Finance Guide

Trade protectionism is a policy that protects domestic industries from unfair competition from foreign ones. The four primary tools are tariffs, subsidies, quotas, and currency manipulation. Protectionism is a politically motivated defensive measure. In the short run, it works. But it is very destructive in the long term. It makes the country and its industries less competitive in international trade. Four Protectionist Policies The most common protectionist strategy is to enact tariffs that tax imports. That immediately raises the price of imported goods. They become less competitive when compared to local goods. This method works best for countries with a lot of imports, such as the United States. The chart below shows the share of tariffs collected on U.S. imports since 1790. Tariffs hit a record 57.3% in 1830 due to the Tariff of Abominations. They hit a record low in 2008 at 1.2%. Protectionism fell out of favor after the Smoot-Hawley Tariff of 1930. It was designed to pro...

You will make accounting errors from time to time, so knowing how to detect these problems is an important skill to develop regardless of what accounting software application you use in your small business. You will be able to detect many errors by reviewing your company’s trial balance. However, you will find that not all accounting errors affect the trial balance. For this reason, it is important to learn about these types of accounting errors so you can find and correct them. You should note that these types of errors are the most difficult to identify and resolve. Omission An error of omission occurs when a transaction is completely omitted from the books of your company. You may forget to enter an expense transaction or enter the sale of a product or service. These transactions are difficult to detect. Therefore, you need to make sure you have a solid routine for entering these transactions timely. The most common reason that these transactions are not entered is that the document...

As the presumptive Democratic presidential candidate in 2020, former U.S. Vice President Joe Biden has presented a plan for combating the COVID pandemic and the recession it’s fueled. He also has put forth policies to overhaul the nation’s embattled health care system.  Biden’s plan, which often diverges from current policies enacted by President Trump, also targets the global climate crisis, and he’s outlined policies for education, immigration, and housing, as well as taxes, infrastructure, and trade.  Key Takeaways As the presumptive Democratic presidential nominee, Joe Biden has prioritized responses to the pandemic, front-line workers’ safety, and recession recovery in his economic proposals. Biden would make universal health care available to eligible Americans who want it. Other planned reforms announced by Biden’s campaign include addressing climate change, education, immigration, and infrastructure. Biden’s plans would likely require tax increases for corporations and...

Are you part of a two-income couple? If so, one of the easiest ways to create a budget is to live on one person’s income and save all of the other person’s.  Let’s say, for example, you and your spouse are both working outside of the home. One of you earns $40,000 per year, and the other earns $60,000 per year. At this point, you are accustomed to living on both of your incomes. To turbo-charge your finances, consider weaning yourself off of that. Take the First Step As your first goal, the two of you should aim to live on the higher of the two incomes. Rather than living on $100,000 a year combined, try living on $60,000 a year. If you can achieve this, you’ve just increased your savings rate substantially. You’re now saving $40,000 annually before taxes. Take It a Step Further If you want to become even more ambitious, try living on the lower of the two incomes. After you become accustomed to living on $60,000 a year, start saving the higher of the two incomes and living on the s...

Each day, the U.S. Postal Services delivers more than 187 million pieces of mail, and much of that correspondence contains sensitive personal information. A lot of it may seem like junk mail, but it could be a useful tool for identity thieves. Even a partial account number, coupled with the name of your bank, or other information can be matched with any other info that's been gleaned to open accounts in your name. That's why it's important to shred mail or other documents containing potentially sensitive information. Here's a deeper dive into the mail and other types of documents you should shred to help protect yourself. Be sure to lock up any important documents that you don't shred, including birth and death certificates, adoption papers, marriage and divorce papers, citizenship papers, Social Security cards, tax-related documents, deeds and titles, and financial statements. Documents Containing Financial Information An identity thief could potentially use anythi...

Form 1099-MISC is an information return that businesses must issue to individuals and any contractors earning more than $600 in a year for goods and services.1 You will need to gather certain information about the individuals and businesses that contract with you to prepare Form 1099-MISC properly. What Is IRS Form 1099-MISC? IRS Form 1099-MISC is the way to report income that is performed by an independent contractor, which can be an individual or a company. In the case of an individual, the Social Security number can serve as the tax identifier. In the case of a business, you must use the firm's federal Employer Identification Number (EIN) as their tax identification. Your company must also have an EIN to issue any income and you can apply for one online based on the type of business entity you have established Who Uses IRS Form 1099-MISC? IRS Form 1099-MISC is used by any company that pays an individual contractor or freelancer or external company to conduct paid work in excess...