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Whose Responsibility Is Company Payroll?

The payroll function within organizations of whatever size is vital but there continues to be some debate over whose responsibility it should be – HR or finance? We look at where the buck should stop.

A natural fit

Payroll would seem to fall into the remit of both HR and finance but sometimes it’s unclear where it fits naturally. Some argue that HR is its natural home, others that finance should have responsibility and yet further arguments maintain that it should either be split between the two or outsourced altogether.

There is no doubting its importance or the sensitivity which is attached to payroll. Employees all work for a wage or a salary and ensuring that they are paid the correct amount on time is essential.

Employee confidentiality is also paramount and data protection procedures must be in place. For these reasons and for others involving direct employee enquiries, time-sensitive issues, bonuses, redundancy payouts and benefits, some organisations make HR responsible for dealing with payroll.

Other businesses make a counter-argument, however. They maintain that because payroll is one of the largest expenses within any business or department, it must be classed under the auspices of finance. Issues such as reconciliation and compliance with taxation require specialist training and knowledge in order to comply with current and constantly-changing legislation.

A third point of view is that payroll should be split between HR and finance within an organisation. This approach tacitly understands that differentiations between the function of the departments can lead to payroll being regarded as falling between two stalls but recognises that it must be dealt with by both.

Finally, a significant proportion of organisations now outsource their payroll function to a third party specialist. The reasons for this can be summed up neatly: cost and resources.

Integration

Where overlap between HR and finance does occur, the responsibilities shared by the departments must be clearly delineated to establish functional and effective procedures. Collaboration is essential to ensure, for example, efficient hiring and firing, maternity pay, bonus calculations and overtime payments for individual employees. When both departments are involved, they can each ensure quality control procedures are in place and accountability is established.

Software

Whether responsibility is shared or allocated to one specific department, one payroll essential is effective computer systems which can be incorporated into an organisation’s precise needs. Specialist, integrated software allows HR and finance departments to effectively perform their functions and retain autonomy in the areas in which they specialise which is why more and more businesses, both small and large, are taking advantage of the systems available at the moment. Companies such as CIPHR offer great Software for HR which can not only save organisations time and money, but improve efficiency through on-line accessibility and increased accuracy. More complex functions, such as payslip generation and distribution, electronic P6/P9/SL1 and SL2 can also be handled by such software, whether it’s in-house or outsourced, to provide seamless functionality for payroll.

So whatever size of business you’re involved with, from SME to multi-national, effective payroll function must remain at the top of the HR and/or finance agenda.

Things to Keep in Mind When You Are Organising a Business Banquet

If you have just started a job as a personal assistant or office manager, it is likely that you will be asked to organise some events from time to time. There is often a lot involved in these events, regardless of how many attendees there will be. When there are fewer people involved, it tends to mean that those selected will be the CEOs, partners, etc. meaning they will have high expectations for their treatment and service. Of course when there are a lot of attendees due to come to an event, you will have to ensure that you have kept everyone’s personal requirements to mind when making arrangements.

Perhaps one of the most time-consuming tasks will be trying to organise a business banquet, whether this is a companywide celebration or a something your business wants to do for customers and clients. However when you get it right, you can expect to be highly commended for your efforts, meaning it can be very rewarding in the long run. So here are some tips to keep in mind so you get the results you need to succeed:

Venue size

The primary consideration you will need to make is what venue will fit the number of guests / delegates. There are some places that you will need to rule out based on the fact that they will be too cramped, or the layout won’t be conducive to holding specific groups of people. It would be bad manners to have one subset of people in one area, and then have the remainder in another; people should be sat together for these types of occasions.

Dietary requirements

Of course if you are organising a business banquet you will need to pay close attention to the food that will be served. People have many specific requirements these days, so you will need to identify how many vegetarian, vegan, gluten-free and allergy-free meals need to be cooked. You will need the remaining count for the other meals, as well as deciding how many courses should be served and what price bracket you will choose.

Ease of access

If you are welcoming guests from all over, it makes sense to host your business banquet in an area close to an airport or train station. That is why something like a London, Manchester or Belfast hotel would make the perfect venue. You want people to be able to arrive in time, as well as departing safety, which is why a location in or around a city would be ideal.

Hotel rooms available?

Finally, if the event will be taking place in the late afternoon or the evening, it makes sense for there to be some hotel rooms available to cater to the guests who have travelled a greater distance to attend. This is certainly the case for any international guests who have travelled by air and are not able to get a return flight until the next day.

The Top Ten Greatest Stock Trades of All-Time

The Top Ten Greatest Stock Trades of All-Time

Screen Shot 2013-09-13 at 12.31.59 AMHedge Fund titan Jon Paulson pulled off the greatest trade of all time in 2007, raking in a cool $15 billion in his bet against subprime mortgages - according to the International Business Times who ranked the top ten greatest trades of all-time. Some were brilliant masterminds, others were just plain lucky.

The Top Ten Greatest Trades of All-Time

1.    John Paulson’s bet against sub prime mortgages made him $15 billion in 2007

2.   Jesse Livermore’s call on the Crash of 1929 (a legendary trader featured in the popular book, Reminiscences of a Stock Operator).

3.   John Templeton’s foray into Japan in the 1960s (a true investment pioneer, Templeton foresaw the rise of Japan after World War II and profited hugely from it).

4.   George Soros’ breaking of the Bank of England in 1992 (Soros made $1 billion).

Screen Shot 2013-09-13 at 12.31.45 AM5.   Paul Tudor Jones’ shorting of Black Monday in October 1987 (he predicted the crash, bet a bundle & tripled his money as the market crashed 22% in one day).

6.   Andrew Hall’s $100 oil prediction (with oil trading at $30 per barrel in 2003, Hall bet prices would rise to $100 in 5 years; they did and he took home a personal paycheck of $100 million in 2008).

7.   David Tepper’s 2009 bet on financials (as the market hit its low in early 2009, Tepper bought financial services stocks & his fund earned $7 billion that year ($4 billion of that went to Tepper).

8.   Jim Chanos’ prescient shorts (his sharp analysis led him to predict the demise of Enron, WorldCom, and other firms, and he is known as the best short-seller in the world).

9.   Jim Rogers’ early call on commodities (he was bullish on commodities back in the 1990s & has been riding them to great profits ever since).

10.  Louis Bacon’s geopolitical play (he correctly predicted that Saddam Hussein would invade Kuwait in 1990 & profited handsomely by going long on oil & shorting stocks, which helped his fund return 86% that year).

Screen Shot 2013-09-13 at 12.32.41 AMMost of these trades were ‘global macro’ plays where huge, concentrated bets were made by analyzing fundamental economic/business conditions.  These investors excelled at turning a great observation about the world into a great investing idea. But, while these make the headlines, you never hear about the other investors who made a big call and missed, and ended up out of business.

It’s almost impossible for regular investor folks to make a ‘big score’ like these traders.  Rather than trying to throw a touchdown pass on every play and make a big score like these traders, the smarter game plan is to focus on trying to get consistent first downs. Do your homework, watch market/sector developments, don’t chase stocks up or down.  Do that, and the score may take care of itself.

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Source: International Business Times

iShares Turkey ETF Continues to Shine But Is The Rally Sustainable?

iShares Turkey ETF Continues to Shine But Is The Rally Sustainable?

Screen Shot 2013-05-15 at 2.07.06 AMShares of the iShares MSCI Turkey Investable Market Index Fund (NYSE: TUR) has soared throughout 2013 and has even hit its 52-week highs trading at $77.38. Turkey as a whole has been experiencing robust growth as the Borsa Istanbul National 100 has surged to its highest levels in the past 25 years. We have been huge supporters of TUR dating back to August 8th, 2011 when we issued our first ‘BUY’ rating for the ETF in our article ‘iShares Turkey ETF (TUR) Poised for Success‘. Since then, TUR has appreciated +69.67% over the past 22 months.

Screen Shot 2013-05-15 at 2.12.33 AM

 

What Attracts Investors to TUR

Screen Shot 2013-05-15 at 2.07.34 AMInvestors looking to play the Turkish markets have few options. iShares MSCI Turkey Investable Market ETF (TUR) originally launched in 2008 is the only option available to investors seeking a pure play exposure in the Turkish equity space. TUR is also the only ETF with dedicated Turkish exposure. The banking sector also plays a prominent role in the investable market in Turkey and TUR has a high concentration of financials in its portfolio.

What To Expect Going Forward

When it comes to Turkey, it has been the talk of a higher sovereign debt rating that has been lifting TUR, the lone ETF devoted exclusively to the country. Turkey, which has been engaged in a multi-decade conflict with Kurdish militants in the Southeast part of the country, is working to end the conflict. The government there is in negotiations with Abdullah Ocalan, the jailed leader of the Kurdistan Workers’ Party or PKK, in a bid to end the bloodshed.

Just last month, Moody’s Investors reported that Turkey’s ongoing efforts to bring an end to the conflict could be a positive credit step. Fitch Ratings upgraded Turkey’s long-term foreign currency Issuer Default Rating (IDR) to BBB- from BB+ back in November and the Long-term local currency IDR to BBB from BB, this is huge news as it’s giving Turkey its first investment grade ratings in nearly two DECADES.

Screen Shot 2013-05-15 at 2.06.53 AMThis has been great news for investors as the speculation of a possible credit rating upgrade has lifted Turkish banks shares. TUR is heavily centered on the Turkish financial sector with 51.9% of its holdings in financial services stocks, quadruple its next largest sector weight, industrials.

Turkish Outlook

Turkey’s economy has some good signs heading their way. Beyond this falling inflation rate, investors should note that Turkey has seen a plunging growth rate as well.

Turkey has good medium-term growth prospects and a diverse economy. The nation’s debt-to-GDP ratio stands at 39.9%, much lower than the debt-to-GDP ratio of many developed economies. On top of this, the country has a low employment rate, government reforms, strong, solid banking system, and improved credit rating. Adding all these solid growth factors together and Turkey could prove to be a great investment market in Europe for years to come.

If you have any further questions on either TUR, Turkey’s economy or any investment at all don’t hesitatet to contact us at all by emailing us at jameshartje@StocksonWallStreet.com or Follow our Contact Form

Also make sure to tune in later this week for our long-term outlook on TUR along with more detailed analysis on both Turkey and other emerging markets.

Who Executed The Greatest Trade of All Time?

Who Executed The Greatest Trade of All Time?


Screen Shot 2013-05-16 at 1.31.23 PMHedge Fund titan Jon Paulson pulled off the greatest trade of all time in 2007, raking in a cool $15 billion in his bet against subprime mortgages - according to the International Business Times who ranked the top ten greatest trades of all-time. Some were brilliant masterminds, others were just plain lucky.

The Top Ten Greatest Trades of All-Time

1.    John Paulson’s bet against sub prime mortgages made him $15 billion in 2007

2.   Jesse Livermore’s call on the Crash of 1929 (a legendary trader featured in the popular book, Reminiscences of a Stock Operator).

3.   John Templeton’s foray into Japan in the 1960s (a true investment pioneer, Templeton foresaw the rise of Japan after World War II and profited hugely from it).

4.   George Soros’ breaking of the Bank of England in 1992 (Soros made $1 billion).

Screen Shot 2013-05-16 at 2.29.58 PM

5.   Paul Tudor Jones’ shorting of Black Monday in October 1987 (he predicted the crash, bet a bundle & tripled his money as the market crashed 22% in one day).

6.   Andrew Hall’s $100 oil prediction (with oil trading at $30 per barrel in 2003, Hall bet prices would rise to $100 in 5 years; they did and he took home a personal paycheck of $100 million in 2008).

7.   David Tepper’s 2009 bet on financials (as the market hit its low in early 2009, Tepper bought financial services stocks & his fund earned $7 billion that year ($4 billion of that went to Tepper).

8.   Jim Chanos’ prescient shorts (his sharp analysis led him to predict the demise of Enron, WorldCom, and other firms, and he is known as the best short-seller in the world).

9.   Jim Rogers’ early call on commodities (he was bullish on commodities back in the 1990s & has been riding them to great profits ever since).

10.  Louis Bacon’s geopolitical play (he correctly predicted that Saddam Hussein would invade Kuwait in 1990 & profited handsomely by going long on oil & shorting stocks, which helped his fund return 86% that year).

Screen Shot 2013-05-16 at 1.06.36 PMMost of these trades were ‘global macro’ plays where huge, concentrated bets were made by analyzing fundamental economic/business conditions.  These investors excelled at turning a great observation about the world into a great investing idea. But, while these make the headlines, you never hear about the other investors who made a big call and missed, and ended up out of business.

It’s almost impossible for regular investor folks to make a ‘big score’ like these traders.  Rather than trying to throw a touchdown pass on every play and make a big score like these traders, the smarter game plan is to focus on trying to get consistent first downs. Do your homework, watch market/sector developments, don’t chase stocks up or down.  Do that, and the score may take care of itself.

Please also let us know which trade you find most impressive & your reason why by leaving a comment below, sending us a Tweet, of by commenting on our Facebook Fan Page!

Source: International Business Times

The Story of Jack & Jill: Why You Should Start Investing When You’re Young

The Story of Jack & Jill: Why You Should Start Investing When You’re Young

Screen Shot 2013-04-27 at 5.25.24 PMDelaying making investments in order to launch your career can cost you dearly later on. Smaller investments made between the ages of 18-25 will yield much greater returns than larger investments made later on over a longer period from ages 26-65. Consider the classic parable taught in many basic economic courses:

Jack decided not to go to college. He got a job at 18 and invested $4,000 each year into an IRA. He stopped after eight years after investing a total of $32,000. His sister, Jill, went to medical school, started her medical practice at age 26, at which point she began contributing $4,000 to her IRA. Jill did this for 40 years from 26 to 65. She invested a total of $160,000 and put her money into the same investment as her brother. Jill started investing the same year Jack stopped, and she saved for 40 years compared to just eight years for her brother.

By age 65, whose IRA account do you thing was worth more money?

Assuming both Jack and Jill earned a 10% annual return, Jill accumulated $1,327,778. But Jack had $1,552,739 – $224,961 more than his sister!

Jack

Jill

8 Investments ($4,000/yr) – Ages 18-25 40 Investments ($4,000/yr) – Ages 26-65

Ultimate value at age 65:

$1,552,739

Ultimate Value at age 65:

$1,327,778

Jack’s account grows to a higher value because he started sooner!

+$224,961

Screen Shot 2013-04-27 at 5.25.08 PMJack stopped investing at age 26 having invested only $32,000 to Jill’s $160,000. But Jack’s money earned interest for eight years longer than his sister. It wasn’t the money that made him successful – it was the time value of money. Jack didn’t put off investing when he first launched his career. By investing sooner than Jill, his account grew larger.

The moral of this story is not to forego a college education and its promise of higher earning potential. No doubt, Jill earned more disposable income during her career. But Jack’s investment head start was far superior, resulting in substantially greater savings.

Without question, procrastination is the most common cause of financial failure.

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Five Really Dumb Money Moves You’ve Got to Avoid

Five Really Dumb Money Moves You’ve Got to Avoid

Screen Shot 2013-04-04 at 12.12.00 AMWhen it comes to money, people are always making dumb decisions. From spending what’s not theres, to buying a house they can’t afford, or leasing that car that doesn’t fit their budget. Time after time we make mistakes with our money and fail to recognize the warning signals that could have prevented us from making these costly errors. The key to avoiding these possible life blunders is to always stay informed and educate yourself before making a decision. This will greatly lower your chances of making a poor, dumb decision that costs you for years to come.

Brett Arends is a writer for the Wall Street Journal. This weekend he wrote a great, short, small column offering five simple pieces of good advice. Below are Brett’s Five Really Dumb Money Moves You’ve Got to Avoid:

1. Reaching for yield
2. Going into the poor house to send Junior to a country-club college
3. Owning stock in your employer
4. Taking Social Security too early
5. Buying long-term bonds

For those of you interested in reading more, follow the link below as the full article is worth your time.

Source: Five Really Dumb Money Moves You’ve Got to Avoid

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Political Cartoon: Manufactured Financial Crisis

Political Cartoon: Manufactured Financial Crisis

Six More Weeks of Manufactured Financial Crisis

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Happy 4th Birthday to Stocks on Wall Street

Happy 4th Birthday to Stocks on Wall Street

happybirthday

On today’s great occasion we would like to celebrate the 4th official birthday of Stocks on Wall Street. It was just four years ago that we started out as a small blogspot.com site and to see how far we have grown since I have no doubt that the sky is the limit for this company and team of people.  Lets enjoy this day and celebrate and then get back to work to continue offering a better product to our readers day-by-day.

- James Hartje, President & Founder

Job Growth, Productivity and Labor Force

Job Growth, Productivity and Labor Force

20-years

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 Source: J.P. Morgan

Why Most People Fail at Trading

Why Most People Fail at Trading

Below is a very interesting graphic from Martin Kronicle on why so many people fail to succeed at Trading, enjoy!

amateur-pro

 

innervoice-e1357971514904

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Top Frontier Markets to Invest In

Top Frontier Markets to Invest In

StocksonWallStreet readers know I’ve been bullish on Vietnam.  Bloomberg seems to agree.  The Bloomberg Markets, November 2012 list of the most promising Frontier markets for investors ranks Vietnam #1.  United Arab Emirates is #2 – a market I also think has strong growth potential.

It’s no secret that growth in the U.S. and Europe over the next decade will be outpaced by the BRIC’s and emerging markets.  Adventurous investors looking for even more attractive growth potential should also consider Frontier markets.  Frontier markets tend to be smaller than emerging markets.  Shares of frontier companies are also harder to trade than those of emerging countries.

I like Frontier markets that are moving to Emerging Markets.  Developed capital markets are key to becoming an emerging market.  So, I’m most interested in economies where the stock market is developing and companies are beginning to get access to capital.  Also, it’s worth noting that weakness in China tends to get picked up by Frontier Markets.  Sectors that show the most promise in Frontier markets are technology, energy, consumer discretionary and industrials that benefit from infrastructure improvements.

Vietnam fits the bill on all counts.  It has enjoyed a strong and consistent average GDP growth of 7.2% annually since 2000 and projected cumulative GDP growth from 2012-2016 is 31.4%.

The main ETF tracking Vietnam is the Market Vectors Vietnam ETF (VNM) sank 47% in 2011 and was one of the worst performers in the entire emerging world which fell by an average of 21% in 2011.  These horrible losses were largely due to runaway inflation.  While inflation is still high (around 20%) it appears the country is finally starting to turn around.  VNM is certainly capable of producing huge gains.  VNM is up about 36% year-to-date, suggesting that investors who have a high-risk tolerance may want to consider making a play on this Vietnam ETF.

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