America Turning Into A Nation Of Hamburger Flippers

While Wall Street and Washington debate the technical definitions of a recession, the fine print of the US Census Bureau reports reveals a startling statistic: US employment figures incorporate a huge proportion of what can best be called casual, temporary and seasonal jobs. We all know that the old-fashioned manufacturing jobs have gone to China. But many of those trying to pick the market bottom today are unaware of the fact that the ranks of store-front clerks, restaurant workers, yoga teachers and delivery personnel–to name just a few categorieshave all served to boost the employment data in recent months and years.

Then, of course, the wars in Iraq and Afghanistan have made their own contribution to the US employment data. At least 150,000 working-age, non-military men and women are doing their bit in the conflict zones; so they dont figure in the compilation of jobless Americans. And, at home, defense orders have required arms and war-related equipment manufacturers to hire new workers since 2003. If we decide to bring our troops back today, the economic crisis will deepen, almost immediately, one Wall Street analyst conceded on condition of anonymity. Very few of those returning will find any decent jobs.

In actual fact, American economists right across the political spectrum are unable to recognize the fact that the global economy is nowhere as robust as was being commonly proclaimed just a few short months ago. A closer look at the engines supposedly driving global demand, namely China and India, will show that the statistical information derived from repeated government announcements concerning GDP performance was extremely shallow, even misleading. Very briefly, in the case of China, foreign investors failed to take into account the impact of loose credit and inflated real estate values; in the case of India, western analysts have proven themselves incapable of either estimating the potentially devastating influence of one bad harvest or the phenomenal role black money plays in the day to day lives of ordinary citizens. [The term black money is used to describe an amazingly broad range of tax avoidance schemes and criminal activities; certain knowledgeable observers point out that the sheer size of Indias underground economy exceeds 50% of Indias GDP].

In an appearance on CNNs Larry King Live yesterday, Donald Trump emphasized that the US is in a recession today, and that the true extent of the problems relating to housing and credit cards was still to unfold in coming months. Mr. Trump laughed off Washington claims that the structural foundations of the economy are strong, and for very good reason. Because that claim is largely unsubstantiated: perhaps for fear of political repercussions, nobody in authority is willing to detail those structural foundations on the record.

There are simply too many powerful underlying factors playing a role in shaping Americas future: oil prices, debt default, global demand, commodity prices, foreign exchange rates, international trade and, lest we forget, the war on terror. Whether any or all of those factors can be construed as structural foundations is best left for the academicians.

But, theory apart, there are two compelling realities to contend with right away. Firstly, neither President Bush nor any of the presidential hopefuls have produced a thoroughly researched position paper addressing the complexity of the situation. Secondly, all those rosy predictions of increasing demand (for virtually everything) from the developing world are coming back to haunt forecasters. In other words, a deteriorating situation is being compounded by ignorance, or intellectual dishonesty, or both.

As far as the employment statistics are concerned, the change of seasons will help perpetuate the alls well with the world illusion. As spring sets in, the job matrix will again expanddeck chair and patio salesmen, gardening and swimming pool assistants, bar tenders, life guards and gym instructors. Not to mention the apparently ever-expanding world of hamburgers, pizzas, tacos, donuts and coffee cups.

Tags: American Economists, Census Bureau Reports, Conflict Zones, Doing Their Bit, Employment Data, Employment Figures, Foreign Investors, Government Announcements, Jobless Americans, Manufacturing Jobs, Market Bottom, Political Spectrum, Real Estate Values, Seasonal Jobs, Startling Statistic, Technical Definitions, Us Census Bureau, Wall Street Analyst, Western Analysts, Yoga Teachers

All About Revenue and Receivables

In most businesses, what drives the balance sheet are sales and expenses. In other words, they cause the assets and liabilities in a business.

One of the more complicated accounting items are the accounts receivable.

As a hypothetical situation, imagine a business that offers all its customers a 30-day credit period, which is fairly common in transactions between businesses, (not transactions between a business and individual consumers).

An accounts receivable asset shows how much money customers who bought products on credit still owe the business. It’s a promise of case that the business will receive.

Basically, accounts receivable is the amount of uncollected sales revenue at the end of the accounting period. Cash does not increase until the business actually collects this money from its business customers.

However, the amount of money in accounts receivable is included in the total sales revenue for that same period. The business did make the sales, even if it hasn’t acquired all the money from the sales yet. Sales revenue, then isn’t equal to the amount of cash that the business accumulated.

To get actual cash flow, the accountant must subtract the amount of credit sales not collected from the sales revenue in cash. Then add in the amount of cash that was collected for the credit sales that were made in the preceding reporting period. If the amount of credit sales a business made during the reporting period is greater than what was collected from customers, then the accounts receivable account increased over the period and the business has to subtract from net income that difference.

If the amount they collected during the reporting period is greater than the credit sales made, then the accounts receivable decreased over the reporting period, and the accountant needs to add to net income that difference between the receivables at the beginning of the reporting period and the receivables at the end of the same period.

Tags: Accountant, Accounting, Accounts Receivable, Amount Of Money, Assets And Liabilities, Balance Sheet, Business Customers, Cash Flow, Consumers, Credit Period, Hasn, How Much Money, Hypothetical Situation, Net Income, Receivable Asset, Receivables

Accounts Receivable Financing, Tax Write Off And What Does It

Accounts Receivable Financing, Tax Write Off And What Does It Cost?

Banks won’t lend money to a business seeking to acquire larger contracts because its not viewed as an asset. So if you are a small start up company, funding for expansion may be hard to obtain. Accounts Receivable Financing could be the key to funding for a start up with desires to bid on large Government (or Corporate) contracts.

So what is Accounts Receivable Financing? It is the selling of your accounts receivable invoices for cash versus waiting 30-60 or 90 days to be paid by your customer. Accounts Receivable Financing is also know as Factoring.

Securing the services of an Accounts Receivable Financing Company will allow a small company to bid on almost any contract within reason. A small company would know in advance that the funds needed to produce goods or provide services are available once they win the contract. In fact, some A/R Companies will advise you on which companies they will Factor Invoices from and which to avoid! (Federal Government contracts are considered “gold” however not all Factoring companies can handle Government Receivables)

One of the major concerns for most small business owners is how much does Accounts Receivable Financing cost? Between 1 to 5% generally speaking. Since Accounts Receivable Financing rates depend on the credit-worthiness of your customers, your average invoice, average payment cycle, and factoring volume, its hard to predetermine the exact cost of the money. However, you should remember, whatever the cost is: Its TAX DEDUCTIBLE and this is important. This means that the cost to factor is offset by IRS.

Not all Factoring companies are created equally (you can’t tell that by looking at their web pages). A Cash Flow Consultant or an Accounts Receivable Broker can stir you in the right direction. There are issues such as: process to acquire funding, will the Accounts Receivable Financial company (factoring) company handle your collections, will they provide the funds through a credit card or will they wire the monies into your business checking account, will the Accounts Receivable Financial company factor with recourse or without recourse? (Meaning will they take responsibility for the debt or will you the client take ultimate responsibility? The rates are different)

Sometimes an A/R Broker has a choice, but not all the time. For instances, there are not that many companies that provide Accounts Receivable Financing for health care or construction. It all depends on what type of business you have and what your needs are.

Tags: Accounts Receivable Financing, Banks, Cash Flow, Corporate Contracts, Credit Worthiness, Desires, Factoring Companies, Factoring Company, Federal Government Contracts, Financing Company, Gold, Irs, Money, Receivable Factoring, Receivable Invoices, Receivables, Right Direction, Small Business Owners, Start Up Company, Web Pages

A site that will take care of all factoring requirements

A site that will take care of all factoring requirements of is finally at your fingertips.

A business can only grow when it makes more sales and wins the trust of the customers. However often the suppliers of raw materials want payment quickly while you have to sell finished goods to your clients on credit basis where the credit period may range from one to two months. Factoringquotes takes care of all your accounts receivable and by paying the seller of raw materials on your behalf and also paying you your dues from your clients. The company then recovers the dues from your client after the payment arrives. As a result your cash flows are not hampered and also you have money on hand to settle all your dues. Factoringquotes charges commission as a certain percentage from the total amount for rendering its services.

Hence in case of accounts receivable factoring, you may get up to 98% of the outstanding receivables. As a result the company will be able to process all orders and also increase its sales. Factoringquotes handles monetary transactions ranging from $5,000 to $30,000,000 per month. Also when you pay your supplier on time, often you can take advantage of supplier discounts.

You can get all factoring quotes quickly. All you have to do is provide your company details and requirements and within a few hours a representative of the company will get in touch with you. Factoringquotes also assists in other factoring requirements such as small business factoring, construction factoring, export factoring and even cash flow factoring.

Small business factoring proves to be a strong tool for small businesses who have just stepped on the path of progress. This is because a small business may not have the ability to sell goods on credit for 2-3 months as its funds will be locked up in accounts receivable. Factoringquotes comes to the rescue at it takes care of all accounts receivable of the company by providing immediate cash. The site also helps with purchase order financing where it pays for raw materials bought on behalf of the company. As mentioned before, the company stands to gain in the form of seller discounts.

Factoringquotes has also diversified in other types of factoring such as medical factoring of accounts receivables. In this industry the site arranges for funds to be paid to a health care provider on the insurance claims that are frozen in accounts receivable. Then there is also freight bill factoring where the company buys your freight bills and invoices and then gives you advance cash in less than 24 hours. The customers are given an options as to which bills they want to factor. Hence factoringquotes proves to be a cash flow solution for all companies who don’t want their funds blocked for a long period of time.

Tags: Accounts Receivable Factoring, Advantage, Assists, Business Factoring, Cash Flow, Cash Flows, Company Details, Construction Factoring, Credit Basis, Credit Period, Export Factoring, Fingertips, Monetary Transactions, Path, Quotes, Raw Materials, Receivables, Small Business, Small Businesses, Supplier Discounts

9 Places You Can Save Money For Your Family

Most families are spending more and more money every year (and not just because the cost of living rose) while also saving less and less. One reason is that few household managers spend much time reviewing expenses and expenditures to find ways they can save money. However almost every family has places where costs can be cut and pennies can be pinched — and if those freed up funds are then used to pay down debt and save for the future it could have a dramatic impact on their quality of life.

Food is one big area where many families could be more thrifty. Families spend an average of $2,434 on food away from home, according to the Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics. If you (and your spouse and your children) eat lunch out every day of the week then try brown-bagging at least one of those days. If just one of you does it you may save up to $400 a year and if you can double or triple that savings you could finance a family vacation with it.

Another major expense is your home. When was the last time you looked at refinancing? Can you find a lower interest rate? Can you renegotiate to a shorter time frame? Even if you can’t change your mortgage payment you may be able to pay a bit extra each month which over time will help pay down your mortgage faster. Also, don’t overlook your utilities. There are ways to save in this area as well including updating your insulation and weather stripping, keeping up-to-date with maintenance and cleaning of your furnace and air conditioner or using a programmable thermostat to take advantage of those times when your house is empty or the family is asleep.

Transportation is another major expense for many families. Not only are vehicles expensive to buy but also to maintain and operate especially with gasoline prices at such high levels. Is carpooling an option for any members of the family on at least a part-time basis? Make sure to combine errands and trips to cut down on your travel and save money when buying gasoline by taking advantage of special programs and discounts and remaining vigilant about gas prices. In addition, following a regular maintenance schedule and proper tire inflation can also help you achieve maximum gas mileage for your vehicle.

Choosing your bank wisely can be another way to save money. Make sure the bank you use offers free (or at least low cost) checking as well as electronic bill-paying. Electronic bill-paying and a debit card can cut down on your need to use checks and postage which will save you in the long run as well as help you better manage payments so you will avoid fees, penalties, and higher interest rates.

Cutting your credit card costs can be another major savings. This means making sure you are using the best possible credit card with a low interest rate and low or no annual fee. Shop around until you find your perfect match and don’t forget to cancel and cut up those rejected suitors.

Health care is not really an area where you can cut expenses but you can save money by taking advantage of special offers and programs. For example, many employers offer a Flexible Spending Account where you can save money before taxes for out-of-pocket medical expenses for prescription and nonprescription drugs, dental expenses, and eye care.

Tuning up your insurance policies can also help you save money. When did you last compare rates for your home, your vehicles, and yourself? Some other ways to cut costs are to raise your deductible level or using the same company for multiple coverage (your home and vehicles). When you are shopping around make sure to give your current company a shot at keeping you. Sometimes they can offer a better rate too.

Another major expense for many families is the cost of communication including local and long distance phone service, cell phones, cable or satellite television, and Internet access. Review your expenditures and cut out the services you don’t need. Can some of these expenses be bundled to save money? Are there better plans for your needs?

When looking to save money it is important to become an aggressive shopper. The Internet makes it possible today to compare prices and product reviews while not spending a lot of time and money driving from store to store. Any big ticket item (and that includes your weekly groceries, cleaning products and health and beauty aids) deserves a closer study.

Over the next, month take time to review your family expenses and expenditures in each of these nine areas. Making a few alterations in your family’s spending habits will soon make a difference in the overall household budget. You can raise your family’s quality of life by making just a few changes in your monthly budget.

Tags: Air Conditioner, Brown Bagging, Bureau Of Labor, Bureau Of Labor Statistics, Consumer Expenditure Survey, Dramatic Impact, Family Vacation, Furnace, Gasoline Prices, Household Managers, Insulation, Members Of The Family, Mortgage Payment, One Of Those Days, One Reason, Pennies, Programmable Thermostat, Quality Of Life, Time Basis, Time Frame