Joomla! site syndication http://www.akuntan.org/main Sat, 04 Sep 2010 00:42:48 +0100 FeedCreator 1.7.2 http://www.akuntan.org/main/images/M_images/joomla_rss.png http://www.akuntan.org/main Joomla! site syndication http://www.akuntan.org/main/index.php?option=com_content&task=view&id=51&Itemid=2 Initial public offering can be an excellent way for a corporation to raise a large amount of capital. In an initial public offering, a corporation’s shares are made available to the general public, thus providing a substantial influx of cash. The term applies only the first of such offerings, and any later offerings are referred to as secondary market offerings. The benefits of an initial public offering are numerous. In addition to the financial gains, a company that decides to go public will also increase their public awareness and credibility. Since public companies are more carefully and closely monitored than private companies, many investors feel that that they make for more stable investments. This increased demand is reflected in a higher overall valuation of the company. In addition, media outlets are generally more willing to cover public companies, so publicity generally increases. Going public also increases the liquidity of company shares, further increasing the value of the company. At the initial public offering, a market is created for the company’s shares, allowing investors to trade freely. That freedom to sell as necessary lowers the risk involved in holding shares, thereby increasing value. For a company that has difficulties attracting and retaining quality employees, going public can offer another form of compensation. While shares of a company can certainly be offered as compensation by private companies, they are even more valuable when they have the liquidity and stability that comes with going public. In addition to increasing morale, stock options help to align the incentives of employees to those of the company. The owner of the business may enjoy similar benefits after going public. His or her shares immediately take on a liquid, easily calculated value. While there are restrictions on when those shares may be traded, the overall value of the owner’s percentage should increase after the initial public offering. In fact, many business owners decide to go public as an exit strategy. Once the company is public and shares can be sold, it becomes much easier to remove oneself from ownership. For all the benefits of an initial public offering, the process is not without its drawbacks. Those who enjoy the autonomy of owning a private company may not enjoy having to answer to shareholders after going public. Instead of acting purely in the interest of the company’s long-term well-being, management may feel pressured to take actions to maximize immediate returns. Lack of control doesn’t end with management decisions. The decision to go public can also leave a company vulnerable to hostile takeover if insiders don’t retain a sufficient percentage of outstanding shares. Although extremely rare to occur, for that reason, some companies choose to restrict the number of shares issued. While this is effective, it also limits the total capital raised. As an alternative, other corporations issue shares with voting restrictions. These restricted shares are valued less than unrestricted shares, so this scenario also raises a smaller amount of capital. Even before the initial public offering is complete, it can have some negative effects on the corporation. The process of going public is both time-consuming and expensive, and can divert employees from day-to-day activities. It’s not unusual for underwriting fees and related expenses to cost 10-20% or more of the total funds generated by the offering. After the initial public offering takes place, higher expenses continue in the form of increased reporting requirements. Taxes become more complicated, required disclosures increase, and the company becomes subject to a host of SEC requirements regarding activity of the company and its executives. While an initial public offering isn’t right for every company, the decision to go public is certainly appropriate for many. If a corporation can shoulder the burdens of additional expenses and profit-driven stockholders, it’s certainly an option worth pursuing. The major influx of cash that going public can provide might be just what it takes to bring a company to the next level. Article Source (http://www.articlecafe.net/): http://www.articlecafe.net Joel Arberman is the Managing Member of Public Financial Services, LLC. We help private companies through the process of becoming publicly traded via an initial public offering or direct public offering. Learn more at www.PublicFinancial.com (http://www.publicfinancial.com/) Artikel Akuntansi - Pasar Modal Wed, 07 Jul 2004 11:54:06 +0100 http://www.akuntan.org/main/index.php?option=com_content&task=view&id=52&Itemid=2 A growing trend in today’s inconsistent financial times is self-research and planning. Taking control and planning one’s financial future has become very important for many people. There are some investors that don’t believe stock research is that important. They instead relay on stock tips and other unreliable sources. However, if they are concerned about their financial future, analysis is crucial for spotting stocks that can make their small amount of money go farther than in any savings or money market account. Stock research is important because taking the time to look over the financial history of the companies that one is thinking of investing in, will give the prospective buyer a better sense of the future. While no one can say with certainty that a stock will go up in value, taking the time to evaluate the past few years of the company’s growth can give some insight into the possibility. When someone is putting their hard earned money into a stock, they need to research that stock in order to make sure that the company is not laden with too much debt, is generating sufficient, have satisfied customers, are growing cash flows, investing in their future and are trading at a reasonable market valuation. By reviewing the stock’s financial reports, one can make an educated decision whether the company is stable, growing and has an improving future. There are far too many people who invest in weak companies hoping for a turn-around. Often, the best investments are made in stocks of companies that are already doing well and have a strong basis for continued growth Investors should be wary of companies with negative cash-flow, large and increasing debt, declining revenue or management turn-over. These are all signs that one or more aspects of the company have serious issues. Since there are plenty of good companies to invest in, investors should consider whether investing in weak companies is prudent. No one wants to choose a stock that will do poorly. By taking the time to look at the company’s stockholder reports, news releases, industry publications and other publicly available information with an eye like a financial analyst, the financial future doesn’t have to come as a surprise, but rather as the product of a well-planned financial strategy. While this can be easily done with professional help, anyone can crunch the numbers to make sure that their money is being well-spent; all it takes is an eye on the future as one looks at the company’s past history. Article Source (http://www.articlecafe.net/): http://www.articlecafe.net Joel Arberman is the Managing Member of Stock Aware, LLC. We publish a free stock newsletter that profiles companies with significant upside potential. Learn more at www.StockAware.com (http://www.stockaware.com/) Artikel Akuntansi - Teknologi dan Sistem Informasi Wed, 07 Jul 2004 11:54:06 +0100 http://www.akuntan.org/main/index.php?option=com_content&task=view&id=53&Itemid=2 Small and midsize companies are now starting to ask whether outsourcing some or all of the routine transactional accounting and bookkeeping tasks such as accounts payables, accounts receivables, payroll, tax filings and financial statement preparation is practical for them. The primary concerns when transitioning these functions are: 1. A change in their financial accounting process 2. Loss of control 3. Cost implication 4. Managing an employee verses managing a vendor 1. A Change in the Financial Accounting Process A primary concern to any business and the employees of a business is change, especially changes related to the management and reporting of finances and income. Although changes present challenges to any business it is a given that all businesses will undergo transition and change. The changes can be planned for and managed or be forced upon management by external situations. Implementing an outsourced accounting solution is a change that can be managed and implemented proactively. Outsourcing the accounting process provides a business owner with an opportunity to upgrade and improve on the current financial accounting system. The end result is improved internal efficiencies, the company positioned for long term growth and secure in the knowledge that it has implemented a comprehensive scalable accounting solution that will grow with the company. 2. Loss of Control Outsourcing the routine back office operation such as accounts payables, accounts receivables and other bookkeeping functions places more control into the hands of the owner. The owner is no longer burdened with doing routine data entry or managing bookkeepers but rather can focus on critical tasks such as sales, marketing, customer service, operations. These are all core functions central to the success of the organization. Freeing up the owner's valuable time coupled with having access to accurate financial information in a timely manner are critical factors in helping an owner understand and manage their business intelligently and efficiently resulting in them having more control of their business. 3. Cost Implication The cost analysis for hiring and retaining a bookkeeper should go beyond just crunching the numbers of the hourly rate. The total cost of the bookkeeper should include all of the associated benefits, taxes, overhead, the cost of your time to manage that person and the cost to correct errors by the bookkeeper. Listed below are some of the typical costs associated with hiring, retaining and managing a bookkeeper. What you think is costing $25,000 to $32,000 for a bookkeeper may actually be costing $50,000 to $65,000. Typical costs for a bookkeeper: - $2,600/month of salary based on an hourly rate of $15/hour and a 40 hour work week - $350/month for health insurance - $100/month for the 2 weeks of paid vacation per year, that is taken by the bookkeeper - $260/month for payroll taxes and workers compensation - $520/month of overhead costs based on office space usage, computers, supplies, etc. - $52/month for retirement benefits such as a 401K plan Additional items not included above that drive up the cost of retaining the services of a bookkeeper is the amount of time an owner has to spend monitoring and managing a bookkeeper as well as hiring a CPA to correct errors and prevent fraud and embezzlement by the bookkeeper. If an owner's time is valued at $100 per hour and they have to spend three hours per week with the bookkeeper, then on a weekly basis the additional cost to the owner is $300 per week or $1,300 per month. In addition, if a CPA is hired at $200 per month to correct and verify the bookkeepers work then the total additional cost, including the value of the owner's time, is $1,500 per month or $18,000 per year. Once each of the costs detailed above are factored in, the true cost of hiring and maintaining a bookkeeper on staff is $64,584 per year, more than double the annual salary of $31,200 per year. By implementing an outsourced accounting solution a business can typically save twenty-percent to fifty-percent in accounting costs. 4. Managing an employee verses managing a vendor In addition to the costs outlined above, managing employees can present additional challenges. These can include spending additional time hiring and training replacement personnel due to employee turnover, managing internal conflicts and running the risk of employee fraud and embezzlement. Critical to the success of outsourcing your back end accounting functions is finding a suitable vendor that you can work with. The vendor should have a good reputation, be capable of processing your work on time, and have a system in place for processing the work and a means for communicating the status of the work being processed. Once a qualified vendor is identified and a system is in place, the process will appear seamless to your vendors, clients and employees. Conclusions Outsourcing the back office operations of accounts payables, accounts receivables, payroll and bookkeeping will continue to evolve and eventually become routine for small and mid-size companies. The benefits to outsourcing the accounting functions include improved efficiencies, more control, reduced cost, elimination of gaps in work flow due to employee turnover, improved financial reporting and minimized risk of fraud and embezzlement. All of these benefits will position your company for long term future growth. Article Source (http://www.articlecafe.net/): http://www.articlecafe.net Richard A. Beauchemin, CPA is owner of a CPA firm in Charlotte, NC. Find out how our company can www.carolinaaccounting.com (http://www.carolinaaccounting.com/). Artikel Akuntansi - Penelitian Akuntansi Wed, 07 Jul 2004 11:54:06 +0100