HOW MUCH LIFE INSURANCE IS ADEQUATE

In taking out a life insurance policy, it is important to know how much life cover is needed.
There are several factors that determine the amount of life insurance cover a person needs to purchase.

The factors to be taken into consideration include the following:

• The age of the proposed assured
• The age of the spouse
• The annual income of the proposed assured
• The annual income of the spouse
• The number of dependant children and their ages
• The estimated cost of college education for children
• Spouse desired retirement age
• The value of investment portfolio
• Balance on RSA retirement account
• Size of existing life cover
• Projected funeral and other death expenses.
• The investment rate
• The inflation rate

 These data are keyed into a life insurance calculator developed by Hillcrest Professional Services to determine the size of cover to purchase and the likely premium. To request for the Life Assurance calculator please send an email to info@hillcrestprofessionals.com

WHY INSURANCE IS ESSENTIAL FOR FINANCIAL SECURITY

 

FINANCIAL COMPESATION: 

Financial compensation to the person to whom the policy is entitled   in the event of actual occurrence of  loss or hazard/damage where applicable.

 RELIEVES WORRIES & ANXIETY (Peace of Mind)
It relieves worries and anxiety that they may have about how they would meet the cost of risk, that is,it gives peace of mind. In the case of business, this is a positive stimulus to their activities and also allows them to get on with their own business, knowing that they are financially protected against many forms of risk. 

STIMULATING BUSINESS GROWTH & DEVELOPMENT
Business people will be more inclined to risk their money ( flying planes, building factories, transporting goods through the high sea, production of goods and services) with the knowledge that they will not lose everything should they fall victim of some risk. This is extremely important benefits which insurance brings. This not only to individuals, but also the whole country.Insurance stimulates business that makes the economy healthy. 

REDUCTION OF LOSSES: (Advisory roles)
Insurance also can help in actually reducing losses through the advisory role we play. Insurance companies have great deal of experience in risk of all kinds. Over time, we have found ways in which certain risk can be reduced, most especially Builders and Occupiers Liability insurance which are compulsory insurances. Surveyors are employed to inspect the premises and suggest likelihood of risk and suggest ways to reduce it. The advisory role insurance plays always reduces the likelihood some risk.

IMPROVED ECONOMIC ACTIVITY:
One further benefit derived from the transaction of Insurance, is the use to which the Insurance company puts the money it holds in the common pool.All the premium collected are held in a pool, until one of the members of the pool suffers a loss.This fund is invested in a wide range of investments, which all go towards aiding Government, Industry & Commerce in the country.
Some visible symbols of the uses to which Insurance funds are directed includes Building (Real Estate), Mass Transit Vehicle for transportation  among others.A whole lot of other busines

CREATION OF IMMEDIATE ESTATE
Insurance creates an immediate estate(valuables) in the event of death of the assured.Upon the death of an assured from whatever cause, a capital sum amount becomes payable to the named beneficiary of the assured.This therefore makes Life assurance very beneficial.This is important, if not compulsory for people with dependants who are minors(individuals under age 18).Breadwinners often think about their spouse, children and partner every day.There is the worry about what happens, if we are suddenly out of the picture? Who pays the bill,who keeps a roof over their heads, who helps the children to realize their dream?

TAX REBATE:
Life Insurance policy holders obtain tax relief as added advantage. This helps them in saving a large portion of their tax payment. When the tax-payment gets curtailed, then consequently, their disposable income increases, leading to more enjoyment out of a secured life.

INCOME PROTECTION:  Life Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life. 

PROFITABLE LONG-TERM SAVINGS INVESTMENT:
 Since some policies can be used for a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.

 SAVINGS CULTURE:
Life Insurance is a long-term contract where as policyholder, you have to pay a fixed amount at a defined period. This builds the habit of long-term savings. Regular savings over a long period ensures that a decent capital sum is built to meet financial needs at various life stages. 

MORTGAGE PROTECTION:
Insurance acts as an effective tool to cover mortgage loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the bereaved family. 

SECURITY:
 Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite.

 For free Consultation please call 08039286522 or email hillcrestpro@gmail.com

7 TIPS FOR FINANCIAL SECURITY IN RETIREMENT

1.  Pray for the best and plan for the worst.

Its great to look forward to the best in life but it wise to plan for the worst just in case things did not work out as hoped. A great part of premature death after retirement is because people's expections are not realised and they did not have a plan B.

2. Avoid falling victim to Parkinson's law  

Parkinson's law states that expenses will rise to meet income. Most people fall victim of this law. The best way to deal with this is to take up a savings policy every time there is an increment in your income.The increment is chanelled to this policy where they accummulate over time and are then invested wisely. By so doing, you maintain your expense level and increase your networth.

 

3. Set financial goals and take up a plan to achieve your goals.

Goal setting is important in achieving success. Financial goals include owning real estate, starting or buying a business, sending a child to college, retiring early with enough in your RSA account. All these can be achieve by determining a target amount to accomplish the financial goal and the time frame within which you intend to achieve the goal The target amount divided by the number of preferred period be it months,quaters, half year, or  annual will give you an idea of how much you must put away periodically to achieve your goal.

4. Start planning for your retirement early.

It is always wiser to start your retirement planning early. Two major reasons for this are firstly you will have a longer period of time to accumulate and grow your retirement nest and secondly the effect of compounding is usually greater in later years than in earlier years.This means that effectively you can save lesser amount of money than a person with a shorter span and still end up with more money in your retirement nest.

5. Savings , investment and insurance are essential.
These are the tripod on which financial security stands. Savings help you to accumulate, investment helps you to grow and insurance helps you to protect your investment and income and ensures your family are well catered for incase of the unexpected.

6. Develop an investment strategy to minimize your tax liability.
Taxation if not well managed can eat up a lange chunk of your retirement nest. Expert advise is needed on the types of savings and investment that will give the best tax breaks and benefits.

7.  Consult a financial advisor before you begin investing.
Its always wise to seek the help of a financial advisor to provide advice on the best investment and tax management strategies as well as recommended appropriate investment that will suit the peculiar circumstances of the client.

For free consultation please call 08039286522 or send email to info@hillcrestprofessionals.com

REASONS WHY QUICKBOOK IS EXCELLENT FOR SMALL BUSINESS ACCOUNTING

Reasons Why You Should Use QuickBooks

QuickBooks is the ideal business accounting software for small to mid-sized business owners. Here are some reasons why you should be using QuickBooks.

• You save time on bookkeeping and paperwork because many of simple bookkeeping tasks are handled automatically making it easier to run your business.
  
  
• You can easily generate the reports with the information you need, so you always know where your business stands. You instantly know whether you're making money and whether your business is healthy.
  
  
• You save money because QuickBooks is so affordable. You can use it to run a N5 million or a N 5 billion business for a few hundred bucks. PC accounting software is truly one of the great bargains in business.
  
  
• Your business can grow with QuickBooks. QuickBooks will help you design a business plan to use when trying to secure a small business loan or line of credit or to plan for the future. QuickBooks will create a projected balance sheet, profit and loss statement and statement of cash flows in the format recommended by the Bank of Industry.
  
  
• You can customize QuickBooks to work the way you want. QuickBooks is specifically designed to be flexible and adaptable to a wide range of small businesses. To broaden its appeal, QuickBooks has recently added customized accounting packages for Contractors, Retailers, Health Care Professionals, and Non-Profit organizations.
  
  
• You can rest assured knowing that QuickBooks is a stable, reliable and proven product. Hundreds of thousands of small businesses throughout the world have chosen QuickBooks as their accounting software. You can't go wrong with a software program with such an extensive installed user base.
  
  
• You save typing time and errors by sharing data between QuickBooks and over 100 business applications. You can even share data with popular programs, such as Microsoft Excel, Word, and Outlook. 
• Online Banking also lets you download your monthly statement from your participating bank directly into QuickBooks for easier reconciliation.

 
For Free Consultation on QuickBooks for your business call 08039286522 or email hillcrestpro@gmail.com

PAYROLL TAX PROBLEMS: HOW TO HANDLE THEM

The various States IRS view failing to pay payroll taxes as the cardinal sin of tax delinquency because a large portion of the payroll taxes are your employees' withholdings. Not paying your company's payroll taxes is tantamount to stealing your employees' money in the eyes of the IRS.

As a result, penalties for failing to pay your payroll taxes and filing your payroll tax returns on time are much more severe than other types of penalties. They can drastically multiply the amount you owe in a very short time!

If you are behind on paying payroll taxes for your company, WATCH OUT!!! The  State IRS is extremely aggressive pursuing collection of this type of tax. They would rather seize your business assets, close you down, sell your assets at auction, and put you out of business than allow you to continue amassing additional payroll tax liabilities.If you are behind on your payroll taxes, DO NOT meet with the IRS on your own. How you answer their initial questions can determine whether you stay in business or not. It is critical you hire a professional representative who knows how the State IRS operates.

Hillcrest Professionals provides these types of services to help businesses deal with Payroll tax problems.

For free Consultation call 08039286522 or email hillcrestpro@gmail.com

HOW TO REDUCE YOUR TAX LIABILITY THROUGH TAX PLANNING

Planning is key to successfully and legally reducing your tax liability. To achieve this one must go beyond tax compliance and proactively implement tax saving strategies to maximize your after-tax income.At Hillcrest Professionals, a firm of Accountants and Financial Advisors, it is a priority to enhance mastery of the current tax law, complex tax code, and new tax regulations by attendance at frequent tax seminars.

Businesses and individuals may pay the lowest amount of taxes allowable by law through expert assistance in continually looking for ways to minimize  taxes throughout the year, not just at the end of the year.

Hillcrest Professionals recommend Tax Saving Strategies that help you...

• grow and preserve assets by keeping Uncle Sam out of your pockets.
  
  
• defer income so you can keep your money now and pay less taxes later.
  
  
• reduce taxes on your income so you keep more of what you make.
  
  
• reduce taxes on your estate so your family keeps more of what you've made.
  
  
• reduce taxes on your gifts so you can give more.
  
  
• reduce taxes on your investments so you can grow your wealth faster.
  
  
• reduce taxes on your retirement distributions so you can retire in style.

Here's just a few of the Tax Saving Strategies ...

• Splitting income among several family members or legal entities in order to get more of the income taxed in lower bracket.
  
  
• Shifting income or expenses from one year to another in order to have them fall where it will be taxed at a lower rate.
  
  
• Deferring tax liabilities through certain investment choices such as pension plans, contributions and other similar plans.
  
  
• Using certain investments to produce income that is tax exempt from either federal or state or both taxing entities.
  
  
• Finding tax deductions by structuring your money to pay for things you enjoy, such as a buying a new home by mortgage.

Remember, you can reduce your personal and company tax liability through careful planning and legitimate tax strategies.

For free Consultation on Tax planning, call 08039286522 or email hillcrestpro@gmail.com

NEW BUSINESS FORMATION: HOW TO GET STARTED

Thinking of owning your own business?

Opening your own business is exciting and thrilling. It's everything that comes after the excitement and thrill has worn off that dictates whether a small business will make it or not. It's up to you to maintain and stretch out the "thrill and excitement" period forever.

A methodical plan of action is needed to fulfill your dream or goal of being your own boss and running a successful business. Success lies in the approach you choose to take. Hillcrest Professionals, a firm of  Financial and Risk Advisors, will help you avoid the common pitfalls that many new small business owners make when starting their new venture.

Hillcrest Professionals  will help you...

• Prepare an initial business plan to clarify your marketing, management, and financial plans.
• Determine your start-up capital needs.
• Identify sources of start-up capital and backup sources if needed.
• Evaluate and quantify your borrowing power so you know how much money you can get your hands on if needed.
• Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation and portability should you need to relocate.(enterprise/business name, limited, etc)
• Select the right accounting software by evaluating your budget, needs and hardware.(Quickbook, Peachtree, etc)
• Prepare a Cash Flow Budget so you know exactly how much money you need to keep the business alive each month for the first few years. Unplanned cash requirements are always emotionally painful.
• Establish billing and collection procedures to maximize your cash flow.
• Establish procedures to monitor and control costs.
• You can start with a home office to save cost of rent and later get an office as employees begin to come on board.
• Prepare and file all required state and local licenses and permits.
• Prepare and file your application for your FIRS Tax Identification Number.
• Open a current account with a commercial bank or microfinance bank.
• Provide payroll and payroll tax filing when you bring on your first employee.
• Comply with employment laws so you don't get hit with fines and unhappy employees.(e.g. Group life,Pension, NSITF, ITF, HMO)
• Identify your business insurance needs.( You may need the services of a Risk Advisor)
• Develop a solid Partnership Deed or Agreement. This is an extremely important document for all new partnerships and will help prevent a tremendous amount of financial and emotional problems down the road. 

Get your new business off to a strong start. 

For free Consultation on New Business Formation Services please call 08039286522 or email hillcrestpro@gmail.com.

SMALL BUSINESS ACCOUNTING: WHY OUTSOURCE

Every business owner is interested in ensuring that their books are well kept and that at any point in time they can easily access information about the financial state of affairs of their business. The expertise to achieve this is not cheap to retain in-house. Hillcrest Professionals, a firm of accountants and advisors is spearheading the provision of this expertise at  affordable fees.Each month or quarter Hillcrest Professionals will do the following things for you...

• Reconcile your bank account
• Generate an income statement 
• Generate a balance sheet
• Clean up your general ledger
• Provide unlimited consultations
• Prepare performance review reports

These tasks form the solid foundation of your small business accounting system. The business owner can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of the other services.

Bank Reconciliation

Reconciling your business checking account each month allow you to keep your bank account, accounting, and taxes up-to-date.

This alows you allows you to...

1. Identify lost checks, lost deposits and unauthorized wire transactions.
    
2. Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
    
3. Detect and prevent embezzlement of funds from within your company.
    
4. Know how your business is doing? You can't really know unless all accounts are reconciled and properly accounted for on your financial statement.
    
5. Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.
    
6. Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
    
7. Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

 
Income Statement

An income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.

An income statement allows you to...

• Track revenues and expenses so that you can determine the operating performance of your business.
   
• Determine what areas of your business are over-budget or under-budget.
   
• Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.
   
• Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
   
• Determine your income tax liability.

Balance Sheet

A balance sheet gives you a snapshot of your business' financial condition at a specific moment in time.

A balance sheet helps you...

• Quickly get a handle on the financial strength and capabilities of your business.
   
• Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively.
   
• Determine if your business is in a position to expand.
   
• Determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses?
   
• Determine if you need to take immediate steps to bolster cash reserves?
   
• Determine if your business has been slowing down payables to forestall an inevitable cash shortage?

Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

Maintaining a Clean General Ledger

The general ledger is the core of your company's financial records. These records constitute the central "books" of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.

Having us review your general ledger system each month allows us to hunt down any discrepancies such as double billings or any unrecorded payments. Then we'll fix the discrepancies so your books are always accurate and kept in tip top shape.

Unlimited Consultations

Hillcrest professionals  are always available to spend time with business owners so they fully understand how to interpret and utilize the financial information we provide. Our consultations are already included in our price, so please feel free to call us whenever you have a question or concern

Perfomance Review Report

This will review the business's performance against the projections made at the start of the business year.this will enable management zero in on weaknesses so that necessary remedial action can be taken..

For freeConsultation on our Small Business Accounting Service, call 08039286522 or email hillcrestpro@gmail.com