Everything you need to know about surviving a tax audit

By Zach Pierson

If you are a small business, audits are going to be part and parcel of the way that you move forward. An audit does not mean that anything is wrong, or that you have to pay more money. Typically, it just means that the IRS wants to touch base with you and to learn more about what is going on. If you are going into your first audit, there are a few things that you can do to make things easier on yourself.

 

Be neat

If you are called in for an audit, you may be feeling a little pressured or tense. You may even be angry because you think they are questioning your honesty. No matter how you feel, you should not bring all of your records to the event and drop them in a big pile in front of the auditor. This will not make the process go more quickly, and it might make the auditor think that you are trying to hide something in the mess. If you keep things neat, you’ll find that in many cases, the auditor is willing to give you the benefit of the doubt on questionable items.

 

Knowing about books 

The auditor may ask to see your books. Remember that as a small business owner, you do not necessarily need to have them. If you are a small business, there is a good chance that you only keep your checkbook records and your cash register tapes. There is nothing illegal about this, but if you do have books, the auditor has a right to see them. If you do not have them, be up front about saying so. Have a print-out prepared if you keep records on your computer.

 

Entertainment receipts

No matter how large or small the business, a certain amount of entertaining is likely. Perhaps you end up taking people out, or perhaps the business held a holiday party. Entertainment is one area where auditors can spot mistakes, so it is worth your while to keep track of these receipts as a priority. Keep the receipts, and include any notes on them that might be useful. Remember that the key is to prove that you were not abusing the system.

 

Providing a work space

The auditor will be coming to your office to do his or her work. This means that they need a space to work, and they will be there for at least a few hours. Setting aside a workspace for them and providing some good light can make their job much easier. Some people offer the auditors their own work areas if there is no other space.

 

Cooperate

Auditors face a great deal of distrust and anger, but you can make a good impression if you treat them as professionals who are just there to do their job. They are not out to get you, and they want to come to a satisfactory solution as much as you do. Treat them with respect, ask what questions you want, and do not be accusatory.

 

Understanding the results

After the findings, the auditor will discuss the consequences with you. In some cases, this means that he or she will tell you do need to pay more in taxes; in other cases, they will say that there will be no further payments necessary. This will happen before they leave, so be ready to talk this over.

About the author: Zach Pierson is a tax blogger with the State Tax Help advisors.

* All images US-PDGov

Financial news: 12/31/2012

• OQ: Congress gets a raise despite Fiscal Cliff
• NYT: Q4, '12 & Q1 & Q2 '13 GDP estimated near 1%
• AP: Slow holiday retail sales stir fear of slow economy
• MW: Dollar maintaining value despite monetary policy
• CNN Money: Fiscal Cliff talks continue without deal
• ZH: Recession probability to be determined by Congress
• BI: At least 15 wealthy people used to be homeless
• AOL: Bank profits highest since '06 & with fewer failures
• BBC: Eurozone debt crisis far from over per Merkel
• Reuters: China's Dec. manufacturing index ↑ to 51.5
• CNBC: Asian stock prices tied to U.S. fiscal policy

American files motion to extend bankruptcy exit

With a January 28 deadline staring American Airlines in the face, the company asked a Manhattan bankruptcy court for an extension to March 11 in order to complete plans to exit bankruptcy. The motion has the backing of the airline’s creditors.

AMR Corporation, the parent company of American Airlines, filed for bankruptcy protection in 2011 in an effort to knock down labor and operating costs and set the airline on a course to profitability. The filing is a sign that the airline is well down the path to settling with creditors and unions and that it will soon be ready to leave the protection of bankruptcy court.

The American Airline’s filing stated that the proposed extension would benefit all parties and help the airline. In a public statement, the company said it takes time to work out all the restructuring deals but that everyone will benefit in the end.

American protects itself from a hostile bid

This extended period will bar creditors from mucking up the works by proposing their own plans about how the airline should exit bankruptcy. It also blocks US Airways from mounting a hostile action to take over American. US Airways had previously expressed interest in buying American after it left bankruptcy. 

AMR has stated that it wants American to exit bankruptcy as a stand-alone company. American is, though, discussing mergers with other companies, including US Airways. The pilot’s union has been in a long fight with the airline to improve its contract, and the union supports a merger with US Airway. A union spokesman, Dennis Tajer, said that the extension request is a positive sign that “things are proceeding in a positive way.”

Pilots will vote on a new contract

Both American and United Airlines pilots are scheduled to vote on a new labor contract in a few weeks. These contracts will offer significant raises for the pilots. The pilots have given the airline various concessions over the years. The airlines, though, are not willing to give other unions significant raises and benefits, stating that there are risks that the airline’s recovery could stall. Flight attendants, unhappy with that news, voted last week to authorize a strike against US Airways.

Since the airline filed for bankruptcy in 2011, American has dealt with the labor groups by rewriting contracts. It has restructured debt to make the airline leaner. It has also addressed the aging mainline fleet. The main problem in a bankruptcy restructuring is deciding who gets what. Everyone wants part of the pie, and it’s a matter of deciding what is fair to whom. 

For these reasons, it’s paramount that companies seek out the advice of an experienced new jersey bankruptcy attorney to get it right. “Bankruptcy is primarily about leverage - who’s got leverage at the moment and what can any of the other stakeholders do to get it,” said Linda LaRue, a Dallas bankruptcy attorney familiar with American. The primary issues for American were dealing with labor and its concerns about retirement obligations, LaRue said.

Mike Trevino, a spokesman for the airline, said that American had made outstanding progress toward rebuilding the airline. “We are well on our way to building a new American Airlines,” said Trevino.

About the author: Derek is an active finance blogger. When he is not blogging or working, he enjoys spending time with his family. The article above is for chapter 7 bankruptcy nj.

Image attribution:  Matthew T Rader
License: Creative Commons image source

Four top factors that influence the price of used cars

US-PDGov

One thing that both buyers and sellers of used cars can agree upon is the fact that the key to buying and selling pre-owned vehicles is figuring out their value. Once the debate about what is important when buying used automobiles is out of the way, it is then time to determine what exactly the true value of a used car is. In order to decide what that value is, there are four main factors that should be considered.

 

Just dropped in to see how my condition is

First and foremost, the most important factor to go over when figuring out a used car's value is condition. While that might seem obvious to you it doesn't make it any less true. You're not going to buy a used car if it's in no condition to be driven and if you are you're not going to pay a whole lot for it. On the other hand, a used car that is in near mint condition is going to be worth a whole lot more than a car that's dented up or has some scratches on it.

 

How many miles does it get?

After the condition of a used car has been determined, the next used car price influence is mileage. Every used car has been on the road for a different amount of time and a car that has barely been driven will be worth quite more than one that has been traveling the countryside clocking miles on the odometer.

 

As my grandpappy used to say, old reliable

Reliability plays a big part in determining a used car's true worth because drivers want to be behind the wheel of a car that they can trust. When figuring out how reliable a used car is, look to the car's maintenance records to see how often the car was brought in for routine service. Check whether the car suffered any recurring or major repairs. If reliability is a grey area, then the only thing that can lead to is negotiation.

 

Always a popularity contest

Popularity contests aren't just reserved for high school prom king and queen contests. In the world of used cars, popularity also reigns supreme. A used BMW or Cadillac is going to cost more than a lesser vehicle brand, and if price is an issue then going for a less popular vehicle make or model is the answer. If you can understand the factors that influence a used car's value, you should have no problem buying or selling a used car!

About the author: Donald loves to play with his children and pet dog, he enjoys sharing his knowledge of cars with the readers of his blog, and also shares his extensive car knowledge at other sites as we like hertzcarsales.com. Other then cars, Don enjoys watching the Giants play football.

Financial news: 12/28/2012

• NYT: Retail competition spurs costly same-day shipping
• Bloomberg: East coast port strike an economic risk
• CNBC: Banks face near 240 unimplemented bank rules
• CNN: Stock market prices due to institutional investing
• Reuters: FINRA fines big banks for faulty fee charges
• MW: News of Sunday Congress meeting quells sell off
• CB: Dec. consumer confidence index 65.1, a 4-month low
• AP: Investors selling despite FRB debt monetization
• Fox: Average cost of Fiscal Cliff on households, $3,700
• BI: This chart shows how politics is affecting the market
• BBC: Large Spanish bank reports value of  $-5.6 bln

Never reveal the price until you've built up the value

By Sean McPheat

The old golden rule in professional selling was to never reveal price until the end of your presentation.  However, unlike the buyer of years ago, today’s modern and educated buyer is sales savvy, competitively aware and well informed. Should you still hold out on revealing the price until late in the sales interaction?

In a word—absolutely!

While there are some products and services in where price is common knowledge, in most cases you should still hold out on discussing pricing until after you have completed your sales presentation.  You must first firmly establish the value before you reveal the price. Here are a couple of reasons why you should never reveal the price until after you have significantly built up the value.

Price is irrelevant until you have established value

First, understand that pricing has no validity until you have built the value. If I came to you and said I have a house for sale, and told you the price was only $1,000, would you buy it? You would have to have more information about the house even at such a low price: Where is the house located?  How many rooms?  How old is it? Do you even need a new house? 

You might say that for a certain price, those things don’t matter.  Yet, what if the house was located in the middle of an active war-torn country 8,000 miles away and was essentially an old fashioned out-house?  Is it still worth $1,000? 

Better yet, let’s assume I came to you to sell a gigantic, pink inflatable chair.  It glows in the dark and floats. Would you buy it for $1,000?  How about $500? However, assume I also informed you that the local damn has just collapsed and within a few minutes, the entire area is going to be 50 feet under water. Would you pay $1,000 for the inflatable chair now?

Price is meaningless until you can build up the value. You cannot build up the value until you demonstrate the need.  You cannot demonstrate the need until you expose and define the problem. 

It is a disservice to the buyer

When you reveal the price too soon, you actually perform a disservice to the prospective buyer.  By giving the buyer the pricing before you have offered all of the necessary information he or she needs to make an educated decision; you have damaged the buyer. 

When you reveal the price, it forces the prospect to begin to make a buying decision, if only mentally.  The prospect begins to formulate their reasoning and logic before they have the ingredients to do so, and the prospect forms a mental disposition on the purchase. Consequently, what you say and do after you reveal the price, falls on death ears and a preconceived thought process.     

When you get that buyer who insists on knowing the price before you have had a chance to build up the value, understand that it is in their best interest that you wait.  Revealing the price too soon, is tantamount to malpractice. 

Sean McPheat is the founder and Managing Director of MTD Sales Training.

Sean has been featured on the BBC, ITV, CNN International, scores of radio stations and has been in over 250 different media publications. Sean is the pioneer of social selling and social prospecting within the UK, and his groundbreaking book “eselling® – How To Use The Internet For Prospecting, Personal Branding, Networking And For Engaging The C-Suite Decision Maker” became an instant #1 Amazon bestseller.  Follow Sean Online

* Image attribution: Free Digital Photos.net

Financial news: 12/27/2012

• NYT: Markets complacent about Fiscal Cliff per economist
• BI: Holiday retail growth just .7%, near 2008 levels
• NuWire: Shadow housing inventory risks R.E. market recovery
• ZH: National debt with entitlement liability is 550% of GDP
• DOL: Jobless claims 12/22 350K↓12K; average 356.75↓11.25K
• CNN: Written pension payout requests yield a better response
• MN: Recession expected in 2013 by majority per survey
• Fox: Down market in December statistically unfavorably for '13
• CNBC: U.S. debt ceiling limit to be reached New Year's Eve
• Bloomberg: Chinese loans to businesses quelled by credit rules
• AP: Japanese leadership seeks cheaper Yen via monetary policy

Rent a cosigner, Really?

Anyone who has had or who now has bad credit knows what a headache it is. Not only do you have to deal with whatever hard situations might have led you into having bad credit in the first place, be it a divorce, losing your job, an illness, etc. But on top of that, you now have all of the frustrations that come along with having bad credit. It is now next to impossible for you to get a credit card or a loan for a car or home. And if you are able to get a loan, you are left paying ridiculously high interest rates.

So what is there to do? If you have bad credit, are there any options for you? You may have very simple goals... you may just want to be able to rent an apartment or house to live in! But many people with poor credit are denied the ability to rent an apartment or house because their credit is too bad. Many landlords don't want to take on the risk of a tenant with poor credit.

So if you have bad credit, is it now impossible for you ever rent an apartment? Or if you can find an apartment to rent, will you be forced to live in substandard housing because those are the only landlords that will rent to you?

Well, not if you are open to the idea of renting a cosigner.

 

Cosigners for rent

There are actually organizations that can provide you with the ability to "rent a cosigner." You can use these rented cosigners to help you be able to rent a home or apartment. These co-signing services work very similarly to a normal cosigner, say if you found a friend or family member to cosign for you. But instead of one of your loved ones having to put their credit on the line for you, there are companies that are willing to take on that risk... for a fee.

The setup process for these services is fairly simple. If you are in the process of trying to find an apartment or home to rent, but you fear you will be denied because of your poor credit, you can hire one of these co-signing services. You simply go to their website, fill out an application, and wait for your approval. If you are approved to use their services, they will send you a certificate saying that you have utilized their co-signing services. You present that certificate to your landlord. This shows them that, even though you may be considered a higher risk because of your poor credit, you have someone else (a reputable company) that is willing to step in and cover the bill should you default.

 

The downside

Now, just like with everything else, there is a downside to this plan. So, before you rush into renting a cosigner, keep this in mind. There are definite costs associated with renting a cosigner. Unlike friends and family members, these companies aren't willing to put themselves on the line for you just because of their love for you. They don't know you. They are in this to make a profit. So, they obviously charge for their services.

In exchange for their willingness to take you on as a risk (remember, they get left with the bill if you don't make your payments), they charge you a monthly or yearly fee. Typically this fee is 10% of the annual rental costs. So, if your rent is going to be $1,000 a month, that means that you will have to pay your rental cosigner an additional $100 a month or $1,200 a year. That may be a lot of extra money out of your pocket, but if it means that you are able to rent that apartment or house that you want, it may be worth it.

 

Other options

If you don't want to pay those fees just to be able to rent an apartment, you may want to put that extra money to other uses. You might want to look into hiring a credit repair company. These companies could help you to get inaccurate or misleading information removed from your credit report, leaving you with much better credit than you had before. You can then use this better credit to get into that new house or apartment that you've dreamed of.

Nicole has exerience with having poor credit, and has learned through experience how to rebuild your credit. She enjoys sharing the information she's learned with others.

A "fictional holiday message" from the "founder" of Moneycation

Non-legal cognitive disclaimer: The validity of this post is logically unsound and is therefore unproven to be true. There is no empirical basis to consider the following anything but fictionally off-topic even though the ontological basis for empirical evidence is itself questionable. It therefore complies with scientific norms of thinking and demonstrates distinct awareness and understanding of  conventional "reality" independently, and mutually exclusive of the "reality principle", despite the "power to define reality", and regardless of the philosophical logic that gives merit to both realist and anti-realist "concepts" about the true nature of reality.

 Image attribution: ESO/S.Brunier; CC BY 3.0

Dear readers,

This message is not from my heart, it is from my soul.

This very moment is not even as big as a speck of dust in the vision of a conscious multidimensional universe that's sight lasts into eternity. Your mortal life is about as relevant, but no less meaningful than the life-cycles of the universe, or universes and any other creation in all that is.

The words we say and the actions we carry out are the undeniable reflections of the life we live. To a  soul, they are more transparent than the clearest glass and much of what happens in this world is a far cry from the beauty and harmony of spiritual life. The fastest cars, the biggest families, the nicest jewels, the best meals and the greatest of moments on Earth pale in comparison to a life fully materialized in spirit.

Yet we continue to be consumed by our egos in socially constructed dances set forth by a mostly mortally driven human culture and civilization. Often times these serve the egos of individuals, communities and nations alike more than our greater purpose here on Earth. They aren't always bad, as the ego does "good" things as well. Yet many of us are in denial, if not spiritually blinded by the illusions of mortality.

The news you read, the songs you hear, the words you speak and the relationships you have all have soul, but often only a token amount.  Perhaps we as humans think our souls or some greater nature have put us in temporary shells to live in this hell or is it heaven on earth? Maybe we shake our fist at existence and from existence the only way we know how, denial through a full-throttled embrace of material reality.  Is this what the philosopher Friedrich Nietzsche meant in the following quote:

“God is dead. God remains dead. And we have killed him. How shall we comfort ourselves, the murderers of all murderers? What was holiest and mightiest of all that the world has yet owned has bled to death under our knives: who will wipe this blood off us? What water is there for us to clean ourselves? What festivals of atonement, what sacred games shall we have to invent? Is not the greatness of this deed too great for us? Must we ourselves not become gods simply to appear worthy of it?”-Friedrich Nietzsche

Denying the soul will not make you happier, it will leave you feeling empty, and devoid of greater fulfillment if not meaning. Depending on your physical circumstances, you may also have wealth with materials of no spiritual value, and be at risk of spiritual bankruptcy. Think with your soul for just a moment, because you do have one. Imagine what the world would be like if our egos collaborated, or accounted for just a fraction of what they have to say.

The ego has the power to ruin you from the inside out, your soul will never betray you like that. Yet the ego almost always wins here on earth because you are indeed mortal and stuck living a mortal life based on the results of a much larger endeavor. It's just the way things are; kind of like election results, the outcome of football games, and the weather for the day. You can't do much to change those results either.

Your soul is the real pilot of your existential journey on earth. You can rebel, cooperate or deny, just as you do with your laws, social norms, and cultural values. As mortals you do have free will just as your soul has eternal free will. That's life, no one said life is fair, takes one to know one etc. etc. The order of the spiritual world has it's trite sayings as well, and humans have a great deal of potential to be the butt of many jokes by the comics of beyond.

That is because humans are biologically self-aware computers that exist primarily to serve the soul, but secondarily to enhance the meaning of life in the mortal realm. You have the choice to embrace what your soul has to offer, or to ignore it in favor of fleeting glimpse of reality you call mortality. Mortality does have its undeniable problems, pitfalls and difficulties, but try looking at those same issues through the eyes of your soul rather than the ego of your brain. Think outside the box of your own head just to see if the results are any better for your ego!

Having said all that, thanks for reading and please take note of the donate button at the very bottom left hand corner of this page. No one has used it since this blog has been in operation and every cup of coffee helps. Also, please feel free to leave comments at the end of posts or in the forum. Thanks and have a good holiday : )

A.W. Berry

Will 2013 be great for real estate?

By Tulsa Property Management

After a number of difficult years for the real estate market, the market began to show signs of recovery in 2012. Many investors are hoping for the recent growth in the market to continue to accelerate and to make a 2013 a profitable year for the real estate market. While some growth is likely, there are a number of problems that continue to face the real estate market that investors should understand in order to make good investing decisions in 2013.

 

Fiscal Cliff

The fiscal cliff is a news story that bears watching for those interested in the real estate market. Whatever deal is struck in Washington will likely have an impact on the real estate market. Whether the deal includes raising taxes on higher income earners, the elimination or reduction of the home interest deduction or reducing federal government spending or financing in the housing market, any deal will likely impact the real estate market. Investors should stay informed of the changes resulting from any deal that the two sides make in regards to how it will impact real estate.

 

Other legislation

In addition to dealing with the fiscal cliff, Congress and the President have other issues to address that may have a significant impact on the real estate market. Expiring unemployment benefits, the expiration of the Mortgage Debt Forgiveness Act and pressure to raise capital gain rates could all cause problems for the real estate market. The extension of unemployment benefits or the Mortgage Debt Forgiveness Act will cost money that will either be added to the deficit or paid through new taxes. Low capital gain tax rates and exemptions make real estate a more advantageous investment than stocks and other investment vehicles. The only positive solution to these problems for the real estate market is for the economy to grow quickly and reduce the need for changes in 2013, but this seems unlikely.

 

Economic growth

While the fiscal cliff and legislative changes in Washington holds the potential to impact the real estate market in 2013, the market will always be primarily driven by demand. The most important factor for strong housing demand is high rates of employment and rising personal income. However, economists are predicting slow growth for the American economy in 2013, which will likely translate to slow growth for the housing market. However, with many people renting after losing homes in the mortgage crisis, there is a strong potential for these people to buy homes and fuel home sales in regions of the country with low unemployment and high income.

 

Rental real estate

As the economy continues to grow, albeit slowly, investors in the rental segment of the real estate market can expect rental rates and prices to remain strong. With the continual influx of new renters to the market (recent graduates, those who have sold or lost their homes, etc.) and slow economic growth keeping many current renters from being able to afford a home, demand for rental real estate should continue to be strong. The commercial real estate rental market should also continue doing well in 2013 for similar reasons. Landlords should be able to expect a nice return on their investment in 2013.

This article was contributed by Tulsa Property Management who specialize in Tulsa real estate and homes.

Financial news: 12/24/2012

• AP: Functionality and interest are trends in gift giving this year
• MN: Can kick a possible remedy to Fiscal Cliff dilemma
• NYT: U.S. movie tickets sales in 2012 forecasted up $10.8 bln
• Option Queen: Technical indicators point lower for S&P 500
• Bloomberg: Dollar expected to rise in 2013 per FOREX analyst
• Reuters: Holiday sales forecasts revised downward
• CNBC: Bond prices being supported by monetary policy
• Business Insider: Rothschild dynasty began with coin trading
• Zero Hedge: Middle class "under assault" per market research
• CNN: Lucas Films sale in 2012 could save $353 mln in taxes
• Fox Business: U.S. incomes have dropped per marketing firm
• BBC: U.K. urged to not leave Eurozone by Norwegian minister

Tips on obtaining deferred, discounted, or free legal advice for your startup

By Robert Tritter

It is very important to obtain legal advice when you are in the process of starting a new business, but that is also the most difficult time to do so from a financial standpoint. This does not mean that you have to choose between foregoing the advice and having enough money to get your business off of the ground, however. Instead, you should look for an attorney who works with new businesses. Many of them will give you discounted, deferred or free legal advice as long as you know that you are able to ask for it.

Pro-bono providers

One of the easiest ways to get legal advice is to find someone who works pro-bono. If you have a court case, this means that the lawyer would not get paid unless you win. For a new business, however, you can negotiate with a pro-bono attorney to make deferred payments based on how successful your business becomes by a specified time period. To find a list of attorneys in your area who accept pro-bono work, you can visit the American Bar Association's (ABA) list at www.ProBono.net.

Free legal assistance

If you have a limited income, you can contact one of the many attorneys listed on LawHelp.org. Not only are the attorneys on this site available to help with a wide range of legal questions, but they also provide free legal assistance in many cases. Even though you will be asking for advice about a business, you can still qualify based on your current income level.

Free help online

Many attorneys frequent online message boards such as LawGuru.comand FreeAdvice.comto provide users with free basic legal information. Although an attorney might require an offline meeting and a fee to discuss anything that is really detailed, you should be able to get some pointers that will steer you in the right direction without having to pay for them.

Other ways to obtain free or discounted legal advice

Family attorney

If your family has an attorney that they have used at least a couple of times, you might be able to get them to provide you with some free legal advice. Even if they do not want to give you advice for free, though, you might be able to get them to barter with you. Tell them about whatever service or product your new business will be offering, and ask them if they are willing to make a deal.

Friends who are attorneys

Most attorneys get hit up on a regular basis by their family and friends for free legal advice, so make sure that you approach your attorney friends very carefully. It might make the most sense to start the conversation with an offer to barter so that you do not make your friend instantly shut down to the idea of helping you out.

Social networking

Almost everyone knows an attorney, but if you do not have access to one, consider reaching out via your social networking pages. You will probably be surprised by how quickly someone will offer to give you discounted or free advice.

Putting the Advice to Work

Make sure that you actually listen to the advice that you are given, even if it is not what you wanted to hear. After all, an attorney will have more experience with legal matters than you. It is better to tweak your plans now to match the advice that is given than to deal with problems later on.

This article was written by Robert Tritter on behalf of Blake Lapthorn. Check out their website if you're looking to seek advice on professional negligence claims.

The most successful franchises

By Ashley Smith

When it comes to franchising, some types of businesses are more successful than others. If you’re thinking about opening a franchise, it’s important to do your homework to find out which chains have the best chance of surviving - or better yet, thriving. Here, we’ll walk you through some of the most successful and popular franchise opportunities.

 

1. Hotels

A hotel chain took the No. 1 spot on the 2012 Franchise 500, Entrepreneur’s list of the most successful franchises. Hampton Inn, a mid-priced chain, has grown to more than 1,900 locations throughout the world. The franchise is fairly expensive, with an estimated $3.7 million to $13.5 million in startup costs, but the company’s ongoing support is comprehensive. Looking for a more affordable hotel opportunity? Days Inn, which ranked No. 5 on the Entrepreneur list, is attainable for an investment as low as about $200,000.

 

2. Cleaning services

Three of the top five fastest growing franchises were cleaning services, as were five of the top 10 lowest cost franchises. Starting a cleaning service franchise is relatively low risk because the financial barriers to entry are low and the business model has proven successful. Some of today’s top cleaning service franchises include Stratus Building Solutions, CleanNet USA Inc., Vanguard Cleaning Systems, System4 and ChemDry. However, there are many other successful and reputable cleaning franchises that are worth investigating.

 

3. Fast food

Fast food has long been one of the most successful franchise models. Think McDonald’s, Pizza Hut and KFC. All three of those chains continue to break Entrepreneur’s Top 20; however, they’re also expensive ventures with startups costs ranging from about $300,000 to $2.5 million. Subway is another force to be reckoned with, having claimed the No. 9 spot on the 2012 list. Coffee chains such as Dunkin’ Donuts also ranked high.

 

4. Convenience stores

Everyone needs to stop at a convenience store from time to time. Household name 7-Eleven Inc. was ranked the No. 4 franchise in the country, with startup costs ranging from about $30,000 to $1.64 million. Circle K ranked No. 22, but the startup costs were higher, ranging from about $176,000 to more than $1.41 million.

 

5. Fitness centers

In recent years, several gym franchises have skyrocketed up the Entrepreneur list. Either more people are concerned about their health or these chains have figured out a business model that works. A 24-hour, unstaffed key club called Anytime Fitness claimed the No. 11 spot in 2012, up from 18 in 2001, 43 in 2010 and 75 in 2008. Jazzercise Inc. ranked No. 13, up from 44 in 2008.

How protective is your emergency fund?

By Jennifer Langley

Everyone should have an emergency fund regardless of their age or financial status. Not only can one of these funds protect you in the event of an emergency, but they are also a great way to learn about the importance of saving money. Even if you are just getting ready to move out of your parents' house for the first time, you should already be considering how much money you can put into your emergency fund on a monthly basis.

How to build an emergency fund

Most people in the U.S. live paycheck to paycheck, and this can make it very difficult to put any money aside. Unfortunately, these are also the same people who will find themselves in the most financial trouble if even one thing goes wrong. Therefore, it is necessary to make some sacrifices in order to build an emergency fund.


Even if you can only afford to put aside $5 a week, it is better than nothing, and over the course of the year you will save $260. Hopefully you will not have to touch the fund for many years, but if you end up with an unexpected car repair or other issue, it will be much better to have even $260 set aside than no money at all.

Why do I need an emergency fund?

Life is unpredictable, and it is always a bad idea to use a credit card to deal with an emergency situation, especially if you have limited financial resources. Consider for a moment where you are going to get the monthly credit card payments from before you simply move forward with a credit card purchase.

If you do not have an extra $100 a month to make a credit card payment, then you are not in a good position to rely on a credit card. Instead, you should have your own emergency fund in place that will help you replace your transmission, pay for a medical bill or cover your expenses if you miss a couple of days of work due to getting the flu.

No matter how well we take care of ourselves and our possessions, things will inevitably break down and we will eventually become sick. Therefore, the only way to keep ourselves from becoming buried by debt is to dip into an emergency fund instead.

What if I really cannot afford an emergency fund?

There are very few people who actually spend every dollar that they have in a careful way. Consider what your current bills are, and whether or not you actually need to keep all of them the way that they are. For example, if you have premium cable channels, you could easily save $20 or more a month to put into an emergency fund by canceling them.

Keep in mind that there are cheaper entertainment alternatives such as Netflix Instant Streaming if you are a movie addict. Another thing that a lot of people spend money on is a daily cup of coffee. Instead of getting it from a restaurant, you should make your own. The money that you save will give you a nice start to your emergency fund.

What if my emergency fund does not cover my expenses?

There will be some instances when your emergency fund will not have enough in it to cover all of your expenses, but it is always better to cover as much of the cost as possible from your fund. That way, if you do need to get a loan or use a credit card, you will be able to pay it back more quickly and in smaller installments.

This article was written by Jennifer Langley. Jennifer is an avid finance writer who stresses the importance of protecting oneself before venturing out into any endeavor.

* All images US-PDGov

Finance careers in the Middle East

By Ursula Jones

The booming economy in the Middle East is just one of the many reasons why finance professionals are flocking to the region. The sunny weather, the developmental peak, and the tax free salaries all play a role in attracting more and more people to Saudi Arabia, UAE, Bahrain, Kuwait, and Oman. And that’s not all; many finance professionals who have found work in the region also report faster career progression there. So if you’re thinking of immigrating for employment purposes, you should definitely consider a career in the Middle East.

Which financial career should you pursue?

Various finance careers are highly in demand in the region but some of the most promising are accounting and audit jobs. Despite the continuous influx of workers from all over the world, there continue to be many finance positions open. This is mainly due to the growth spurt in the business sector there. The accounting and audit positions are the most ideal as they are highly regarded in the business field, and thus usually get the biggest incentives.

Which country should you settle in?

Dubai and Abu Dhabi in the U.A.E. are considered ideal to settle in as they are known as the wealthiest among the emirates. But if you’re really after audit jobs, Dubai is perhaps the best place for you to find lucrative jobs. While Abu Dhabi is rich in projects, Dubai is the center of the Middle East’s entrepreneurial side. Audit jobs in Dubai thrive in its commercialized culture, a result of the large number of businesses that choose Dubai as their main headquarters.

If you don’t want to immerse yourself in the highly commercialized and corporate culture that comes with audit jobs in Dubai, you can also seek finance job opportunities in Bahrain, which is considered as the Middle East’s centre of finance. If you are after IT audit jobs, you should consider Abu Dhabi, where technology is at its peak.

What to expect in terms of work environment

If you’re pursuing an audit job in Dubai or in other countries in the Middle East, you can expect a lot of perks. Aside from the given, i.e. the weather, the tax free salaries, and the thriving business culture, you can also expect one of the most comfortable working environments abroad. Dubai and Abu Dhabi both offer a hodgepodge of cultures thanks to the large variety of immigrant workers there, so they also offer a great opportunity to form new friendships and to learn more about other nations’ cultures. This also helps lessen the culture shock that many immigrant workers feel.

Many people tend to worry about living conditions in the Middle East, but the fact is that the Middle East is generally safer than many other countries and the accommodation options there meet higher standards.

Audit jobs in Dubai are also preferable for those who have plans to pursue further studies. There are large numbers of international schools in Dubai where you can obtain higher levels of education. There is also a host of socializing activities that you can engage in during your free time. Just make sure you are aware of the rules in the specific country you choose to work in, especially with regards to alcohol consumption. These rules vary per country, but they are generally more lenient in Dubai.

Ursula Jones writes about finance and audit jobs in the Middle East from Careers in Audit, for more information please visit http://www.careersinaudit.com

* All images US-PDGov

Financial news: 12/21/2012

• AP: Mint seeks new metal; to lower 2¢/penny, 11¢/nickel costs
• Reuters: Municipal government spending ↑ .3% in Q3, 2012
• MW: Dollar Index ticked up as Japan liquidates its currency more
• Bloomberg: Monetary policy helping fund managers, not savers
• CBS: GOP tax plan not voted on due to lack of support
• CNBC: Foregone GOP tax plan increased tax for lower incomes
• CNN: Wind energy tax credit saves 30% of cost, may soon expire
• Fox Business: Gen-Y'ers with jobs should not get discouraged
• NYT: Atlanta firm seeking to buy NYSE for $8.2 billion
• Conference Board: November LEI ↓ .2% to 95.8
• NAR: Existing home sales ↑ 5.9% to 5.04 million
• BBC: Ecuador's Central Bank Gvrnr. resigned due to fake degree

Financial news: 12/20/2012

• Money News: Fitch warning of U.S. credit rating downgrade
• NYT: Kodak patent sale falls short $2.075 bln at $525 mln
• CNN Money: LIBOR scandal contributed to housing crisis
• CNBC: Mortgage applications ↓ on 3 basis point rate rise
• BI: Bad management due to 10 yr leadership training delay
• DOL: Joblessness 12/15 ↑17 K to 361K; avrg ↓13.75K, 367.75K
• Bloomberg: Interest rate rigging costs Fannie & Freddie $3 bln
• AP: Oil prices ↑ 1.8% to $89.51/brl Wed. on lower supplies
• Commerce Dept.: November housing starts ↓ 27K to 861K
• Reuters: "Fiscal Cliff" talks ongoing as GOP plan in House
• Fox: GM to buyback $5.5 bln in stock from U.S. by '14
• BBC: Global disaster costs ↓ $160 bln to $140 bln per insurer
• World Bank: Chinese "economy" forecast to grow 8.4% in '13

Why using PayPal can cripple your business

By Peter Hinton

These days, PayPal is everywhere. As an online business, it can be hard to avoid them. For millions of people across the planet - PayPal provides an easy to use platform that has helped revolutionalize payment systems online - but it could be costing your business a considerable amount of money. We're going to look at why.

How transaction charges are hurting your bottom line

PayPal isn't free. As a business, they've got to make money somehow. PayPal charges a small percentage for each transaction. While this would only be a tiny amount for those making the occasional transaction - it really adds up.

Profit margins are now as important as ever and you could be paying a percentage simply for receiving your money. Although the percentage is small - for someone doing hundreds or thousands of transactions, this will undeniably add up. Such transaction charges could potentially cost your business a fortune in the long run.

Limited protection

Most credit and debit card purchases are protected against fraudulent transactions, adding an extra layer of security when shopping online. Unfortunately, PayPal isn't covered in the same way - anyone who makes a purchase with PayPal is waiving their right to protection under Consumer Protection Rights. For a business that makes a lot of online purchases, this could spell disaster if one of them goes wrong. And that's not all you're customers might be more reluctant to make a purchase at a site that only accepts PayPal - so this is costing you two-fold as it both affects your purchases as well as potentially putting off new customers.

Customer service and dispute resolution

PayPal isn't a bank - and some users have complained at their limited customer service. As a massive multinational company, PayPal's response time is sometimes limited, and people have felt that their dispute resolution has been lacking. They don't act under any financial regulation authority so are free to make decisions of their own choosing.

Account freezes

PayPal also has a reputation for freezing accounts - sometimes seemingly on a whim. Thousands of users have complained that their PayPal account has been closed for no apparent reason - and this puts off a lot of people from using the system. Not only could your business be crippled if your main account is unnecessarily closed - but you could be losing business if it happens to one of your major customers.

Only accepting PayPal could lose you customers

We've seen some of the many ways your business could be affected if something happens to your PayPal account - but that's not all. If PayPal is the only method you use to receive payments online, you could be putting off some customers. Although PayPal is generally well regarded, it does have a certain reputation in some quarters and this could mean it's losing you business. Customers want to see a selection of payment methods and if you only offer PayPal - you might lose them.

Peter Hinton has been providing business advice for nearly two decades. You can find some of the best merchant warehouse reviews at our site.

U.K. homes at risk as flooding continues

By Sally Marsh

As news broke that 2012 is expected to be the ninth warmest year on record and scientists evaluate the effects this may have on global warming and related issues, the UK was being faced with severe flooding across the country. At one point in November, The Environment Agency had some 196 flood warnings in place and in excess of 230 flood alerts. The north-east was the most affected by the flooding whilst the River Severn reached the highest peak since the mass flooding of 2007. 

The question this brings about is how to best protect one's property from flood damage. Advanced measures are usually the best. The purchase and installation of flood products may reduce and even safeguard the property and its contents from flood damage. There are various measures which can be put in place in advance to prevent flood damage.

Raising door thresholds can stop shallow water entering the building. The installation of purpose-built boards against doors and low windows can further reduce the chances of water entering the building. Raising damp-proof courses and sealing floors can prevent water rising from the ground. Fitting non-return valves to drains and water inlets and outlet pipes is another useful precaution, while pumps fitted within under-floor voids and basements can extract water when it is present.

Reducing the risk of damage within the property is equally important. High mounted shelving for valuables and wall mounted audio and television equipment can reduce the damage that occurs in the event of flooding. Moreover, replacing doors, windows, kitchen and bathroom furniture with water resistant equivalents and raising any electrical appliances and sockets can be a wise thing to do if you feel that your property might one day be at risk of flooding.

This list is not extensive, but care should be taken to make the property as resilient as possible to flooding in order to avoid and reduce damage to the building and content as well as the associated costs. When purchasing products, ensure that they are constructed in accordance with national quality standards. Furthermore, it is important to be up-to-date with the latest flood alerts to allow sufficient time to put the relevant temporary measures in place.

When the nation is subjected to a prolonged bout of heavy rain, there is always the risk that rivers will overflow, flooding residential areas. There is little we can do to prevent this, but we can prepare so that the impact is minimised.

This article was written by Sally Marsh, a landlord with a keen interest in landlord insurance.

Financial news: 12/19/2012

• TDA: Extended VIX futures point to higher volatility
• MN: UMd professor joins chorus on low '13 GDP 
• NYT: Homelessness on the rise for 18-24 yr olds
• CNBC: FTC investigating identity brokers for transparency
• BI: Government ill-equipped to handle a new recession
• AP: Support for bi-partisan  Fiscal Cliff deal "shaky at best"
• Bloomberg: Analysts think Apple, Inc. sales will fall short
• ZH: Federal data shows income inequality ↑ in D.C.
• CNN: Jim Cramer's "The Street" charged for securities fraud
• Fox Business: Stocks rallied on Tuesday due to "optimism"
• BBC: Toyota fined $17.4 mln after $50 mln in 2010
• Reuters: Japan mulling inflationary monetary policy

6 things your company needs to fix bad reviews

By Joshua Reynolds

A bad review on your business can be very damaging to your overall brand, especially if you don’t know how to properly fix it.

Some companies think that the best way to fix a bad review is to just ignore it altogether, but not responding to a negative review can be the most fatal mistake that companies make.

If you want to fix the bad reviews on your business, you’re going to need the following.

1. Claimed business pages

Visit all of the review sites that you can think of and make sure to claim your business page. By doing this, you will be able to not only edit the information that is shared on the sites about your business (plus add pictures and link to your website), but you will also be able to respond back to reviewers as your business. This is a great way to make the response seem more legitimate to your reviewers, and it can help you better alleviate any issues.

2. An apology

No matter what the reviewer is claiming, you need to make sure that you apologize for any wrongdoings of your business and for any poor experience they had with your company, products or services. By simply owning up to the unhappiness of your customer, you are showing them that you care about what they have to say and that you are willing to stand up to your mistakes.

3. A sincere tone

Some reviews are going to be so raunchy that they will make you wish you could cause harm to the reviewer, but it’s very important that you don’t let your emotions get the best of you. Instead, make sure that you are always using a very sincere tone every time you respond to a review. By being polite, you are making it harder for the reviewer to come back and continue attacking you. If you are sarcastic or rude in your response, you will only make the situation worse.

4. A way to make it better

A great way to fix a bad review is to have a way to make it right to the customer. Some companies prefer to give a discount to customers who left a bad review in order to get them to give their establishment another try. Some companies listen to the complaints of their customers and make the necessary changes to ensure that no other customer has the same unpleasant experience. You need to think about how your business will make the situations better, and then use this to right your bad reviews.

5. A manager

It has been found that a response that comes from a manager (or owner) is much more appreciated than a response that comes without a person’s name or title behind it or from a regular employee. If your response is coming from the username of the company, make sure that the manager writing the response shares their name with the reviewer. This will make the apology feel more personable.

6. Proof

Some bad reviews are fake, and most businesses don’t want fake negative reviews sitting on their page. If you believe that a review about your company was fake, then you will need to have proof of the fraud and give this to the review website. Most sites are willing to take down fake negative reviews as long as the fraud can be proved. Make sure to follow the guidelines given by each respective site if you plan on doing this.

Joshua Reynolds is a business manager and reviews tracker.  He enjoys blogging about anything related to business and recently gave advice for fixing bad reviews.

Financial news: 12/18/2012

• IP: Value is not implicit in downward price movements
• Bloomberg: S&P 500 expenditures to fall 1.3% in 2013
• Zero Hedge: History proves Fed GDP forecasts inaccurate
• NYT: M.S. bank fined $5 mln for securities law violation
• MW: Medium-term stock price growth to slow per Shiller P/E
• CNBC: Jobless rate to remain above 6.5% until 2015
• Fox: Higher unemployment a consequence of new jobs
• AP: GDP growth to be slow in 2013 per economists
• CNBC: Slow economic growth to persist per PIMCO CEO
• Reuters: Monday's stock prices rose heavily on "hope"
• BI: Purposeful junk to be a hot collector item in 2013
• CNN Money: Selling required to realize actual gains
• BBC: Japanese business sentiment has dropped heavily

How the economy and casinos are similar

 Image attribution: Mattbuck; CC BY-SA 3.0

Not all businesses are a perfect microcosm of the larger economy, but in the case of casinos there are some interesting similarities between the two. People are the key driver of commercial activity and are subject to how the economy is administered. If casinos are considered risky places to put money, and the economy has attributes that are the same as casinos, then is economics not like a game at a casino? And is participation in that game more like gambling? The following illustrates just how the economy and casinos are correlated.

Advantage

Casinos are known to have what is referred to as a “house advantage”. This essentially means no matter what the odds on a particular game, they are stacked in favor of the casino in one way or another. For example, the green “0” and “00” on a roulette wheel skew the odds on a red or black bet in favor of the house. To make matters more complicated for the game players, table limits and bet minimums make it more difficult to implement betting strategies such as the “martingale”. The economy also has a house advantage in the sense that owners, employees, government and institutions collectively administer and operate it to their advantage at the expense of less fortunate, or more giving participants.

Uncertainty

Another similarity between the economy and casinos is uncertainty. Both gambling in casinos and participation in the economy involve a certain amount of opportunity risk. Without this element of risk, less or no opportunity to gain wealth would exist, but with it, the potential for exploitation is evident. Both the economy and casinos incorporate varying levels of risk that aren't all that far apart. There are no guarantees in either the economy or at the casino. Those whose skill sets are not commercially viable, and those who are disadvantaged by traits, beliefs and practices that jeopardize their functionality within the corporate structure face higher economic uncertainty.

Manipulation

No one is forced to gamble just like no one is forced to partake in an economy. However, there are certain elements of manipulation that make it difficult not to do either. In a casino, the exits are not clearly marked, there are no clocks, and free drinks and other perks entice patrons to spend the money they have not lost yet. In the economy, the only exit for those who have no money is the street and the advantages of participation include survival, the potential for wealth and an opportunity for happiness. In both cases, it is not unreasonable to say participants are taken advantage of via manipulation of needs and wants.

Employment

Both casinos and the economy are operated by employers and employees. In order to involve oneself in either, an agreement of complicity and compliance is understated. These contracts between employer and employee grant employees access to the benefits of participation in the economy, and in accordance of the rules of the games, business and regulations. Employment is therefore a necessary factor in the successful operation of both an economy and casinos. Furthermore, employment laws that favor a macro-economic commercial viability are quantitatively good for the greater economy because they tend to enrich corporations and their owners, and not necessarily all employees and participants.

Commerce

Commerce is essential in our economy, it is the lifeblood and engine of public administration. Without an economy driven by commerce, the economy would be driven by something else. In ancient Egypt it was agriculture and the institution of the Pharaohs, in pre-constitutional Kingdoms it was the will and direction of royalty, and in modern day, commerce serves the same purpose. Casinos are also highly commercial entities, they are fueled by the inflow of their customers' money, without which they would lose profitability and potentially face bankruptcy. Simply put, both the economy and casinos rely on the principles of commerce to operate either functionally or dysfunctionally.

Financial news: 12/17/2012

• MW: Downside risk "meaningfully probable" per Roubini
• NYT: DOL rule offers hope to holders of frozen 401(k)s
• Reuters: Major entitlement cuts unacceptable to President
• Business Insider: Toyota Corolla ranked #1 for cheap repairs
• CNBC: S&P 500 Index fall to 1200 possible in short-run
• Option Queen: Dollar signals ↓, market uncertainty ↑
• Fortune: Higher U.S. debt limit risks credit rating & inflation
• Fox : Oil price up on high Chinese manufacturing growth
• WP: Austerity has pushed Britain off its own fiscal cliff
• BBC: France to maintain AAA credit rating per Fitch
• AP: Accounts frozen for investors in Spanish banks
• ZH: Eurozone auction & meeting results are key indicators
• Bloomberg: China favors sustainable rather faster growth

Five top financial scams: Don't be victimized

By Jaye Ryan

The winter holidays are perennially targeted time frames for last-minute tax scams. The IRS annually issues a top scam list, and 2012 was no exception. Avoid the late problems that can lead to fines, penalties, interest and even potentially jail terms by being on the look-out for the top five tax scams both now and in the new year.

Scam #1: Identity theft

Identity theft can stem from many sources and methods, but in November, December and January, the most common tool is email: Don't believe any email allegedly from any source that requests your personal information for gifts, inheritances, tax fund shifts or 'verification' for any reason. No legitimate business will ask for this via email. No government agency, here  or abroad, will send you a bona fide request for personal information via email.

Many scammers program email addresses to reflect a government agency, a law firm or a bank. Do not believe it, whether the request is in the body of a text or a “form” as an attachment.

Do not click on unknown links included in emails. Even if the address of the sender is known, scammers highjack contact emails and send you fake information to get you to click something supposedly by friends.

Scam #2: Phishing

 

Most often pertaining to viruses and fake websites, no bank or legitimate online entity will request you sign into an online payment site or your online bank account to 'verify' anything. Avoid links included in these emails, for your account user names and passwords can be stolen in addition to your personal information, as noted above. The Internal Revenue Service will never ask for personal information by email.

Scam #3: Tax preparer fraud

 

Watch for offers to reduce your taxes for a fee. Run from those that offer to hide income or that promise you a return of $0 income. Both types are probably fraudulent and want to either steal your identity or defraud you of your money.

If you do use a tax preparation service, obtain and verify the Preparer Tax Identification Number. The IRS can verify it telephonically: Don't take the word of the new preparer.

Scam #4: Offshore income blinds

Do not fall for the offer to hide your income offshore, whether for a fee or a percentage of assets. Not only will the IRS track transfers but you could also land in jail for this illegal attempt to dodge taxes.

Scam #5: Promises of free money

On the rise in 2012 are email claims that either the IRS or Social Security has money waiting for you to claim. They don't. Instead, this is often a money-laundering scheme, just as the blind inheritance from overseas scam is.

Along this line, fee-based 'help' with Social Security claims is also escalating. While there are legitimate firms that can help, scammers aren't registered with the state. For a fee, paid first, you get 'assistance' with completing forms and gaining benefits. Unfortunately, the only true part of this scam is that you pay money. The claims, if file, are never successful, whether initial or an appeal.

Additional scams are listed on the IRS website. Don't be a victim to any of them. Protect your finances.

Written by Jaye Ryan, a freelance author who loves writing about avoiding financial scams.

* All images: US-PDGov