Pyramid Scams stream the headlines of Business papers this past few weeks. Two companies tagged as Pyramid Scams are Aman Futures Group Inc. and Visioner 2020 International Traders, Inc. Based on an article published by Business Mirror, Aman Futures Group Inc. is an “investment” company operating in Pagadian City in Zamboanga del Sur, Mindanao, worth at least P244 million. The company is licensed to trade commodities like gold, coconut oil and nickel but was instead accepting money from investors to engage in the trading of futures commodities in Malaysia who were lured by alleged profits of as much as 60 percent in a month or less. The SEC said the company committed four grave violations: selling securities without prior registration with the SEC, non-registration as a broker-dealer, engaging in commodity-futures contract (public trading of which is currently suspended) and violating its registered purpose, which is that of a general trading company. A news from ABS-CBN disclosed that Visioner 2020 International Traders, Inc. is a “newly-sprouted” group in Tiguma, Pagadian City run by a British national, with help by local leader Glenda Andagan. Investigation showed the company got an estimated P60 million from investors although they have information that the scam could run to a billion pesos. The company reportedly offered up to 52% return on investments monthly but lowered it to 30% after news broke on Aman Futures Group scamming P12 billion from investors. In line with these Pyramid Scams, the Securities and Exchange Commission (SEC) released a report reminding the public to be vigilant with their investments. The following is an excerpt from a memo dated 17 August 2012, the SEC: “The public is reminded to be over-cautious or exercise prudence in investing their money in what appears to be a high yield-high risk investment which may turn out to be a fraudulent scheme. Where the scheme involves the sale of securities, please make sure that these securities are registered with the SEC.” So for those of you who are interested in investing, ensure that such investments are registered with SEC and not Pyramid Scams. You may inquire with the Corporation and Finance Department (CFD) of the SEC at telephone numbers 584-61-03 or...
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Keep it separate. That new backpack for your kids isn’t a business expense, but your business credit card was handy so you used it. Sure, you can pay back your business for a personal expenditure, or the other way around, but if you’re going to do it right you actually have to record an accounting transaction. Things get complicated fast, and you don’t need that headache. By keeping separate bank and credit card accounts for business and personal, you’ll save yourself hours of work and make it easy to keep track of deductible expenses in one place. Some applications can automatically handle the behind-the-scenes accounting for crossover expenses, but even so, we recommend handling business and personal finances as independently as possible. Call in a pro. Since the days of the abacus, accountants have been trusted and respected allies to small business owners everywhere. Their intimate knowledge of the profession as well as tax laws in their jurisdiction will save you money almost every time. I know how tempting it can be to save a buck and do it yourself, but it’s almost never more cost-efficient in the end. An accountant will almost always find more deductions and keep you penalty-free. On that note, the cleaner your records, the fewer billable hours you’ll have to pay, so make sure you’re organized year-round. But when things get technical or taxes are due, save yourself the money, time and headaches and call in a trusted professional. Pencil it in. Actually, use a pen. A permanent marker even. Set aside about 15 minutes every week — that’s the equivalent of just one Facebook visit every seven days — to organize your finances, and don’t let other things take priority during this time. You’ll have more insights into your business, be able to make more informed financial decisions and have everything organized when tax time approaches. Something always feels more pressing than your finances. But when you find the time every week, you’ll feel your stress levels — now and at year-end — fall fast. Consider your people. When you’re looking for insights into your businesses spending, don’t forget to properly track what is likely one of your biggest expenses: labor. Whether you’re paying a full staff or you’re the only one on the payroll, make sure you’re...
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