The Level Of Risk In The Basic Investment Method

By Maria Reyes

How to find a good accountant: The best way is to have someone introduce you. Continue to attend business events and ask successful entrepreneurs with similar types and sizes of businesses to yours how they use accounting. Or alternatively, ask for referrals from business support organizations, bank managers or lawyers.

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• Language: English
• Publisher: Maria Reyes
• Release date: Feb 1, 2024
• ISBN: 9798869209184

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The Level Of Risk In The Basic Investment Method

The Level Of Risk In The Basic Investment Method

Copyright © 2023 by Maria Reyes

All rights reserved

TABLE OF CONTENTS

CHAPTER 1 : CHECK THE BALANCE SHEET

CHAPTER 2 : THE TRUSTEE AND THE EXECUTIVE

CHAPTER 3 : INVESTMENT PROCESS OF TECHNICAL INVESTORS

CHAPTER 4 : INCREASING THE NUMBER OF PUBLIC

CHAPTER 5 : IN THE FALL

CHAPTER 1 : CHECK THE BALANCE SHEET

You will have to look at all monthly balance sheets and check whether the actual income and expenses are as shown in the accounting books. This is very important because it helps you find errors in bookkeeping.

Every check you write or payment you make needs to be accounted for. If there are any payments from your account without a receipt, you need to make a note in your accounting books.

Cash on hand

Recording cash receipts and expenditures makes your books very cumbersome. It's hard to keep track, and you'll find that the money is gradually decreasing in your pocket without much showing in your account. Tax inspectors are often very wary of this. They know what types of businesses typically use cash as well as what types of purchases typically use cash. Therefore, they will examine accounting books extremely rigorously to look for evidence of this activity.

One solution is to use a credit card to pay your business expenses.

Another option is a cash safe. You can use cash to pay for small purchases as long as you keep clear records of your income and expenses. However, if there were only 50 cents left in the safe, it would be like the Spanish Inquisitionfirstin the office like that.

Hire an accountant

A good accountant will save you more money than their salary. This depends on finding a good accountant, but perhaps more importantly, you need to use the right accountant.

Here are tips for using an accountant effectively:

Don't let your accountant do all the day-to-day bookkeeping for you.

Don't accumulate hundreds of small bills at the end of the year in a shoebox under the bed. An accountant can get the job done but it won't match 100%, and that's also very expensive.

Don't let an accountant write your business plan for you. You are the owner and you must understand everything in that plan. If necessary, you can seek their help with some complex financial matters, but this must be your plan.

Don't try to do everything and get all your taxes, expenses, depreciation, etc. done by the end of the year. You can do this but you probably won't do it right. And one more thing, this life is short but beautiful.

Don't just ask them when it's too late. Take advantage of their knowledge right from the start to get advice on how your business is legal, when you should calculate your annual taxes, what expenses you should account for, and many other similar questions.

It would be much better if you kept a simple, careful accounting book and gave it to your accountant at the end of the year so they could combine their accounting talents with these numbers.

How to find a good accountant: The best way is to have someone introduce you. Continue to attend business events and ask successful entrepreneurs with similar types and sizes of businesses to yours how they use accounting. Or alternatively, ask for referrals from business support organizations, bank managers or lawyers.

Given what happened to Enron Corporation, your accountant doesn't need to be interesting and engaging.

CHAPTER 21

Tax

This is quite a complicated problem because:

That's the reality of life. Some people are pressured by tax evasion to the point that it affects the development of their business.

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Don't let taxes hinder your business.

Taxes do not bring success.

As soon as I wrote this, it started to go out of date.

There is a loophole in taxation – cars have not been taxed according to their age, engine capacity (and distance traveled) since April 2002. Now, cars are taxed according to the amount of CO2 emitted and it is not the same as engine life/displacement. (David)

It's important to understand future tax policies, even if you have an accountant who specializes in writing tax returns. Don't worry too much and relax before learning about it.

This chapter does not provide guidance on tax regulations. It's just wise tips and specific advice.

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In Vietnam, the General Department of Taxation under the Ministry of Finance is the agency that performs the management function of domestic revenues, including: taxes, fees, charges and other state budget revenues (collectively is tax); Organize and implement tax management according to the provisions of law (lower levels are the Tax Department and Tax Sub-Department). Those who are new to business can learn about tax issues on the website www.gdt.gov.vn, section Tax answers or call (043)9.724.204/9.724.209

Income Tax

Things you need to keep in mind when starting a business:

Business form: You need to make a choice about the type of business you will do. Just like other considerations, taxes should always be on your mind.

If you are a sole trader, you will be taxed as an individual – all your trading profits are taxed in the same way as direct wages.

With the form of a limited liability company, your business will be an independent legal entity. You will be taxed less on your extra profits than a sole trader. You can also get paid in dividends at a lower tax rate. However, as an employee in a company, you will also be taxed on personal income. For this reason, some entrepreneurs pay themselves very low salaries and instead make regular dividend payments (as long as their business is profitable).

Switch from employee to startup: There are many factors to consider when you move from being a salaried employee to someone starting a business.

If you lose money in your first year of business, you can claim a refund of the taxes you paid during your years as an employee.

You should also check whether you are eligible for government tax credits.

Cashflow and taxes: An unplanned and unexpected tax bill can bring a small business to its knees. If you're in the UK, you don't want the Revenue and Taxation Office chasing you for payment, because they have great power. But there's no use complaining – it's the business's fault for not anticipating that bill.

A rule that is difficult to follow if you have just been taxed on personal income. Get into the habit of saving money all year long so you can pay your tax bill. You can also pay taxes multiple times a year.

What you can and cannot ask for: Ask your accountant for specific advice. Here are some rules of thumb:

You can request:

Some expenses if you work from home (if there is a other expenses section)

Business gifts (limited), other than food and beverages

Travel expenses (for example, meals when you travel for work)

Related books, newspapers, magazines • Employee entertainment (limited)

Expenses for hiring your spouse (if you can prove they actually do and you pay them on a current contract)

Expenses that cannot be claimed:

• Your personal income and personal expenses

• Entertainment and dining with customers

• Commute to your job

• Clothes

• Parking tickets and fines

I know some people who have turned claiming tax refunds into an art. A person recorded the purchase of a luxury home music system in the business ledger as equipment to show training DVDs to employees. Another realized that a product demonstration only took place during the holidays and in a warm country, so he combined the trip with an investigation of the actual business situation.

My basic challenge was how to claim first class airfare as a ‘necessary business expense’. (Claire, jewelry designer)

I love Claire's style! If you want a chance to improve, you can apply for an airline loyalty card. However, before you attempt other direct methods, I recommend reading the tax evasion section at the end of the chapter.

Business secret: Request a tax refund

Remember, the official phrase is all and exclusively for business. Therefore, if you go on a trip to meet friends and do some business there, it may be difficult for you to claim payment for everything here.

Equipment: If you purchase equipment for your business, you cannot claim the full cost of the equipment in the first year. Instead, you can claim tax relief in the form of capital allowances.

The first car your company gives you may not be better than you anticipated

Cars and taxes: This is one of the most complicated parts of taxes. Basically, the government doesn't like fat people gliding around the city in German cars, making noise for neighbors and polluting the environment.

If your business gives you a car, you will find taxes a real hassle. It would be simpler if you kept the car personal, paying all repair and insurance costs. You can then calculate the distance traveled to conduct business at a rate of 45 cents per mile. And after a year, this income will pay for your car.

Business secret: Stay away from shiny cars

You don't need to buy flashy cars to impress customers:

Customers almost never see it. Remember:

I often drive a beat-up old Renault that a friend calls a clown car. After one meeting, the client followed me to the parking lot. I panicked and said goodbye, walked past the car, and ducked around the corner until the other person returned to the office. Then I jumped out and quickly drove away.

It will make customers feel jealous and worry if they are paying you too much.

A great advertising agency mission statement is: Macs not Mercs.

Tax

If your annual sales exceed a specified limit, you will have to register for VAT.

In Vietnam, VAT payers are organizations and individuals that produce and trade goods and services subject to VAT in Vietnam, regardless of industry, form, or business organization ( collectively referred to as business establishments) and other organizations and individuals that import goods or purchase services from foreign countries subject to VAT (collectively referred to as importers).

VAT is value added tax at each stage of production. From exploiting raw materials to finished products until they reach customers. This amount will be calculated gradually until the last person holding the product must pay. This is quite a wise government policy, as you will essentially be a tax collector for the government.

The main problem with VAT is paperwork and administration, but the government is doing everything to simplify this issue.

VAT rates:

• Tax rate 0%

• Tax rate 5%

• Tax rate 10%

• Goods and services are not subject to VAT

In Vietnamfirst, tax-exempt items include exported goods and services, including exported processed goods; Construction and installation activities of projects abroad and projects of export processing enterprises; goods sold to duty-free shops; Goods and services not subject to export VAT (except international transportation; goods and services directly provided for international transportation; travel and tourism services abroad; postal and telecommunications services) information transferred from abroad to Vietnam; credit services, financial investment, stock investment abroad...).

Non-taxable items are items that the government decides are good for us. Include:

Cultivation products (including planted forest products), livestock, aquaculture, farmed and caught seafood that have not been processed into other products