Job Costing and Estimating

Small business owners are an underserved group. Tax planning and tax preparation should not be the only skills offered by the business’ advisors. And to small business owners, don’t be so stubborn. Read carefully to understand this discussion. This just might save your life long dream from collapsing. Construction, roofing, and custom manufacturing are all … Continue reading “Job Costing and Estimating”

Small business owners are an underserved group. Tax planning and tax preparation should not be the only skills offered by the business’ advisors. And to small business owners, don’t be so stubborn. Read carefully to understand this discussion. This just might save your life long dream from collapsing.

Construction, roofing, and custom manufacturing are all business types that will benefit from a discussion of direct and indirect expenses. Most already know that direct expenses for a given job or project have to be considered in the cost. Direct expenses include the labor and materials used. It is the indirect expense that is most often forgotten or mistakenly allocated to job cost. The indirect expense is a cost that relates to all jobs or projects and not to one job specifically.

Examples of indirect expenses include: depreciation on machinery and equipment in the production process, depreciation on plant facilities if owned by the small business, rent on the plant facilities, shop supplies, vehicle expenses, utilities, insurance, and the compensation of supervisors, plant managers, and owners of the business. And of course, don’t forget about payroll taxes. There could be other indirect expenses in a given business, but the aforementioned will serve to demonstrate my point. It is also important to mention here the compensation of the business owner or owners. If the owner participates in the production process, a portion of compensation (or all) should be treated as an indirect expense to be allocated to the job cost.

Now that there is a list of indirect expenses, how should they get allocated to the job cost? Typically, indirect expenses are allocated based on direct labor dollars, direct labor hours, or direct materials. My personal favorite method of allocation is based on direct labor hours. If there are 20 direct laborers in a given business, and each is projected to work 1,900 hours annually, there will be 38,000 hours of total direct labor in a given year. If the summation of indirect costs is $1,500,000, this business will have an indirect cost per direct labor hour of $39.47. If my average hourly wage for direct laborers is $25.00, then total cost per direct labor hour is $64.47. If this particular business desires an industry average gross margin of say, 36%, it will need to charge $100.73 per labor hour. This billing rate is determined by using the full absorption method of accounting. Full absorption accounting is a required “generally accepted accounting principle” and must be used in all external financial statements unless otherwise disclosed.

Is Payday Lending the Right Choice?

There are many people who find themselves in significant financial straits and do not know what to do about the situation. If such a person learns about payday loans through an online search or by driving past a storefront with a sign advertising this type of loan, a quick decision to pursue this type of getting fast money might be made. It is a frequent occurrence that a person applies for this type of loan without doing due diligence about the negative consequences. Local Credit Unions would recommend that other sources of obtaining some financial relief. Prior to applying for a payday loan, one needs to learn the pertinent facts about the loan.

BIG FEES WILL BE ATTACHED TO A PAYDAY LOAN

Most people are aware that any loan will have interest and require proof of income. However, one needs to know that the interest on a payday loan can come in at anywhere from 24 to 39% which adds up to a lot of money that one already doesn’t have available. Even if one lives in a state that has put a cap on payday loan interest rates, interest is still high. A person who gets this type of loan might not be able to pay it back on his/her next payday and extends the loan. When this situation occurs, interest fees have to be paid again. In addition, there are several high fee “administrative” fees for the loan that will have to be paid. It can happen that people who become involved with a payday loan find themselves seeking one payday loan to pay off another, the situation spirals out of control and financial ruin looms in the near future.

SIGNIFICANT FACTS TO REMEMBER

Those who get a loan fully intend to repay the debt. However, when one has a payday loan, it is to be paid by the next payday. However, one must remember that there are other bills to pay, food and gas to buy and the funds for the loan payment may not be there to repay the loan. For these reasons, one can become involved in a vicious cycle of trying to find more cash streams to meet all financial obligations. Such a cycle seems never ending until the outcome may have to be a bankruptcy filing. Declaring bankruptcy is something that most people want to avoid.

Dealing with the horrible cycle of debt will have an effect on the whole family. Worry becomes constant and the bill collection calls, letters and threats can result in overwhelming stress that can cause depression and other medical problems. Some people become unable to work and unable to take action or seek help to solve the financial problems. If people are fully informed about the negative ramifications of payday loans, they should be able to avoid this solution to lack of money.

OTHER OPTIONS FOR FINANCIAL HELP

Local Credit Unions would suggest that people having financial problems consider getting a low or no interest credit card that can be paid down gradually when household obligations are met. In addition, people should talk with representatives of local Credit Unions regarding any programs that they might offer that could help with family financial issues. Most of these agencies offer both secured and unsecured loan packages. In addition, one will find that payments and interest rates with credit unions are typically lower than with other financial institutions. It is in the best interest of anyone to avoid becoming involved with a payday loan and investigate the other avenues of procuring the needed money to assist with finances. There are viable alternatives to the highly advertised payday loan.

When You Should Look For A Good Bankruptcy Attorney

Life has its own twists. Unfortunately you are not really ready for it. There are times when you are in debt and you have to pay huge bills. Debts can keep on increasing for many reasons. The reasons are sometimes logical. It can end up becoming a huge amount of money which a person fails to pay. Now let’s discuss on the most important facts which can put you in a financial crisis.

Thanks To The Medical Bills

One of the very first things which every person fails to pay is the medical bills. Hospital bills keep on increasing depending on the kind of accident or illness you have. The worst thing is you don’t have any idea how much you have to pay. Moreover, you cannot control it. They are very expensive and a costly affair for most people.

The cost of surgeries, x-rays, emergency room visits are huge. Modern hospitals have the best medical equipment which is quite expensive. What they do is pass down the costs to the patient. This is when you need a bankruptcy attorney who can help you get out of the mess.

Credit Card Debt

Credit cards are one of the major reasons of the increasing debts. Unfortunately, people decide to get a credit card so that they can cope up with the small debts. But the purpose is not served in the right way. They prefer using the credit card during an emergency or when they have zero cash.

Credit cards are a very convenient option and you can use it when the need arises or you don’t have instant cash. The only difference is that you have to pay a price. Interest rates can also maximize your credit card debt. It adds up to the amount quickly and people find themselves in a financial crisis. Hire a bankruptcy attorney who can offer the best help.

The Right Solution To All Your Problems

For those who are encountering debt issues this is the very right time to look for a bankruptcy attorney. They have experience in all the different kind of bankruptcy laws. They have the right skills, knowledge and experience to help you resolve the debt issues.

It gives you peace of mind when you are in a financial crisis. They can reconcile your debts through a court-approved payment arrangement which can help you deal with the things easily. Keep all these great tips in mind when you are bankrupt.

3 Effective Ways to Avoid Inheritance Conflicts

These issues come up mostly while talking with those who have gone through conflicts in their families during property division process in any of their estate settlements. In most of the cases there are references to the input from one of the members of family “once removed”, and not necessarily the ones who are the so called immediate heirs. These other people who are usually spouses or grandchildren don’t always have the similar emotional connection when compared to the ones who are immediate heirs. In most of the cases this may be unintentionally done. But, when children or spouses have things they want and they make demands, they often end up creating situations that finally result into conflicts.

Here are 3 ways that can help in avoiding such conflicts.

Understanding the Personality of other Heirs: It is very important that you try and understand what kind of people the other heirs who are also involved in the settlement issue are. Analyse their basic traits and find out the way to communicate with these heirs. This approach often resolves most complications even before they arise and clears off lot of misunderstandings. Personality difference is often the main cause behind a conflict concerning settlements. It will become more and more difficult to avoid conflict or maintain peace without understanding the differences.

Keep the Home Untouched before Formal Division: It is very important that you don’t claim your right on something that logically belongs to other heirs. It can also mess with their emotional sentiments and can further complicate the case for you. This is why it is important that the house remains untouched or undisturbed till a legal division is announced. An in-depth scrutiny of the property is important before there is any legal division and you can contribute to the process by not disturbing anything. Without the consent of other beneficiaries or heirs if you remove items from an estate or a home it is very much possible that the issue will get complicated. Very often we see people making this mistake of just going into a property and picking what they want without any consent with the concerned people and such actions are often justified by them through some facts or instances of the past. That being said, legally it will only complicate the case.

Only Beneficiaries or Immediate Heirs should be Part of the Property Division: Property division is a sensitive case and hence it should not be made a mass trial. Only immediate heirs or beneficiaries should become part of the process and other outside influences like children of heirs, grandchildren, in-laws, spouses etc should be kept away from the process. This is particularly more important at the beginning of the division process.

How to Sell Final Expense – Why Agents Fail In the Final Expense Business

The reason agents fail learning how to sell final expense is fairly simple. The unfortunate reality of sales, no matter the industry, is that 90% of all sales people fail or quit within the first 12 months of starting their sales profession. Why is that the case?

The number one the reason agents fail selling final expense is because they give up on themselves. They go into the business with aspirations that didn’t match reality. Looking from the outside in, many new final expense agents have the perspective that to succeed in final expense it is only a matter of going out and talking to people. If it were only that simple!

It takes time to learn the skills necessary to sell final expense successfully. Final expense sales training is something that takes months if not years to develop. A lot of new agents don’t understand that sales is totally different from a typical salaried employee position. You have emotional ups and downs almost daily. Being on straight commission, you literally wake up every morning unemployed; you must “eat what you kill!”

If you don’t have experience, there is nothing to really prepare you for it until you understand what that is like and you are living it. It is something that many people just can’t handle.

Then the other reason people fail is because they don’t get involved with the right agency to help train them, to prepare them for the realities. They get involved with a business that sells “Blue Sky,” meaning all the benefits to a lifestyle of Final Expense and none of the gritty work that it takes to succeed in the long-run.

Also, new agents fail because they get involved in an agency that is designed to short change them and squeeze the dollars out of them at a ridiculous rate. It ends up being a revolving door type of sales agency.

It is important that agents do their research on the front-end. Talk to different agencies. Get a feel for your managers personality type. Figure out who has been successful. How long agents have been working with them? Ask for proof. Are they transparent with what to expect as far as commission and percentage advancements based on merit and production history?

What do you get for your investment? Because the manager makes money off of your production. You just have to make sure value is there. Take the time to ask these questions. Again, it is really important you are reading this because most agents don’t go into this business even knowing what to ask, much less what to expect.

Many agents don’t understand that you must come into this business with a business mindset. Most agents must buy direct mail, and won’t have the benefit of a referral network or an existing book of business. Instead, they have to buy leads to get going.

My recommendation is to have about $4,000 to $5,000 to invest into a final expense direct mail lead system, or if you have less than that keep a full-time job and then also you know if you got $2,000 or $3,000 minimum into a telemarketing final expense lead system.

You MUST start on the right foot. You MUST be prepared for the ups and downs. You MUST be willing to work through it with the understanding that the long-term is what makes it worth having. What makes it all worthwhile.

That’s the reasons why most agents fail learning how to sell final expense. The important thing is to go into this with the right group that shows you transparently what to do. When you know that you have got that on your side it is really up to you.

Do you have the X-Factor to work hard and follow the system that is laid out upon you?

That’s really the ultimate determinate of your success or failure.

David Duford is the owner of Final Expense Agent Mentor.

In addition to personally producing business each and every week, David specializes in training new and experienced agents on how to successfully sell final expense burial insurance.