Monday, March 01, 2004

Premium Sample: Excel Tip: Create a Quick Loan Calculator in Excel AccountingWEB.com - Jul-15-2002 - You can use Excel to help figure out what your loan payment would be should you decide to borrow money. Here's a quick way to set up a loan payment calculator in your Excel worksheet: Step 1: Enter the following titles in six consecutive rows: Cell A1 Price Cell A2 Downpayment Cell A3 Principal Cell A4 Interest Cell A5 Years Cell A6 Payment Step 2: These titles will become the cell names for the cell to the right of each cell containing a title. Highlight the cells containing titles and the cell to the right of each of those cells (12 cells altogether). Choose Insert | Name | Create from the Excel menu. The Create Names window will appear with "Left column" checked. Click OK. The names have been assigned. Step 3: Enter known amounts in the cell to the right of each of the cells containing titles. For example: Cell B1 10000 Cell B2 20% Cell B4 6.5% Cell B5 4 Step 4: Enter a formula to calculate loan principal in Cell B3: =Price*(1-Downpayment). Step 5: Enter a formula to calculate the loan payment in Cell B6: =PMT(Interest/12,Years*12,Principal). Once the calculator is in place you can substitute amounts for Price, Downpayment, Interest, and Years and the calculations will update automatically. 11:46:29 AM

Tax Tip: Early Distributions From Retirement Plans AccountingWEB.com - Feb-23-2004 - An early distribution from an Individual Retirement Arrangement (IRA) or a qualified retirement plan need not be a “taxing” experience. Any payment that you receive from your IRA or qualified retirement plan before you reach age 59½ is normally called an “early” or “premature” distribution. As such, these funds are subject to an additional 10 percent tax. But there are a number of exceptions to the age 59½ rule that you should investigate if you make such a withdrawal. Some of these exceptions apply only to IRAs, some only to qualified retirement plans, and some to both. IRS Publications 575, Pensions and Annuities, and 590, Individual Retirement Arrangements (IRAs), have details. In addition to the 10 percent tax on early distributions, you will add to your regular taxable income any distributions attributable to “elective deferrals” that you contributed from your pay, your employer’s contribution and any income earned on all contributions to the account. If you made any nondeductible contributions, their portion of the distribution is not taxed, since you’ve already paid tax on this amount. There is a way to avoid paying any tax on early distributions, however. It is called a “rollover.” Generally, a rollover is a tax-free transfer of cash or other assets from an IRA or qualified retirement plan to an eligible retirement plan. An eligible retirement plan is a traditional IRA, a qualified retirement plan, or a qualified annuity plan. You must complete the rollover within 60 days of when you received the distribution. The amount you roll over is generally taxed when the new plan pays you or your beneficiary. If the early distribution from an employer’s plan is paid directly to you, your plan administrator will normally withhold income tax at a 20 percent rate. If you roll over the distribution to a new plan, you must replace that 20 percent of the funds that were withheld and deposit that amount in the new plan, or you will owe taxes on that amount. To avoid the inconvenience of this withholding, you can have your old plan’s administrator transfer the rollover amount directly to the new plan or a traditional IRA. All early distributions must be reported to the IRS. You will report tax-free rollovers on lines 15a and 16a of Form 1040 along with any taxable distributions, but you will enter on line 15b or 16b only the taxable amounts you don’t roll over. If applicable, figure the 10 percent tax or exceptions on Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax Favored Accounts, and then carry any resulting tax to line 57 of Form 1040. You may also report rollovers on Form 1040A, but you must use Form 1040 for any distributions to which the 10 percent tax applies. Important tax information should be reported to you by your plan administrator on Form 1099-R. This will show the distribution amount, the taxable portion, any tax withheld, and a distribution code related to the 10 percent tax. If your early distribution is subject to the 10 percent tax and distribution code 1 is correctly shown in box 7 of your Form 1099-R, you do not have to complete Form 5329. Just multiply the taxable distribution amount you put on line 15b or 16b by 10 percent and enter the result on line 57 of Form 1040. Also, put “No” to the left of line 57 to indicate that you don’t have to file Form 5329. You may download Publications 575 and 590, along with any related forms and instructions, from this Web site. You may also call toll free 1-800-TAX-FORM (1-800-829-3676) to order free copies. Tax Tip: Remember Your Advance Child Tax Credit AccountingWEB.com - Feb-23-2004 - It seems just yesterday when you got that check in the mail for the Advance Child Tax Credit. How much was it? $400? $800? $1233? Who can remember? Now, it’s time to get your stuff together to prepare your 2003 tax return and you’re going to need to know how much that check was. How much did you receive? We’ll tell you how much. You'll need to provide the following information as shown on your 2002 tax return: Your Social Security Number (or IRS Individual Tax Identification Number) Your Filing Status, (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er) The total Number of Exemptions as shown on your tax return. Click here to find out how much you received and where to report Your 2003 Advance Child Tax Credit. Note: If you have trouble while using this application, please check the Requirements to make sure you have the correct browser software for this application to function properly. 11:36:22 AM

Company to Offer Free Access to Credit Scores, Advice AccountingWEB.com - Feb-23-2004 - Credit card issuer Providian Financial Corp. plans to offer all its customers free online access to their credit scores, with tips on how to improve them. The program, called "Real Information," allows cardholders to see their FICO credit score online. FICO is the most widely used score, which is computed from monthly credit data. Customers can plug hypotheticals into a score simulator to see how actions such as a missed payment or payoff of a balance can affect the score. Customers can look at their scores anytime they like, as often as they like, at no charge. Customers will see the top two reasons why the scores are not higher. In addition, cardholders will be able to sign up for free e-mail alerts anytime their scores change by more than 10 points ­ an indicator of a possible identity theft credit crime. Home mortgage and credit industry experts say that other lenders, mortgage servicing companies and banks are likely to jump in with competing programs, says syndicated columnist Kenneth Harney. That would be good news for potential home buyers, who can check their scores and improve them. High FICO scores mean low interest rates, and vice versa. The program is part of an effort by the San Francisco-based company to revamp its business and reach out to "middle-American customers." Over the years, Providian marketed their cards to low-income consumers with imperfect credit histories. The strategy worked well during the late 1990s, but backfired as the economy sputtered and consumers defaulted on loans. "We've been working on turning around the company for the last couple of years," said Warren Wilcox, Providian's vice chairman of planning and marketing, in an interview with Reuters. "One of the keys to turning around a company like Providian ... has to be done on the basis of solid customer relationships." The company is also offering a "Real Rewards" program, in which cardholders can rack up points, not only for making purchases, but for paying bills on time or keeping a balance. The points can be redeemed for gift cards at selected retailers or restaurants, or for a lower interest rate, or to pay an over-limit fee. "It was created intentionally to really meet the needs of mainstream, middle-American customers," Wilcox said. He estimated the size of the "Middle American" market at roughly 40 million to 50 million people. Providian currently has 10.5 million customers, Wilcox said. Robert Hammer, chairman and chief executive of R.K. Hammer Investment Bankers, which follows the credit card industry, told Reuters that the programs Providian unveiled last week are not new. They’ve been around for five or 10 years. What’s new is their inclusive focus. "The difference is it's always been offered to blue-chip customers, but not necessarily to subprime customers or middle Americans," he said. 11:36:22 AM

Outsourcing to India Grows While Legislation Aims to Apply Brakes AccountingWEB.com - Feb-23-2004 - The trend towards outsourcing accounting work to India added another brick to its foundation this week, with the announcement of the launch of a new U.S. based company to assist with the transactions. Accountants in India (AII) is the brainchild of accounting profession veterans Wayne Harding (formerly with AICPA's CPA2Biz) and KC Truby (Bridge 21). The outsourcing matchmaker was launched Thursday to help lower costs for U.S. accounting firms by hiring full-time accounting professionals in India. "Through AII, CPA firms can hire a qualified, college graduate accountant, successfully trained in QuickBooks Pro and other business management applications, for about $8 an hour," said COO Wayne Harding in a press release. According to the New York Times, 100,000 U.S. tax returns, both federal and state, will be prepared by Indian citizens in Bombay and Bangalore this year. The number of returns is four times larger than last year, and many more times greater than the several thousand of just two years ago. Meanwhile, pending legislation would curtail the trend. A bill introduced by U.S. Sen. Christopher Dodd of Connecticut would ban the use of federal funds to buy goods and services produced by foreign workers. It would also bar the government from buying goods or services from domestic companies using foreign subcontractors. Federal privatization efforts and state programs using federal funding would also be limited. Outsourcing has its strong proponents. India’s knowledge pool is deep, education is inexpensive and the English-speaking workers accept low wages ­ an attractive combination for U.S. companies looking to lower costs. Staff in India are often used for back-office tasks, such as bookkeeping services, data entry and simple 1040 tax returns. Security is a top concern, so AII doesn’t ship any documents. Work is done on a paperless, secured ASP environment. "Basically, all of the input we have for our CPA firm is done by the Indian accountant and then one of our U.S.-based CPAs review their work," said Nigel Clayton, partner of Colorado-based Clayton & Associates, according to AII. "This saves us hours of valuable time." The growth of outsourcing tax returns prompted the AICPA to warn members of the ethical and legal ramifications. CPAs must guarantee privacy, as an accounting firm can be held liable if its Indian partner fails to protect taxpayer information. The firms are also responsible for reviewing all work for accuracy and completeness. In India, executives say the resurgent economy is helping everyone, and they fear legislation that may dampen the technology boom. Other industries, such as makers of cars, scooters and motorcycles, are also blossoming, fueling hope that India can start attacking poverty and other social issues. Steven Clemons, executive vice president of the New America Foundation think tank, speaking to the Chicago Tribune from Bombay, said that Congress and the Bush administration should focus not on protectionism, but on encouraging innovation. "There's a culture of inquiry here. I've never met so many smart, so incredibly inexpensive people." 11:36:21 AM

--=====================_235643703==.REL Content-Type: text/html; charset="us-ascii" Wireless networking advice <img src="cid:6.0.0.22.2.20040301112817.01bef230@mail.cpatax.net.0" alt="e0778fe.jpg"> Advice on securing a wireless network 1. Change the username & password for your router from the default. 2. Change the SSID from the default and disable SSID Broadcasting. 3. Enable WEP Security, generate or supply a key and populate the clients with the key. 4. Configure the MAC Address Filter List and restrict access to those addresses. 5. Enjoy Safe Surfing. Michael Givens, IT Consultant Mobleteks Inc. www.Mobilteks.com 317-780-9799 This is a brief list of a few very basic tips the home user can easily check. It is NOT intended to be comprehensive. It is very important to follow the vendor's recommendations for securing your wireless devices and systems.  If you no longer have the documentation, you can probably obtain it from the vendor's web site. If you want to start securing your wireless network, think C, D, E, F (Change, Disable, Encrypt,  Filter/Firewall) You know your wireless is open IF. 1. You haven't Changed all default passwords, SSIDs, and accounts. Make the passwords and SSIDs long and very difficult to guess. 2. You haven't Disabled or blocked SSID broadcast messages. Don't forget to block any non-essential network services and broadcast messages. 3. Your wireless network is not Encrypted (WEP, WPA, etc.) using the highest level of encryption possible (128 bits or higher). Don't forget to choose encryption keys that are long and very difficult to guess. Change your encryption keys frequently. 4. You aren't Filtering on MAC addresses.  The only MAC addresses you should allow are the ones on your internal network. Don't forget to enable the Firewall (if your Wireless Router has one). As always, don't forget to periodically Upgrade the firmware and software on your wireless devices and PCs. This also includes personal firewalls and anti-virus software. This will help to enhance the level of protection for your PCs and networks. Last, but not least, the recommendations are security "best practices" that should fit most situations. Fortified Networks assumes no liability for the implementation of these recommendations. Frank Willoughby, CISSP, IAM (NSA) Chief Information Security Officer, Fortified Networks www.fortified.com --=====================_235643703==.REL Content-Type: image/jpeg; name="e0778fe.jpg"; x-mac-type="4A504547"; x-mac-creator="4A565752" Content-ID: <6.0.0.22.2.20040301112817.01bef230@mail.cpatax.net.0> Content-Transfer-Encoding: base64 Content-Disposition: inline; filename="e0778fe.jpg" /9j/4AAQSkZJRgABAQAAAQABAAD/2wBDAAEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEB AQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQH/2wBDAQEBAQEBAQEBAQEBAQEBAQEBAQEB AQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQEBAQH/wAARCAACAFoDASIA AhEBAxEB/8QAHwAAAQUBAQEBAQEAAAAAAAAAAAECAwQFBgcICQoL/8QAtRAAAgEDAwIEAwUFBAQA AAF9AQIDAAQRBRIhMUEGE1FhByJxFDKBkaEII0KxwRVS0fAkM2JyggkKFhcYGRolJicoKSo0NTY3 ODk6Q0RFRkdISUpTVFVWV1hZWmNkZWZnaGlqc3R1dnd4eXqDhIWGh4iJipKTlJWWl5iZmqKjpKWm p6ipqrKztLW2t7i5usLDxMXGx8jJytLT1NXW19jZ2uHi4+Tl5ufo6erx8vP09fb3+Pn6/8QAHwEA AwEBAQEBAQEBAQAAAAAAAAECAwQFBgcICQoL/8QAtREAAgECBAQDBAcFBAQAAQJ3AAECAxEEBSEx BhJBUQdhcRMiMoEIFEKRobHBCSMzUvAVYnLRChYkNOEl8RcYGRomJygpKjU2Nzg5OkNERUZHSElK U1RVVldYWVpjZGVmZ2hpanN0dXZ3eHl6goOEhYaHiImKkpOUlZaXmJmaoqOkpaanqKmqsrO0tba3 uLm6wsPExcbHyMnK0tPU1dbX2Nna4uPk5ebn6Onq8vP09fb3+Pn6/9oADAMBAAIRAxEAPwD+/Cii igAooooAKKKKACiiigAooooAKKKKAP/Z --=====================_235643703==.REL-- 11:36:21 AM