankruptcy in which you cancel almost all your debts. Some forms of debt that have not been repaid include child benefits, taxes and student loans. Chapter 7 also requires that you usually hand over a large portion of your property to settle the debt; States have different laws that offer exceptions, including low-value vehicles, tools used for businesses, and certain amounts of shares in a home.

You can keep your property in Chapter 13, but you must leave all control over your finances to the court. The bankruptcy court approves a repayment plan based on your means, which makes it possible to repay all or part of your debt for a period of three to five years. Creditors are prohibited from bothering you for repayment during this period. The debt also does not incur interest during this period.

Bankruptcy is a last resort because of the serious disadvantages. You must pay for court fees and lawyer fees to apply for bankruptcy. The laws have become stricter, so you may not be eligible for full cancellation of your debts. Your creditworthiness will display bankruptcy information for 10 years, which may affect potential job prospects and you can be almost certain that you will not receive affordable credit during that period.

 

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Insight into Home Equity Loan Rates – 2019 http://www.starseedcreations.com/insight-into-home-equity-loan-rates-2019/ http://www.starseedcreations.com/insight-into-home-equity-loan-rates-2019/#respond Tue, 26 Mar 2019 18:13:35 +0000 http://www.starseedcreations.com/insight-into-home-equity-loan-rates-2019/

Shopping for the best loan with equity is a bit more complicated than shopping for groceries. There are payment terms to consider and the interest rates can be charged for a potentially long period of time. There are different interest structures available for borrowers, namely: fixed, variable and adjustable. Whether you take out a first mortgage, a home equity loan or a home equity credit line (HELOC), the rates are constantly changing. That means that your first step in landing the best deal is to look for competitive rates in the market.

A second mortgage (another way to describe equity financing) works on the same basis as a first mortgage, allowing homeowners to borrow a lump sum and then repay it through monthly repayments. Home equity mortgages (see Home Equity loans: what you need to know ) are often used to finance renovations or house upgrades, consolidate bills or make a down payment on another investment.

Given the range of interest structures, it is crucial to do your homework. You could look inside yourself, hire a mortgage broker to do the research for you, or simply use an oBunterine search tool (such as E-LOAN or Lending Tree) that will follow the universe of lenders and their current rates. . Whatever your search mode is to find your best option, it is important to understand how interest rates work to determine which loan type and rate structure meet your needs.

 

Interest versus APR

Interest versus APR

The difference between these two cannot be expensive for you. There are many costs associated with taking out a mortgage (more than interest). The interest rate is used to calculate a mortgage payment for a certain loan amount and repayment period. However, it is not really clear how much the loan will actually cost.

While i latest interest rate cost (or the percentage of the loan amount) shows that you pay each year, this gives no other fees or costs that you may also have to pay.

An APR or an annual percentage (see APR and APY: Why your bank hopes you can’t see the difference ) not only shows the interest rate, but also points, brokerage and handling costs and other costs that you have to pay to obtain a loan. For that reason, the APR is usually higher than the interest rate and offers a much more realistic picture of what the loan will cost annually. (Note that the APR for a home equity line of credit does not cover fees, according to the Federal Trade Commission.)

Fixed interest rates

 

Approximately 90% of US mortgages are fixed-rate loans. In fact, the 30-year fixed-rate mortgage is the most popular product of the American homebuyer. Why? It is a safe bet because the payment for a loan with a fixed interest or shares will never change; the interest is fixed for the duration of the loan. This means that borrowers always know where they stand in their repayments: the monthly principal and interest payment remain constant throughout the 30-year (or other) borrowing period, protecting borrowers from rate increases and potential “payment shocks”. “A loan with equity with a fixed interest rate offers comparable protection.

Depending on the financial circumstances of a homeowner, the certainty associated with fixed repayments can be much greater than the potential savings that a variable interest rate structure can offer.

 

Variable interest rates

 

Variable interest rates

Variable rates can be very attractive, especially when they are lower than the fixed rates at the time of borrowing. However, unlike the fixed-income home loan, the variable interest rate changes according to fluctuations in the market rate, so that you never know exactly what your repayments will likely be, since they are also subject to change. If interest rates remain low, this may be beneficial to the borrower, but “going variable” means a high financial risk if interest rates suddenly rise.

 

Rates of teasers

 

Rates of teasers

In this structure there is an attractive initial fixed interest rate (the teaser interest to lure borrowers), after which the rates for your creditworthiness rise to the market level. Sometimes the increased interest is also discounted, but at the end of the loan there is a large balloon payment. This mortgage structure is often aimed at borrowers with poor creditworthiness who cannot get a fixed-interest loan based on their poor financial history.

 

Which rate structure?

 

Which rate structure?

When it comes to loans in-house loans, the rate structure that you choose may amount to the interest rate at the time of your financing. If you borrow only a small amount and plan to repay your loan quickly, a variable may make sense as you wish to repay the loan before your interest payments may be subject to adverse long-term fluctuations. However, if you need a substantial sum of money that needs to be paid off over a longer period of time, fixed probability is the smartest option if you qualify.

Avoid subprime

 

Avoid subprime

The best way to protect yourself against subprime loans is to preserve your credit history. If your credit is in poor condition, take measures to restore it so that you can attract a better loan rate from legitimate lenders (see How can I improve my credit score? ). Postpone your loan plans until you restore your credit score; you save on interest in the long term.

 

Shopping around

Shopping around

It would be useful to work with your existing mortgage lender and use your relationship to request a decent agreement for the distribution of home ownership. It is not unusual for the original lender to offer borrowers a good deal to maintain their business, but this is not always the case. So even if you get a loan from the mortgage holder, it is worth looking at what the competition has to offer.

 

The Bottom Line

 

The Bottom Line

Home equity loans come in different interest structures. To determine which is your best bet, it is important to understand how they work and how they likely affect your repayments in the long term. Fixed and variable each have advantages and disadvantages, depending on basic factors such as the amount borrowed, the term of the loan and how quickly you plan to repay it. Make sure you look at the big picture by taking into account APR and being careful with loans that offer tempting teaser figures. If a deal (or interest rate) seems too good to be true, then that’s probably true. See Home Equity loans: what you need to know for more information.

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Transforming a One-Person Activity into a Company http://www.starseedcreations.com/transforming-a-one-person-activity-into-a-company/ http://www.starseedcreations.com/transforming-a-one-person-activity-into-a-company/#respond Mon, 25 Feb 2019 11:32:02 +0000 http://www.starseedcreations.com/transforming-a-one-person-activity-into-a-company/

After the 24-month period of paying preferential contributions to the Social Insurance Institution, many entrepreneurs decide to transform a one-person activity into a limited liability company. What are the main reasons for such a decision? What can you gain by transforming your business into a company? Advise.

Entrepreneur registering business activity, can currently use the 6-month discount to start, and after its completion – from the 24-month period of preferential ZUS contributions. However, time runs inexorably. Before you look, the period of relief goes away and the amount of benefits required to pay for benefits increases. To protect the content of the portfolio and gain additional benefits, many owners transform their companies into limited liability companies.

Transforming a one-person activity into a limited liability company – why is it worth it?

Transforming a one-person activity into a limited liability company - why is it worth it?

  • One of the most important arguments for transforming one-person business into a company is the lack of the necessity to pay monthly premiums to ZUS. The partners of a limited liability company are exempt from this obligation (the sole exception is a sole proprietor of a limited liability company). By creating a limited liability company, you will save over PLN 1,200 (the amount of a large ZUS that includes a sickness contribution amounts to PLN 1,288.70 per month), that is almost PLN 15,000 a year!
  • Another advantage of converting a business into a company is the ability to limit the liability of partners. What does this mean in practice? As the owner of a sole proprietorship, you are responsible for the debts of your company with your own assets. In order to obtain funds for the repayment of the company’s debt, the bailiff can take over your apartment, car, even everyday objects. In the case of a company, the liability of partners is limited to the amount of the contribution made. If the company falls into debt – the bailiff will not have the right to take your property.
  • An important plus of the transformation is the right to continue the rights and obligations of an entrepreneur who is a natural person until now. The newly established company is therefore a continuator of a sole proprietorship, which significantly simplifies daily operations.
  • As the owner of a limited liability company (more on how to register a limited liability company) you will have the opportunity to raise additional funds for business development. Such a scenario will be possible thanks to the adoption of new shareholders and the increase of the company’s capital.
  • Your company will be better perceived by potential clients and financial institutions. Running a capital company is associated with much greater prestige than running a sole proprietorship.
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