Opening a business comes with unexpected fees

Many people get excited when planning a small business, but they don't go far enough to plan out an accurate budget for their new company. It is important to map out what is expected to be spent, and then tack on an extra 20 percent. This could help out with unexpected costs over the course of the year, but some other items are worth taking into account, said Danielle Rodabaugh, an employee at a national surety producer.

Many small businesses, such as day trading companies, have to deal with various fees. Whether it is regulations from the federal government, or just local policies, there are important payments that need to be made, Rodabaugh wrote in an article for Bplans.com. These fees can get pricey, and it is important to ensure all are taken care of.

It also costs money to hire accountants, or other related professionals, such as bookkeepers, she noted. These are vital for small businesses, and it is a much better option than an owner keeping track of these items by themselves. In addition, finding a lawyer to help the company is beneficial. Though, it is important that they have experience in dealing with those day trading for a living.

While for day trading companies, it may not be a huge cost, it still should be noted that technology isn't free. Getting the right computer equipment, cell phones or other custom data software could be important, Rodabaugh added.

Estate executors must decide to opt out of estate tax by November 15

Executors getting underway with estate tax planning should be aware of time limits on opting out of the estate tax, Bloomberg reports. The Internal Revenue Service will be giving executors for the estates of 2010 decedents until November 15 to opt out.

Estate lawyers have been unclear on when they'd need to file the return for opting out, according to the news source. If an estate owner happened to pass in 2010, their estate executor could either pay the estate tax or skip it, the news outlet reports.

An estate planning advisor would best be able to help decide whether to pay the estate tax, or not, as there are significant advantages to each choice. Deciding to pay the estate tax results in assets passed on with stepped-up value. In other words, the assets, such as stocks, carry their value at the time of the owner's death, according to the Bloomberg report.

In December of last year, Congress extended the federal estate tax retroactively to January of 2010. The tax hadn't been in effect for much of the year until Obama signed H.R. 4853, the Middle Class Tax Relief Act of 2010, into law on December 17.

The estate tax has a $5 million exemption. Its top rate is 35 percent, though this rate may change given the political battle surrounding the tax.

Understanding the costs and benefits of outsourcing accounting

Companies that choose to outsource their bookkeeping needs to minimize their fixed costs must be vigilant about both choosing the right provider, according to Computerworld. Finance departments regularly farm out their accounting duties to outsourced accounting firms, or OAFs.

OAFs allow companies to free up resource and time and trim their staff and benefits costs. They can help deploy basic accounting tips through automated, streamlined systems. This outsourcing can cut costs , which in turn can make or break a small business that can't afford a separate accountant to perform routine tasks, according to the news outlet.

However, there is a potential downside to outsourcing accounting, according to the news outlet. Companies can potentially lose control over understanding the very basics of their financial systems. Arguably, a business owner still must be fully immersed in his firm's financial statements.

Outsourcing done poorly can result in a loss of business value, as an overloaded OAF will usually deliver financials, not comprehensive advice on how a business is functioning.

As a result, a small business must make sure to have strong communication with the accounting firm, so the financials that are delivered are parsed and made sense of. This knowledge can be channeled into strategy and better financial management.

OAFs are a lucrative industry. According to a report in the Michigan Journal of Business, the business of outsourcing finance and accounting has been one of the fast growing sectors. In 2007, the sector grew by 30 percent.

Make critical choices during estate planning, including naming appropriate beneficiaries

The new $5 million estate tax exemption, which was signed into law in December of 2010, has implications for any individual embarking on estate planning, according to a SmartMoney report. Many may feel that their estates wouldn't owe taxes if they passed between now and 2013, when that may not, in fact, be the case.

When beginning estate tax planning, one should take some basic organizational steps, including designating beneficiaries for all accounts, annuities, tax-favored retirement accounts, brokerage firm and bank accounts and company benefit plans. Life insurance policies, which are often used in estate plans to repay debt and income, should have the proper beneficiaries, as well. Moreover, one should change any beneficiaries that are blatantly outdated, the news outlet reports.

Without altering beneficiary designations, many have ended up in regrettable, and avoidable circumstances, including having ex-spouses collect from one's investment and savings plans, including life insurance coverage, even though their interest has been waived under a divorce agreement, as SmartMoney reports.

When reviewing accounts, annuities and other plans, estate planners should carefully review current beneficiaries and fill out necessary forms, such as payable on death forms or beneficiary change forms to make sure money goes where it should. Taking this step also helps avoid probate, according to the news source.

Those who are married and have joint accounts with their spouses should know that their surviving spouse automatically takes over upon the death

Avoid probate court through pay-on-death accounts, or living trusts

Individuals embarking on their estate tax planning can avoid the subjecting their property to the draining process of probate, according to a report in The Downey Patriot. Probate, which helps conclude a person's financial and legal affairs after they pass.

Once an estate enters probate court, a named executor then begins an exhaustive inventory of the estate. She files tax returns, pays bills and locates creditors. After all financial obligations are met, the estate can be distributed to heirs and relatives. The costs for this investigation are all taken out of the estate. This process can take months and even years in certain states, such as California.

Most estate owners will want to avoid the costs and fees associated with the probate process. According to Findlaw.com, the average cost of probate is four to 10 percent of the gross estate, and the average length of the probate process is 113 months. A court will order higher fees the more complicated an estate case turns out, according to the Patriot report.

Living trusts are one option for those who want to avoid the probate process. Others can hold their money in a "to pay on death account" in a financial institution. They can name their beneficiary, who'll inherit the money in the bank account - but only upon the passing of the person who established the account. This move avoids the probate process entirely.

How to make a small business better in-house

Many people who run day trading companies try to do everything on their own, and often multitask to the point of overworking themselves. This may work, but in the long run it could do more harm than good to a person's business. This is why it is a good idea to streamline work inside of a company, as it will pay off later on, according to Investopedia.

Creating form templates could be a big time-saver, as it won't have to be remade every time a project needs to be completed. Whether it is proposals, accounting information or anything directly related to day-to-day business, it may improve time management, the news source reported.

Software can also help out a small business such as a day trading company, greatly. Calendar programs that are easily accessible can be used to schedule meetings and keep track of contacts, according to the news source. Programs that specialize in finances are also important, as they have ways to import transaction histories - saving the business owner significant time spent researching while still reducing errors.

Things that need to be completed every day, such as checking and responding to email, working on social networking sites and other like tasks may be good to complete at designated times throughout the day, the news source added. Separating them can make a person concentrate much more easily, and can make work much easier.

Small business productivity can be increased

Many sole proprietors try to find ways to be more productive, and there are many options to take when trying to streamline work, according to Entrepreneur magazine.

Technology can make life much easier, especially when it comes to computers. Many programs, such as Microsoft Outlook, have shortcuts and other tools that can help save time and keep a person more organized, the news source reported. The most important item for business owners, such as day trading for a living, is to learn the products that are used on a day-to-day basis as well as possible.

Another important point is to not check email constantly, the news source said. If possible, change email settings so that new mail only is sent to the inbox when the owner clicks it. Responding to emails as quickly as they are received will not only streamline response time, but it will also make life easier. This way, inboxes will not be filled up and cluttered.

Allocating work elsewhere, such as to bookkeepers and accounting firms could help out small business owners, as these organizations keep the overall workload more manageable, the news source added. Many business owners are not qualified to keep track of such things, and this could create errors and take away from earning money, which may be problematic. Outsourcing these activities is recommended.