Settle Tax Arrears with Accounts Receivables Factoring

If you're a small business owner and you found out that you need to pay taxes this year, but are low on the cash to settle your arrears, you might be able to use receivables factoring to cover your tax debt. With this type of financial solution, you'll have the peace of mind conscious that you can avoid large tax debts and late filing punishment charges.

Small business owners can take heed of these insightful tax hints.

Maintain funds separate - Sole owners take heed... even though all of the funds that come into your small business are yours, it's a wonderful technique to maintain the money separate from your own expenses. This will prove to be very effective come tax filing time - it is easier to track your expenses.

Keep a separate business telephone, even your mobile phone, because it makes it simpler to compute telephone expenses when your taxes are due.

Also, be aware that expenses for your domain name, internet site hosting, promoting, office supplies as well as business cards are tax deductible. What's more, 50% of your business-related food and amusement expenses can also be included in your tax reports.

Utilize your debit card or checks to cover expenses from your business account. Avoid withdrawing cash. Payments paid to retirement plans can also be claimed. The same goes for your health insurance expenses.

Regarding vehicle expenses -- petrol and parking costs, oil, tolls and even insurance -- can be subtracted rather than your mileage. You have the freedom to make the actual expense deduction or the standard mileage deduction; but in either case, parking cost is always deductible. You can even go more techie - make use of a mapping website such as Mapquest.com to calculate your business-related mileage.

And if you have a home office, you can deduct that percentage of space and a percentage of home expenses, including utilities.

Don't forget, popularly used as a way to provide peace of mind, you can sell credit-worthy invoices to an accounts receivables factoring company who can help you acquire additional funding for fast working capital to settle taxes.

When it is time to file, e-filing is fast, precise and convenient. Numerous tax preparation programs come with commands that are able to mechanically check for inaccuracies. This steps up the accuracy of the tax return, and the demand for contact with the IRS to iron out errors.

A taxpayer usually files a state tax return at the same time they electronically file their federal return. Once the return is accepted for processing, the IRS electronically recognizes receipt of the return. If you file electronically, your refund will be issued in about half the time it would take compared to filing a return by paper or mail.

When it comes to your IRS and tax inquiries, check the small business and Self-Employed Tax Center at www.irs.gov. For more information regarding invoice or receivables factoring, contact The Interface Financial Group (IFG) at 877.210.9748.

Accounts Receivable Financing - The Better Alternative out of this Economic Downturn

At present, small businesses do not have to suffer from their own triumphs. Factoring services are also known as accounts receivable factoring, and no matter what you decide to call it, these services can provide many small businesses with their own bailout plan to get through these tough times.

Good thing that with President Obama's Small Business Administration's America's Recovery Capital (ARC) program, many small entrepreneurs who are undergoing "immediate hardship" can apply for a loan amounting to a maximum of $35,000. The terms include no payments for the first year, and no interest, however not everyone is eligible for ARC.

With accounts receivable factoring or financing, however, small businesses are given access to short-term working capital by transforming their accounts receivables into immediate cash. This is definitely helpful for those who are experiencing hardships due to the economic situation - hardly ever making payroll, paying new supplies. Several Fortune 500 corporations haven't experienced as many problems surviving as small businesses, but it is particularly challenging for one or two-year old businesses that are in the heavy growth stages.

In most cases, small businesses don't get paid for delivered products until after 30, 60, or 90 days. And it's in this very instance that small businesses can take advantage from accounts receivable financing. After checking the creditworthiness of a client's customers, factoring companies could then forward funds in as little time as 24 hours. The company does not expect to buy 100 percent of a company's receivables, and there are no minimum or maximum sales volume requirements.

The idea of accounts receivable factoring is very popular in the construction industry - where the usual problems of meeting payroll, buying supplies and paying benefits crop up regularly. With factoring, small business owners can expect to have their receivables turned into immediate cash.

What separates invoice factoring from bank loans as well as SBA-backed ARC loans is the fact that the former involves 3 parties, and the latter, two. Banks base their decisions on a company's credit worthiness, whereas factoring is based on the face value of the receivables. Factoring isn't a loan - it's the acquisition of a financial asset, or the receivable.

What makes factoring companies more convenient is the fact that they pay in as little as twenty-four hours after ascertaining the client's customers credit worthiness. There are no minimum/maximum sales volume requisites and they don't expect to buy 100% of the company's receivables. Rates are also competitive - and are extremely dependent on the client's special situation. The program allows choices of invoices to be factored, enabling customers to keep most of their money, while spending the minimum fees to guarantee sufficient cash flow.

The idea of factoring has been present for over 4,000 years now. Factors start the single invoice factoring process with due diligence that usually takes one to two business days. Once completed, the client is at liberty to offer invoices to IFG for purchase. Upon receipt of invoices, the factor checks the credit of the debtor named on the invoice and ascertains that the sale represented has been satisfactorily delivered. Once this is okay, the debtor is advised of the purchase by the factoring company and the client receives their cash. The transaction is completed when, at the end of the credit cycle, the debtor pays its dues to the factoring company.

In the end, the difference is that if a small entrepreneur gets involved with a government ARC loan, the money have to be paid back at some point. With accounts receivable financing, however, small businesses are prevented from availing of a loan since they are given the chance to transform their receivables into immediate cash.

For more information about accounts receivable factoring, contact The Interface Financial Group (IFG) at 877.210.9748.

How Accounts Receivable Factoring Aids in Paying for Health Care Benefits

Research released in 2009 U.S. Public Interest Group (USPIRG) showed that 17 percent of small businesses currently do not offer health coverage due to the red tape and high costs. Successful health reform could generate some serious benefits for small businesses in the United States. The research also found out that 78% of those small businesses who don't offer health coverage would like to offer it to employees. Accounts receivable factoring for small business can convert payments on terms to COD, aiding small businesses in their endeavour to pay for health care costs for employees. here is how accounts receivable financing could help small business owners with being able to afford health care coverage for their employees.

Normally, small businesses don't get paid until 30, 60, 90 days; but if they can convert these invoices into immediate cash through invoice factoring, then these can address health care costs.

Results of the same study mentioned above also show that businesses that sacrifice in order to provide the needed health benefit think that this type of benefit is a major contributor to increased employee productivity.

Because factors do not expect to purchase 100% of a company's receivables, single invoice factoring, or accounts receivable factoring, is gaining in credits. Accounts receivable financing benefits businesses that do not get paid for 30 to 60 or 90 days by advancing up to 90 percent against invoices. The factoring company will evaluate the creditworthiness of the client's customers. When no issues arise, then funding can be given in as little time as 24 hours - plus commission fee.

Invoice factoring has really proven to be a welcome option in today's economic downturn. It's most often small businesses that experience cash flow difficulties during a recession, and several employers find it difficult to meet payroll, purchase supplies, let alone pay benefits and Workers Compensation. With this type of option, they're given access to funds that are coming in but aren't yet available.

Factoring isn't the same as a traditional bank loan. In reality, it is the buying of a company's assets - its receivables. Bank loans involve two parties, while factoring has three. Banks base their decisions on a company's creditworthiness, whereas factoring is based on the value of the company's receivables.

Most factors' professional rates are competitive since each client's circumstances vary, which may have an impact on the fees.

Accounts receivable factoring has been around for over 4,000 years. For further details, call The Interface Financial Group (IFG) at 877.210.9748.