TOM PULLAR-STRECKER for Veooz.com writes: Xero shares have opened lower on the NZX today following a further drop
in high-growth technology stocks on the Nasdaq exchange on Friday. The
cloud-accounting company opened on the NZX at $30.20, down 3.7 per cent.
The Nasdaq index closed down 1.34 per cent on Friday, dipping below
4000 points and thereby giving up all the gains the index had made since
late November.
Sunday, April 13, 2014
The Top 5 Business Intelligence Metrics For Finance
Jeremiah Johnson for KPI Partners writes: The health of a business' finances is the strongest determinant of whether the company is thriving or in dire straits. It is for this reason that paying close attention to key finance metrics is an absolute necessity. If business leaders are consistently implementing these metrics and they discover that their business' finances are off track, then they can make adjustments before it is too late do do anything.
In order for the utilization of finance metrics to be successful, one must track the right ones. However, the number of finance metrics that can be tracked often seems overwhelming. In order to help business leaders make the right decision in this regard, this article lists and explains the Top 5 Business Intelligence metrics for finance.
5: Current Ratio
In short, the current ratio is a company's ability to pay their long-term financial obligations over the course of a year. It calculates this by comparing the business' current assets with its current liabilities.
This ratio is an excellent way to determine the solvency of the organization, as well as the productivity of its assets. If the current ratio is less than one, then there should be some concern about the company's ability to pay its bills; if the ratio is much larger than one, then it is likely that otherwise useful current assets are idling, instead of fueling the growth of the business.
4: Accounts Receivable Turnover Rate
Within closed sales lies the heart of a business' success. However, maintaining a set of accounts receivable is often a business necessity. While these accounts are current assets, they are not yet cash, so it is important for the company to have those accounts paid in full ASAP. Converting them to cash allow the company to invest in more growth opportunities.
By using the accounts receivable turnover rate metric, one can assess how quickly the company is collecting its debts; if the collection is not moving fast enough to match their cash needs, one should adjust accordingly.
3: Working Capital
A company's ability to immediately act on a business opportunity is usually the difference between them and their competitors capitalizing on it. The working capital metric is a great way to assess this, as a large amount of working capital demonstrates liquidity, and more importantly, a company's ability to take action when needed.
This ratio is calculated by subtracting current liabilities from current assets; the resultant monetary value should be weighed against any actions that the company is considering taking to see if they can afford them.
2: Debt to Equity Ratio
Taking in shareholder investments is a great way for a company to increase their growth. However, these investments are debts, and as such, should not be taken lightly. It is important that a company's profits and growth outstrip the size of its shareholder investments.
The debt to equity ratio is a great way to ensure this, because it directly measures a company's growth against its shareholder investments. Updating and managing this ratio is a great way for business leaders to keep their company from overreaching.
1: Net Profit Margin
At the end of the day, the company's bottom line is what will determine their level of success.
The net profit margin is the best tool to determine this, as it combines several finance metrics to inform the company's leadership team of how much money they are actually making.
Summary
Overseeing a company's business intelligence metrics for finance is invaluable for assessing its level of growth. The five finance metrics listed above should be at the core of every organization's finance metric system.
4 Best Tax Programs You Don’t Know About
Elyssa Kirkham for GoBankingRates.com writes: Americans are living more and more of their lives online. If we shop, read, work, date and bank online — why not file taxes online too? Filing your own taxes might seem intimidating, but tax-filing software has taken much of the guesswork out of the process.
The convenience and ease of electronic filing, or e-filing, means more taxpayers choose this method each year. During the 2013 tax season, the IRS reported that almost 83 percent of all tax returns were e-filed. In all, 45.2 million tax returns were personally efiled by taxpayers, rather than by professionals.The best news is that e-filing can also be the cheapest option for filing a tax return — especially when compared to the average cost of paying a professional tax preparer’s fee of $261, according to a survey from the National Society of Accountants.
4 Cheap Tax Programs to File Your Taxes for Less Than $50
Intuit’s TurboTax is the ubiquitous choice for preparing taxes, popular for being one of the earliest and easiest-to-use tax return programs. TurboTax is called the “market leader in this niche” of self-prepared tax return software by The New York Times — but its prices are far from the best.The “deluxe” version of TurboTax, which includes both federal and state tax returns and standard options for mortgage and claiming dependents, is priced at $70. This isn’t a one-time cost, however; users must pay that fee each year to use the latest, updated version of the software.
Tax season is the last time taxpayers should have to shell out cash; so, to help readers save money, GOBankingRates has rounded up four tax programs that are cheaper alternatives to TurboTax.
1. TaxACT
- Great for: Taxpayers looking for the cheapest overall option.
- Cost: For both federal and state returns, TaxACT offers in-browser versions from $14.99 to $24.99, as well as downloadable PC program for $21.99 and $28.99. TaxACT also has a free federal-only tax return app for mobile devices.
TaxACT’s program includes a number of extra tools for users –great for those who really want to understand how each part of their return affects their overall refund or amount owed. The added information can also slow down users, however, and filing with TaxACT might take a bit longer than with other programs.
2. efile.com
- Great for: Taxpayers filing state returns for more than one state.
- Cost: State returns are a flat fee of $19.95, regardless of how many need to be filed. Federal filing options include a free basic option, $29.95 for deluxe and a $39.95 premium version.
Efile.com offers savings to taxpayers who need to file more than one state return by charging a base rate for unlimited state returns.
3. eSmart Tax
- Great for: Taxpayers who want to spend as little time as possible on their returns.
- Cost: Free simple version, $29.95 for deluxe and $49.95 for premium. State returns are an additional $29.95.
According to Reviews.com, eSmart Tax’s deduction discovery section is lacking — this might be a program for taxpayers who already have a clear idea of which deductions they plan to claim. But this just underlines eSmart Tax’s position as the choice for filers who don’t want or need to spend a lot of time on their return, and therefore don’t need to go through a deduction discovery questionnaire.
4. Free File
- Great for: Those with incomes under $58,000.
- Cost: Free for federal, up to $15 for state.
Through Free File, the IRS subsidizes the cost of self-prepared tax return software, offering tax preparation products from 14 companies free to low-income taxpayers — including TurboTax and other programs on this list. Some of these programs may charge an additional fee for filing a state return, typically around $15.
The IRS also offers Free File Fillable Forms to all taxpayers, regardless of income. These are a version of the IRS tax forms that can be filled out electronically, and include functions like automatic calculations. Unlike tax preparation software, however, Free File Fillable Forms provide only basic guidance and are best for those who are already familiar with filing and know how to do their own taxes.
Visit IRS.gov for a guide to programs available through Free File and for the Free File Fillable Forms.
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You can follow the author Elyssa KirkhamTwitter Here.
A new homeowner's guide to taxes
Angi Carter/Digital First Media for The Reporter writes: There are many tax benefits to homeownership and they can apply to single-family residences, condominiums, townhouses or even mobile homes. While it remains your option to take the standard deduction, homeowners most often file using Form 1040, along with a Schedule A form, where deductible expenses are itemized. Here are some tips to help you take full advantage of your property this tax season.
Mortgage Interest
and Points
The monthly mortgage interest you paid is deductible, unless your loan tops $1 million or home equity debt exceeds $100,000. At those amounts, the Internal Revenue Service limits the level of interest you can deduct.
Points are prepaid interest charges that help buyers get a better rate on a purchase, refinance or home equity loan and may be deducted in the year paid, as long as certain requirements are met.
Real Estate Taxes
This is a deduction you don't want to overlook.
Your monthly loan payment includes a percentage toward real estate taxes, which is held in an escrow account until time for the taxes to be paid. Your lender must keep track of this and should include the yearly amounts in the annual statements issued to you.
For new homeowners, make sure you hold onto closing documents. They contain the information on how tax payments were divided between you and the seller for the tax year in which you bought your home. Your share is deductible.
Additional Assets
Mortgage interest on a second home also is deductible and that includes condominiums, boats and RVs with bathrooms and kitchens. In total, all loans on multiple properties must come in under a $1.1 million cap.
Another caution: If you rent a property for more than 14 days, or more than 10 percent of the number of days you rent it out, whichever is longer, you can deduct rental expenses but you must report the rental income on a Schedule E form.
Energy Efficiency
2013 is the last year to claim a credit for solar energy installations on your primary residence or up to $500 on efficiency-related improvements that include insulation or exterior windows and doors, as well as new heating, cooling and water-heating equipment.
The solar credit is 30 percent of your cost with no cap. The $500 maximum credit does not apply to rentals or new construction. Anyone who has already claimed this credit in an amount of $500 in any previous year is ineligible.
These credits expired in December and would have to be extended by Congress.
Moving Expenses
If you moved last year to take a new job or start a business, you may be able to deduct certain expenses as long as the move is related to work and you meet distance and time tests.
What You Can't Deduct
While owning a home has significant tax advantages, there are some costs that do not carry tax breaks.
Repairs. You'll have to bear the full costs for repairs but keep your records for the time you own the home. When you sell, the accumulative amount you've invested in improvements could help boost the basis for your house and lower taxes on your profit from the sale. But you will need receipts to prove your expenses for those repairs.
Private Mortgage Insurance. If you were not able to come up with a 20 percent down payment and therefore paid private mortgage insurance or PMI, this is not deductible. There are some temporary exceptions.
A deduction is allowed for PMI premiums on new mortgages issued between Jan. 1, 2007 and Dec. 31, 2013. Without an extension from Congress, this is the last year this deduction can be claimed.
Hazard Insurance. This is generally required for mortgage approval but remains non-deductible.
However, if you use a portion of your home to operate a business and have a casualty loss, you can deduct the business part or your loss under business expenses.
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