boyet asked:


Is it only business man who should communicate and understand the dynamics of the economy?Isnt this an invitation to drop the business reporting and consider if the topic for specialist?

Teddy

Alex Sutovsky asked:


The positive economic atmosphere in the market is also felt in the large number of new businesses opening in Israel. Each day, many new businesses are opened, most of them small and medium sized. More than once this relates to young people who have finished their world tour and now are full of energy and attack the market with a view to conquering it. Our office feels the reawakening of the economy and mentioned that recently there has been a sharp increase in the number of those contacting us in order to receive advice and to open a new business. Also, the new reforms planned by the Ministry of Finance make the establishment of new businesses more worthwhile and more profitable.

Nevertheless, even if a business owner has a fantastic idea and a tremendous potential for success, incorrect decisions at the start of the road may decide the fate of the business already at its infancy. Most of these incorrect decisions in opening a business result from a lack of knowledge of legal and accounting affairs connected with establishing a business. In order to assist businesses at the outset, we hereby submit a complete manual for opening a business:

Location of the business

Throughout the country and in the center of the large cities, there are many areas available for leasing. The prices are lower than at any time and one can choose the most suitable building for the business’s needs. In a new business, it is not recommended to sign a lease for over a year, but to have an option to extend the lease under identical conditions. A short-term agreement will ensure the transferring of the business to another place should the chosen location not be successful from the business’s point of view. When choosing the location of a business, remember that the costs of transferring it are very high and include transport, renovations, etc.; and therefore, it is most important to choose a suitable location.

Bank and credit frameworks

Despite the fact that many self-employed continue to run the business also using their private bank account, this is not recommended. The management of a separate account for the business provide a more precise indication of the business result and makes the management of cash flows in the business easier. In addition, in order to recognize bank expenses and commissions as recognized expenses, the tax authority requires the business to have its own account.

It is recommended that the business account will not be kept in the bank in which the private account is kept. Generally, the bank will see both accounts as one account for the purpose of giving credit frameworks and calculating indebtedness. The opening of a bank account with another bank can increase the credit framework given to the business.

It is very important to see the bank as a partner and to maintain a positive reputation with it. When a problem is expected in cash flows, it is recommended to inform the bank and come to a joint solution. Cooperation with the bank is even more important due to the new regulations which forbid the bank to allow an overdraft without approval as from July 1, 2006. Maintaining good relations with the bank does not contradict that it is recommended to negotiate the amount of interest and commissions, and in this way to save money.

Funds for small businesses

One of the central problems of new businesses and businesses in general is credit difficulties. In Israel, there are many funds that operate and encourage new, small, and medium – sized businesses with the method of granting credit changing from time to time.

Generally, assistance is given to businesses that already exist and operate, but there are also funds that give loans to businesses being established. At the time of taking credit, it is important to ensure that the business can meet the monthly repayment. For businesses that cannot meet immediate repayment, there are loans where repayment is made only after a period which is decided in advance.

Value Added Tax

The business can operate only after registering and opening a VAT file.

There are two types of independent business:

a. An exempt business – where the expected annual turnover will not exceed NIS 65,720 – generally, these are small business and employees who are only starting their activities as self employed. Such a business only reports once a year to the VAT and does not collect and cannot set – off VAT. Businesses such as the liberal professions cannot register as exempt businesses, no matter what their revenues

b. A taxable business – anyone whose annual turnover is expected to exceed NIS 65,720 must be registered as a licensed dealer.

When filing an application to the VAT authorities for opening a business, you should have the following documents: an application to open a business signed by the dealer/partners, a photocopy of an identity card/identity cards, a cancelled bank check / any other document showing details of the bank account and details of the holder of the bank account and the rental contract.

In certain cases, the Value Added Tax Authorities are entitled to demand additional documents such as future engagement agreements etc.

Income Tax

After the change in the law, about a year ago, dealers are required to report to the Income Tax on the opening of a business, and anyone who does not do so is exposed to administrative fines. In order to register an independent business, an application to register one must be made with the assessing officer. Despite the fact that it is possible to open a business with the tax authorities independently, it is recommended to obtain the assistance of a CPA to do so.

Opening a deductions file for employees

If the business employs people, a deductions file must be opened with the assessing officer. The opening of a deductions files with the National Insurance Institute is carried out automatically by obtaining data from the Income Tax Authorities.

National Insurance Institute

In addition to registering VAT and income tax, an independent dealer must register also with the National Insurance Institute. Registration is done by completing the annual report form. The Institute requires that the number of hours expected and the level of expected income. There are two types of self employed in National Insurance:

1) A self employed person who meets the definitions of a self employed person – pays advances on account and insures the income for which he pays advances.

2) An independent who does not meet the definition – a dealer who works in the business less than 12 hours a week and earns less than NIS 3,692 per month. This status generally is suitable for employed people where the business provides him with complementary income. When the business is registered with the National Insurance Institute – the Institute examines whether insurance fees were paid from the age of 18 until the age of opening the business -whether there are periods where the dealer was abroad or did not work – he will be required to pay for these periods.

Keeping books of accounts

Every person who has income from a business or profession must keep books. The method of keeping books changes according to type and size of the business. At the start, it is recommended to keep close contact with a professional person – certified public accountant or tax consultant in order to obtain a detailed explanation of the method of managing the books and the procedures of issuing invoices and receipts. In addition, cooperation with a certified public accountant assists the business in understanding more correctly and releasing its owners from waiting unnecessary time.

Non keeping of proper books causes their disqualification by the tax authorities. This sanction is likely to result in a situation where the assessing officer will determine for himself the annual assessment that the business owes, and its owner will have to prove the exact income according to which the tax is paid.

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For additional details regarding the specific requirements of every client, send us your query and we will gladly get back to you with a response regarding your specific needs.



Howard

Smith & Chen asked:


Small business grants are not just given away by government agencies or private institutions for helping you start your business. There needs to be a particular interest in your project in order for them to provide the funding that you need. And it’s not enough to have a good idea in order to obtain finance for it; you need to have a well made business project to convince them of your eligibility.

No Credit Or Income Requirements?

Though there is no need to reimburse the money on government grants, claims that state that there is no credit or income requirement in order to get approved for a government grant are far from being truth. Truth is that the requirements for approval are not present in the same sense as on private or federal loans but there is still a qualification process.

You may wonder then, what is needed in order to qualify for a government grant. The idea is that you’ll need to show that your business project is viable, and thus, you’ll need to show that you can be trusted which implies having a fair credit score and the ability to generate a proper income to show proof of the business viability.

Presenting a Viable Business Project

What you need to understand is that prior to requesting a government grant, you’ll need to prepare a presentation of your business project. This obviously implies having a project and not just a mere idea. There must be certain degree of research done with market analysis to prove the viability of the business and the income generation capacity.

Though the money doesn’t need to be returned, the government agency is interested in investing the money in a project that will endure in time and that will keep generating job positions and revenues thus boosting the economy and the welfare of the nation. The particular requirements of each government grant need to be consulted with the government agency that provides them.

Getting Approved For a Government Grant

The key to getting approved for a government grant is to present an appealing business project that shows great feasibility and relates to those fields that the government is interested in promoting. If you don’t meat the requirements for a government grant approval, there is not much you can do about it. Yet, if you do qualify, it is important to be well informed prior to applying in order to take the proper steps and avoid getting declined due to bureaucratic reasons.

If you can’t qualify for a government grant, don’t despair and use the opportunity to consult about government business loans that are sometimes offered with subsidized interest rates and very affordable payments.

Business Grants

One of the best places to research the availability of business grants and loans is the Small Business Administration, an agency of the federal government with a mandate to help business, especially small business succeed. Despite what many people tell you, the idea that the government is just sitting around with a pile of money waiting to give out to you or any other small business is just plain wrong. The idea of obtaining a small business grant, for many small business owners, is great.

Your chances of obtaining grants for your business dramatically increase if you have a non-profit organization. This isn’t to say that assistance isn’t available at all, just that grants are probably a long process when and if you happen to find one where your small business fits. While the Small Business Administration does not have any monies to provide directly for business grants and loans they can direct businesses to a number of government agencies and departments that do provide this type of assistance.

Even though the category of Business and Commerce may be what appears to have the largest selection of resources for business grants for women, consider the other categories as well, according to where your business falls. There are many types of grants offered by the Governments and other financial institutions that include individual grants for personal necessities, business grants for starting new business, education grants for funding education and many more. There are two main types of financing available for small businesses; small business grants and small business loans.

You’re not along if you need small business grants and loans to get your business started. If you want to avail of free government business grants then you need to locate a program that provides grants to start up businesses. Government’s Catalog of Federal Domestic Assistance (CFDA) provides a listing of Government grants and other types of assistance that you can receive.

The downside of grants is that business grants for women are not widely available. So, are there any grants available to you as a small business owner? New business owners and existing business owners are eligible to apply for business grants.

Small business administration grants are provided for small businesses that are already in operation. Small businesses always play a significant role in the economic growth of a country and that is the reason governments are always ready to offer financial resources to facilitate small business. This type of service offered by the government is only obtainable to businesses that barely needs a financial support but can not apply for a loan because of inadequate security.

There are indeed many grant and loan programs for small businesses, including many that are administered by state or local government, rather than the federal government. Having pointed to the drawbacks, there are many genuine government grants for both small businesses and individuals available, and these can be substantial. That’s you’ll actually be able to access whatever grants, services and resources are available, because the nonprofit organizations are the ones who work with indidivuals and provide “service delivery.

First, let’s take a look at what type of grants are available. The allure of these so-called small business grants is understandable. If you are interested in looking for a company that can provide you with small business administration grants, you can try searching through the World Wide Web for information.

If you are considering starting your own home business in the near future you should consider researching small business grants and loans now. Federal Grants provides detailed information on Federal Grants, Federal Pell Grants, Federal Government Grants, Federal Grants For Small Business and more. Small Business Loans provides detailed information on How To Get A Small Business Loans, Minority Small Business Loans, Small Business Bad Credit Loans, Small Business Government Loans and more.

To conclude, small business loans are usually awarded to all kinds of businesses to help them to begin and to succeed in their trading. The government is more than willing to help out businesses especially with the economic condition that still remains volatile and unpredictable and with the need for more economic development.



Paine

limster asked:


A friend of mine needs a job. He has been a business owner all his life, but due to the economy being so bad, he sold his business. Now he wants to work for someone, but doesn’t know how to write a resume as a business owner. Is it the same as writing a resume if you worked for a companies?
Would it be negative for the employer to know that you owned a business (for many years)? Would they think he is over-qualified?

Eugene