Success And Money

Death And Taxes

To put in another way, why is it that rich people are given all the tax privileges and other perks?   Why not you – an ordinary employee? Or what about those belonging to the middle class or maybe the poor sectors? Why? The answer is simple!  It is all because the government wants you to join the rich. Be rich and enjoy these bonuses.

To explain this point further. Our country’s economy badly needs investors. Have you noticed that the president and his economic team are always seeking investors both domestic and abroad? It is because there are only a few big businessmen and investors operating in the country. And we sorely need more.

The role of the government is to be concerned with the economy. We all know that without businesses, there will be no jobs. Jobs generate the consumer purchasing power and the wheel of commerce roll on. Businesses inject much needed value to the economy in general and to the people in particular.

Based on decades of experience, the government lacks the entrepreneurial spirit to directly run profitable businesses. Any state interference on the business sector always results into disaster. The government is not meant to do business. And I think a capitalist economy recognizes this very important fact.

On the other hand, most rich businessmen are not comfortable with the government. It’s because the system of government (with the famous bureaucratic red tape) and business (known for fast and swift actions) is exactly opposite. You will notice how they are very different when it comes to rewards and compensation. While businesses directly reward performance and results, the government is based connections and political patronage. Therefore, the government doesn’t know anything about money.

Clearly, the tax message to you is be a businessman and invest money to the economy. The government gives top tax perks to people who invest. It means that the government is discouraging you to remain as an ordinary employee and so they do it by passing to you the burden of taxes. Think of it this way: the government wants you to be part of the solution through job creation, thereby creating a strong and robust economy.

Start with your financial IQ if you really want to contribute to the progress of the country. And please stop blaming the government for your little financial mess. It is given fact that the government doesn’t know anything about money. The need for financial protection against mismanagement is part of educating yourself on money matters.

It is not entirely the government’s fault that they do not know anything about managing money. We have same education and orientation as they are and our education failed to inculcate to us true money literacy. At the end, it is your own responsibility to look after your financial condition.

We Mean Business

As any business owner knows, accounting has various tasks and functions. Aside from these popular tasks, like the presentation of the company’s financial standing or the needed preparation of the balance sheet, the fundamentals of accounting and its practice typically take place in the backdrop. It can handle the accounts significantly better superficially. The future looks bright for accounting as we are looking forward for more advancement. Take advantage of this potential!

When one speaks of the accounts with a future, one must first deal with the situation. The prevailing practice in small and medium-sized enterprises  as far as accounting process is concerned is as follows:

1. The paper documents are collected and organized.

2. The storage system is suited best to the operation and optimized.

3. The storage is usually spherical in folders that are placed on monthly or quarterly basis.

4. The tax is posted on supporting documents and copies of the relevant annual documents.

5. The tax created by accounting software together with necessary evaluations and sends it electronically to the finance department.

6. The documents were usually gathered after a short time and then re-arranged for the next operation and archived.

This system occurred over a longer time and it is even proven disadvantageous.  Here are the disadvantages from the perspective of the business:

• The transfer of the documents to the tax consultant is timely and costly.
• The company can not rely on the documents during the accounting process.
• Unpaid bills are often retained in the company, so that the process is not disrupted by control / payment.
• Two classification systems must be built — which in turn generates costs.
• The lack of coordination and a duplication of information.

Due to lack of documentation, therefore, the information value of accounts and the validity of the analysis suffer, and the time pressure on both sides could be regularly unpleasant.

The future or modern form of accounting attempts to correct these disadvantages. What could be the looks of accounting of the future? Let’s take a look at the following scenarios:

First, the tax office receives the documents from the clients not only after the end of the month in paper form, but already in digital form and timely manner, for example, weekly or even daily. These faxes or scans the documents to the business owners set up only for him. At best, the documents are scanned, since the quality of the digital document is better and also because the document search can be easier.

Second, the submitted documents are digitalized in the data center and are available to the tax department and must be running immediately for editing and viewing availability.
Depending on the agreement with the client, the documents are recorded promptly.

Third, the bank statement on the “statement of account” is delivered on a timely fashion. Therefore, the company’s entered data is done so much earlier and could be accessed by the tax office anytime.

Fourth, a form of division of labor is created between law firm and the corporate day for easy evaluations and decision making.

In many cases, the billing interfaces, from inventory management programs or programs of cash can be used. Insofar as digital documents in the operation are available or made available by the suppliers, they can be transmitted and processed.

What are the main advantages of this “accounting for the future”? The main advantages are:

• Cutting-edge data and reports.
• Data access and equal data base for business and tax consultants.
• High quality reviews and evaluations.
• Documents are always available during operation.
• Only one paper filing system.
• The result is a good document management system for accounting records.
• The scanned documents are available for quick search.
• Linkage the document with the posting record.

This form of keeping the company’s accounting records makes it available 24 hours a day anytime of the week. Therefore, a division of labor works in all possible variants.  The various applications interact, to ensure consistent processes are different and combined to support the individual form of cooperation between law firm and client. Both the payment and reminders can be handled online. It is even advisable to do this to avoid duplication of work. The system is already using all available data and only additional data such as maturities and interest rates are reported for the reminders.

Controlling the report with its easy and fast functions can be done using modern accounting techniques. Your relationship with the clients and suppliers are greatly enhanced. In fact, modern accounting techniques are in position to guide your business and improve your credit rating with the banks.

Join with us to the way of  the digital document accounting.

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