A company cannot rely on her employees only to perform all the tasks in the company. Some services should be outsourced to the management. The shareholders employ the management. There exists an agency agreement between the administration and the shareholders. In the agreement, the management is expected to act on behalf of the shareholders to maximize the productivity of the company.
One of the strategies that prominent companies employ is to outsource some services that are best handled by an external firm and instruct the employees of the company to concentrate the daily and routine tasks of the corporations.
Tax avoidance is reducing a company tax liabilities by the legal means. It is taking advantage of the niches and incentives given by the government to reduce that tax liability legally. Who can a company reduce its tax liability? There are some ways that a company can reduce the amount of tax that should be paid. A tax company comes to design and implement a tax policy.
First, the company can contribute to a charitable organization. Donations to a charitable organization are not taxed. The company can take advantage of this and contribute to such schemes. Secondly, the company can finance some of her operation using debt capital. Income arising from equity capital is taxed. Loan interests are not taxed. A company can take advantage of this and finance some of its operation from debt capital. The tax consultants should develop a borrowing plan that maximizes this benefits.
An audit function is an accounting function that seeks to form an option whether the value of the balance sheet and the operation statement reflects the accurate and fair value of the company. It is the responsibility of the management to prepare financial statements of the company. Financial statements are prepared on a daily basis. They should be open for every shareholder to inspect. The administration should be honest in preparing this statements.
However, in case of management colludes with the bookkeepers to change the figures of the financial statements, no one can notice such a mistake. The audit function comes as a solution to this. The audit function checks the balances and the figure of the financial statements and forms an option that whatever the reports say about the company, it reflects the true and fair value of the company.
Bookkeeping services and filling
Bookkeeping is a sole function of the management. The books of accounts should be recorded and maintained by the management. However, the management is free to outsource the service whenever they feel like. Why should the administration outsource the bookkeeping services? The management could outsource the bookkeeping exercise if it were cheaper than hiring permanent staffs. The management can also outsource if the volume of transactions are large and therefore requires a large professional organization to record and keep the books.
There are many reasons which may necessitate you to take a loan. To start a business, buy a home, or cater for personal financial needs are just a few examples of the reasons. Whatever the case, you should put a variety of factors into consideration to ensure that you get a good deal. Some of the top considerations are highlighted below.
Top factors to consider
The first thing to consider should be where you will apply for the loan. There are many different financial institutions which may offer you a loan. You should choose on which is most likely to grant you the loan. You should also check the terms and conditions from the various lenders and choose the financial institution that offers the best terms. Among the important things to check is the interest rate. The lower the interest charged on loan, the less money you will end up paying. Be on the lookout for hidden fees such as origination fees, processing fees, administration fees, and appraisal fees among many others.
There are many types of loans available. Your reasons for taking the loan will greatly influence the type of loan that you should opt for. Personal loans are the most common ones. You can get either the secured or the unsecured loans. For the secured, you will need to provide the lender with some form of collateral. The unsecured loans are a popular option for many, especially for the smålån. Other types of loans include student loans, business loans, mortgages, auto loans, and equity loans among others.
Your financial situation will help you determine the amount of loan that you should apply for. You should compare your income against all your expenses to figure out the amount that you can afford to use each month as loan repayment. Getting a loan that is more than what you can afford to repay may bring you problems in the near future. For secured loans, you might lose your collateral in addition to lowering your credit score. The reason for taking the loan may also influence the amount that you will apply for.
You should also consider putting a down payment on the loan. The down payment will help to reduce the total amount that you will have to pay for the loan. There are even some lenders who will require a minimum specified percentage of the loan amount as down payment.