Principal is a fundamental concept in finance, with its definition varying depending on the context in which it's used. In its essence, principal represents the initial sum of money involved in a financial transaction, be it a loan, investment, bond, or business deal. Understanding principal is key to making informed financial decisions, as it serves as the basis for various calculations and impacts your costs and potential returns. Continue reading...
Savings - a term that plays a pivotal role in the financial well-being of individuals and households. We hear about it, we're told to do it, but what exactly are savings, and why are they so important? In this article, we will dive into the world of savings, discussing what they are, their types, and how to calculate your savings rate. So, let's embark on this financial journey and unravel the mysteries of savings. Continue reading...
Unlock the secrets of money orders! 📬 Discover when, where, and how to use them. Learn the 5 key details you must include and follow our step-by-step guide to fill out a money order correctly. Plus, find out the pros and cons and how to cancel or replace one if needed. 💸💡 #MoneyOrders #FinancialTransactions Continue reading...
Unlock the secrets of Cash Back rewards in our latest article! 🤑 Discover how it works, its types, and the apps that help you earn more. 💳 But remember, it's not free money – we'll explain why. 💰 #CashBack #Finances #Savings Continue reading...
Looking for a low-risk investment option with guaranteed returns? Certificates of Deposit (CDs) might be your answer. Delve into the intricacies of CDs, understand how they stand apart from regular savings accounts, and learn how to navigate their benefits and risks to enhance your financial stability. Continue reading...
Unlock the intricacies of escrow, a cornerstone in finance and real estate transactions. Originating as a protective mechanism, escrow ensures assets are securely held until specific conditions are met. Whether you're a buyer, seller, or lender, escrow plays a crucial role in safeguarding your interests. From understanding its anatomy to its application in real estate deals, this comprehensive guide sheds light on how escrow functions to protect all parties involved. Dive deep into the world of escrow and discover how it shapes the landscape of secure financial transactions. Continue reading...
Dive into the financial realm of assets, the backbone of economic growth and stability. Whether it's a personal possession or a business resource, understanding the various types of assets is crucial. Uncover how assets, from tangible to intangible, play a pivotal role in financial analysis, and how they pave the way for future economic benefits. Your journey towards financial literacy begins with a closer look at assets. Continue reading...
A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date. In this article, we'll delve into what a promissory note is, how it works, its types, and the advantages and disadvantages of using one. Promissory notes can be thought of as a financial intermediary between the informality of an IOU (I Owe You) and the strict structure of a loan contract. An IOU simply acknowledges a debt, while a promissory note includes a promise to pay on demand or at a set date, along with details on the repayment process. Continue reading...
Unlock the mysteries of tax returns! From understanding their pivotal role in financial planning to mastering the art of deductions, dive into a comprehensive guide that demystifies retention periods, the evolving tax landscape, and the invaluable role of tax professionals. Ready to become tax-savvy? Continue reading...
Ever wondered about the intricacies of leases and their ripple effects on the economy and society? Dive into our comprehensive guide to uncover the key aspects of leases and their broader implications in the world of real estate. Discover more than just a contract! Continue reading...
In the realm of personal finance, understanding your credit score and its implications is paramount. While aiming for a "very good" or "exceptional" score is ideal, it's also essential to recognize that everyone's financial journey is unique. Continue reading...
Unlock the secrets of Collateralized Loan Obligations (CLOs)! Dive into their diverse tranches, creation process, benefits (diversification, higher yields), and risks (credit, liquidity). Make informed CLO investments with our comprehensive guide. 💼📊 #Investing #CLOs #Finance Continue reading...
"Mastering Form W-2: Your Ultimate Wage and Tax Guide" Unlock the mysteries of Form W-2! 📑 Dive into this comprehensive guide that explains its significance, how to file, decode its contents, and more. Get a handle on your taxes with this must-read guide. 💼💰 #TaxSeason #W2Guide Continue reading...
Unlock Financial Freedom: Discover the Art of Passive Income! 🚀 Explore investment strategies, income streams, and practical steps to choose the right path. Maximize returns while managing risks. Your journey to financial stability begins here. 💰 #PassiveIncome Continue reading...
Unlock the secrets of Fiat Money! 🏦 Dive into its history, risks, and significance in modern economies. Discover why trust and government credibility are its foundation, and explore its evolution in the US. 🇺🇸 Advantages, disadvantages, and fascinating examples await. 💰 #FiatMoney #Economy Continue reading...
Unlock the secrets of Payroll and Tax Calculation in our comprehensive guide. Learn about managing payroll efficiently, calculating payroll taxes step by step, and the impact on your business. Dive into the world of payroll management now! #PayrollGuide #TaxCalculation #BusinessFinance Continue reading...
Unlock the secrets of Treasury Bills (T-Bills) through the lens of money's core properties: medium of exchange, unit of account, store of value, and standard of deferred payment. Discover how T-Bills embody these principles, offering a secure haven for your investments and contributing to economic stability. 💰 #Investing #Finance101 Continue reading...
Dive into the core properties of money - Fungibility, Durability, Portability, Recognizability, and Stability. Discover how they shape financial functions and impact society. Explore money's evolution and role in our modern world. #FinanceInsights #MoneyMatters Continue reading...
Unlock the world of investments with Brokerage Accounts! Learn their definition and purpose. Discover types from full-service to robo-advisors. Choose what suits your financial goals. Dive into this comprehensive guide! #Investing #FinancialSuccess Continue reading...
Credit Unions vs. Banks: Discover the Differences 🏦💳 Explore the unique world of credit unions and banks. Learn about membership requirements, advantages, and disadvantages. Make informed choices for your financial future. 💰🤝 #Finance #Banking Continue reading...
Unlock the secrets of financial health! Dive into the world of expenses – the lifeblood of businesses. Explore expense categories and definitions that drive profitability. Discover how savvy expense management fuels success. 💰📊 #Finance101 #BusinessInsights Continue reading...
A tax bracket refers to a range of incomes subject to a certain income tax rate. Tax brackets are part of a progressive tax system, in which the level of tax rates progressively increases as an individual’s income grows. Low incomes fall into tax brackets with relatively low income tax rates, while higher earnings fall into brackets with higher rates. For tax years 2022 and 2023, there are seven federal tax brackets, with rates ranging from 10% to 37%. In this article, we will explore the intricacies of tax brackets, provide examples, and discuss the pros and cons of this tax system. Continue reading...
Navigating the credit landscape with limited or tarnished credit history? Secured credit cards might be your answer. Acting as a bridge to better credit, these cards require a cash deposit, which sets your credit limit, ensuring you spend within your means. While they operate much like their unsecured counterparts, they come with their own set of advantages and challenges. Whether you're aiming to establish a fresh credit history or rebuild from past mistakes, understanding secured credit cards can be your first step towards financial empowerment. Dive in to explore how they can pave your path to better credit health. Continue reading...
In the realm of personal finance, the term "title loan" has become increasingly prevalent. But what exactly is a title loan, and why have they gained popularity in recent years? In this article, we will delve into the world of title loans, their mechanics, key takeaways, and most importantly, why they are often considered a financially risky choice. Title Loan Definition and Mechanics A title loan is a financial arrangement in which a borrower uses an asset, such as a car, as collateral to secure a loan. The most common form of a title loan is the car title loan, where the borrower owns the car outright and transfers the title to an auto loan title company. In return, the borrower can receive a loan amounting to up to 25% of the car's total value. Continue reading...
A debit card is a financial tool that plays a fundamental role in the world of modern banking and personal finance. Often referred to as "check cards" or "bank cards," debit cards provide a convenient and efficient way for individuals to make purchases and access cash. In this article, we'll delve into what exactly a debit card is, how it works, and the associated fees, as well as explore the key distinctions between debit and credit cards. Continue reading...
Unravel the intricacies of escrow, the financial world's guardian angel. Acting as a neutral third party, escrow ensures that transactions, whether in real estate or online sales, are secure and trustworthy. But how did it come to be? And how does it intertwine with the birth of the Euro and the EUR/USD currency pair? Dive deep into the world of escrow, from its definition to its diverse applications, and understand why it's an indispensable tool in today's global economy. Whether you're a buyer, seller, or just curious, this guide offers a comprehensive look into the safety net of financial transactions. Continue reading...
Student loan debt in the United States has been a topic of concern for years, and the numbers for 2022 paint a complex picture of the challenges faced by borrowers and the evolving policies designed to address this issue. With total student loan debt reaching a staggering $1.77 trillion in June 2023, it's evident that higher education comes at a high price. This article delves into the key statistics, trends, and the outlook for student loan debt in 2022 and beyond. Continue reading...
Unravel the complexities of FICA, the cornerstone of the U.S. social safety net. This guide delves into the Federal Insurance Contributions Act, shedding light on its historical roots, tax rates, and its pivotal role in funding Social Security and Medicare. From the legislation's inception in 1935 to its modern-day implications, understand how FICA taxes impact both employees and employers. Whether you're an individual taxpayer, business owner, or finance enthusiast, this comprehensive overview offers insights into the legislation that safeguards the financial and health well-being of countless Americans. Dive in to demystify FICA's intricate landscape. Continue reading...
Unlock the mysteries of your credit score! Dive into the nuances of credit score ranges, understand their profound impact on your financial opportunities, and arm yourself with knowledge to elevate your financial standing. Every point counts! Continue reading...
Embezzlement is a term that frequently surfaces in discussions about financial crimes, but what exactly does it entail, and how does it occur? This article aims to provide a comprehensive understanding of embezzlement, shedding light on its definition, mechanisms, legal implications, and prevention strategies. Embezzlement is a form of white-collar crime characterized by the intentional misappropriation of assets entrusted to an individual or entity. In essence, the embezzler gains access to these assets legally and is authorized to possess them but subsequently diverts them for unauthorized purposes. Continue reading...
To ensure that the financial industry in the United States adheres to strict rules and operates fairly, the Financial Industry Regulatory Authority (FINRA) plays a pivotal role. In this article, we will delve into the definition, functions, and importance of FINRA in the financial world. he Financial Industry Regulatory Authority, commonly referred to as FINRA, is an independent, non-governmental organization tasked with creating and enforcing regulations for registered brokers and broker-dealer firms within the United States. Continue reading...
In a country where the tax code can often be complex and intimidating, the Earned Income Tax Credit (EITC) stands out as a beacon of simplicity and direct financial assistance for low to moderate-income earners. This refundable tax credit has been instrumental in alleviating the financial burden on hardworking Americans. In this article, we will delve into what the EITC is, who qualifies for it, and how it can provide much-needed relief to eligible taxpayers. Continue reading...
Unlock the complexities of sales with this comprehensive guide. From the basic definition of a sale to the intricate mechanics of transactions, delve into the various types of sales, including retail, financial markets, and individual exchanges. Discover the significance of different payment methods, such as cash, credit, and advance payments. Whether you're a business owner aiming to drive growth, a consumer navigating the retail landscape, or an investor exploring financial markets, this guide offers invaluable insights into the world of sales. Equip yourself with the knowledge to make informed decisions in our interconnected global economy. Continue reading...
Dive into the world of financial analysis with a comprehensive guide on the income statement. Often dubbed the profit and loss (P&L) statement, it stands as a cornerstone in evaluating a company's financial performance. From defining its structure to decoding its significance, this guide offers a deep dive into how revenue, expenses, gains, and losses paint a picture of a company's financial health. Whether you're an investor, business owner, or financial enthusiast, understanding the income statement is crucial. Equip yourself with the knowledge to navigate the financial landscape and make informed decisions. Continue reading...
Accountants: the unsung heroes of the business world. But what roles do they play, and why are they so vital? From analyzing accounts, conducting audits, to forecasting risks, accountants ensure the financial health and compliance of businesses. Their expertise, bound by ethical standards like IFRS and GAAP, ensures transparency and trustworthiness in financial reporting. As businesses evolve, so does the role of accountants, making them indispensable in today's complex financial landscape. Dive in to discover the journey, challenges, and immense value these professionals bring to the table. Continue reading...
Dive into the world of car loan refinancing and discover how it can reshape your financial journey. Whether you're aiming for reduced interest rates or better repayment terms, refinancing can be a game-changer. But what happens after you've secured that new loan? From continuing payments on your old loan to monitoring your credit score, this guide sheds light on the post-refinancing process. Equip yourself with the knowledge to navigate the refinancing landscape, ensuring you reap the full benefits while safeguarding your financial future. Continue reading...
Understanding the marginal tax rate is pivotal in grasping how progressive tax systems, like the U.S., operate. It's the rate at which your next dollar earned will be taxed. But how does it differ from the effective tax rate? And how do tax brackets influence it? This guide delves deep into the world of taxation, breaking down the marginal tax rate, its calculation, and its significance. Whether you're trying to comprehend your tax liability or just curious about the mechanics of taxation, this comprehensive overview offers clarity on a complex topic, ensuring you're well-informed about your financial obligations. Continue reading...
Property ownership comes with a bundle of responsibilities, and one of the most significant financial obligations is property tax. This ad valorem tax is assessed on real estate by local governments and is paid by property owners. In this article, we'll delve into what property tax entails, how it's calculated, and its implications on property owners and local communities. Continue reading...
A chartered financial analyst (CFA) is a prestigious professional designation awarded by the CFA Institute, formerly known as the AIMR (Association for Investment Management and Research). This designation serves as a testament to the expertise and integrity of financial analysts. The rigorous CFA program is designed to ensure that individuals who earn the charter possess comprehensive knowledge and skills in various areas of finance, including accounting, economics, ethics, money management, and security analysis. Continue reading...
Healthcare costs can sometimes catch us off guard, leaving us wondering how to manage unexpected medical expenses. In these situations, having access to a flexible financing option like CareCredit can be a valuable lifeline. CareCredit is a healthcare credit card designed to help individuals and families cover a range of medical expenses, from routine check-ups to elective procedures. In this article, we'll delve into how CareCredit works, its benefits, and how to make the most of this financial tool. Continue reading...
Unraveling the mystery of bank runs: When panic strikes, depositors race to retrieve their money, potentially leading banks to collapse. Dive into the causes, historic instances, and safeguards like the FDIC. Can trust prevent financial catastrophe? 🏦💸 #BankRunExplained Continue reading...
Discover the allure of Money Market Accounts (MMAs)🌟! Dive into how MMAs blend savings & checking features, offer higher interest rates💰, & aid short-term goals🎯. Uncover their historical evolution & how they stand out in the banking world🌐. Navigate the MMA journey here!🚀 Continue reading...
Unlock the power of secure transactions with cashier's checks! 🏦 A bank-backed guarantee, ideal for major purchases 🏠🚗. It's like cash but safer. Get to know when & why to use it, how to obtain one, and alternative payment options. Dive in for a seamless payment experience! 🔒 #CashiersCheck Continue reading...
ACH transfers have become an integral part of modern financial transactions, offering individuals and businesses a convenient and efficient way to move money between accounts. These electronic transfers are processed through the Automated Clearing House (ACH) Network, a sophisticated system designed to streamline the movement of funds. In this article, we'll delve into the mechanics of ACH transfers, their various applications, benefits, and potential drawbacks. Continue reading...
Navigate the intricate world of payments with our comprehensive guide. From age-old cash transactions to cutting-edge digital platforms, discover the pros, cons, and nuances of each payment type. Step into the future of transactions, armed with knowledge and confidence Continue reading...
Navigating the world of home financing? FHA loans, backed by the Federal Housing Administration, offer a lifeline to potential homeowners facing financial barriers. Designed primarily for first-time buyers, these loans boast lower credit score requirements and minimal down payments. But what sets them apart from traditional mortgages? Dive into our comprehensive guide to understand the nuances of FHA loans, from their historical roots to the diverse loan types available. Learn about qualification criteria, the role of mortgage insurance premiums, and the financial implications of choosing an FHA loan. Whether you're a first-time homebuyer or considering a switch from a conventional mortgage, this guide offers insights to help you make an informed decision. Equip yourself with knowledge and step confidently onto the path of homeownership. Continue reading...
Dive into the history & evolution of banknotes! 🌍 From ancient bartering systems & gold-backed currencies to today's fiat money. Discover how a piece of paper shapes economies & impacts our daily lives. 📜💰 #BanknoteHistory #CurrencyEvolution #ModernEconomy Continue reading...
Unlock the secrets of credit! Dive into its essence, explore diverse forms like car loans & credit cards, and understand creditworthiness. Discover how agencies like Equifax® shape your financial image. Mastering credit can reshape your financial future! 🔍💳 #CreditBasics Continue reading...
A credit score serves as a numerical representation of an individual's creditworthiness. It is a three-digit number that ranges from 300 to 850, with higher scores indicating a more favorable credit profile. This crucial number plays a pivotal role in financial transactions, influencing lending decisions and interest rates. Let's delve into the key aspects of credit scores, their factors, and strategies to enhance them. Continue reading...
Seeking a loan with bad credit? Discover the top bad credit loans of 2023 and why Upgrade stands out. Dive into a world of informed financial choices, even with a less-than-perfect credit score Continue reading...
Recent moves by the Federal Reserve have left many wondering: How will the rate hike impact my savings? Dive into the nuances of the Fed's decisions, uncover the potential benefits for savers, and navigate the changing financial landscape with confidence. Continue reading...
In the digital age, credit cards have become more than just a convenience; they're a cornerstone of modern finance. Originating from an unexpected dining mishap in 1949, these financial tools have evolved into global powerhouses, enabling seamless transactions worldwide. But what really lies behind that piece of plastic or metal in your wallet? From the intricate mechanics involving issuing banks, payment networks, and merchants to the diverse types available – rewards cards, store-specific cards, and even secured cards for those building credit – the landscape is vast and varied. Responsible usage can unlock benefits, from building a robust credit history to accessing premium rewards. However, with power comes the need for knowledge. Dive deep into the world of credit cards, understand their transformative impact on economies, and discover how to harness their full potential in our comprehensive guide. Continue reading...
Barclays Bank, a titan in the financial world, offers a blend of traditional banking and modern rewards that sets it apart. While giants like Visa and Mastercard dominate the credit card scene, Barclays carves its niche with competitive interest rates, no minimum deposit mandates, and a suite of credit card rewards that cater to diverse financial needs. However, it's not just about the offerings; Barclays' online-only model and acclaimed mobile app make banking a breeze for the digital-savvy user. But every coin has two sides. The absence of physical branches might deter some, and the exclusive nature of certain services could be a constraint for others. Dive deeper into this comprehensive review to unravel the intricacies of Barclays Bank and determine if it's the right financial partner for you. Continue reading...
In the vast orchestra of credit card giants, Discover emerges not as a mere echo, but as a distinctive melody. While Visa and Mastercard often dominate the stage, Discover crafts its unique rhythm, offering a blend of enticing cashback rewards, diverse card options, and unparalleled customer satisfaction. Born from a promise of no annual fees and introducing the innovative concept of cashback rewards, Discover has evolved into a global contender, resonating with over 57 million cardholders by 2021. Its commitment extends beyond just financial offerings; it's about crafting a harmonious customer experience, as evidenced by its high ranking in J.D. Power's 2021 U.S. Credit Card Satisfaction Study. Whether you're a student, traveler, or entrepreneur, Discover has a tailored composition waiting for you. Dive in and let Discover's unique symphony elevate your financial journey. Continue reading...
Dive into the perks of the Home Depot Credit Card! 🛠️ From 0% financing & extended returns for homeowners 🏠 to tailored rewards for professionals 📈, discover how this card revolutionizes home improvement. Seamless applications & vast benefits await. #HomeImprovementMadeEasy 🚪🔑Apply today! Continue reading...
Ever considered a payday loan for quick cash? Before you dive in, uncover the truths behind these high-interest, short-term loans. Discover their risks, costs, and safer alternatives to navigate your financial needs wisely. Continue reading...
Investing is a journey, one that requires patience, diligence, and a clear understanding of your objectives. By familiarizing yourself with the basics and the various types of investments available, you're better equipped to navigate the complex world of finance.. Continue reading...
Banks play a pivotal role in the global economy, facilitating the flow of money and offering a range of financial services. By understanding the different types of banks and their functions, individuals and businesses can make informed decisions, ensuring their financial well-being. Continue reading...
There is a thriving industry committed to helping people plan and maintain a personal budget through online tools and apps. Perhaps the most-used personal budgeting tool as of this writing is Mint, which allows a user to link their bank accounts into the budgeting software, and then sends the information right into a tax filing after the new year. A list such as this is almost definitely going to be outdated by the time you read it; your favorite search engine or app store may turn up more relevant results than this. Continue reading...
Account activity is any credit or debit activity in a checking or savings account, or investments, withdrawals, dividends or fees in an investment account. Account activity is the transactional history that will appear in ledger statements from a checking, savings, money market, investment, or other kind of financial account. This usually refers to transactions that were originated by the account owner, such as buying and selling securities or withdrawing and depositing in bank accounts, but could also include activity such as dividends, interest, fees, and other sorts of automated activity generated by the custodial institution. Continue reading...
An Accountant’s Opinion, also called an Auditor’s Opinion, is a formal document signed by a certified accountant after a review of a company’s books. Companies may be required to have an audit from an independent and unbiased third-party accountant, perhaps annually before a report to shareholders or the submission of financial documents to regulatory bodies or lending institutions. At the conclusion of a review or audit, the auditor issues an Accountant’s Opinion (or Auditor’s Opinion) letter. The two outcomes that are most common: Qualified or Unqualified. Continue reading...
Accountants and companies have responsibilities for maintaining accurate records of financial transactions and accounts. Companies must maintain accurate records and accounts, for the sake of reporting to investors, regulatory agencies, and the IRS. Accountants are the professionals trained in the appropriate methods for maintaining these records. They must make every effort to impartially adhere to the law and to accounting standards with regards to the records and documents for which they are responsible. Continue reading...
An account balance is the amount either credited to or owed on a ledger assigned to a particular entity or line-item. The balance of an account is the net debit or credit assigned to it after all transactions have been documented for a current period. Transactions might be deposits, withdrawals, interest credited, fees, or other activity. The account in question could be a personal savings or checking account, or a ledger account at a business or institution, or another form of account, such as the macroeconomic concept of current national account. Accounts are said to be “in the red” when there is a net debit (negative) amount, and “in the black” when there is a net positive balance (net credit). Continue reading...
An account executive is an individual who has executive responsibility of the maintenance of client account. In certain businesses, some client accounts have a high degree of importance and priority with regards to sales and operations, perhaps because they generate significant revenue for the company. Examples of such businesses might be advertising, office products, and investment services. The title of account executive is especially fitting if there is a staff which supports the lead account executive in maintenance of the client relationship and account service, but a staff is not required to hold this title. In other businesses this position might be called an account manager. Continue reading...
An account freeze stops all pending transactions and does not honor new transaction requests for a financial depository account. A checking or savings account might be frozen at the prerogative of the banking institution or at the request of the account owner or government agency. Similarly an investment account might be frozen for breaking the terms of the account agreement with regards to trading activity or margin requirements, in addition to illegal activity or court order for another reason. Continue reading...
Account history is a term especially useful for investment accounts, where transactions beyond a current month or year’s records are useful for reference. Most people are familiar with the transaction history that is available for the current month, quarter, or year on an individual’s savings, checking, and credit card accounts. These are often called “activity ledgers” or something similar. Account history that reaches further back might be more useful for investment accounts, where the current value of investments, and their cost basis, will depend heavily on account history from potentially years in the past. This sort of query can be made easily with online investment account viewing software from a broker or custodian company. Continue reading...
An Account Hold is similar to the term Account Freeze, as both imply that transactions have been suspended for an account. A client’s financial institution might put a hold on his or her account if the individual is suspected of illegal activity, if the account is overdrawn, or if it is requested by a government entity, such as in a lien by the IRS, among other things. This is slightly different than a “freeze” or “moratorium” on the account. In a freeze, all pending transactions will be canceled and no new requests will be honored. Continue reading...
Similar to the practice of law, the standards and practices of accountants will change based on an ongoing interpretation and application of tax law and codes. Accounting interpretations are generally publications from groups like the Financial Accounting Standards Board (FASB)and the American Institute of CPAs (AICPA). These interpretations are not official standards, and do not have to be followed the way a standard does, but they give insight and suggestions for situations which may be new developments. Continue reading...
Accounting Methods are the overarching style of accounting and bookkeeping which determine the practices, procedures, systems, and controls which should be put in place. There are two main methods of accounting that businesses and individuals can use to approach their accounting, and these are known as cash basis and accrual basis. The IRS expects businesses to choose early one which method they will use, and it can be difficult to change accounting styles later on. Continue reading...
An accounting period is a specific time frame from which documents and records have been used by accountants to arrive at reported balances and statements. An accounting period can be a fiscal year, quarter, or month, or any other time frame for which reporting is being done. At any given time, there may be different accounting periods running. Books are kept and reports are made for different tiers of accounting periods. Continue reading...
Settling an account is laying all outstanding business on an account to rest. Account settlement is an idea that can take a few forms. Settlement is when acceptable “consideration” (compensation or pay) has been provided and both parties agree that the matter is settled, resolved, and no further debts or obligations exist for that item of business. Many people have heard the term “settlement” with regards to legal matters, in which the defendant pays off the plaintiff before an actual trial and usually can avoid officially admitting guilt. Continue reading...
Deposits are cash, checks, and electronic transfers that banking customers put into their personal or corporate bank accounts. Deposits will increase the balance, or pay off a debt, within a bank account. Deposits may not show up on an account balance until they have cleared from the institution or account from which the check is written or the electronic transfer was requested. The types of accounts that can receive bank deposits include but are not limited to checking, savings, and money market accounts. Bank Certificates of Deposit (CDs) can be purchased with an initial deposit that satisfied minimum amount. Deposits are considered liabilities on the balance sheet of the bank, since they are obligated to pay that money out when a customer requests it. Continue reading...
The truest definition of a Bank Draft is a check written with the certification of a customer’s bank. Bank Drafts are checks also known as Bank Checks and Cashier’s Checks. They have already been cleared at the writing institution and they provide an extra endorsement that the payment is good. Regular personal checks do not need to be co-signed or verified before they are used as payment, whether or not there is enough money in an account to cover it. Continue reading...
Bank fees are penalties or maintenance requirements that may apply to checking, savings, or money market accounts. Banks may charge fees for specific types of transactions, if a check bounces, or just a monthly checking account fee. There are many other types of fees and reasons for them. They may be penalties, such as an overdraft fee, or they may be customary for the kind of transaction or account being used. Continue reading...
It is a useful practice to compare the balance reported by the bank and your internal accounting, in the form of a Bank Reconciliation Statement. Bank Reconciliation is the useful practice of comparing the records of the bank and a business's internal accounting for a specific accounting period. Many businesses produce Bank Reconciliation Statements (BRS) on a monthly basis. There may be pending transactions that have not settled yet, such as outstanding checks to vendors, which have shown up on the business’s books but are not represented in the bank account balance. It can be important to identify which transactions have shown up on the bank’s ledger and which ones have not. Continue reading...
A Bank Statement is a report issued to an account holder on a regular basis, such as monthly, which contains the account balance as of the date of the report and usually a history of transactions for the period. A Bank Statement will usually be mailed, either by the postal service or electronically, to a banking customer every month. The statement will represent a summary of the bank’s records for the recent month on a particular account, and will probably show all transactions posted to the account, along with the ending balance of the account as of the date of the mailing. Continue reading...
Sometimes when orders are made for the delivery of goods at a person’s residence or place of business, they can choose to only pay once the goods have been delivered. Payment by COD (Cash On Delivery) is an option that older Americans are likely more familiar with than younger Americans, but it still takes place. In this payment arrangement, a customer can wait until the goods have been delivered before actually paying for them. Continue reading...