Buying Multiple Investment Properties Through Mortgage

Mortgage lenders have of late eased their standards and started issuing cheap Adelaide Residential home loans to individuals who have low incomes. But if the economy, unfortunately, goes into a downfall, many of these low-income workers may find that they cannot afford their mortgages. This can lead to a large number of foreclosures, spawning a housing crisis.

Stricter Mortgage Regulations

A housing crisis will likely take out some large mortgage lenders. When the dust settles, regulations will become more stringent for individuals who want to purchase a home on a mortgage. Lenders may start asking for down payments as high as 30% of a home’s total value before lending any money. This kind of down payment may be too high for many first-time home buyers, weakening the housing market.

Purchasing Multiple Properties

Fortunately, stricter mortgage regulations do not hurt individuals who have enough purchasing power to buy multiple properties. Unlike indebted individuals, able persons or investors can purchase an unlimited number of properties with a mortgage. People with acceptable debt to income ratio or those that enjoy financial freedom are not restrained when buying multiple properties.

Debt-To-Income Ratio

Every time an individual acquires a loan or any other type of debt, it affects their financial status by increasing their debt to income ratio. This ratio is calculated by comparing an individual’s liability against their net income or total earnings. Lenders use the debt to income ratio to determine a person’s ability to settle withstanding loans.

This matches the credit score concept, whereby if someone goes beyond a specific threshold, lenders might believe that it would be difficult for them to pay back the money. If an individual keeps purchasing new properties using mortgages, their debt to income ratio also increases. It will reach a time when this ratio will exceed the set threshold, thus preventing them from acquiring more properties. At this point, a person’s purchasing power is limited to the worth of their asset column.

Buying Properties Easily

There are many ways of purchasing multiple properties. The easiest is by not dwelling in any of the homes. If an individual uses one of the houses as their primary residence, it limits their purchasing power once lenders apply the debt to income ratio to their situation.

Stable Tenants and Blanket Mortgages

Most lenders prefer offering additional mortgages to people who record a history of stable tenants. Once a person has established an array of rental properties, lenders may allow them to use those properties as a cover or blanket mortgage. Lenders use blanket mortgages when dealing with property management companies and housing realtors with large-scale rental operations.

The Benefits of Online Payroll Services for Small Businesses

Online Payroll Services

Enlisting payroll services is a new tactic that is being adopted by a large number of small businesses in the US, Canada and the world at large. This is due to the numerous compelling reasons to outsource small business payroll, such as:

  • Potentially significant savings in labor and time
  • Minimization or elimination of costly payroll processing errors
  • Better compliance with tax and government regulatory requirements.

Why Do You Need Online Payroll Services Done For You?

Payroll services for small businesses are designed to help you stay in compliance with the regulations and policies involved in taxes, payroll and IRS reporting. These services are vital if you’re worried about abiding by state and federal regulations or if your business has in the past been fined for payroll mistakes.

When it comes to payroll management, the chances are that you might be using your own in-house accounting software such as Freshbooks or QuickBooks. Such accounting software offers the features you need to comply with all payroll regulations on your own. However, the overall payroll management process could be complicated and time-consuming as your business’s employee base grows. You do not want to find yourself on the wrong side of the federal laws just because you or your bookkeeping manager made an error when processing payroll.

Processing your payroll with an online service will not only help you abide by all regulations and policies but also give you peace of mind. Most of the online payroll services are cost-effective since they help you avert any noncompliance issues and any resulting fines. Buying an accounting software is a cheaper option and can help you save lots of money if you’re confident with your bookkeeping skills. Having a service to deal with payroll reporting, however, will save you money and time if you’re not confident with your skills or when you are out of time to process payroll for many employees. To learn more about how you can get started with QuickBooks Online contact a QuickBooks proadvisor like or reach out on Facebook and ask your questions.

Benefits of Online Payroll Services for Small Businesses

1. Compliance with Crucial Laws and Regulations

Compliance with fundamental laws and regulations such as the Affordable Care Act which comes into effect when your business has more than 50 employees is one of the significant benefits of having a dedicated service handle all your payroll processing needs. These are regulations that require your business to file specific forms and if they are not presented correctly, then IRS can fine you. Although compliance with ACA typically applied to larger enterprises, some other laws such as paying employees accurately and on time are always needed of you, irrespective of the employees you have.

2. Pay Distribution Options

Another benefit of online payroll services for small businesses is that they give you several employee pay distribution options which are checks, pay cards and direct deposits. These pay distribution options make it easy for the employer to disburse salaries to his employees without any hitch. For instance, employees without bank accounts can receive their payments through pay cards so there will be no need for them to open a bank account. An online payroll service knows all the ins and outs of a particular state’s requirements hence will help you pay all your employees in the right manner.

3. Integration With Other Business Solutions

Payroll is the final step of a lengthy procedure. Collecting information before payroll is complex and many business solutions often integrate well with online payroll services to facilitate a smooth running of the process from the beginning to the end. For instance, several time card software solutions will automatically convert your employee hours into a CSV file, and the payroll provider can later use that to calculate every employee’s paycheck.

What Skills Are Required To Get Hired As A Bookkeeper At Time Of Peak?

The first important thing that anyone should consider when picking a career path, or change careers, later on, is whether or not there are prerequisite education or certification requirements. For bookkeeping, there are not, at least in the United States. Because there aren’t any formal educational requirements needed to become a bookkeeper, the profession has a relatively low formal barrier to entry. This is particularly true for small businesses which will naturally have less complex finances than larger companies.

The bottom line is that it is definitely possible to get hired as a bookkeeper for a small business solely because you demonstrate that you’re smart, mathematically oriented, analytical, hard working, and possess at a minimum a basic understanding of bookkeeping and accounting concepts coupled with a desire to continually learn. If you’re motivated to pursue a promising new career, bookkeeping is a great choice because in addition to it’s low formal barrier to entry, every company in the world needs someone to manage its books. High demand with an easy entry is a great combination for new potential career paths.

With that said, realize that absolutely there is still a required set of skills that you must have to be considered to get hired as a bookkeeper. You will have to prove to potential employers that you have these skills to get hired, and the good news is that as long as you are motivated and work hard, you can teach yourself these skills and have a realistic shot at a great new career path.

So, what are these skills that companies look for in bookkeeper? What do you have to bring to the table to be considered to fill this ubiquitous need?

Firstly, let’s go over the more general qualities a small business looks for in a bookkeeper:

1. You must be detail oriented

The entire purpose of having a bookkeeper is to keep track of all financial transactions with impeccable accuracy. Someone who is keen on recognizing things such as missing receipts, or entries which don’t match a bank statement, for example, will do well in this kind of position. Alternatively, someone who is sloppy, inaccurate, and makes periodic mathematical mistakes won’t last very long anywhere.

2. You must have decent math skills.

Accounting is based on math. A good set of books adds up to exactly what happened in reality. A math-oriented analysis is essential to be successful as a bookkeeper. While it’s true that most bookkeeping software does all of the tedious arithmetic for you, it’s never foolproof. Good bookkeepers can see even very small mathematical discrepancies and figure out where the mistake that caused it exists. Accounting mistakes are inevitable, and being able to perpetually find them and correct them is an important part of the bookkeeping job.

3. You must have strong computer skills.

Almost every accounting system is run with computers and specialized software nowadays. Being comfortable and proficient on a computer is a major component of being a successful bookkeeper. Of course, this is generally true for just about any career nowadays, so it doesn’t need much further discussion here.

4. You must have strong analytical skills.

The books of a company create the big financial picture. Many important business decisions must be made based on its books and financial reports. A good bookkeeper will become familiar with the financial patterns of the small business he or she works for and will notice when things seem “off” and investigate them. Maybe sales seem unusually low, or expenses seem unusually high in a given month. You must proactively notice these things and take action to correct any mistakes that are being made running the business.

5. You must have the ability and desire to learn quickly.

No matter how much prior training you have, every bookkeeping job will make you hit the ground running. You’ll have to learn and get used to the particular systems a company has in place to suit its needs. No two places will be the same and are rarely similar. Moreover, if you want to continue to become more useful and increasingly qualified to manage more complex books, there’s a vast field of knowledge to be learned in accounting that’s beyond basic bookkeeping.

Secondly, let’s go over the more specific hard skill requirements that a bookkeeper for a small business must have:

1. A College Degree.

Yes, we just said there are no formal educational requirements to be a bookkeeper, but the truth is that, unless a candidate has an impressive resume with prior experience, he or she will be seldom considered without some kind of collegiate level degree. an AA or bachelor’s degree, particularly in accounting or something closely related such as economics, mathematics, or business, will greatly increase you chances of finding employment. Furthermore, if you have greater aspirations of eventually becoming an accountant, college credit in accounting classes is a formal requirement.

2. Basic Working knowledge of accounting and bookkeeping principles.

Whether you learn it in school or teach it to yourself, you need to understand how basic bookkeeping and accounting actually works. If you don’t have formal education in the field to show on your resume, you’ll need to be able to prove to potential employers that you have this knowledge. Some basic examples of this are the chart of accounts, double entry bookkeeping, debits and credits, invoices, payables, and receivables.

3. Proficiency with bookkeeping software.

Nearly every small business uses specialized computer software designed to maintain the books of a company. If you’re going to do the job, then you’ll have to know how to use it. Quickbooks, for example, is widely used by small businesses and many bookkeeping jobs will require that you be very proficient with it.

4. Proficiency with Excel/Spreadsheets.

Excel is a widely used program that manages and manipulates data in spreadsheets. Just about any bookkeeping or accounting job will require that you be proficient with it. In fact, most any kind of technical job will require experience with Excel and spreadsheets.