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"A Family Tradition for 127 Years" PORT PERRY STAR - Tuesday, January 25,1994 - 15 Computers give small business access to instant information A large number of people be- lieve the prime purpose of a computerized accounting sys- tem, is to keep records for in- come tax purposes as required bylaw. While this is true, the real ob- jective is to provide you, the business owner with informa- tion to help you manage your business. With the cost of computers be- coming more affordable, more businesses are turning towards computers to give them instant information. Businesses that update their information daily and know their financial position are in a better position to stay afloat during the lean and mean times. Businesses can react quickly to a condition or a situa- tion that happened within the month. . Computerized accounting packages can provide the busi- ness with a company balance sheet and a profit and loss state- ment by month. It can also pro- vide the owner with an updated bank position enabling the own- er to make wise decisions In purchasing inventory, supplies and paying other operational expenses. At year end, you can provide your accountant with your dis- kettes or hard copies of your in- formation. The accountant will provide you with journal entries to enable you to close the year. You can probably find several ready made accounting systems ACCOUNTING 13147416 3 |) [oR BETTY PENNY 985-0712 COMP-U-COUNT e Bedford Simply, Accpac Plus & Lotus Training e Convenient On-site Service * New Business Setup * Business Consultations e Financial Statements e Income Taxes » Strictly Confidential Service that are flexible enough to adapt to your particular type of business. A good accountant can assist you setting up your business on a computer, and custom design the software package according to your busi- ness needs. Courtesy of Betty Penny, COMP-U-COUNT ACCOUNTING SERVICES INC. Full Range Of Accounting Services Available To Owner Managed Businesses. GO FOR THE BEST RATE AND MAKE THE MOST OUT OF YOUR MONEY. GO FOR THE BEST RATE! advantage from start to finish. TAKE ADVANTAGE OF OUR EXPERTISE! specialists help you benefit from the best investment and diversification strategies available. 4% 5% 6% T% 8% 4th year 5th year 1st year 2nd year 3rd year "This offer ends March 1, 1994 and cannot be combined with any other offer. The rates of return indicated are the rates posted on December 1, 1993 and are subject to change without prior notice. The rate for the 5th year is guaranteed. St LAURENTIAN BANK 165 Queen St, OF CANADA Port Perry 985-8435 SINCE 1846 Choose the RSP MULTI-RATER, and benefit from a 5 year GIC with | rates that keep growing as the years go by - reaching 8% by the | fifth year! Plus you have the flexibility to reinvest your money at the | highest market rate available on the 2nd, 3rd, and 4th anniversary | date, with no penalty. The RSP MULTI-RATER works to your | Why not profit from Laurentian Bank's experience? Let our VOLATILITY OF STOCKS There is perhaps nothing so daunting to the average person as the idea of investing in the stock market. Many investors are confused by the symbols and legends in the newspapers' stock tables, believing ancient Greek would be easier to understand. And if the language of the stock market is not confusing enough, there are the memories and reminders of crashes both recent and far in the past. In 1929, the world watched helplessly as Wall Street crashed and life savings were lost. The same scenario was repeated more recently, though to a lesser degree, when on a Monday in October 1987, the stock markets tumbled, leaving many wondering what had happened to their 'sure-thing' investments. They were victims of market volatility, of the instability of the market. No market goes up or down forever. It merely responds to such influences as changes in the world's political climate. Many who lost money in the 1987 crash purchased their stock at the height of the market, hoping to realize returns far greater than those of more conservative investments, such as term deposits and guaranteed investment certificates. When the crash hit they sold what they had for whatever they could get, vowing never to Cross that threshold into the stock world again. These investors lacked two characteristics which are essential to successful investing in the stock market, either directly or through mutual funds. These are patience and discipline. Those investors who held their ground and stayed with the market found that the market recovered most of its losses within a year. Some investors found the depressed market to be too attractive to let pass, buying shares and equity mutual funds at deflated values and earned returns of as much as 20 percent. Despite the market's ability to recover, many still feel that stocks are too speculative. If you compare stocks to treasury bills (T-bills) and bonds, stocks are perceived to be risk because their volatility over the short term is higher relative to Treasury bills and bonds. In the short term, stocks can earn more or less than cash deposits. One cannot predict how successful an investment will be, but over the long term, stocks of 'good' companies become much less risky. Research shows that during periods of five or ten years, stocks have outperformed T-bills and bonds. The study "Canadian Stocks, Bonds, Bills and Inflation: 1950-1987" written by Drs. James Hatch and Robert White, Professors at the University of Western Ontario (updated with information supplied by ScotiaMcLeod to October 31, 1991) confirms that for one-year periods covered by the report, stocks may not provide better rates of return than bonds and T-bills. However, during the thirty-two 10-year periods between 1950 and 1991, which includes the 1987 crash, stocks outperformed bonds and T-bills in all but three periods. Additionally, the compound annual-retum on stocks for the entire forty-two years was 10.8 percent, almost double the 6.4 percent for T-bills and 6.6 percent retum on bonds. This indicates that an investor's potential return on stocks will exceed the potential return on bonds and T-bills provided the investor holds the stocks for at least five years. If you're prepared to invest for the long term, you might be tempted to run out and set up a stock portfolio of your own. However, chances are you already have so many commitments that to keep track of a stock portfolio and the stock market would mean dropping everything to manage it properly. In that case, your better choice is mutual funds. They are professionally managed, offer a variety of choices to each investor and they work. During the long term, well-managed equity funds, such as those offered by Trimark Mutual Funds have outperformed more conservative investment vehicles such as T-bills and guaranteed investment certificates. See a professional financial advisor to leam how you can take the sting out of the stock market with mutual funds. REACH YOUR FINANCIAL GOALS? How DO YOu MANAGE 10 ATRIMARK MUTUAL FUNDS TO OUTPERFORM. WE MANAGE. For more mformaton, please call or mail the attached coupon to BOB GOW (905) 434-7156 * 1-800-267-1522 Fax: (905) 436-5068 RICHARDSON GREENSHIELDS Investment advisors to Canadian enterprise and enterprising Canadians FT Simcoe Street Noth Oshawa, Ontanio THEE INO