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Corporate Finance Tools

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Though the act was passed in 2017, the Trump Tax Cuts Act is still a hot topic in the world of finance because of the changes it introduces. There are still seven income brackets but tax rates are lower in general. What this implies for small businesses are certain drawbacks and certain benefits.

Small business owners are generally seeing larger returns, but there is no real clarity on how to classify the various types of small businesses including S-corporations, sole proprietorships, partnerships and so forth land. Businesses and their accountants are trying hard to understand if their respective business qualifies to gain from this 20% tax break. IRS worked through most of 2018 and early 2019 to help define more clearly which businesses and industries would be able to benefit from this change in policy.

So what’s the big deal?

It is a win for small businesses however, to be able to retain profits and increase returns, often suffering from losses in the form of deductions. Rules now are more stringent when trying to determine who can make what and how far they’re qualified to benefit from these changes.

For instance, the ability to take the deduction changes depending on the filer’s marital status, with single filers being disqualified at certain amounts, and married filers at another. If their income in certain fields exceeds a set limit, they’re moved up to a higher tax bracket and thus owe greater taxes. For Specified Service Trade or Businesses (SSTB) the rules vary slightly in their inability to take the deduction if their income goes over $207,500 as single filers and $415,000 as married filers.

It’s what makes the already confusing phenomenon of taxation even more confusing as people try to understand how they can run their businesses and remain taxpayers.

To know more about how taxation works, you can get in touch with me at moneycashvalue.com.

Statistics have shown less than 64% of small businesses have a website. This is because 35% of small business owners feel that their operations are too small to warrant websites. But is this true?

Owning a website has the potential to grow your business by a wide margin. 80% of internet users are shopping for the goods they need online. This means that you might reach people who are not just within the neighborhood you operate in.

Sometimes, your customers will order products from different states. This will help your business grow even faster than marketing yourself through traditional methods.

However, creating a website is not always a simple task. It can be time consuming and exhausting. That is why you might want to consider buying one.

Before you buy a website, there are a few things you need to be aware of. This will help you avoid costly mistakes that will derail your business.

1. Buy a Website That Is Established

You may be spending a great deal of money when making your purchases. Therefore, when you buy one, you need to make sure that it will start making money for you right away.

If it is already providing you with revenue at purchase, that is a great sign. Find an excellent website that is user-friendly and easy to navigate.

The ideal person to buy from is an individual who created a successful blog, but they have no time to maintain it and keep posting new articles.

This may be because they have an offline job or are working on yet another website in another niche.

2. The Niche

A huge mistake that people make is buying websites based on niches they do not understand. For one, you will not enjoy the process of finding and posting content you are unfamiliar and uninterested in.

Of course, you can buy one and hire someone to maintain it. Or, you can do the maintenance yourself but hire writers to come up with the content for you.

However, if you are passionate about the niche, there are higher chances that you will make more money because you will know the trends to look out for. Remember that running the website is much more than just posting content.

If you are buying a website for your business, you have to make sure that it is in the same niche. How will you post products on skin care in a website that attracts users from the construction and renovation industries?

3. You May Want To Purchase a Competitor

This is if you need to buy more than one website. Today, we have seen more prominent companies purchase the sites and social media pages of competitor companies.

The trick here is to ensure that the competitor is actually a significant threat. But do not start posting your products on this site because it might confuse customers and you will end up losing them.

4. Can It Be A Sister Website?

If you already own a website, you might still need to buy one that will be a sister website to your own. For instance, if you are in the skin care industry, you may want to buy a website that reviews the best products and applicators.

Not only is this a great addition, but it is also a great blogging strategy. Cross promoting your website can increase your customer base and tighten your brand name. You have to be careful so that you make the right choice.

5. Will It Add Some SEO Value?

Other than looking at the domain, you need to find out whether the website has some linkable content. This may not always be a legitimate SEO practice, but it certainly gets you more customers.

You need to consider whether the site already has SEO value that you can step into and get the rankings your business need, or if you can use it as a backlink to your current website.

Even if these rankings are not necessarily making you any money, they are essential. If you have specific knowledge, ranking for quality keywords can return significant profits to your business.

You also need to pull up the history and check why the person is abandoning the site. In some cases, they may have built-in URLs with spammy content and are getting penalized.

If the SEO and linking are not good, you may have to pass on that offer because it may take a lot of work to get it back up.

You also want to avoid sites that aren’t fully-fine-tuned because these have less potential for growth. You will also see that their annual and monthly ratings are not as high. So look for one where you can start reaping benefits immediately in either traffic generation or conversion optimization.

6. Know Who Is Selling

This digital era is a dangerous one. Some people will hack into website backends and claim that the sites are theirs.

They will then sell you these websites. Once the original owner gets back their control, and they almost always do, you will end up losing your money.

There are tools that you can use like Domain History, to know the ownership history and how it has changed in the past. If you notice any strange patterns, forget about buying it. These details will also come in handy after you buy.

7. Check the Details of Expenses and Revenue

This is a critical aspect to look at. Sometimes it will be simple while other times it will be complicated. But, you can always consult your business advisor or accountant to make sure that you do not miss anything critical.

Basically, you have to make sure that it is earning revenue, that the revenue is consistent, the details are real, and that it is sustainable in the long term.

Getting Started 

Never buy a website with poorly researched content or bad English unless you have the time and money to hire a professional editor.  Ensure you do your research thoroughly before making the final decision to avoid losing money.

If you need more tips on the right areas to invest your money, visit our website.

If you’re interested in taking your business to the next level or shoring up some areas of liability, getting a reasonable loan can be useful.

To this end, it’s vital that you learn the ins and outs of applying for a business loan so that you can avoid the common mistakes that trip up a lot of companies.

The points in this article will help you avoid those mistakes so that your application goes through with flying colors.

1. Biting Off More Than You Can Chew

Part of corporate finance is knowing how much money you can spend in any given area. You fail to do your due diligence in this regard if you’re taking on loans that are too expensive for you to reasonably pay back.

It can seem like all is right with the world once the loan deposit hits your bank account, but you’ll be in a rude awakening when it’s time to settle the account if you aren’t careful.

Always run some serious analytics on how much you can afford so that you can avoid this problem.

2. Failing to Get a Credit Report

Your company’s credit is its bread and butter when it comes to seeking lending.

However, you can’t get optimum lending if you don’t even know where you stand. Pull the report and make sure that your score glows before you reach out to lenders.

While you can still get lending with suboptimal credit, the terms will often be too debilitating to come back from.

3. Doing Business with Shady Lenders

You should also do deep and thorough research into any company that you accept a loan from.

Ensure that they don’t have litigation related to unethical and illegal practices, and also research their Better Business Bureau rating. Taking the time to do this will help you make the best decisions when it comes to your finances.

4. Not Fully Understanding Interest Rates, Terms, and Fees

When applying for a loan, you need to be especially mindful of the interest rates, terms, and fees.

There are many loans where the interest rate escalates over a certain period of time or fees are subject to change at the lender’s discretion. A lot of companies become ignorant of these sorts of things because they fail to fully go over the terms.

Not only should you go over them, but also pass them along to your lawyer and accountant for further review.

5. Failing to Make Your Accounts Look Favorable

You run the risk of making your company look cash poor if you don’t regularly make deposits into your accounts. Likewise, if you routinely deal with NSF returns, this can be enough to make lenders steer clear.

Give yourself 6 months to a year to make your accounts look as healthy and favorable as possible before applying for any loan.

Consider These Business Loan Mistakes

These are the matters that come into play when it comes to getting a business loan. If you can avoid these mistakes, you’ll have a much better time getting the lending that you are seeking.

For more financial information, stay tuned to our posts.

Financial experts help to make complex matters simple, which is why you need them on your side.

In this regard, financial modeling is one of the most worthwhile services you can take advantage of. This matters might be perplexing if you aren’t familiar, but embracing this information can improve your business to the fullest.

Start with these tips to make the most out of financial modeling.

Ever wondered who makes the decisions in the hundreds of businesses and companies we see all around us? You’re not alone. There’s a lot of complexity in understanding how businesses function and how they run.

Sometimes the owner or proprietor of a business isn’t the only person who’s responsible for making all the financial decisions of a business, especially for larger corporations and organizations. This is simply by virtue of the common practice of having multiple owners through equity funding. When there are so many stakeholders, it’s not as straightforward as a single person calling all the shots.

Financial management is the management, planning and control of financial resources in an organization. It’s concerned with handling all major planning and recommendation for the sort of funds and capital a company requires, keeping track of foreign exchange, distribution of dividends and efficient management of money. The goal is to eventually make the company more valuable to shareholders.

Leveraged finance is the decision to acquire debt that is more than average or normal rates in hopes of greater return on investment and profits. It’s done to purchase investment assets, under the assumption that those assets will go up in value.

It’s a useful way of maintaining ownership of the company, repurchasing shares, working towards a buyout or invest in a self-sustaining cash-generating asset. However, it is often risky because of the effects it has on a company’s operations and finances.

If you’re interested in getting the most from your financial career, or if you just want to know more about the field as a whole, you’ll need to understand the roles of the major players.

Two job roles are among the most prominent — investment bankers and corporate finance professionals.

To this end, there are some key distinctions that separate the two.

Read more to learn more about investment banking vs corporate finance.

1. Investment Banking Is More About Raising Money and Securing the Future

Rather than manage the money that a company already has, investment bankers thrive by coming up with the capital that grows the company.

They do this by understanding the market and the best ways to grow capital. These professionals have their hand in things like private placements.

A major area in which investment bankers are key is in overseeing mergers and acquisitions. If you’ve ever paid attention to the market, you know that once companies reach a certain size and scale, there typically comes a point by which they either merge with another company or acquire smaller ones.

This can be a smart way to expand as much as a key strategy to survive the competition. During these mergers and acquisitions, investment bankers represent the buyer or seller and introduce new securities as a measure to finance the move.

2. Corporate Finance Manages a Company’s Day to Day Monetary Operations

When you think about the professionals that handle the day to day operations of the company, you’re thinking about corporate finance.

They understand economics and typically handle matters of accounting and analytics. These professionals can help you figure out where you need to cut money and which aspects of the business could use more allocations.

You’ll lean on corporate finance when it comes time to put together the budget, and will need a professional that is a great communicator and able to put together reports and spreadsheets that break things down into layman’s terms.

3. The Career Tracks Are a Bit Different

In terms of career choices, these two tracks are worlds apart.

For one, jobs in corporate finance are more varied and plentiful. You can become a certified public accountant (CPA) in any number of fields, or can take on the role of account manager or advisor.

With investment banking, the jobs are more specified, and you will generally need to secure an MBA to thrive in the field.

Understand the Differences Between Investment Banking vs Corporate Finance

When you’re trying to understand the differences between investment banking vs corporate finance, these points will come in handy.

As you look into these different financial careers, you’ll see that while they handle money, the role that they play in companies is completely different. This is info that will be useful to you whether you’re trying to choose a career or would just like to understand more about the industry.

When you want to learn about everything from corporate finance to hiring a brokerage firm, check out the rest of our content!