Banking Software System - Top 3 Features to Look For

With an increased focus in the banking industry to automate exception tracking and manage loan files, many financial institutions find themselves in the difficult position of evaluating the pros and cons of implementing a banking software system. Although there are many variables that a financial institution should consider when looking at banking software systems, evidence suggests there is a common set of features that lead to successful integration. Financial institutions should heed the following suggestions when considering different software solutions.

Take A Look In the Mirror First

Before evaluating the specific features of a banking software system, it is wise to first review your existing internal processes. Current workflow and exception tracking processes are important to take into consideration before seeking out a banking software vendor. By fully documenting and understanding your internal processes, you can put your financial institution in a better position to locate banking software companies that fit your needs.

Once you have roughly documented your existing processes, it is advisable to begin your search for a banking software system provider. The search for bank management software is similar to shopping for any B2B product. Many organizations start by doing a Google search for keywords such as "bank loan document imaging" or "loan file imaging software". However, to streamline your search efforts, many industry organizations such as the ICBA (Independent Community Bankers Association) offer a convenient search tool, which allows you to drill down into more specific vendor information.

Background of Banking Software System Technology

The term "banking software system" can actually have a lot of different definitions depending upon your community bank's specific needs. Many systems feature a wide variety of functionality that can range from loan tracking, compliance tracking, bank operations management, and deposit tracking to name a few. Although many of these more advanced features are great for certain banks, other financial institutions may only need a more simplified offering. At a minimum, the following features should be present in any reliable banking software solution.

What To Look For In A Banking Software System

1. Bank Imaging - Simple, yet dynamic bank document imaging. The bank document imaging software should provide streamlined enterprise-wide scanning and imaging, facilitating cross-departmental economies of scale.
2. Integrated Loan Portfolio Software - Helps you automate the loan management process from start to finish. More advanced systems may also provide tools that help automate loan application, underwriting, and approval processes as well.
3. Automated Exception Tracking - Exception management software that eliminates the need for a manual tickler file system.

So What Does It All Mean for My Community Bank?

In summary, following the steps outlined in this article can simplify the process of choosing a banking software system. Although many features likely exist, even the most basic systems should, at a minimum, include bank imaging, integrated loan portfolio software, and automated exception tracking.

Alan Wooldridge has been serving the banking industry for two decades as Co-President of AccuSystems ( http://www.accusystem.com ). AccuSystems provides bank imaging software that simplifies bank document management. With over 250 community banks throughout the United States using the AccuSystems bank management software, AccuSystems continues to be the trusted name in bank document imaging. AccuSystems' bank loan software is marketed under the AccuAccount brand; AccuSystems' software for bank operations management (banking human resources, accounts payable, etc) is marketed as AccuDoc. AccuSystems also offers banking software solutions for deposit tracking, exception tracking, and managing bank workflow. AccuSystems' Tickler Tracking System automates the management of tickler files, which are traditionally very labor intensive. Alan Wooldridge and the AccuSystems team is glad to answer any questions you may have about bank imaging and related technologies. Feel free to call with any questions: 800-950-2550.

Article Source: http://EzineArticles.com/?expert=Alan_Wooldridge

An Effective Way To Recover Your Investment

The reason you engage in business is because you wanted to earn. In getting started with a business, you have to purchase the equipment you need. You have to spend quite a lot of money to get it started. There will always come a time when you would need to replace that equipment. The replacement could be because of so many different reasons. It could be because the equipment is already obsolete; there is newer equipment being sold in the market that you think would be better to use or it could be because you no longer need it because you no longer sell the product that it is being used for. Whatever your reasons may be, by the time that you dispose that equipment, you will be reminded of the amount of money that you have spent for it and how it would help if you are able to recover it.

Investment or asset recovery is very common in the business industry. Investment or asset recovery is a businessman's way of maximizing the value of the equipment that he is no longer using.

An effective way of recovering your investment or asset is through an industrial surplus. Industrial surplus is the process of selling your obsolete equipment to boost your profit. The surplus shop that you will sell it to will also be reselling your equipment at a cheaper rate.

By selling your equipment to a surplus shop, you are not just able to use the equipment that you have purchased when you started your business; you are also able to get back almost half of its original price. You can use the amount of money that you get back from it in purchasing another equipment if you need to or you can consider it an additional profit.

Investment or asset recovery is made very fast and very easy through industrial surplus. Most industrial surplus shops purchase just any type of surplus you have. They purchase heavy equipment, tanks, motors, welding machines, pipe fittings, pumps, valves, circuit breakers, etc. They purchase waste goods, scrap and obsolete materials. It does not really matter if you are selling just one piece of surplus or if you have an entire facility to sell. Most industrial surplus shops purchase individual surplus and also arrange for purchase of an entire facility or plant.

By choosing to recover your investment or asset through industrial surplus, you do not just make the most out of them but you are also able to recover the money that you have spent for them.

Industrial surplus is a very effective way to recover your investment or your asset because there is definitely no chance that your surplus will not be purchased again or resold by the shop that you sent it to.

Most businessmen nowadays also choose to buy equipment or other materials that they need from an industrial surplus shop. Other than the fact that surplus are at a cheaper rate, they are also most of the time, more durable than brand new ones.

Article Source: http://EzineArticles.com/?expert=Marion_Cambell

Factoring Receivables - The Advantages

'Factoring' refers to a monetary transaction where a business firm trades its accounts receivables, i.e., invoices, to a third party, that is usually called a 'factor'. The third party buys the receivables with liquid money. This way a business gets ready money to finance itself.

A business firm is evaluated first on the basis of its profit background. Every firm is evaluated differently. Factoring companies have their own requirements. To be precise, a business must do proper sales and must have a verifiable invoice. Receivable financing is ideal for all the industries that deal with commercial accounts.

Factoring receivable is a way to maximize your cash flow. It is a better alternative to finance the invoices and get immediate cash rather than giving up on the ownership of your business. It allows you to avail ready cash from a factor who will take the responsibility of collecting the payment from customers. In order to get a good rate from your factor, you must maintain a steady creditworthiness.

Some of the major advantages of factoring receivables are as follows:

1. Immediate, ready cash without any delay

2. Business credit rating is not significant

3. Well-organized handling of data entry and invoicing

4. No hassles in handling slow-pay and/ or no-pay clients

5. Expanded capacity to grow through more production and sales

6.Facility to avail vendor discounts

Factoring receivables allow a business firm to enhance its cash flow. Companies would not have to incur penalties and can pay expenses on time. It also allows business owners to avoid collections. Companies who offer factoring receivables are run by professionals who take care of all the collecting and keeping a track of all the invoices. This can be a huge benefit to your business as it reduces the amount of bad debts. Such companies may also purchase bad debts of your business. Business expansions can also be facilitated through factoring receivables. It allows a healthy cash flow system. Businesses can thereby operate without any halt.

Companies offering factorial receivables usually cover 90% of the invoiced amount. The remaining 10% of the total amount is paid and when the company gets a payment for the invoice. It is better than applying for a loan in a bank as it is comparatively a lengthy process. Plus, with factoring receivables, you would not need to wait for an approval, you can get cash supply immediately.

Do a little research before choosing a company that offers factoring receivables. Texas business owners can now seek help from Mazon Associates for expert assistance.

Article Source: http://EzineArticles.com/?expert=Kathleen_Chester

A Tale of Two Invoices

In quite long thread on the social networking site "linked in" recently, one individual suggested that sending out invoices was a necessary and rather mundane part of doing business and, as long as it was done efficiently, how it was approached (on or off line) made very little difference to the bottom line-perhaps only a few pounds sterling (or any other currency internationally) for a small business. In this article, let's test that assumption by looking at what time and cost is involved in sending out invoices physically (which for our purposes here includes emailing them as attachments which are then printed) and sending them out electronically with a full digital bill/invoice presentment solution. A full digital invoice solution is one in which a bill is "clickable" and not just a flat email or a PDF attached to an email for instance.

Traditional billing

Most businesses bill on a regular basis, such as the end every day, every week or every month. In all cases however the product or service rendered has to be known along with its cost and an invoice generated to the relevant customer. Even if an accounting system can produce this whole list readily (which is not always the case of course) each invoice needs to be printed (or rendered as a PDF if it is to be emailed) and then sent out with either a correctly addressed envelope (and stamp) or by email. These invoices are then received and opened by the respective customers at various stages-some immediately and some not being opened for several days perhaps and then put into the payables processing queue to be paid either on terms or at some point afterwards.

In traditional billing, customers tended to be treated similarly in terms of offering only one, two or three payment options (such as cheque, direct debit or occasionally a credit card) but whichever one they choose, the customer will need to work quite hard to remit the payment (taking both time, effort and money). Cheques for example need to be written, signed and posted (in an envelope with stamp). Credit card payments (if they are accepted) require the customer to call the client and quote the card details to an accounts receivable person who then needs to reconcile or match the payment to the invoice as quickly as possible.

The bottom line is that traditional billing is an old-fashioned and relatively inefficient process and has high costs for both the issuing organisation and the receiving customer. The research firm Billentis suggests that the average internal cost of billing is somewhere between £5 and £15 (depending upon size of firm and overall process efficiency). About two thirds of this cost is in relatively hidden business expenses such as the staff required to collect money, handle bill calls/deal with queries and carry out bill reconciliation/matching. Hence, anywhere from 3 to 10 of this cost is potentially completely avoidable.

Digital Billing

In sophisticated and well-designed on-line web sites (which are now commonplace in the UK and elsewhere) every organisation can now easily upload all of their invoices (daily, weekly or monthly) to a single destination web site at the same time as they are posting out or emailing their invoices. Hence this adds no time or internal effort and only involves a small cost per bill (usually around 0.40-0.50 pence). This is technically an on cost to a business until a physical invoice is no longer sent. However, even if this is not the case, a digital invoice brings a number of benefits.

Firstly, in a digital billing solution at an aggregation web site all customers typically have the option of being immediately able to see their bill or invoice (in summary or in detail) at the billing site just by entering a unique identifying Merchant number and invoice number. If they wish they can then pay it instantly, or (if they want to have a number of tracking, alert and reporting benefits) they can register and pay it. In addition, customers can pay their bill by all the options that the site offers including all debit and credit cards, and even cash in some cases. There are therefore usually multiple ways to pay offered, which all helps the merchant to get their money by the means by which the customer can best pay.

As yet another benefit of digital billing in a system, the on-line site is almost always available to customers 24 hours a day, 7 days a week and 365 days of the year. This means that payments can be remitted whenever a customer wishes to do so, not just when the organisation is open to accept cheques or field phone calls (perhaps only 9-5pm Monday to Friday).

Even if only 10% of customers pay via this on-line channel, this is 10% of invoices that are paid and easily reconciled (requiring no further work or call handling). However, in practice, customers increasingly like making payments on-line, particularly when the channel is safe and secure. Some organisations have therefore converted many more and, in some instances, all of their customers to this online invoicing and payment method.

In time and cost terms, research suggests that those customers paying a digital bill are quicker to pay (accelerating cash flow), are less likely to call the issuing organisation for any reason and are making a transaction which is readily matched and reconciled (saving expensive accounting or bookkeeping time). All in all this is likely to save an organisation anywhere from 3 to 6 per invoice. Even if you only send out 100 invoices a month this results in savings of 3,600 to 7,200. It's quite clear then that this is a significant difference and may amount to a very large sum for larger organisations.

Article Source: http://EzineArticles.com/?expert=Jon_Warner

What Will the Housing Market Look Like in 2011?

2011 is going to be a rough year for the housing market, barring unforeseen changes to our country's economic fortunes. There is a massive supply of unsold homes in this country. There is little demand for these properties. Basic economics tells us that home prices must fall unless there is a massive influx of home-buying immigrants or we destroy a lot of the existing housing stock (which would be a monumentally stupid waste of resources).

According to Standard and Poor's, as of the end of the third quarter, the principal value of foreclosed mortgages totaled $450 billion. Although this is down from $460 billion in the second quarter, it will now take 44 months for the housing market to absorb the supply of distressed homes, up from 40 months in the second quarter. In an article on Marketwatch.com, the ratings agency commented:

"The growing volume of distressed properties remains one of the primary factors hindering a full recovery in the U.S. housing market".

Home prices are down about 20-25 percent since their 2006 peak. While home values were temporarily buoyed by the first time home buyer tax credits, values commenced falling when those stimulus programs expired in the spring. Home prices have been falling in many areas for several months now. In the most recent Case-Shiller Home Price Index, David Blitzer, the Chairman of the Index Committee at S&P commented:

"The double-dip is almost here, as six cities set new lows for the period since the 2006 peaks. There is no good news in October's report. Home prices across the country continue to fall. The trends we have seen over the past few months have not changed. The tax incentives are over and the national economy remained lacklust in October, the month covered by these data. Existing home sales and housing starts have been reported for both October and November, and neither is giving any sense of optimism.

The good people at Zillow are no more optimistic than those at S&P. Zillow says home values will drop by $1.7 trillion in 2011. Zillow Chief Economist Stan Humphries commented: "The back half of 2010 looked horrible and 2011 should look like the mirror image of that". Humphries does not paint a pretty picture.

Possibly you don't agree with Zillow or S&P/Case-Shiller. How do you feel about the opinion of media and real estate mogul Mort Zuckerman? He says the glut of distressed properties will "put downward pressure on residential prices" and "that's going to continue for several years".

What about the opinion of Nouriel Roubini, former advisory to the Clinton Treasury, NYU Stern School of Business Professor, and predictor of the financial meltdown says real estate problems in the United States are "underappreciated" and that the "real estate market, for sure, is double dipping".

I think you get the idea. If you're reading this, you have your own Google machine, and can find plenty of people who are predicting a continued slide in housing prices, a full-fledged double dip, or both. You may even find a few (very few) people who are saying that housing will recover in 2011. Usually these people have a pretty clear agenda, and I wouldn't put too much stock in what they say. While there is something to be said for contrarian thinking, I simply cannot see anything other than further declines in home values in 2011 (on average - some areas will fare better than others).

Article Source: http://EzineArticles.com/?expert=Michael_Kraus

Wake Up And Smell The Inflation

One bright day, in the middle of the night

Two dead boys got up to fight.

Back to back they faced each other,

Drew their swords and shot one 'nother.

A deaf policeman heard the noise,

And came to arrest the two dead boys.

If you don't believe this story's true,

Ask the blind man, he saw it too! ~Author Unknown

Confused about inflation? Don't worry, you're not alone.

Government statistics say inflation is moderate at only 1.6% over the past year. But our gas, food and medical bills tell us otherwise.

Measuring Inflation

To measure inflation, the government looks at price gains in eight categories: Apparel, Education, Food, Housing, Medical, Recreation, Transportation, and "Other".

Each category is given a weighting based on a typical U.S. household's income that is spent on it. Food gets a 15% weighting, housing 42%, medical 6%, transportation 17%, and so on. Prices are then checked regularly to identify trends.

Inflationary Trends

Take food. Last October, food prices rose 1.5%. This January, they rose 1.8%. That's an increase in pace of 20% (forget the math, just trust me on the numbers).

Transportation prices rose 5.29% last October, and 5.42% this January, an acceleration of 2.5% - much less than the 20% for food. But that's scant comfort because we still paid 5.4% more for gas, while we only paid 1.8% more for food.

While food and transportation are necessities, categories like apparel and recreation are more discretionary. So it's not surprising that apparel prices stayed practically unchanged, housing rose only 0.4%, and increases in medical and recreational expenses also slowed - blunting the sharp increases in food and transportation.

Put it all together, and you get inflation at 1.63% for January versus 1.5% last October.

The bottom line is that prices rose at a quicker pace than three months ago. For you and me, it simply means that inflation is increasing and the purchasing power of our dollar is declining at a more rapid pace than three months ago. Not good at all, particularly in a stalled economy with high unemployment and a virtual freeze on wage increases!

Sleep With The Enemy

I am reminded of a simple, yet brilliant idea I learned many years ago - if your electricity bill starts rising, buy shares of your electricity provider. You need electricity, and your provider knows this. If electricity generation costs rise, your provider will simply pass the increase on to you while making sure its profit margins remain intact. These profits either get distributed as dividends or cause shares to rise. If you hold shares, the dividends or stock appreciation compensate you for some or all of the increase in your bill.

So higher investment returns from capital gains, interest income or dividends can help you beat inflation.

Now, applying this concept to rising fuel costs, consider buying Oil company stocks. As a shareholder, you will see stock price appreciation and higher dividends. This has, in fact, already happened. Chevron shares, for example, have risen from the mid $80s last October to over $100 today.

However, first know all the facts and risks, or talk to a good advisor before implementing this strategy.

Buy Short Maturity Bonds

Investors can also buy short-maturity bonds to protect against inflation, and roll maturing principal into higher yielding bonds over time (called laddering).

Avoid long maturity bonds - they lock you into lower yields for long periods of time. Like a frog in a vat of low heat but rising temperature water that dies a slow painless death, long bond investors get the comfort of nominal principal preservation and interest payments, but get killed on purchasing power.

Dividend stocks and short-term bonds are two strategies to protect you from inflation.

Pay close attention to the economic world around you and speak to experienced advisors, and you will discover ways to beat the system and not just be its hapless victim.

Visit http://onthemoneyradio.org for weekly commentary and money advice that covers the entire financial spectrum which also airs on my weekly radio show, "On The Money!"
Article Source: http://EzineArticles.com/?expert=Steven_Pomeranz

Money Matters: Finance Your Business and Keep Those Finances on Track!

Some people dream of becoming an entrepreneur, but worry too much on where or how to finance their dream business - that is, where they should go and look for it. If you're one of them or even have engaged in business for years now, here are options for your finances.

1. Personal Savings. You are most likely to use this as a source of your capital because this is the easiest way to finance your business.

2. Borrow from friends or family. This is self-explanatory.

3. Loans. Bank Institutions are willing to help in providing businesses with finances. When you're thinking of borrowing funds from investors or loan institutions, much consideration should be given to the factors included in the financing deal: like the duration of the loan and the interest rate. Let's say you opted for a short term loan. They are appropriate to use when you want to grow your working capital requirements such as accounts receivable and inventory. However, if you consider purchasing new furniture and fixtures or opening a new store, you might want to take long-term loans as this you could pay for a much longer time.

4. Sell assets that are already idle. These may be in the form of old machinery or equipment and it may also be other forms of property. They may be old and may have slowed down the operation of your business, but if they're still useable, you might as well sell them.

5. Rent or Lease. Rent out a particular room or area in your building. This is also a great way of financing your business.

6. Equity Financing. You issue your equity ownership with the use of common shares. What's nice about this option is that the capital you borrowed is interest-free and there's no need for you to pay it back. However, your investors will become part-time owners of your business and may have an influence on you and on how to manage the business.

7. "Angels". These are actually people who just simply want to help you out. They are actually mysterious persons. Possibly they see something good in your business. Some people coined them as "Donors".

These are sources of financing your business. There may be other ideas out there, so it's better to venture out and know some of them.

If you want to track your finances as to where they come from or where they are being spent, check your cash flow statement. Using the Cash Flow Statement, you can budget your money as to what you should be spending. You can pretty much make an opinion or an evaluation over a certain operation - that is, whether your business gains or not. Probable predictions of your company's standing in the future can be made as well. Limitations of the Cash Flow Statement happens when, for an instance, you have generally less amount of cash on hand, yet are still earning a huge net income or vice versa. This could happen when there is more Accounts Receivable (or credit) than Cash.

Article Source: http://EzineArticles.com/?expert=Luminada_Jenkins

Stamp Duty - How Much Is Your State Charging You?

Stamp duty costs, which are paid on both the purchase and the mortgage amount, are soaring according to the second Residential Stamp Duty Report from home loan lender Bankwest.

The report reveals that over the last five years these levels have increased by 36 per cent in Australia and Victorians are being hit the hardest.

Residential stamp duty for buying the typical Australian house is now $14,761.

BankWest senior analyst Tim Crawford told the ABC: "Across Victoria as a whole, we've seen a 38 per cent increase in the typical stamp duty bill over five years and the typical bill in Victoria is pushing towards $20,000." he said.

"In Melbourne we've seen a 76 per cent increase in the median stamp duty bill over five years."

This translates as Melbourne home buyers having to set aside four and a half months worth of their average household income to pay this tax on a median priced house.

The new Liberal Government in Victoria campaigned on this issue and is currently preparing to cut this tax for first home buyers. Thereby reducing it by around 50 per cent on a median priced house in Melbourne.

Melbourne buyers are the hardest hit of any Australian capital city with the average bill pushing through $30,000 to $30,620.

This is four times the burden of median houses in Brisbane, which enjoys the nation's smallest bill of $7,245.

Triggering this increase is the booming Australian property market, which has delivered yet another blow to property buyers who now have to work an average of two months just to pay this cost, according to the Bankwest research.

Crawford says "bracket creep" is generally to blame for the increases. He explains that house prices have continued to increase but most state and territory governments haven't changed their corresponding thresholds.

Bankwest Retail Chief Executive, Vittoria Shortt said the sustained rise was an ever-escalating burden for home buyers.

"There's little doubt that stamp duty is among the most unpopular duties a home owner encounters and our research shows they are a significant financial add on to the cost of a property," Shortt said.

"Most homeowners in capital cities now need to set aside or borrow three months of their household income if they want to move house.

"As a result, many people may be tempted to stay put and renovate rather than move house because of high stamp duty bills.

"All states offer stamp duty concessions for first time buyers and there have been concessions for new home buyers which also helps. But people already in the property market who are looking to upgrade in their area generally face higher bills."

On a national average, stamp duty payable on the median house is equivalent to 3.3 per cent of the purchase price with Melbourne leading the way at 5.2 per cent of the purchase price for the median house and lowest is Brisbane at 1.6 per cent.
Significant findings

* Melbourne home owners need to set aside 4.4 months of their annual household income to pay stamp duty for median priced properties, the highest in the nation. Sydney ranks second, at 3.2 months.
* Brisbane home buyers pay the lowest in this tax, having to set aside one month's salary.
* The typical home owner in more than half of capital city local government areas (53%) needs to set aside 25% of their annual household income - up from 47% a year ago.
* Nationally, the typical home owner in 17% of council areas now needs 25% of their household income to pay the charge - up slightly from 16% five years ago.
* There has been a rise by more than 50% in five capital cities in the past five years - Darwin (137%), Canberra (82%), Brisbane (77%), Melbourne (76%) and Adelaide (60%).
* Western Australia and Victoria are the only states to have raised their thresholds to match the rise in house prices in the past five years.
* Queensland has the lowest stamp duty bills as a percentage of median purchase price at 1.4%, whilst Victoria has the highest as a proportion of the median price at 4.3%.
Article Source: http://EzineArticles.com/?expert=K_Jennifer

Lower Your Property Tax Bill - A New Year's Resolution You Can Keep

For many, the beginning of a new year signals a time to make some sort of change in their lives and become more like their ideal selves. For others, January signals the time to make a different kind of change, one that is much easier to make: trimming their property tax bill. The tax appeal process in New Jersey involves a number of steps and using an experienced property tax attorney to lead you through the process will make that New Year's resolution much easier to keep.

Since tax appeal season in New Jersey is toward the beginning of the year, lowering your property taxes is a perfect New Year's resolution. Toward the end of January of each year, every New Jersey property owner is supposed to receive their annual assessment. That's the little green card that comes from the tax assessor's office. Since all properties within a particular municipality in New Jersey are taxed at the same rate, it is the assessment which differentiates one property owner's tax bill from another and is the real measure of whether a property is being taxed fairly or not. The period in which one can generally appeal an assessment in New Jersey is from the time the assessment is received until April 1 (May 1 if there was a reassessment or revaluation).

The first step to understanding whether you are being taxed too much is understanding how your property is being valued.

In New Jersey, your assessment is the value at which your property was appraised at the time of the last revaluation. Though the amount at which the municipality values your property changes from year to year, your assessment typically remains the same. Every year, each municipality in New Jersey is assigned an "equalization ratio," which is intended to reflect the current value of the properties in a particular municipality in relation to their value in year of the valuation.

You can find your municipality's equalization ration by calling your town's tax assessor or the county tax board. It can also be found at the New Jersey Division of Taxation website. The "average ratio" is the percentage of "true value" that your assessment is deemed to be. In other words, divide your assessment by the equalization ratio to obtain the true valuation of your property. This is the number your assessor is actually using to compute your property tax, not your assessment.

For many people, the decision about whether they should appeal their assessment is an easy one once they realize the actual valuation of their property. For others, especially people who have owned a property for a long time and have not been thinking about buying or selling, the question of whether to appeal an assessment is less clear.

Here are several rules of thumb to consider in deciding whether to appeal your assessment:

* As your assessment gets older and your equalization ratio gets lower, there is greater likelihood that your assessment has fallen out of line with your property's actual value.
* Conversely, when an equalization ration rises above 100% because property values have fallen (as they have in recent years), that means that on average, properties are overassessed in those municipalities. The property owner still bears the burden of proving that their particular property is overassessed but an average ratio of over 100% is a good indicator of overassessment.
* When you live in a development or neighborhood where properties are very similar, and prices have dropped significantly, your individual property value has probably decreased and your assessment and equalization ratio may not have kept pace.
* Whenever a property has unique characteristics that make it very different from those nearby, there is often a case to be made for reducing the assessment. For example, a very large old home in a neighborhood of smaller, newer homes will often be assessed as a larger home with the characteristics of the surrounding areas. In fact, such homes tend to be more difficult to sell and often warrant lower assessments.

The next step in the process for individuals is to decide whether they want to work with an attorney in this process. While corporations and other legal entities must be represented by an attorney under New Jersey law, an individual homeowner may represent him or herself. Nevertheless, there are very good reasons to consider retaining one:

* Many lawyers work on a contingency basis so that there are no legal fees unless your taxes are reduced. There are certain fixed out-of-pocket expenses that the property owner pays but the lawyer receives a percentage of the tax savings if, and only if, the appeal is successful.
* A lawyer working on a contingency basis should provide a free consultation and do his or her own independent research to determine whether an appeal is likely to succeed. If a lawyer does not return calls and take the time to tell you why they believe your assessment should be reduced, it is a signal to look elsewhere.
* Most of all, there is the convenience of having an experienced professional handle your case. You do not have to worry about any of the rules which can be burdensome and, frankly arbitrary. (For example, property tax appeals can be dismissed if the petition is not printed on legal paper). You do not have to testify at a hearing, which is usually unfamiliar and uncomfortable for the homeowner.
* Many people believe you will end up with a better result when you are represented by a lawyer. This extra savings year after year more than offsets the lawyer's fee.

Take for example the case of Stephen and Rachel Pineles, who decided to appeal the assessment on their Essex County New Jersey home in 2010. "My town had not had a revaluation in over twenty years and my assessment was outrageously high in comparison with the actual value of my home," said Stephen Pineles. "Hiring an attorney to handle the property tax appeal was definitely the right decision for me. I did not have to worry about anything. Initially, the tax assessor offered a reduction that was on the low side. In the end, my attorney negotiated a much better settlement and my property taxes were reduced by over $3700 or almost 30% of my tax bill."

As with anything else, there is some amount of risk in appealing your assessment. In New Jersey, if your case is unsuccessful, you will not recover your out-of-pocket expenses. In addition, under New Jersey law, your assessor has the right to argue that your assessment is too low. This right is limited, however, to cases where your property is undervalued by a measure of 15%. If your property's assessment divided by the equalization ratio is $100,000, the assessor can only argue that assessment should be increased if he or she can prove your property is really worth at least $115,000. If your attorney has done his research well and has determined that there is a good case for lowering your assessment, it is unlikely to happen.

As the new year begins, in addition to some of the more difficult goals and changes people contemplate, it may be worthwhile to consider trying to lower your tax bill. It could be one of the easiest and most profitable resolutions you make.

About Elie Fink
Since moving to New Jersey in 2005, Elie Fink, Esq. has devoted a large portion of his time to understanding New Jersey property tax law. Since founding the Law Offices of Elie Fink in 2009, he has successfully challenged property taxes throughout northern New Jersey.

Elie Fink graduated from the New York University School of Law in 2000. He served as a clerk to a federal magistrate judge in the Southern District of New York and then worked at top tier New York law and accounting firms.

Article Source: http://EzineArticles.com/?expert=Elie_Fink

What Is a Tax Increment Reinvestment Zone ("TIRZ")?

Chapter 311 of the Texas Tax Code allows municipalities or countries to form a Tax Increment Reinvestment Zone ("TIRZ"). The municipality proposing the TIRZ must notify each taxing unit that levies real property taxes in the proposed TIRZ and determine that tax increment that each taxing unit will contribute to the tax increment fund.

Money deposited in the tax increment fund may be disbursed only to satisfy claims to holders of tax increment bonds or notes issued for the zone, to pay project costs for the zone or payments pursuant to an agreement made by the board. Project costs include, but are not limited to, the following costs associated with public works or public improvements including:

* Capital costs, including acquisition, construction, reconstruction, installation, demolition, clearing and grading;
* Financing costs, including interest before and during construction and for one year after completion of construction, whether or not capitalized.
* Real property assembly costs;
* Professional services costs, including architectural, planning, engineering, and legal advice services.
* Administrative costs for employees of the municipality or county in connection with the implementation of a project plan;
* Organizational costs, including the costs of conducting environment impact studies or other studies, the cost of publicizing the creation of the zone, and the cost of implementing the project plan for the zone;
* Costs of operating the TIRZ and project facilities; public facilities, or pay debt service on bonds.

In addition to property tax contributions into the tax increment fund, a municipality collecting municipal sales and use taxes may contribute all or a portion of the sales tax increments to the tax increment fund or enter into a tax abatement agreement with an owner of the property within the TIRZ.

Criteria for Establishing a Reinvestment Zone
To be designated a reinvestment zone, an area must:

* Substantially arrest or impair the sound growth of the municipality or county creating the zone, retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition and use because of the presence of:
o Slum, deteriorated or deteriorating structures;
o Defective or inadequate sidewalk or street layout;
o Faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
o Unsanitary or unsafe conditions;
o Tax or special assessment delinquency exceeding the fair value of the land;
o Defective or unusual conditions of title;
o Structures other than single family residential structures, where less than 10 percent of the square footage has been used for commercial, industrial, or residential purposes during the preceding 12 years, if the municipality has a population of 100,000 or more;
o Conditions that endanger life or property by fire or other cause;

* Be predominately open and, because of obsolete platting, deterioration of structures site improvements, or other factor, substantially impair or arrest the sound growth of the municipality or county;

* Be in a federally assisted new community located in the municipality or county or in an area immediately adjacent to a federally assisted new community;

* Be in an area described in a petition requesting that the area be designated as a reinvestment zone, if the petition is submitted to the government body of the municipality or county by the owners of the property constituting at least 50 percent of the appraised value of the property.

Public Improvements Eligible for TIRZ Financing

* Educational facilities if the reinvestment zone was created on or before September 1, 1999
* Flood and drainage facilities
* Parking facilities
* Parks
* Pedestrian malls and walkways
* Sewer
* Street lights
* Streets
* Utilities
* Water
Article Source: http://EzineArticles.com/?expert=John_Foreman

What Is Community Infrastructure District ("CID")?

The Background of CID - As the development of real estate continues to expand in Idaho, the impact caused by such expansion requires the necessary construction of public infrastructure to accommodate such growth. In 2008, Idaho legislature enacted the Idaho Community Infrastructure District Act ("Act"). The purpose of the Act was to create new mechanism for the financing of public improvements for the public agencies and developers alike. The Act, styled after similar legislation in New Mexico and Florida, addressed a critical issue of how to pay for new public improvement burdens in a cost effective manner. The Act authorizes bonds to be issued and repaid with a mechanism that taxes or assesses the land benefiting by the new public improvements. This provides for much needed community development which may otherwise be infeasible due to the significant costs imposed by the extensive public improvement burdens. At the present time, a Community Infrastructure District ("CID") is allowed in an incorporated city or in the county if within the City's comprehensive planning area and the city consents to the CID formation. The Act allows for the issuance of general obligation bonds, special assessment bonds or revenue bonds or any combination thereof. The projected annual assessment, tax or revenue stream secures the repayment of the bonds.

Eligible Public Improvements Available For CID Financing

* Water Improvements
* Sewer Improvements
* Flood Control Projects
* Roadways
* Public Parking Structures
* Landscaping and Lakes
* Lighting and Traffic Control
* Parks
* Recreational Facilities
* Public Safety Facilities
* Financing Costs
* Real Property Interests
* Development Impact Fees

A sound CID should be established with the following overall objectives in mind:

The real estate developer's financial goals should be met whenever reasonably possible since their project and its customers will be repaying the borrowing costs of the CID financing so long as it does not present any undue credit risk;

The real estate developer should use an experienced consultant to assist them in understanding all available options when going through the CID process;

On larger development projects, the CID financing should be structured to allow for multiple bond issues at different points in time and improvement areas should be employed to minimize the financial obligation on unimproved or underdeveloped property; The particular development project characteristics or constraints should be understood so that relevant risk associated with the project's development and its ability to repay bond debt is clear. Examples of this are environmental constraints, infrastructure constraints, and private financing caps;

The legal and engineering side of the construction and/or acquisition of the improvements should be understood if tax exempt bond financing is being used. More specifically, the specific construction related guidelines and procedures should be spelled out when a real estate developer is constructing the public improvements and seeking reimbursement from CID bond proceeds;

The estimated annual cost and the maximum annual cost of the CID financing to the borne by all property owners involved in the development process needs to be fully understood and properly disclosed; and

The project's appraised value needs to be properly performed consistent with sound bond underwriting and appraisal practices because the CID bonds are ultimately secured by the projects value. The appraisal instructions should be clearly defined from a CID bond credit perspective. For example, if bonds are being issued on an appraised value that assumes the project has unimproved lots with no performance guarantees at the appraisal date, then the appraiser has overstated the value for the value-to-lien ratio.


President and CEO (DPFG)

John has been advising clients in the real estate consulting business for the last twenty-seven (27) years. Prior to the formation of DPFG, Inc. in 1991, John spent nine years (9) in tax, audit, and consulting positions with the national accounting firm of Kenneth Leventhal & Company.

During the course of his career John has accumulated significant industry experience in areas such as; valuation of multiple land uses, public/private sector negotiations, cash flow analysis of projects and portfolios, development cost evaluations, entitlements to development, public finance applications on development, litigation support, redevelopment district development,expert witness testimony, development impact on school districts, land acquisition, due diligence, project leasing, special financing district restructuring, auditing of companies, and market analysis and recommendations.

John is a licensed Certified Public Accountant, inactive, in the State of California and received his Bachelor of Arts degree in Accounting from California State University - Fullerton. John is an accomplished speaker, presenter and author of various articles on a multitude of real estate topics.

Article Source: http://EzineArticles.com/?expert=John_Foreman

Thoughts on Protesting Property Taxes

For most people, negotiating property tax value or ad valorem tax value is more of an art then as a science, since there are so many things involved in the appeal process. You have to have good negotiating skills if you are to be successful with it. This is why you go to people who have made it their business to make sure that they can negotiate on your behalf. It is not just the trivial things that they will negotiate for you but something much more important and something that could save you a lot of money in the long run.

If you go to the taxing authorities on the subject of ownership tax reduction and property tax appeal, you may just save yourself thousands of dollars a year. Place taxes are probably one of the biggest expenses that you have on a commercial property. Imagine how good it will be for you and your bottom line if you can pay people to help you reduce your tax? If you happen to be thinking about this, you should go to people who know the place tax laws very well. You can find such a company that handles property tax reduction protests and commercial property tax appeal cases extremely well. They will help you come up with all the paperwork that you will need so that governmental agencies will take a very close look at these documents to approve your ownership tax appeal and reduction.

Not only do these well established companies have expertise in the main Texas area, but it also has various boutique affiliates all through out the nation so that you can seek help from them even if the property is not in Texas. Each state has unique laws and they will make sure that they help you work within those laws and have your place tax reduced at the same time and at a very favorable value. If you want to make sure that your place taxes are reduced, be sure to get yourself the best place tax consultant that knows the ropes to get your place tax reduced.

Mattox, Terrell & Associates, Inc. is a property tax firm dedicated to the property owner - our client. Service specialities include: All Types of Property Tax Appeals and Property Tax Reduction, Protests, Negotiations, Renditions, Filings & Exemptions.

Article Source: http://EzineArticles.com/?expert=Annie_A._Smith

Learn How To Save Money On Your Property Taxes

Did you know you can appeal your real estate values set forth by your taxing jurisdiction? I want to give you some basic guidelines on knowing how to make a confident appeal to save money on your property taxes. It's up to you to provide legitimate reasons why you feel the assessor has over valued your property. Here's some recommendations to back up your values.

1. Have you had an appraisal of your property done recently?

2. Does your home have structural problems?

3. Have you noticed homes similar to yours that are selling and revealing declining property values?

This last question concerns using comparable sales to find values. Let's take a closer look at using this method. You can obtain comparable sales data from files at the county assessor's home office, real estate agents or title companies. A person should work with real estate sales that are most identical to your property, and which sold nearest to the assessment or appraisal of your real estate. The preferred sales comparisons are sales of very similar properties in your locale or vicinity. For every different comparable sale you utilize, make sure to incorporate the parcel or account number, property address, date of sale, sale price and comparable property attributes.

Comparable attributes to take into account are:

* Specific location-sales in the same subdivision or neighborhood
* Land comparison-lot size or acreage
* Desired attributes such as a view or waterfront
* Sewer or septic systems
* Unfavorable elements such as an accessibility difficulty
* Water systems
* Zoning Developments
* Form of construction-wood framework, brick or other
* Square footage of entire finished living space
* Year built
* Number of stories
* Improvement style and quality
* Building condition
* Quantity of bedrooms and bathrooms
* Fireplace
* Garage or car port

Other Supporting Data

* A map displaying the specific location of your real estate and comparable sales properties
* Certification by others regarding issues
* Prepared estimates of the expense to fix issues
* Pictures

Appealing your property values is a property owners legal right. If you can't reach a settlement with the assessor's office on lowering your values then by all means begin the appeal process. Utilize the sales comparison technique guidelines as recommended above and get your property taxes lowered.

Article Source: http://EzineArticles.com/?expert=Jonas_DuBois

What Do Property Taxes Pay For?

County property taxes, or any other tax for that matter, while unpopular, are an essential source of revenue to county and/or state governments. County property taxes help pay for essential community services.

Each taxing authority, whether local or state, continually strives to update its county property appraisal ratios based on current market values. Their objective is to maintain tax equalization on residential and commercial property located within their taxing jurisdictions. Most county governments are dependent of county property taxes for their income. Accordingly, the property taxes that are levied can and do vary a great deal from county government to county government.

Perhaps, paying county property taxes is unpopular, because we feel we don't have any choice; as we perceive these taxes are forced upon us. However, we have made a choice to a citizen of the particular community within the county. As such, we do receive a lot of valuable services in return.

In the county in which I reside, ad valorem taxes make up approximately 34% of the total revenue reported by the county.

While there may be some variation in the services that property taxes provide, I receive the following benefits from the taxes I pay:

* Police protection and emergency response;
* Fire protection and emergency response;
* Storm water runoff;
* 911 Emergency service;
* Maintenance of streets, traffic control, sidewalks and curbs;
* Snow removal;
* Wireless telephone;
* Emergency family assistance and housing funds;
* Access to low-cost mental health services;
* Parks and recreational facilities;
* Activity programs for senior citizens;
* Central and neighborhood libraries;
* Wastewater treatment; and last but not least,
* The office space and administration of these service

How many of these services do you take for granted? How many people does it take to provide these services 24/7? Each one is entitled to receive his/her fair wage, just like you and me.

The author currently publishes two blogs specifically relating to Self Improvement. One blog entitled Self Improvement under Magnifier is published within her website. This website markets three products or collections of ebooks on Self Improvement, Anxiety and Depression and Dating and Relationships. The other blog is a weekly blog published on Blogspot.
Article Source: http://EzineArticles.com/?expert=Trona_Hanly