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What Is A Pro Forma Invoice?
2007-05-09 17:24:00
A Pro Form a Invoice is an invoice that is presented by one company to another for payment for goods or services prior to their being sent to the buying customer or prior to the service being performed. This type of invoice is mainly used when two companies have never had a trading relationship and is geared towards ensuring that payment is received. There are cases, however, when even businesses that have traded with each other in the past still require a Pro Forma Invoice to be submitted, especially when the selling company does not have a customer account system in place. For other trading entities, if future trading is anticipated it will then be usual for a customer account to be set up for the purchasing company with credit facilities to allow for post-payment of goods and/or services.We can look at it from the perspective of a car dealer and a car rental agency. If the car rental agency wants to acquire vehicles from the car dealer and they have never done business before, the...
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Bookkeeping Help For Small Business
2007-05-09 07:23:00
There are many small businesses operating worldwide today that try their utmost best to keep their books up to date. This is especially important for the times when the auditors come around to check their books, as all the information about business transactions, salaries, and so on have to be well recorded so as to allow for a smooth audit. Over the years though, many of these small businesses have out-sourced their bookkeeping needs, sometimes to the detriment of their businesses. It is not one of the easiest things finding a good bookkeeper who will not over-charge them or end up messing up their books. All businesses deserve to have the services of a company that charges reasonable bookkeeping fees that won't break the bank.Accounting Paradise is the company that offers inexpensive Quickbook Bookkeeping and Payroll Services for small businesses. As a member of the Better Business Bureau and Chamber of Commerce, they guarantee that their business is among the best in the industr...
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What Is A Contract Of Sale?
2007-05-08 00:24:00
A Contra ct of Sale , also known as a Bill of Sale, is a legal contract that deals with an exchange of goods, services or property from seller to the buyer for a value that they have agreed upon. This agreed value in money, or equivalent barter-able object, is either paid at the time of the transaction or at a later date agreed upon by the two parties, namely vendor and purchaser. Just like a contract that is signed between an employer and an employee, it is a legally binding document that, if broken in any way by either side, can result in court action. However, many of these Contracts of Sale carry clauses that are in place in case of possible eventualities, all in an effort to avoid legal action.For example, Jeff's Groceries normally purchases fresh produce from Also Veggies. They have signed a contract of sale that effectively lays out how sales and payments take place between them. So all their business transactions with each other will be based on the Contract (or Bill) of Sale.
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What Does The Term "Monetary Ceiling" Mean?
2007-05-05 00:01:00
If you think of the word 'ceiling' in connection with a house, you would say it is the topmost section of the house or the point beyond which the house no longer extends. In effect, it would be the 'maximum point' of the house. Using that same definition but applying it to money means that the term "Monetary Ceiling" is the maximum value which will be allowed for a particular transaction. This means that it is the highest possible value or maximum figure that a transaction can attain to. It also applies to non-transaction avenues too, like the estimated value of a piece of property or other asset which cannot possibly cost more than a certain value based on prescribed factors.For example, if you were a fashion designer who makes elegant clothing, you have the power to state how expensive your clothes can be. This means that retailers who buy your line of clothing can sell them for less than the maximum price, while still making a profit, but cannot exceed the maximum value you h...
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What Does Pro Bono Publico Mean?
2007-05-02 07:23:00
Pro bono publico (normally shortened to pro bono) is a phrase that is derived from Latin meaning "for the public good". It is used to designate legal or other professional work that is undertaken voluntarily and without payment, as a public service, thus for the public good. In some cases, pro bono counsel may help an individual or group of persons on a legal case in filing an appeal, government applications or petitions. Every now and then, if the case is won, the Judge may determine that the loser should compensate the pro bono counsel.So if someone has a case to hear in court but cannot afford the services of an attorney, a pro bono counsel is appointed to assist in defending that individual. This is done free of charge to the defendant, but the pro bono counsel may get compensated if the case is won and the presiding magistrate or Judge orders that the loser pay the pro bono counsel.
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What Is Power Of Attorney?
2007-04-30 06:26:00
A Power of Atto rney is a legal instrument that is used to delegate legal authority to another. The Principal is the person who signs, or executes, a Power of Attorney . The Power of Attorney gives legal authority to an Agent or Attorney-in-Fact to make property, financial and other legal decisions on behalf of the Principal.An Agent can be given broad legal authority or very limited authority by a Pricnipal. The Power of Attorney is generally used to help in the event of the illness or disability of a Principal, or in legal transactions where the Principal cannot be present to sign necessary legal documents.You may read up more on Power of Attorney by clicking here.

What Does Fixed Yield Mean?
2007-04-27 17:39:00
The expression Fixed Yield means that the yield, or gain, on a money instrument is set at a fixed, or constant, rate. It is often referred to as a Fixed Yield Income which would have the same meaning, only that the money instrument would be income. The rate does not change or alter over the course it runs regardless of economic or other social factors. This strategy helps to keep money instruments in check so that if for some reason expected rates of return are not achieved, there would not be any extra monetary pressure on the company or institution that has enforced the Fixed Yield plan.For example, a company may hire 20 workers to pack boxes of bananas for export. They are paid a salary of $12,000 per annum with a Fixed Yield of 5% per annum on their incomes. This means that at the end of each financial year, they would be entitled to a fixed salary increase of 5% regardless of how good or bad business is. So we say that they a Fixed Yield Income. Another example of Fixed Yield w...

What Is A Trade Deficit?
2007-04-25 17:32:00
A Trade Deficit occurs when a country imports goods valued at more than goods that they are exporting. This is not good for a country as they are in fact spending more than they are earning. What will happen eventually is that they will have to borrow money on the world market to take care of the business of running the country, putting it in debt. As the debt accumulates, the country will be pressured to take drastic measures to try and repay the debt and more than likely borrow more money from one place to pay another, resulting in a vicious cycle.To give an example of a Trade Deficit, a country may import goods valued at $200 million and export goods valued at $10 million dollars. The trade deficit would then be $190 million.

What Is A Rebate?
2007-04-23 06:15:00
I am sure that you have heard about companies offering rebates on purchases. A Reba te is simply a sales promotion technique in which the customer is offered a return on the price of purchased goods, whether in single units or in bulk. This applies or can apply to any purchase, be it electronics, clothing, merchandise, you name it. This type of promotion helps to boost sales as customers are normally happy to get something back from the merchants they do business with. However, there are times when certain terms have to be met in order for a rebate to be applied.An example of that would be of a cell phone dealer offering a 45% rebate on phones purchased before a certain date or that the customer has to fill out a one year plan with a cellular provider to get 100% rebate on cell phones. Another example would be of a clothing wholesaler offering 25% rebate on all winter clothes that are bought during summer. In all three cases, there were certain stipulations that had to be met in ord...
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What Is Last In First Out (LIFO)?
2007-04-20 22:26:00
LIFO, or "Last In First Out", is a method of inventory control where stock that was purchased last is sold before stock that was purchased before. To put it another way, products that were last placed in the store are sold or used before older produced or acquired goods or materials. This kind of stock rotation ensures that fresh stock is always available for sale. In most cases, previously acquired goods would have already been on the shelves awaiting sale.For example, a store owner purchases some goods on the ninth of January and then makes another purchase on the eighth of February. The goods that were purchased during February would be put out for sale in front of the goods that were purchased in January. Hence, the Last goods that came In are the First goods to go Out.

What Is FIFO (First In First Out)?
2007-04-19 05:01:00
FIFO, or "First In First Out", is a method of inventory control where stock that was purchased first is sold before stock that was purchased after. To put it another way, products that were first placed in the store are sold or used before more recently produced or acquired goods or materials. This ensures that stock does not spoil or expire before they are sold.For example, a shop keeper buys some goods on the first of April. He then makes another purchase on the tenth of the same month. The goods that were purchased on the first of the month would be put out for sale ahead of the goods that were purchased on the tenth. Hence, the First goods that came In are the First goods to go Out.

What Is A Trade Barrier?
2007-04-16 16:02:00
A Trade Barr ier is a condition that is imposed by a government to limit the free exchange of goods internationally. Another term that can be used for it is Trade Sanctions. There are differing reasons why any government would impose trade barriers upon a country. We can think of the one that exists now between the United States and Cuba. The trade barrier is in place because of Cuba's communist government. This means that Cuba is unable to freely exchange goods with the U.S. and any other territory that it controls. This of course affects Cuba's economy and is aimed at breaking communist rule in that country.Trade Barrier s are also imposed on countries internationally for these other reasons:1. Civil war in the country that is hurting international trade2. A style of government that is not accepted by its trading partners3. Illegal activities on the world market that continue unchecked4. The presence of certain diseases in a country that could affect the population or economy of i...
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What Does The Term Recession Mean?
2007-04-14 08:38:00
Recession is defined as a stage of the business cycle in which economic activities go into a slow decline. As history has showed, recession usually follows a boom and comes before a depression. One of the main characteristics of recession is rising unemployment and falling levels of output and investment. In this state, the economy in general of a country can go into recession and thus affect all businesses.
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What Is An Unsecured Debt?
2007-04-12 08:37:00
Have you ever wanted to borrow money but just never had the collateral that is needed? Many persons have been faced with that dilema. It is now possible to have an unsecured debt (spin-off from an unsecured loan). An Unsecured Debt is money that is borrowed without supplying any collateral. This means that anybody can now get a loan without needing to have a house or car or land.This is a high risk debt, however, because if the borrower falls into hard times, the debt may never be fully repaid. Banks and other lending institutions implemented the Unsecured Debt policy to level the playing field, allowing just about anybody the ability to access a loan.
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What Is Venture Capital
2007-04-10 05:34:00
Venture Capital is the money that is used to finance new companies or projects, especially those that have high earning potential and high risk. The source of this type of capital varies but does not really matter as long as it can be found. So if an individual wants to start up a company that sells water, but doing so in a violent neighbourhood, Venture Capital is what the individual would need. The deal with it is that water has high earning potential since evryone needs water to survive. The neighbourhood would make setting up the business high risk because of its violent legacy whcihmay include robberies and so on. Nonetheless, it is still possible to setup the business despite that.
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