Day: April 10, 2019

Choose Michael J. Berger and Co., LLP For Your Tax Needs

Choose Michael J. Berger and Co., LLP For Your Tax Needs

If you need a dependable tax business to help you handle all of your accounting, tax, and financial needs, Michael J. Berger and Co., LLP is a business that can help you. This is a full service accounting firm located in Long Island, NY.

Experience

Michael J. Berger and Co., LLP is a full-service accounting firm that has been in business for 39 years. The staff at this company are CPA’s and Enrolled Agents. The staff is required to undergo continued education to ensure they are up to date with developments in the accounting field. The staff members at this accounting firm are dedicated to their profession and are committed to personalized service. One of the main goals of this company is to help your business become more profitable.

Services

This accounting firm provides clients with a wide variety of services. Michael J. Berger and Co., LLP will provide monthly, quarterly, and annual postings of your accounting records. They will also generate in-house financial reports so that you can see how your business is progressing throughout the year compared to previous years.

Tax Preparation

This accounting firm also helps clients with tax preparation in Long Island, NY. They will prepare and review your tax forms and payments, vehicle mileage, fuel tax forms, and sales tax forms and payments specific to your company. The accounting firm makes themselves available year round to review these forms with clients. They will also prepare and review your W-2 and 1099 forms and submit them to the IRS.

Choose Michael J. Berger and Co., LLP For Your Tax Needs

The staff at Michael J. Berger and Co., LLP has the extensive knowledge and skills needed to help you with your tax needs. This accounting firm offers reasonable fees for the convenience of the clients they serve. Whether you need help with accounting, auditing, taxes, IRS representation, financial statements, or tax planning, you can guarantee that the staff at Michael J. Berger and Co., LLP will assist you. Choose this business for tax preparation Long Island NY.

How to Avoid Substandard Loans

How to Avoid Substandard Loans

The Great Recession experienced last decade was the most recent example of how detrimental a substandard loan can be. In this event, lenders were knowingly allowing substandard loans to be issued to receive short-term profits. This liability was shifted from business to business in the form of collateralized debt obligations. Once homeowners were no longer able to service these mortgages, the entire housing industry collapsed seemingly overnight. To minimize the issuance of substandard loans, lenders must understand moral hazard and adverse selection.

Understanding Adverse Selection

Adverse selection in the lending environment occurs when the lender and buyer do not have access to the same information. A buyer desperate to receive funds may potentially exaggerate income or assets to throw off the lender. Since the lender is going off of the available data, they are usually the victims of asymmetric information. At times, lenders still loan out money with this handicap in play to capitalize on future interest revenue. However, lenders are not always successful with this practice and become victims of substandard loans.

Understanding Moral Hazard

While Adverse selection occurs before an agreement, moral hazard appears after a buyer and lender close on a deal. An example of moral hazard could involve a buyer having a drastic change in income and the ability to service the loan. Once issued, both parties are expected to uphold the initial deal. However, unexpected circumstance can create a substandard loan which must be written off.

Another example of moral hazard involves a sense of comfortability. A buyer can receive a loan for any number of reasons. For instance, the loan could be for a small business looking to expand its operation. Obtaining a loan at this stage in the industry can provide a cushion and tendency to overspend since more funds are accessible. Moral hazard and adverse selection are just two ways of sniffing out substandard loans.…