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When looking at an accounting firm it’s important to ask the right questions in order to ensure that your needs will be met. Not all firms are created equal, and they certainly don’t behave the same. It’s your money, make sure you are choosing people to handle that money that you know you can trust and will serve you and your needs as best as possible. Here are 3 questions everyone should ask when evaluating an accounting firm.

The first question is simple, do they care? A company that offers plenty of information, especially for free, is more interested in helping and serving than they are in profit. Now everyone needs to eat and keep a roof over their head so we can’t fault any company for wanting to make a nice profit. However, we can fault them for not caring. Take the time to ask questions and see how they respond and how willing and eager they are to help before they take your money. If it’s a website there should be tons of articles and information that will help you gain a better understanding of what you need to know about for your financial needs.

What is their mission statement and purpose? Do they live by what they claim to be about? Most importantly of all is whether or not you even know what their mission and purpose is. You don’t have to memorize what the mission is of any given accounting firm, however, you do need to be able to see it, find it, and evaluate whether or not the organization and people within that organization are living by that motto and creed.

Finally on our list of questions for evaluating an accounting firm are the services they provide. Obviously taxes are one of the biggest reasons for choosing a company like this. They need to be able to help you get the biggest bang for every buck you spend in terms of a return and write offs at the end of the year, but that shouldn’t be the only thing they do and offer. A good company is able to help you better invest every penny you make in ways that meet your overall needs and goals. Be willing to ask about the services an accounting firm offers and how they can help you every day of your life.

0% balance transfer credit cards are a type of interest free credit card which allow you to pay zero interest on your debt for a fixed period of time, meaning it can be a cheap way to pay off debts if you can navigate the system to your benefit. However, while these credit cards can be very useful in certain circumstances, if you’re not careful they could equally lose you money. Here are the dos and don’ts of 0% balance transfer cards.

DO: Compare offers

Different providers offer different terms on their 0% balance transfer credit cards. Shop around for longer interest free repayment periods, lower interest rates once the offer is over and lower transfer fees where possible. It might not seem important right now, since you will not be paying any interest at first, but these factors could save you hundreds of pounds later on if you find yourself unable to pay off the balance within the promotional interest free period.

DON’T: Ignore transfer fees

Transfer fees are now standard on the majority of 0% balance transfer cards. This is because providers want to avoid customers taking up the interest free offer, failing to pay off their debt within the promotional and simply switching card supplier each time the interest free offer expires. Balance transfer fees vary from card to card but are usually around 2.5% to 3% of the total balance owed. Look for the lowest balance transfer fees possible when comparing credit cards.

DO: Be realistic

Be completely honest with yourself about how long it will take you to pay off your debt. If you know you can realistically pay it off within the interest free period, it could well be a good idea. If you’re not sure then you need to be wary of 0% balance transfer credit cards – leaving your debt for longer than the interest free period could costs you high interest repayments, the average interest on credit cards being around 17.5% in the UK. If you run out of time and choose to move your debt, meanwhile, you may be met with the alternative cost of the card’s transfer fee. If you don’t really know how long it will take to pay off your debts, a lifetime balance credit card might be more appropriate.

DON’T: Make purchases

Unless your 0% balance transfer credit card terms specify that the card is 0% on purchases, the likelihood is that you will have to pay very high interest on any purchases you make with the card. Even if the card does specify ’0% on purchases’, many customers don’t fully understand the conditions attached to this. Certain purchases could still carry high interest rates, as could instant cash transactions, such as cash withdrawals, so people often inadvertently trigger these expenses simply due to not understanding the terms and conditions attached. Also, making any purchases will increase the overall debt and make it harder to pay off the balance before the end of the promotional interest free period.

Many people assume that credit card debt settlement won’t affect your credit score. That would be nice if that were true. Debt settlement will affect your credit score. But there are other considerations to take, don’t let this fact keep you from settling your debt. Here is the truth about what happens to credit score with a settlement offer.

Initial Hit

Chances are if you are seeking help to lower your debt ratio, your credit score has already taken a hit. When you start the process of settling a debt, you will be advised to open a savings account. Instead of making monthly payments to your creditor, you will start saving that money so you can send the creditor a lump sum payment. Even if the creditor agrees to these terms, the debt doesn’t disappear. Even if they offer to freeze the account for you, it will still be reported to the credit bureau’s each month. Every month that you miss a payment, your credit score will drop. Expect to see your credit score go down as you save the money to make the settlement offer.

Settled Accounts

Once you have the money to make a settlement offer, you may think you’re in the clear with your score. Unfortunately even a settled account can affect your credit. The debt will reflect on your credit report as paid- but settled. A settled debt reflects poorly on your report. However, it’s much more desirable to have an account reflected as paid than it is to have it reflected as charged off or opened and unpaid.

The Long Term

In the long run, debt settlement will do you more favors than harm. While your overall report will suffer in the beginning, the long term results are much more desirable. Once a settlement is reached, you are able to pay off the debtor and not have to worry about them anymore. Your financial situation will improve, and you can move on to the next debt. Your score will improve over time, and future creditors will see that you were able to pay the debt eventually. This looks so much better than just letting a debt go. Charged off accounts will stick around for up to 7 years, and will keep your score low. A settled account won’t have the same damaging affects. It will allow you to rebuild your credit worthiness, and allow you to avoid the same situations in the future.

How does it Work?
Equity investment is a good way of getting involved into the business decision making process. As an owner, the equity investor has certain control over both operational and strategic issues concerning the business.

An equity investor’s unique interest in and aspiration for certain business sectors and industries influence his or her equity investment decisions as to select what businesses.

The perceived synergy and chemistry between the management of the business/existing owner(s) and the equity investor(s) are important to the success of the joint venture.

Different Types of Equity Investment
Venture capital investment. Venture capitalists invest in businesses at early stages when success or failure of a business is everything but certain. Venture capital investment carries higher risks but also potentially bigger rewards.
Private equity investment. Private equity firms invest in publicly listed companies and then take them private. Away from the public eye, Private equity firms seek to do what they do best, that is, improving management and business efficiencies to make a company more profitable.

Leveraged buyout. This is a rare way to become an equity investor without really investing much of your own equity capital. When a company’s existing owners wish for a way out but can’t find an investor with cash to buy the business, they locate someone called financial sponsor instead, normally a private equity firm but without committing itself to investing its own capital. Next, a business loan called LBO loan is arranged with the owners’ company as the borrower and the cash raised buys out the existing owners, leaving the financial sponsor to be the care taker of the company. The new debt has recourse only on the company, not on the private equity firm. The bootstrap transaction makes the equity firm, the financial sponsor, now the sole “owner” of the company.

Is an equity investment right for you, the investor?
Equity investment is having a business partner. Do you have enough business passions and are ready to get deeply involved in business operations. Or you are better off by lending money and then staying on the side line?

Do you have good inter-personal communication skills to interact well with management of the business.

Are you prepared to risk losing your investment capital if the business fails?

Advantage

As an equity investor, you stand to gain big if the business you invested in prospers.

You learn first-hand knowledge about running a business.

Disadvantage

Potential conflicts with management and existing owners over business decisions.

Your investment capital is potentially a risk capital.

Finding a business

There are many start-ups that may be in need of capital support, as well as some companies in later stages.

If you’re a serious a private equity investor, consider taking an underperforming public company private and turn it around.

You can always invest through the stock market. By accumulating enough shares publicly, try to be a good corporate raider, getting on the company’s board and influencing management for better business.

What do businesses look for?

Show business owners that you as an investor have the same business passions as they do.

Assure both management and owners that you’ll contribute in a good way and leave them enough autonomy.

Convince the business that accepting an equity investment is better than looking for a debt financing, given that they may be short on cash flows from operations at this point of their business.

And finally let them know that you’re a savvy investor and have invested in many businesses successfully.

Checklist

Check against alternative debt investment.

Is the business selected the right kind for you as an investor?

Be ready to have ongoing presentation with management.

Hire a business or management consultant as your advisor to assist you in this business investment venture.

FAQ
Where can I find businesses?

Get in touch with business community, especially through various trade organizations. Attend events sponsored by your local Business Link and chamber of commerce, also other investor conferences where businesses are invited to make their capital-raising pitches to investors.