Accounting Firm in Texas

What Is Board of Directors (B of D)? A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set corporate management and oversight policies. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors. This also applies to German GMBH companies. (Source from:  https://familyhc.org/wp-content/uploads/2021/09/board.jpg ) KEY TAKEAWAYS The board of directors is elected to represent shareholders’ interests. Internal board members are not usually monetarily compensated for their work, but outside board members are paid. The board makes decisions concerning the hiring and firing of personnel, dividend policies and payouts, and executive compensation. A board member is likely to be removed if they break foundational rules, for example, engaging in a transaction that is a conflict of interest or striking a de...

  What Are Ultra Vires Acts? Ultra vires acts are any acts that lie beyond the authority of a corporation to perform. Ultra vires acts fall outside the powers that are specifically listed in a corporate charter or law. This can also refer to any action that is specifically prohibited by the corporate charter.  (Image source from: https://saylordotorg.github.io/text_business-law-and-the-legal-environment-v1.0-a/section_48/5611bfe9dc6496c1a8d60491f58ec772.jpg ) The roots of the term are from a Latin phrase that means beyond the power. It is the opposite of under proper authority—intra vires. You will also find the term in the legal profession. Excessive Use of Power Ultra vires acts can also be defined as any excessive use of corporate power that has been granted. These acts cannot be legally defended in court. They will, in fact, leave the corporation vulnerable to lawsuits by employees or other parties. Companies have a variety of legal documents and direct...

  What Is Tax Relief? Tax relief is any government program or policy initiative designed to reduce the amount of taxes paid by individuals or businesses. It may be a universal tax cut or a targeted program that benefits a specific group of taxpayers or bolsters a particular goal of the government. KEY TAKEAWAYS A tax deduction that allows individuals to deduct expenses certain expenses (such as home mortgage interest) is one form of tax relief. A tax credit is tax relief in the form of a direct offset of certain expenditures. The Fresh Start program offers delinquent taxpayers relief from a tax lien. The Child Tax Credit, for example, benefits American parents of minor children. A tax credit for purchasers of energy-efficient vehicles furthers the goal of greater U.S. energy independence and cleaner air. Understanding Tax Relief An individual or business entity typically gets tax relief through deductions, credits, or exclusions, and occasionally by the forgiveness of a tax lien. T...

  What Is Tax Accounting? Tax accounting is a structure of accounting methods focused on taxes rather than the appearance of public financial statements. Tax accounting is governed by the Internal Revenue Code, which dictates the specific rules that companies and individuals must follow when preparing their tax returns. KEY TAKEAWAYS Tax accounting is the subsector of accounting that deals with the preparations of tax returns and tax payments. Tax accounting is used by individuals, businesses, corporations and other entities. Tax accounting for an individual focuses on income, qualifying deductions, donations, and any investment gains or losses. For a business, tax accounting is more complex, with greater scrutiny regarding how funds are spent and what is or isn't taxable. Understanding Tax Accounting Tax accounting is the means of accounting for tax purposes. It applies to everyone—individuals, businesses, corporations, and other entities. Even those who are exempt ...

  What Is a Retail Investor? A retail investor, also known as an individual investor, is a non-professional investor who buys and sells securities or funds that contain a basket of securities such as mutual funds and exchange traded funds (ETFs). Retail investors execute their trades through traditional or online brokerage firms or other types of investment accounts. Retail investors purchase securities for their own personal accounts and often trade in dramatically smaller amounts as compared to institutional investors. An institutional investor is an umbrella term for larger-scale investments by professional portfolio and fund managers who might manage a mutual fund or pension fund. KEY TAKEAWAYS Retail investors are non-professional market participants who generally invest smaller amounts than larger, institutional investors. Due to their smaller trades, retail investors may pay higher fees and commissions, although some online brokers offer no...