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We frequently hear about offshore bank accounts in the news or in the movies because those trying to hide money for criminal reasons usually utilize these accounts so that they are not caught up in their shenanigans. However, that is not all an offshore bank account is about. In fact, having an offshore bank account means saving tax dollars and some may have other reasons behind it. Just because someone has a bank account outside of the country doesn’t mean they are a robber or a member of the mob.

Nevertheless, there are some legal implications and some things that must be kept in mind. One of those things is the fact that it is not legal for a United States citizen to open an offshore bank account. Sure, you may be protecting your money from creditors or from high taxes, but you could get yourself into trouble. This is how some become convicted of tax evasion, but it is very possible that the long arm of the law will not reach your offshore account.

Another risk is the fact that your money doesn’t have the protection of the government. Your money is subject to the laws of the country that it is in. This means that a coup or some accounting scheme could occur that would cause you to lose all of your money. That is when you must ask yourself which country you want to open your offshore account in. Should you choose Switzerland, Bermuda, the Bahamas, or the Caymans? This can certainly be a difficult decision.

Best countries

First of all, you don’t have to be wealthy to have an offshore bank account. Second of all, you do not have to be present to open it and you do not have to visit the bank at any time during the life of the account. For example:

- If you open an account in Switzerland, you can do it via e-mail or in person if you are in the country. Swiss bank accounts are quite secret and that is why so many choose them. They operate much like American banks and keep certain private matters such as divorce private. Switzerland does not change their laws under American pressure like some other countries do.

- Opening an offshore account in Bermuda doesn’t require you to be present at the bank. The account can actually be opened by mail, along with proof of identity. Many of their banks are known for serving clients all over the world and this has made offshore banking in Bermuda quite popular.

- The Bahamas are also known for their secrecy due to their privacy laws. This makes offshore banking in the Bahamas a huge business. They are also compliant with international laws with attractive incentives for their bankers.

- The Caymans are also one of the best because of the similarity to a U.S. bank account. Then there is the possibility of keeping your identity a secret. The Caymans do not encourage tax evasion, but they do not report deposits in the accounts or interest gained from those deposits.

Being safe

Offshore banks do not report your income to the IRS like U.S. banks do, so they use an honor system. This means that it is up to you to report your income, but changing laws and other factors can cause issues if you do not comply with the laws of your own country. However, offshore accounts keep matters private and keep others from learning of your affairs. That is why such accounts are so popular amongst people all over the world.

In today’s world, it is very difficult to verify a check. Finding the proper number to call can be a real chore.   

Although banks are under no obligation to verify an account or verify funds on any check drawn on their bank, there is a new 900 number, 1-900-868-2995 that allows you to verify checks and get the bank’s information with one call for $5.

INDIVIDUAL:

For an individual, you need only a land line phone to call.

To get additional information on the service see the check verification line website: CheckLookup.com.  Using the number, anyone can get the bank name and bank phone number with the 9 digit routing number at the bottom of the check.  The database is updated every banking day.

BUSINESS:

For business, you have another option. For nearly 9 out of 10 bank accounts in the U.S. businesses can verify checks in real-time when they establish a merchant verification account with a verification network like BetterCheck.

For companies taking several checks per day, or who do monthly check billing via check draft or ACH where you may bill dozens or thousands of customers monthly, there is a system that will verify checks and drastically reduce bounce rates.

Verify a check is real, that the routing number and account number are open and active at that bank, and that there is a positive balance in the account. Check for NSF, Stop Payment, Uncollected Funds, and many other status codes.

Businesses that use BetterCheck must be verified, and use of the system must be for legitimate business purposes.  Users must agree to the terms of the Fair Credit Reporting Act and must not use the system as the only reason to base the decision of approval or decline.

What does that all mean? It means it is not a check guarantee service and that it is designed to drastically reduce the number of bad checks deposited, and not to tell if any one particular item is absolutely going to clear.

BetterCheck cannot tell how much money is in an account, nor can it hold funds aside. The system is designed to significantly reduce the number of invalid items deposited to bring down bounce rates.

The BetterCheck system will pay for itself if used properly by any business.

CONCLUSION:

Individuals and business alike can benefit from RoutingTool to verify a check is real, get the bank name, bank phone number and then call the bank to verify the check.  This tool is free and can be used by anyone.  A professional version and private use database are also offered at the RoutingTool site.

Businesses doing a regular volume of check transactions, or monthly billing can benefit from BetterCheck by signing up for the service.  Once a user, you can verify a check is real, the account is open and active at the time and check for stop payment, uncollected funds and other status codes. 

Bookkeeping is essential in the management of your business in a well-versed technique. It is vital that you take an organized, transparent and updated bookkeeping. One of the methods to maintain your business’s books is bank reconciliation.

Bank reconciliation is the procedure of matching and comparing figures from accounting records against those existing on a bank statement and finding any discrepancy in bank statement or accounting books. The discrepancy may occur n the balances due to the different timing of recording information in the bank account and company’s accounting books. Such discrepancy is normal and will be adjusted automatically within a short period. But sometimes the difference is due to an error, and it must be corrected manually and to catch the error you need bank reconciliation. Generally, companies perform bank reconciliation at the end of each month.

The reasons for the bank reconciliation

• Monthly bank reconciliation keeps your company’s financial statements clear and current.

• It eliminates erroneous backlog

• Easy access to reports, thus offering you clear picture how good or bad business is doing.

• It makes important updates to general ledger and receives timely entries from the other applications

• Provides the ability to eliminate bank statement errors

• Enables to control cash flow with the void checks and stop payments function

• Verifies the amount of cash in your account

• It uncover irregularities

It is important to go through the bank reconciliation process. If not, you take risks.

• In the absence of bank reconciliation, you can not have a clear idea of how much money is available in your account. You can return the checks and overdraft fees. With electronic replacement, you do not have much time to your account when you write checks.

• In the absence of bank reconciliation, you own risk. People can steal your account. If you have never informed of any transaction, you never know.