Most non-accountants roll their eyes and shudder when the topic of ?depreciation? comes up. This is where the line in the sand is drawn. Depreciation is far too complicated to try and figure out, or so it seems to many. But is it really? Surely the definition of depreciation mentioned above is not that difficult to comprehend. If you look closely you will see that there are five pieces of information you must have in order to determine the amount of depreciation you can deduct in one year. They are:

-The nature of the item purchased (the desk).

-The date the item was placed in service (Jan 1).

-The cost of the item ($1000).

-The useful life of the item (seven years).

-The method of depreciation to be used (straight-line)

The first three are easy to figure out, the second two are also easy but require a little research. How do you figure out the useful life of an item? Let me regress for a moment. There is ?book depreciation? which is based on the real useful life of an item, and there is the IRS version of what constitutes the useful life of an item. A business that is concerned with accurately allocating its costs so that it can get a true picture of net profit will use book depreciation on its financial statements.

However, for tax purposes the business is required to use the IRS method. The IRS may have shorter or longer useful lives for fixed assets causing a higher or lower depreciation write-off. The higher the write-off, the less tax a business pays. The long and short of it is that you end up having to create a book financial statement and a tax financial statement. So, most small businesses that aren?t concerned with a precise measurement of their net profit use the IRS method on their books. This means that all you have to do is look in IRS Publication 946 to find the useful life of a particular item.

The last piece of information you need is found by determining the method of depreciation to use. Most often it will be one of two methods: the ?straight-line? method or an accelerated method called the ?double-declining balance? method. Let?s briefly discuss these two methods:

Straight-line

This is the simple method mentioned in the definition above. Just take the cost of the item, divide it by the useful life and you?ve got the answer. Yes, you will have to adjust the depreciation for the first year you placed the item in service and for the last year when you removed the item from service. For instance, if your depreciation for one year was $150 and you placed the item in service on April 1 then divide $150 by 12 (months) and multiply $12.50 by 9 (months) to get $112.50. If you removed the item on February 28 then your deduction will only be $25.00 (2 x $12.50).

Double-declining balance

The idea behind this method is that when an item is purchased new, you will use up more of it in the earlier years of its life, therefore, justifying a higher depreciation deduction in the earlier years. With this method, simply divide the cost of the item by the useful life years as in the straight-line method. Then, multiply that result by 2 (double) in the first year. The second year, take the cost of the item and subtract the accumulated depreciation. Next, divide that result by the useful life and multiply that result by 2, and so on for each remaining year.

But, wait! You don?t have to do this. The IRS provides tables that have the percentages worked out for each year of the two different methods. Not only that, they have set up special first year ?conventions? that assume you purchased your depreciable fixed assets on June 30. This is called the one-half year convention. The idea behind this is that you may have bought some items earlier than June 30 and some after that date. So, to make it easy to figure out, they assume the higher and lower depreciation amounts will all average out.

Actually, the IRS doesn?t even call it depreciation anymore. They call it ?cost recovery?. Let?s face it. This is a political tool. Congress giveth and taketh away. They have been playing with this system for years. If they want to stimulate growth in business they will shorten the useful life of assets so businesses can attain a higher write-off. If they are not in the mood, they will extend the useful life of an item. A good example is the 39 years set for the useful life of commercial property. This means that if you lease a building for your business and make improvements, those improvements have to be depreciated over 39 years. Now congress is working on a bill to drop that down to 15 years for leasehold improvements.

Before December 31, 1986 we had ACRS or Accelerated Cost Recovery System. Currently, we have MACRS or Modified Accelerated Cost Recovery System. Every time congress tweaks the rules they give it a different name.

Keep in mind there are different schedules for different properties. For instance, residential real property is depreciated over twenty-seven and one-half years and non-residential real property is depreciated over thirty-nine years. In addition, if more than forty percent of your total fixed asset purchases occurred in the last quarter of the year, then, you must use a mid-quarter convention. This convention assumes that your purchases made in the last quarter of the year were made on November 15. This prevents you from buying a big expensive piece of equipment on December 31 and treating it as though it were purchased on June 30 and gaining a larger depreciation expense.

Understanding how basic depreciation works can be valuable to the small business owner because it helps to know the tax implications when planning for capital equipment purchases.

Discipline and hard work are requirements for anyone considering this course of study. When earning a degree at home it is important to set specific times to study and 'attend' class. Attending class may mean replying to email, writing notes to turn in, or taking tests. These are all ways a professor can check if the student is participating every day. There is no room for sleeping through class when earning a long distance degree. Likewise, there are no professors constantly telling students what to do and when to have assignments completed.

Deciding to study from home takes much thought and preparation. Long distance degrees are designed for individuals that are highly organized. This is not to say that a person who is not as organized should not pursue a degree at home. This is just to say that is may be considerably more difficult to accomplish the tasks that are required. The individual will not have other students reminding them to hand in assignments or to help them study for tests. All aspects of this type of course are done independently.

When someone chooses an independent study program they must have friends and family that will support the decision. Without their support it may be even more difficult to be disciplined enough to do well in achieving a long distance degree. If the people you are socializing with do not support this decision, maybe it is time to part ways for a while. No matter what happens in life to distract a person from their goals, it is important to keep focus and concentration.

Another issue to concentrate on is financing the education. There are many different types of people in many different stages of life who choose to pursue a degree at home. There are some people that are just going to school for something to do and others attend to hopefully make them more money in a job. Whatever the situation, school is expensive. Taking classes from home will most likely be more expensive than in a classroom. Therefore, it is important to have a good understanding of a financial situation before the beginning of classes. It is important for students to pray for Gods guidance in the education decision and wait for His answer. If it seems like God is not answering, He may have other plans for a persons life. "I will say of the LORD, He is my refuge and my fortress: my God; in him will I trust." (Psalm 91:2)

In such a program, students learn about the principles of multimedia, the physical basics of perception and digital presentations along with media networking and hardware developing. Within the scope of multimedia degrees lie data networking, analysis and design, software development, and project development. A multimedia degree can open up a host of career channels for a graduate including webmaster, web designer, producer, project manger, programmer, 3D animator, sound design, music composer, copywriter, etc. A Christian entering into the field of media has a unique opportunity to be able to reach the masses in a creative way and spread the word of God's saving grace.

Many churches are forming media ministries which serve the congregation by producing theatrical productions, musical enhancements, slide show presentations or video clips, and the list goes on. This type of media use is a positive direction for a Christian graduate with an education in this field. Many Christian colleges offer multimedia degrees and their classes include ways to minister to others using technological advances in multimedia. All people have special skills and natural talents given to us by our loving Father. What is done with those skills is up to each individual. Those graduating with a multimedia degree have an exciting and challenging option to use new techniques to work for God.

Any student seriously considering enrolling in a college should find out if the college or university is accredited by one of the six regional nationally accepted accrediting agencies, or one of the two private nationally accepted accrediting agencies. If a student is interested in earning a degree online or via home correspondence, then the DETC accreditation is advised. The DETC or Distance Education and Training Council accreditation is a distinguished and recognized symbol of national acceptance. Multimedia degrees gained through an institution of higher education that has this accreditation are ensured to be recognized by similar colleges and universities and employers nationwide. "Give instruction to a wise man, and he will be yet wiser: teach a just man, and he will increase in learning" (Proverbs 9:9).

Many programs are available through a huge variety of accredited universities and colleges and students can choose to study online or on-campus. Associate of Arts, Associate of Science degree, Bachelor of Science in Business and Marketing, and Master of Business Administration are some of the programs offered by higher learning institutions. Undergraduate and graduate marketing degree programs in business are also offered with specializations in promotion or advertising. Some business schools offer certificates with courses completed in marketing as well. The choices for marketing degrees or programs that offer a specialty emphasis can be researched throughout educational websites.

For those thinking about this type of career path an evaluation of personal temperament, abilities, and future personal goals are worth considering. An out-going, pleasantly assertive personality with high achievement goals are good assets for those seeking marketing degrees. A career in advertising and promotion can be highly rewarding in regards to income and achievement potential, but can also be highly demanding on the individual and his family. Graduates with marketing degrees should expect a career that demands long hours, commitment to weekend work and frequent travel. In the competitive and fast-paced business world, this type of career requires extreme dedication and commitment of much personal time and energy in order to be successful.

Today's flexible educational opportunities can make the pursuit of this degree easier than ever. Earning a marketing degree is especially convenient when accomplished through an online university or business school. Online instruction offers computer based instruction with all the curriculum, personal oversight, and quality of an on-campus program. If intern requirements are necessary for any particular degree program, they are scheduled in such a way as to allow a distance learning student to meet academic expectations in short amounts of time or to complete internships within the framework of his or her current employment. Some life experience degrees are offered that allow college credit for experience and work in the business world. Potential students should seek out those programs with a solid reputation for producing skilled and knowledgeable graduates. "A wise man is strong; yea, a man of knowledge increaseth strength." (Proverbs 24:5)

Simple and effective Business Management

In every enterprise there are, at every time, one or more bottlenecks, which have influence to the commercial situation. Bottleneck-oriented business management has the purpose to early track the bottlenecks and to remove them, to allow an optimum of commercial development. To know at any time, what a business lacks of and to be able to add the missing things, is today a determining competition advantage. Bottlenecks can be, e.g.:

low sales proceeds
high due or overdue accounts receivables
low liquidity (Cash on Hand, etc.)
high amount of liabilities
low number of customers
too many new customers
too high capacity utilization
defective administration or management
and a lot more.
These example show that bottlenecks not only concern negative circumstances, but also can apply to positive commercial development. If an enterprise takes up many new customers, this results in new orders, which lead to other circumstances, like a possible excess in capacity utilization. In case the excess of capacity utilization stays for a longer time, this may result in a lower employee motivation, because of a slump in working atmosphere within the company, which then could lead to less qualtiy of the work performed.

Due to a TIMELY reporting system many companies take care of reaching the desired commercial development. However, a regular analysis of expenses or the annual reports are not enough to control a business today. In the today's dynamic markets these evaluations are too statical, too much oriented on the past commercial development, which had been achieved. Also cost accounting only shows what has happened in the past. The actual direction in which a business is running could not be seen.

Imagine a business to be a car. If you sat down in a car, do you like to receive information from the instruments from the last year or month? Probably not. You would like to have actual information about fuel tank content, coolant temperature and a lot more. Bottleneck-oriented business management should exactly bring the most important and actual information about a business to you, including so-called early warning signals (Screenshot abenetis ERS-Diagram).

Data oriented to the past for early-warning-systems?

A working early-warning-system needs data which are not oriented to the past, like from cost accounting or year-/month-end-closeings. It needs data from so-called early indicators, which has to be gathered from different areas of an enterprise. Of course, figures from the finance and accounting department belong into an early-warning-system, but they only have a subordinated role, because they are oriented to the past.

Nowadays the reporting must show the present situation of a business. In many businesses the expenditure of time for the reporting rose considerably, due to the today's flood of information. Aggravatingly added to this, is the selection of the really relevant business ratios, which allow an appropriate overview of the actual business situation. Too often reports are prepared, which are not perceived by anybody, due to the lack of necessary statements about the business development.

There are already proven business-ratio-systems, that enterprises only need to take over. Get back into the car again, imagine you have only one instrument in front of you, which shows the value "35". What does this signify? It is not recognizable how many fuel exists, how the Temperature of the coolant is or how fast the car is driving, etc.

At this example you could recognize the little expressiveness of only one business ratio. It shows the importance to use the right business ratios, which must have a connection to each other and which have a different temporal origin. Nevertheless, many business ratio systems are mostly based on data which originate from the past.

This turns often to the problem, that immediate information are not available, to indicate the actual situation of a business. However, there is still the alternative, to reduce the period of the past. How would it be with one week instead of analysing business data every 4 weeks? This would lead to the fact that you could act a few weeks earlier, if something should run a little bit inclinedly.

Only very few data are needed to receive an informative evaluation. This again is comparably with a car. If you are driving with your car, you only receive a small, well-chosen number of information and nevertheless, have an actual picture of the situation. This is also possible for businesses, as well!

As a motorist we receive only one fraction of the data which is acquired by the system of the car, and just these fraction of information is enough for us to reach the desired destination. When traveling usually we are well prepared, but the principle of the preparations is often neglected in business operation. As it is with traveling, the final goal has to be clearly stated by the business management. This could be done by having planing data available. Only by target/actual comparison divergences of the commercial development will be recognized.

Unfortunately, many small businesses renounce to use plan data. Besides, it is not about, to cut plan data into the smallest pieces, but only to get a rough picture, what the business is going to achieve. It is absolutely possible to run a business on the basis of the figures from the previous year, however, to use these figures, the past commercial development should be taken into consideration. So the figures from the previous year should be improved to fit with the new goals. And finished are the planning data and the basis for an operational risk management are laid. Still if it is most important to know the actual bottlenecks in business operation.

Recognize problems and act!

One of the most important factors in business management is the early recognition of problems and potentials. There are bottlenecks in every business, which could have serious results. Pecuniary difficulties could lead to bankruptcy for example. Therefore symptoms must be recognized early, in order to turn a possible crisis away and to secure the future of your business. Also to use available potentials, regular analyses should be done. Nowadays products and services could not be sold forever, because product cycles become shorter and shorter due to market dynamism. The recognition and development of potentials is exceptionally important, to avoid losing the already achieved basis of a business.

These degrees prepare professionals in the art and science of preparing and dispensing drugs and medications prescribed by qualified health professionals. In addition, a pharmacy degree also will help prepare someone to advise physicians of possible drug interactions and side effects, while also providing information to the patient regarding the medication that was prescribed to them. Pharmacists may also dispense and explain durable medical equipment to patients.

There are many schools available that offer these programs. However, applying for a pharmacy degree program can be competitive. So, realistically consider academic background and present qualifications. The timeline for this education consists of four years beyond at least two years of college study. While most programs are available only through traditional colleges and universities, some advanced degree options are available to licensed pharmacists who are currently practicing. Some schools also offer specialized pharmacy degrees online such as management, assistant and technician. Psalm 25:5 encourages personal development through God's guidance in saying "Lead me in thy truth, and teach me: for thou art the God of my salvation; on thee do I wait all the day." Let this be ever present in daily thoughts as a decision is being made about educational endeavors.

There are several options available to pharmacists once they complete their studies and pass their licensing requirements. The majority of graduates work in community pharmacies. In this arena, pharmacists are spending more time educating patients about the drugs they are taking, as well as managing and monitoring patient records. This education also prepares professionals to work in hospitals, where they serve as a part of a team, alongside doctors and nurses. Pharmacists in hospitals are responsible for developing systems in which drug distribution can be monitored to assure that each patient receives the appropriate medication, in the correct form and dosage, at the correct time. Pharmacy degrees also prepare professionals to work with mail-order pharmacies, wholesalers, home health agencies or the federal government.

Because the projected growth rate for the pharmacy field is good, and the average starting salary is $75,000 and higher, pharmacy degrees can be a valuable career tool. Furthermore, there are many options when the right academic qualifications and preparedness for the responsibility that comes with handling and dispensing drugs is apparent. If interested in pursuing a pharmacy degree, check with the local university, as well as look on the Internet to find a program.

An individual interested in accounting should begin to prepare for education early. As a high school student, it is important to take as many advanced classes as possible, especially those that will gear you toward an accounting education, such as math and calculus. Consulting teachers and taking extra tutoring classes to have a good grasp of the problems and work involved will be very useful. Another thing to consider is the SATs and ACTs. How well the student performs on these two tests can make or break the entry into a college that offers a degree in this area. Working hard, having an understanding of the coursework, and seeking the Lord for guidance is vital to understanding how to pursue this path. "And ye shall seek me, and find me, when ye shall search for me with all your heart" (Jeremiah 29:13).

Pursuing an accounting degree is possible through taking classes at a community college. This may be the easiest way to prepare for harder math courses down the line in the instance the student decides to attend a four-year college or university. It is important to work hard and ask advice from people who are in this field. People with experience in accounting education will be willing and able to provide helpful tips and suggestions for studying and completing a training program in this area.

For someone toying with the thought of pursuing a degree, it is important not to become overwhelmed. The steps taken do not have to be difficult ones when beginning to pursue an accounting education; on the contrary they can be easy. The student should be aware of the hard work and effort it will take to succeed in accounting. They should be willing to work hard on improving math skills to be the best they can be. Trying to take classes and seminars that can help the individual understand how a training program works and what it will offer is an excellent source of information. Also, knowing what types of businesses need services of an individual with education in this field will allow the student to better plan for his or her future. It is never too early to begin to prepare for long term education in accounting or any other field of study.

1 Integrity.
I put this first because the lack of integrity will make or break you as a professional, as a leader, as a person in the long run. The lack of this will turn yesterday?s heroes in today?s villains. For example, ?MCI was the apple of the business community?s eye. High revenues, high profits, and high growth; MCI was beating the competition hands down.

Then it was discovered that there were gross accounting irregularities that accounted for the astounding profits. You see, management made a decision, ?Do I continue to sustain good growth and be able to look at myself in the mirror or do I cook the accounting books and spend the rest of my time covering up this integrity deficiency? The real shame of the MCI situation was that AT&T, Sprint, and others in the industry had to cut costs and lay off thousands of employees to compete with MCI?s false numbers. The lack of integrity at MCI not only affected the company but also the livelihood of thousands and the industry as a whole.

I was recently speaking with a recently retired City Council member who is well respected in the community. I asked her what the secret was to her success while on the council? She mentioned that one of her political adversaries said to her, ?While you were on the council, I didn?t like the way you voted, but I respected the way you voted because you were consistent with your votes and had the city?s best interest in mind.?

Ask yourself what decisions that you make are right for the long term? Be consistent in your actions, whether it is with management, your team, or your family.

2. Knowledge.
With change happening faster and faster every moment, it is extremely important that you gain the knowledge to master these changes. You owe it not only to yourself, but to your team and management. As I always say, ?It?s not having the right answer, it?s that you have the right answer faster than before.? Many times during my teambuilding programs a student will say, ?I didn?t know where to find the answer.? Then I will say, ?That is an unacceptable answer.? Because part of being a leader is acquiring the skills to find the right answers. With the Internet, classroom and online training, mentors, etc., the knowledge is at your fingertips.

Challenge your team members to use the same resources to acquire the knowledge to master their challenges. By acquiring this knowledge, you will be able to navigate your team through the ocean of change and achieve your goals.

3. Decisiveness.
You have seen them. They wait for information, then more information before making a decision. Then they need more information to support the information they already have.Then they need a committee to analyze the information. Then they wait for the perfect time to make the decision.

Well, you know what I mean. Anyone you know? Make the decision! Good things happen when you take action; you grow, you adapt, and your team grows. There is no perfect time to make a decision. Leaders make decisions based on past experience, putting into action the decision, and staying and adapting the decision if needed. But make the decision. The worst quality you can show your team is indecision. What do you think your team sees when you can?t make a decision? Make the decision and go for it.

4. Vision.
This is the ability not only to see what is the present - anyone can do that - it?s the ability to see the future. Outstanding leaders can not only see their team for what they can do now, but what they can become, and paint the picture for them. These leaders are consistently communicating and coaching their team members to that vision. One of the best ways, and least used methods, to convey your vision is the team meeting.
Every meeting should start out with the team vision, mission, and goals; and the rest of the meeting should tie into the vision. For example, the motivation portion of the meeting should tie into the vision, the information portion of the meeting should tie into the vision, the training portion of the meeting should tie into the vision, etc. Also, invest time to develop your team members? personal visions and show them how they can accomplish their personal goals by tying into the overall vision. By consistently communicating the vision, your team will move with purpose, feel they are personally making a difference, and achieve their goals sooner.

5. Unselfishness
Stephen Covey, in his successful book Seven Habits of Highly Effective People, wrote that a true leader must be a servant to the ones he or she leads. The leader must be able to ?give of oneself for the good of the team.? In other words, be unselfish in words and action. Be unselfish in praise of others, in public, especially in front of management.
Be unselfish in the ability to take time to listen, really listen to your team?s concerns. A recent management survey said that the average time management invests doing ?pure listening? to employees during the year is a mere two hours- just two hours! What was meant by ?pure listening? time was listening with eye contact, acknowledgement, and not answering the phone while listening, not speaking with another person while listening, etc. Be unselfish in the ability to help your team. Whether it?s the ability to readily assist with a difficult telephone call, jump in and remove road blocks for team members, or ?be there? for a team member during challenging moments. Believe me, your team will remember those moments and excel for you.

Now I challenge you to put into action just one of the leadership techniques I mentioned above to achieve your vision, your mission, and your goals in the future.

Starting a home-based business might just be the best business opportunity for the upcoming year. Home-based opportunities are available through franchises. With franchises, there is usually brand recognition and proven successes associated with it. Starting a home-based business should include a plan for advertising. Doing research based upon the market is wise before beginning a business. Investors need to decide what products or services to offer and what competition exists. It is smart to select a service or product that is in demand. Only the hottest business opportunities offer such products and services. Home-based investors should go online and do a search for market trends and start making a list of potential ventures.

Online schools are becoming popular as people realize that they can increase their knowledge in their spare time on a home computer. Many people are seeking other avenues of income based upon changing markets that are being influenced by the Internet. Obtaining a degree could mean a change of jobs, making more money or a job promotion. Learning about a specific trade could equip one to start a company or service. The entrepreneur may well have a talent or skill that others would be willing to pay for. Many people are willing to pay for services because of busy lifestyles. Entrepreneurs can find the best business opportunity by accessing online schools and finding out what is available.

Health and wellness is another area with a potential for profit. With healthcare costs rising and baby boomers aging, health and wellness products and services are bound to become one of the hottest business opportunities. The availability of alternative products online has made many consumers aware of positive ways they can address health concerns. For instance, clean air machines for the home are becoming popular as more people are suffering with allergies. Products that are considered organic are also gaining higher sales. Energy drinks and energy bars are proving to be a good investment as well.

Environmental issues have brought about changes with energy concerns. The hottest business opportunities in the upcoming year may well include alternative forms of energy. With the fluctuating gas prices, consumers are realizing that they need to prepare in case they go back up. Many people are seeking more economical vehicles or hybrid vehicles. With the concerns of nitrous oxides and global warming, along with gas fluctuations consumers are going to be smarter about vehicle purchases in the future. Car manufacturers may have a hard time selling those gas-guzzling vehicles. Other environmental concerns that will bring about marketable changes are with recycling products. Another place to look for potential profit is with alternative home energy solutions using solar energy and wind turbines for electricity.

As people continue to lead busy lives, businesses will be expected to fulfill needs that often take consumers more time to do themselves. Some of these might include interior design, residential cleaning services, home pet services, home health care, and various consulting services. With the continued use of computers and Internet, computer based businesses with be considered one of the hottest business opportunities. Some companies have already started advertising to make house calls fixing computer related problems. Other computer type services that will increase are security products for computers. With prevalent concerns on identity theft, consumers will want to insure they are safe using their computers with personal information.

There are many choices today available for these programs through colleges, universities and other schools. Certificates from financial planning schools as well as more traditional business degrees with an emphasis on finances from colleges and universities are also available. The CFP or Certificate of Financial Planning can be earned in as little as 18 months if the student passes the certificate exam. Colleges and universities offer Associate of Arts, Bachelor of Science, Master of Business Administration and PhD degrees through a universities' business school. Enrollment in financial education degrees usually last from 3 to 4 years before graduating depending on the degree program.

Whether someone decides to tackle a their education through a fast track certificate program or from a university, courses covering savings, budgets, retirement, advising, understanding statements, business finance, estate planning and investments are common studies for a financial planning education. Careers within the public or private sector can easily be found that demand excellence in integrity and knowledge providing a broad array of potential jobs. A financial education opens a world of possibilities to the graduate who is interested in entrepreneurship as well. Those who are interested in a career in finance, but are not sure in which of the many areas they would prefer to work, a financial education will not only offer an education but may help to discover an area of primary interest.

Programs are available online or on-campus through most schools, but distance learning has become widely appealing because of the flexibility and ease of studying at home or in the office. Students can access all the financial education courses and instructions via internet and stay in touch with instructors and advisors through email or phone. Online media options allow discussion forums, group chat rooms, and web cam classrooms providing the personal interaction that on-campus studies provide. Downloadable catalogues and handbooks are available on most school websites. Distance learning is a 24/7 financial planning education online delivery method that is more advantageous to e-learners who have self-discipline and self-motivation. Be aware of your strengths and weaknesses as well as learning styles in determining whether or not an online degree is the right option! "The fear of the Lord is the beginning of wisdom: and the knowledge of the holy is understanding" (Proverbs 9:10).