Freelance Writing 101

Freelance Writing 101 Freelance Writing 101 Freelance Writing 101 By Guest Author Do you want to make a living as a writer? Perhaps its a dream youve always dismissed as impossible, and youve got a sensible day job, or a busy family life. But youve never given up your love of words. Ill let you into a secret. You can make your writing pay. I do, and so do lots of the people I know. Forget what youve heard about ridiculously low rates – it is still possible to make a professional rate from your freelancing. Heres how. Step 1: Pick Your Speciality When I started out freelancing, I offered everything from website creation to editing and proofreading. This only ended up confusing me and my clients, and often meant I worked on jobs which didnt really interest me. Nowadays, I focus almost exclusively on writing for blogs, and do the occasional magazine piece. Dont be tempted to offer every words-related service under the sun. It wont get you more clients. Think of it this way: if you were hiring a designer to create your business cards, would you go for the guy who does everything from website design to logos to billboards – or would you pick the guy who just does business cards? One quick word of advice: its far easier to make money from non-fiction than from fiction writing. By all means keep up with your fiction on the side (I know I do!) but dont rely on it to pay the rent. Some broad areas where you could position yourself are: Feature writing for magazines and newspapers Writing articles for websites and blogs Technical writing Copywriting (promotional or sales focused writing) Ghostwriting Writing resumes Of course, within many of these areas, you could drill down even further, particularly as you become more established as a freelancer. Step 2: Get Some Clips and Testimonials Freelance photographers and designers have portfolios. Freelancer writers have clips or samples – examples of your writing which clients can look at when theyre deciding whether or not to hire you. Obviously, youll want to make sure that your clips show your very best writing. You might feel like this is a Catch-22 situation: you need clips to get hired, but if youve never been hired, how can you have any professional pieces of writing to show off? Theres an easy answer: you produce some pieces of writing for free. You could simply write a few samples which will never see publication except on your business website (more on that in a moment), but you could use this as an opportunity to get publication credits by: Doing pro bono (free) work for a charity or non-profit organisation Guest posting for a large blog Writing for your local newspaper or a free magazine Honing a resume for your friend Where possible, stick with the area youre specialising in: clients looking for a copywriter may be surprised if all your samples are book reviews, for instance. As well as getting clips, youll want some testimonials. Usually, all you need to do is ask! Assuming that the people youve done free work for were happy with the results, theyll often be delighted to give you a testimonial. Never make up testimonials. Its unethical, it would be hugely damaging if anyone found out, and real testimonials always sound more convincing, too. Dont be afraid to use testimonials which include some doubts or negativity (e.g. I wasnt sure what to expect from Joe Writer because Id not seen any of his work before but I was delighted with the finished piece.) These are likely to be reassuring to prospective clients, who may well have the same doubts. Step 3: Setting Up In Business The process for setting up as a self-employed writer differs from country to country. Check out whats required in your own country, and make sure you file any relevant paperwork. Dont put this off indefinitely because you think its going to be a lot of hassle – in many cases, you can do it all online. If you dont have a PayPal account, Id strongly recommend setting one up. This is particularly crucial if youre going to be working for online clients (such as blog editors or website owners), most of whom will want to pay via PayPal. Its also extremely useful if youre going to be paid in foreign currency, as PayPal handles the converting. Depending on your specialisation and the market youre targeting, you may also want: Business cards and letter headed paper Software packages (e.g. Microsoft Office, invoicing software) A fax machine and a business telephone line Dont be tempted to go out and buy a ton of home office equipment right at the start of your freelancing journey – especially if you have yet to make any money. You may well want to upgrade your computer or your broadband connection, or you may want a new desk and chair once you start freelancing full-time, but if your writing is currently confined to a few hours at the weekend, you dont need to go out and spend lots of money yet. Your Website One real essential is your website. Its so easy and cheap to set a website up nowadays that clients will be surprised if you dont have one. Plus, theres no easier way to showcase your writing clips and testimonials: your website can be accessed from anywhere in the world, at any time. Absolute essentials for your website are: Have your own domain name. This could be your own name (yourname.com) or your company name. Id recommend going for the latter, especially if you might ever want to sell your business. Dont look amateur. Ideally, youd want to pay for a custom website design – but if youre starting out on a shoestring, use WordPress and look for a template which you like. Many are free, some cost just a few dollars. Check and proof-read your site. Missing links and typos look sloppy. Youre a writer, so make sure your website itself is a great example of your writing. Make it very easy to contact you. Some clients like to use a contact form, others prefer to email directly – offer both options. Unless you have strong reasons not to, give a phone number as well. Step 4: Learn All You Can Ive put this step now because its easy to get bogged down in learning about writing and business, without actually taking any action. Its definitely important to keep improving your skills – but not to the exclusion of actually using those skills. Plus, I know from experience how easy it is to buy books, courses and training materials and leave them gathering dust on the shelf. There are loads of great resources out there for new freelancer writers, so browse around and get friends recommendations so that youve got a good idea of what will work for you. There are two broad areas where youll want to keep learning: Your Writing Simply writing regularly, and polishing your work to professional standards, will teach you a lot – but you can accelerate your progress by making a conscious effort to learn. This might mean: Make sure youve mastered the basics. If your grasp of grammar is shaky, get a good basic book and take your time over studying. This may be a bit dull, but it is important. Following top writing-related blogs: Daily Writing Tips of course, but there are many other great ones like Copyblogger and Men with Pens. Read examples from great writers in your field. For example, if youre a copywriter, look out for pieces of brilliant sales writing. Keep a swipe file of your favourites – study them, figure out what theyre doing. Ask a fellow writer for feedback. If youre struggling with a particular piece, a second pair of eyes can often help you spot problems or flaws. Your Business Some people are brilliant writers – but terrible at doing business. They may end up failing due to a lack of marketing, an inability to meet deadlines, or an awful grasp on cash-flow. To get your head around business matters: Schedule regular time for admin. Youll need to contact prospective clients, send invoices, keep detailed records for tax purposes, and so on. Stay as organised as possible. Write deadlines onto a calendar, and plan ahead. Know how much time you have available in any given week. File all papers relating to one job in the same place, so that you can find them again when necessary. If the idea of marketing and self-promotion terrifies you, then start small. Use a blog and Twitter to gather a following online. Encourage customers to recommend you to friends (perhaps providing an incentive). Read freelancing and small business blogs: Freelance Switch, Freelance Folder and IttyBiz are three great ones. Good luck with your freelance writing journey – and dont forget to have lots of fun along the way! About the Author: Ali Hale is a freelance blogger, and author of The Bloggers Guide to Effective Writing – an ebook which covers everything you need to know about writing brilliant blog posts. Check Out Other Articles from The Writing 101 Series: The Writing Process Creative Writing 101 Story Writing 101 Letter Writing 101 Business Writing 101 Freelance Writing 101 Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Freelance Writing category, check our popular posts, or choose a related post below:100 Idioms About Numbers30 Baseball IdiomsHow Do You Pronounce "Mozart"?

Your First Job Out of College

​Your First Job Out of College Congratulations! You are going to enter the professional environment and start your career. Now your whole life is stretching out before you and you will face a new world of challenges. Remember how big your campus seemed when you arrived as a freshman? There were a lot of unknown people, everything was unfamiliar and challenging. Be ready to feel like a freshman again, now at work. What to Expect from Your First Job You need to be ready that your first job after college wont be your dream career. Sure, it will teach you some immeasurable skills and you will get that so much needed real world experience, but it doesnt mean that youre going to do the things you enjoy most of all. You may not even know what your dream job is. There is a lot of pressure to get a position after graduation because you have such high expectations and not enough practice. Most likely youll have to deal with the routine tasks. Before you get the cool assignments, you need to show your employer that you can handle the simple operations. If you only start searching for a job, this post on how to write a resume with no job experience will be very useful for you. The payment may not also be as you are hoping to get because most entry-level jobs offer entry-level salaries. Thats why think carefully before accepting a job offer, this will be your income for the next year or at least several months. For this reason, you should get to know effective salary negotiation tactics for college students. All in all, you have to realize that the point of your first employment is to try out different responsibilities, types of work to understand what you absolutely love. Linkedin has recently posted the list of the most popular first jobs based on resumes. How to Make the Most of a New Workplace Experience Your attitude to a new job will determine whether your experience will be a positive and fruitful one. Here are some practical tips and strategies to take the mostrld of grown-up opportunities: Approach every task with enthusiasm. You need to deal with all the tasks and duties in a confident and efficient manner. Apply the â€Å"can do† approach on a regular basis, be attentive to details and dont forget to smile. Be a team player. Treat other people positively and demonstrate how well you can communicate. Youll work much better altogether and succeed faster which is essential for every business. Keep learning new things. Always look for the opportunities to improve your knowledge. Learn new things, develop essential skills and youll be amazed at how fast you grow. Join professional groups. Attend meetings, training sessions, join national and regional groups to share your experience and develop professionally. Find a mentor. A good mentor will greatly help you after graduation by keeping you motivated and focused all the time. Find someone you admire and ask them to help you at the early stages. Offer to help others. If you have some free time and know how to help your co-workers with some tasks, suggest your assistance. Youll cast yourself in a positive light. Building relationships at your first job is very important. Check out the ways to build relationships with colleagues at your first job. Make Sure to Avoid the Common Mistakes This is going to sound almost impossible, but try to make your first job experience ideal. New graduates always make the mistakes when they are facing a tough job market, so to have a better chance of success, you need to overcome the common problems. Here are some really useful pieces of advice that will turn your first job into a really effective and memorable â€Å"adventure†: Be proactive enough – dont sit back being casual in your work. Dont rely solely on the Internet, take advantage of networking and cooperation with colleagues. Never focus on searching a dream job, instead look for your first job. Try not to set expectations too high. Dont waste time and start making useful connections. Avoid looking unprofessional – delete all â€Å"three Bs† photos (beer, bongs, bikinis) from your profile page. Youll only have one first job, so make everything possible not to turn it into a nightmare. Remember to have fun, make new friends and youll have an exciting and positive professional experience!

Self Expression Through The Clothes We Wear Essay

Self Expression Through The Clothes We Wear - Essay Example The emergence of street style of clothing has not at all changed the desire among people to show themselves via their wardrobe. According to Dorene (1) fashion and function should match well without hustle in the current world. There should be no one to dictate the mode of dressing as long as the individual is comfortable with the clothing he or she is putting at a given function. Dorene (1) says in the article, â€Å"I need the style and comfort that’s going to let me wear it all day.† It is argued that all sexes desire clothing and apparel that can not only perform but also bring out the fitness of their life style in any given function. Many people want apparels that help to express the attitude of the wearer, which gives room for them to bring out their character, clothes that expresses whether by showing off their tattoo or their colorful headband. Functionality in most cases begins with durability, lightweight and breathable garments with enough room to conceal the total range of emotions. This seems to have evolved with the assistance of high technology from other markets. In the current days and time, people should be allowed to wear what pleases them because of the increased sophistication of the clothing. â€Å"Fitness apparel has evolved in the quality of material and the quality of construction,† says (Andrea 1). Andrea (1) however offers a candid advice to everyone in the society of what to wear and what to consider. As much as everyone should the freedom to wear what they pleases, the people must evaluate their own personal motivation, provide a little guidance on background depending on the function, create respect for oneself, take children into account and provide a role model to various people in various walks of life. The guiding principle should the personal conviction of the person himself

The challenge of differentiation and integration Assignment

The challenge of differentiation and integration - Assignment Example It is a formidable challenge in most organizations. This paper looks at the challenge of differentiation with specific reference to Google. Founded in 1998 by Larry Page and Sergey Brin in 1998, Google has grown to become a big company with over 12,000 employees. Google operates an intricate network of activities in various locations globally. It has established offices in various locations including in states such as California, Illinois, New York, Texas, Oklahoma, Arizona, Washington, DC, Oregon, Michigan and South Carolina. Google has also established various international offices in locations such as the Middle East, Africa, Europe and Asia. As such, differentiation and integration becomes an imperative challenge to Google. Differentiation refers to the process by which an organization separates itself into various key components (Lawrence, and Lorsch 3). It is a common phenomenon among large organizations. Consequently, as an organization grows larger and expands its activities further, the more differentiated it becomes. Be that as it may, as an organization becomes more differentiated, the various components become more independent as they are conferred with a great deal of autonomy. Therefore, the business culture of such an organization may significantly differ as you move from one component to another. Differentiation is usually done based on varied premises. For example, an organization may decide to differentiate basing on the tasks or on the product offering. In this regards, an organization may opt to divide into departments that produce a given product and establish finance and marketing department for each of the differentiated product. Google has been differentiated into different departments including Information Technology, Engineering, Support, People Operations, Knowledge, Advertising, Technical Infrastructure, Mobile and Digital

Pro Abortion Essay Example for Free

Pro Abortion Essay INTRODUCTION Termination of fetus before death of the child can be defined as Pro-abortion. In the case of Roe Vs Wade, the Supreme Court had given its decision allowing the abortions in the first six months of pregnancy of period. Pro-abortion is a right of the women. The abortion is legalized from January 22, 1973 in all fifty states of Unites States. The Rose Vs Wade is foundation for pro-abortion in United States. The women rights groups and pro-abortion supporters welcomed the decision. But some of the opponents started the pro-life movement demanding abortion restrictions. Before 1973 abortion is not subject to United States constitution law. It was the matter for the individual states. So abortion was illegal if it is made after four months of pregnancy. Due to the efforts of American Medical Association anti-abortion laws have been come into force around 1900. Â  With the familiar case of Roe Vs Wade where a woman challenged the Texas laws, the U.S.Supreme Court made the following conclusions: 1. The abortion law not belongs to state issue and it is subject to Constitution of United States i.e. federal constitutional law. 2. The procurement of abortion was a constitutional right. Previous to the Roe Vs Wade, majority states in the United States of America prohibited the abortion with an exception when the life of women in threat. But the Supreme Court allowed in the case of Roe Vs Wade that woman has constitutional right for the pro abortion of first six of pregnancy. The pro-abortion would be safer and involve less complication. It is noticed that at about 89% abortions performed in the United States during 1995. All such abortions under taken in the early stage only i.e. with in the first 12-13 weeks after the last menstrual period. Since early days, the abortion was illegal and it is recommended only when life of mother is in danger. Later on the legislation developed as woman has constitutional right for the abortion of first six months of pregnancy. Accordingly the Supreme Court also given judgment stating that States could restrict the abortions of last 3 months of pregnancy. Here the last 3 months period is crucial stage, where the life fetus will be developed. REASONS The reasons for pro abortion for the woman may be various such as pregnancy without marriage, having already children, possibility of getting disabled children etc. whatever the reason, it is a legalized right to the woman to have abortion according to her choice and others should not influence on this issue. Sometimes mother’s health would be in danger due to the pregnancy. PRO-ABORTION VS PRO-CHOICE Pro-abortion is linked with pro-choice. Abortion itself indicates it is selection of choice; hence it can be termed as pro-choice. Though anti-abortion still it exists pro-choice. Pro-choice means the women would be in a position to allow or not to allow the child. So pro-choice can be termed as pro-abortion. Pro-abortion or pro-choice both linked with the women rights as it affects her own body. In the early days, the abortion became a crime for many reasons. Until 1800, there were no legislations and women themselves trained and gave training to other women for abortions. There will be no guarantee for the women to get the abortions though Roe Vs Wade gave the clear decision and legalizing the abortion within six months of the pregnancy. Illiterate women may not be able to access the necessary medical assistance. Even women who had access to legal abortion, yet they may face severe infections. Hence pro-abortion is unwanted by women though they desire. STATUS OF UNBORN CHILD DURING PRO-ABORTION Unborn child is not part of the body of mother. The unborn child lives in mother. The pro-abortion is killing of the human being with legal support for the reasons whether valid or invalid. But the unborn child is human. One way it is correct to save the mother’s life, and then it can be accepted. But for other reasons the pro-abortion is not correct. The unborn child is in the mother’s body but it is not part of the mother’s body. Hence the unborn child has separate independent status. The unborn child has right to life and this right should not be infringed by any right except the mother’s life in danger. Since unborn child is not part of the body, it has right to come outside. In case raped women also, the unborn child should not be killed. Killing of child is nothing. It is a punishment to the child for the sins of parent. Instead if birth is given to the child, it can be given for adoption since millions of couples waiting for adoption of babies. Such couples are bothered about the health of babies and nothing else. Hence pro-abortion should not be allowed or legalized for raped victims. Due to the following reasons the pro-abortion is not allowed in the rape cases. 1. It will be capital punishment to the unborn child who is innocent. 2. Allowing such abortion for other’s crime (i.e. father) 3. The right of life of the unborn child is infringed. 4. Rape is one wrong and giving punishment to the child is another wrong. PRO-LIFE SUPPORTERS VS PRO-LIFE ADVOCATES Though the Supreme Court given its decision that pro-abortion is legal, yet the American people believe that pro-abortion is wrong. The pro-abortion supporters argue that the baby is in the mother is not the child and it is not a human. The human can only be identified when they come outside. So it is not killing. They further argue that abortion should be legal at any stage that unborn child is not a human being and did not deserve any legal protection. In the United States the persons have limited rights only. Suppose if any person takes drugs beyond the limit are not acceptable though the drugs disturb her/his own body. Similarly prostitution also. In both the cases, it is their own body, yet they cannot go beyond the limit. Hence in the pregnant women also it is wrong to argue that women only should have complete control on her body with regard to abortion. The inside bay is not part of the women but it is separate identity. So keeping the pro-abortion will be invalid. It is true that women have the right to take own decision about her pregnancy and abortion and at the same time the women did not have any right to kill the child. The Pro-choice supporters argue with respect to the woman’s reproductive rights, which includes right to choose of abortion. Whereas the Pro-life advocates opposes and argue the abortion should not be accepted unless the mother’s life in threat. The pro-abortion groups express that abortion should be legal because the unborn baby is not really human being and hence no legal protection. When there is no legal protection, the unborn person cannot occupy the mother’s body without prior consent. CONCLUSION The era of legalized abortions in the country passed thirty-five years since the issue of Roe Vs Wade decision by Supreme Court. The media created false impression that everybody supported the abortion and finally abortion become a big industry in the United States. The pro-life supporters are encouraging the abortion whereas the Pro-life advocates are advocating with religious matters. The tradition and cultural make the women that their right over child should not be infringed. They thought that it is their own reproductive right about the abortion. Due to the abortion laws, many people in the U.S. are not able to adopt the children, as so many children being killed through abortions. The unexpected pregnancy leads to abortion, which gives the capital punishment to the unborn children. Â  Whether Fetus (unborn baby) has a right to be in the womb of woman? It can be yes as long as woman’s life is not in threat. But it is not right; it is permission to the Fetus to stay in the womb. The abortion is not violation of right. When the woman has a right to choose to have sexual relation with any other person, it is also right of woman to choose what and what cannot remain inside her body. Hence it is purely women’s decision. But fetus is human being as it has complete set of human DNA, however fetus did not have physiological independence. REFERENCE: 1. http://www.allaboutpopularissues.org/pro-abortion.htm 2. http://www.abortionisprolife.com/statistics.htm 3. http://riawibisono.wordpress.com/2007/03/25/abortion-pro-life-or-pro-choice/ 4. http://www.geocities.com/Heartland/Valley/6221/debate.html 5. http://www.friesian.com/abortion.htm 6. http://www.salon.com/mwt/broadsheet/2008/01/18/abortion/ 7. http://encarta.msn.com/encyclopedia_761595572/Roe_v_Wade.html 8. http://www.capitalism.org/faq/abortion.htm 9. http://mindprod.com/politics/abortion.html 10. Author Jay Johansen, http://www.pregnantpause.org/abort/choice-abort.htm 11. Elizabeth Ross, Pro-Choice Editor http://www.bellaonline.com/articles/art49318.asp

Americas Enterence into WWI was Ideological Essay -- essays research

Was America’s Entrance into WWI Ideological or Economic? â€Å"Our object†¦is to vindicate the principles of peace and justice in the life of the world as against selfish and autocratic power and to set up amongst the really free and self-governed peoples of the world such a concert of purpose and of action as will henceforth insure the observance of those principles. Neutrality is no longer feasible or desirable where the peace of the world is involved and the freedom of its peoples†¦Ã¢â‚¬  Woodrow Wilson said this to congress when he was addressing them to declare war against Germany. He is aware that even though he had fought so hard to keep neutral that the Germans had just pushed too hard. Wilson continues saying that the Untied States has no quarrel with Germany but merely wants to end the war and bring peace to the world. A peace without victory, that was Wilson’s goal. He believed that a peace can only be maintained if there is a partnership of democratic nations, that no autocratic government could be trusted to uphold its principles and â€Å"covenants.† Wilson believed that all people deserved to be free and that then and only then could peace be attained. He regretted entering America into WWI but knows that for the good of the world it had to have been done. Wilson was determined to bring peace and equality to the world so that all the nations would be peaceful, â€Å"so that she can do as God does.† Wilson was a very moral pers on and held his truths to be self-evident, he wanted to create a world of peace. He entered the Untied States into the war to do so. Wilson only meant there w to be one world war. During the first Great War America became the global superpower. Under the instruction of President Woodrow Wilson the ... ...th Century American History. New York. The MacMillan Company,1963. Newman, John, J, and Schmalbach, John M. United States History: Preparing for the Advanced Placement Examination. New York: Amsco School PUblications, Inc., 2002.Divine , Robert. Ninkovich, Frank. The Wilsonian Century: U.S. Foreign Policy Since 1900. Chicago: The Univerisy of Chicago Press, 1999. Pennock, Michael. Catholic Social Teaching: Learning and Living Justice. Notre Dame: Ave Maria Press, 2000. Reich, Walter. Eds. Origins of Terrorism: Psychologies, Ideologies, theologies, States of Mind. Woodrow Wilson International Center for Scholars and Cambridge University Press, 1990. Strachan, Hew. The First World War. New York: Viking, 2004. Thoumin, Richard, General. The First World War: A major New History of the Wreat of 1914-1918. New York: G.P. Putnam's Sons, 1963. America's Enterence into WWI was Ideological Essay -- essays research Was America’s Entrance into WWI Ideological or Economic? â€Å"Our object†¦is to vindicate the principles of peace and justice in the life of the world as against selfish and autocratic power and to set up amongst the really free and self-governed peoples of the world such a concert of purpose and of action as will henceforth insure the observance of those principles. Neutrality is no longer feasible or desirable where the peace of the world is involved and the freedom of its peoples†¦Ã¢â‚¬  Woodrow Wilson said this to congress when he was addressing them to declare war against Germany. He is aware that even though he had fought so hard to keep neutral that the Germans had just pushed too hard. Wilson continues saying that the Untied States has no quarrel with Germany but merely wants to end the war and bring peace to the world. A peace without victory, that was Wilson’s goal. He believed that a peace can only be maintained if there is a partnership of democratic nations, that no autocratic government could be trusted to uphold its principles and â€Å"covenants.† Wilson believed that all people deserved to be free and that then and only then could peace be attained. He regretted entering America into WWI but knows that for the good of the world it had to have been done. Wilson was determined to bring peace and equality to the world so that all the nations would be peaceful, â€Å"so that she can do as God does.† Wilson was a very moral pers on and held his truths to be self-evident, he wanted to create a world of peace. He entered the Untied States into the war to do so. Wilson only meant there w to be one world war. During the first Great War America became the global superpower. Under the instruction of President Woodrow Wilson the ... ...th Century American History. New York. The MacMillan Company,1963. Newman, John, J, and Schmalbach, John M. United States History: Preparing for the Advanced Placement Examination. New York: Amsco School PUblications, Inc., 2002.Divine , Robert. Ninkovich, Frank. The Wilsonian Century: U.S. Foreign Policy Since 1900. Chicago: The Univerisy of Chicago Press, 1999. Pennock, Michael. Catholic Social Teaching: Learning and Living Justice. Notre Dame: Ave Maria Press, 2000. Reich, Walter. Eds. Origins of Terrorism: Psychologies, Ideologies, theologies, States of Mind. Woodrow Wilson International Center for Scholars and Cambridge University Press, 1990. Strachan, Hew. The First World War. New York: Viking, 2004. Thoumin, Richard, General. The First World War: A major New History of the Wreat of 1914-1918. New York: G.P. Putnam's Sons, 1963.

Off Balance Sheet Accounting

Off balance sheet financing is financing from sources other than debt or equity offerings, such as joint ventures, research and development partnership and operating leases. For complex institutions such as banks, they increase their use of off shore subsidiaries and swap transactions to avoid disclosing liabilities. In other words, off balance sheet accounting is a process which a business creates what is practically a debt that it must pay off, but the debt is accounted as another type of transaction that does not count as a liability. Similarly, this applies to asset too.Operating leasing is the most common form of off balance sheet financing. With leasing, on the one hand, an entity could acquire the right to use an asset through a rental agreement. On the other hand, the entity could purchase the same asset using external finance. While the two arrangements may result in identical net cash flows to the entity, in the case of a purchase both the asset and the associated financing obligation appear on the entity’s balance sheet whereas in the formal scenario rental payments are accounted for as a period expense, with the asset corresponding liability omitted from the entity’s balance sheet.Entities used Special Purpose Entities (SPE), are also known as Variable Interest Entities (VIE) for off balance sheet treatment of deals. SPE or VIE is a corporation or partnership formed for the purpose of borrowing money to buy financial assets. Debts are move to a newly created company (SPE OR VIE) specifically to make a company look like it has far less debt than it actually does, which was the case with Enron. For example, a company needs to finance a business venture but doesn’t want to take on the risk, or when there is too much debt to get a loan.By starting a new SPE, they can secure a loan through the new entity. There are situations where it makes sense to start a SPE. If a company wants to branch out into another area outside of its core b usiness, a SPE will keep that risk from affecting the main balance sheet and profitability of the company. The main factor that companies are doing off balance sheet accounting is to provide a better looking balance sheet with lower reported debt to equity ratio, which usually results in driving their stock price higher. Nevertheless, omission of the asset could help to inflate return on assets.This may make the firms look more creditworthy. For instance, by having operating leases, debt does not appear; thus, reducing financial leverage with an increase in operating leverage. By having lower leverage ratio or higher operating leverage, it could attract more investments from investors; therefore, it drives up the stock prices. Next, off balance sheet accounting allows the firms to receive benefits of the interest deduction for tax purposes while avoiding the obligation and the interest expense on its financial statements.In other words, firms with off balance sheet financing are lik ely to have tax interest expense that exceeds financial reporting interest expense. However, off balance sheet accounting has brought some impacts toward the stakeholders. Off balance sheet accounting removes the transparency from investors, markets and regulators. Firms use financial engineering to make their balance sheet appear that they are better capitalized and less risky than they really are. Without transparency, investors and regulators can no longer accurately assess risks.This is because investors and regulators use the balance sheet as an anchor in their assessment of risk. The shareholders could only guess at the extent of the firm’s exposure risks. This affects the judgment of stakeholders; and, it could bring tremendous loss to the stakeholders when the firms collapse. The Enron accounting fraud will best illustrate this. In order to overcome this issue, regulators have established several methods through Sarbanes-Oxley Act, MD&A as well as new rules on leasing .The Securities and Exchange Commission issues final rules implementing Section 401(a) of the Act relating to the disclosure of off balance sheet arrangement, contractual obligation and contingent liabilities. These rules require disclosure of off balance sheet arrangement that have, or are reasonably likely to have, a current or future effect on a company’s condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.The disclosure includes elements such as the nature and business purposes to the company of the off balance sheet arrangement and the importance to the reporting company of the liquidity, capital resources, market risk support, credit risk support or other benefits provided by the arrangement. Nonetheless, firms are to disclose the amounts of revenues, expenses and cash flows of the company arising from the arrangements as well as the nature and amounts of interest retained, securities issued and other debt incurred by the company in connection with the arrangements.The rules also require public companies to disclose in a tabular format in their MD&A the amounts of payments due under specified contractual obligations, aggregated by category of contractual obligation. The five categories of contractual obligations, consisting of long term debt obligations, capital lease obligations, operating lease obligations, purchase obligations and other long term debt liabilities reflected on the company’s balance sheet. The table must disclose what portion of payments under these obligations is due within less than one year, from one to three years, from three to five years and more than five years.To encourage the disclosure on off balance sheet arrangement, the amended rules include a safe harbor that applies the existing statutory safe harbors protecting forward-looking information required by the rules. With regard to the disclosure of off balance sheet arrangements, the safe harbor provision indicates that the meaningful cautionary statements element of the statutory safe harbor will be satisfied if the company satisfies all the requirements of the amended rules relating to off balance sheet disclosures.As mentioned above, operating leases can be exploited by entities for off-balance sheet financing – using an operating lease to obtain assets, thereby not increasing leverage and not decreasing return on assets. The proposed new standard on leases by the joint project of FASB and IASB, currently under development, moves away from the current â€Å"risk and returns† basis to a â€Å"right of use basis†. The lessee and the lessor will recognize assets and liabilities individually for all rights and obligations arising from a lease contract.There will no longer be separate treatments for operating and finance leases – all leases will be accounted for on the same basis. In short, operat ing leasing contract is no longer available and only finance leasing will be used for accounting in the near future. In short, off balance sheet accounting could be use but only with appropriate disclosures are done. By having the disclosures, balance sheet is more transparent to the stakeholders; and, the stakeholders do not need to have a wild guess on the risk of a company. Stakeholders’ investments are said to be more secured.