The Answer to the Question - I'm Worried About All Of The Money I Have In The Bank, What Should I Do?

By Jerry Davis, CPA - If you listen to the news and other media, there are not any profitable companies left. It is certainly true that the housing downturn and rising fuel prices have hurt a lot of companies.

That being said, there are still plenty of small businesses that are having record years. Their biggest concern is all of the money they have sitting in their local bank that is not covered by FDIC insurance. Fortunately,there is a solution to their worry.

The Certificate of Deposit Account Registry Service (CDARS) allows a business or individual to spread their excess cash out over multiple banks so that all of their cash is insured. Even better, it is all behind the scenes, so they only get one bank statement from their local bank with all of their CD's listed on it.

In a nutshell, here is how it works. Company A has $10 million excess cash in their local bank. The local bank takes the excess cash and invests it in $100,000 CD's at 100 other local banks. In turn, those other local banks use one of their customer's excess cash to buy a $100,000 CD at Company A's local bank. When it is all said and done, the banks have the same amount of money on deposit and everyone's excess cash is FDIC insured.

The CDARS program can be used for up to $50 million in excess cash. So if you have insomnia from worrying about your uninsured cash, start participating in the CDARS program and get some sleep!

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Steve Knowles has spent 25 years in business and practice in the UK, but he also worked in the states and the years haven't dulled his way of seeing an alternative view to everyone else, and every day is a new adventure.

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Joel M. Ungar, CPA is a lifelong resident of the Detroit area and a graduate of The University of Michigan. He is a principal with Silberstein Ungar, PLLC, a Top 15 auditor of SEC public reporting companies.

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Allan Boress, CPA, with over 25 years as a practitioner and consultant to the accounting profession. Mr. Boress is the author of 12 published books in 6 different languages, including a best-seller, The "I-Hate-Selling" Book.

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Larry Perry, CPA, CPA Firm Support Services, LLC, is the author of accounting and auditing manuals, author and presenter of live staff training seminars, and author of webcast and self-study CPE programs. He blogs about small audits, reviews, and compilations.

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Amy Vetter, CPA, CITP is the CPA Programs Leader for Intacct Corporation responsible for leading the CPA/BPO Partners nationally.

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Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
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Scott H. Cytron, ABC, is president of Cytron and Company, known for helping companies and organizations improve their bottom line through a hybrid of strategic public relations, communications, marketing programs and top-notch client service. An accredited consultant, Scott works with companies, organizations and individuals in professional services (accounting, finance, medical, legal, engineering), high-tech and B2B/B2C product/service sales.
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Rita Keller is a nationally known CPA firm management consultant, speaker, author, mentor and blogger. She has over 30 years hands-on experience in CPA firm management, marketing, technology and administrative operations.

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Michael Alter's blog specializes in providing practical advice to those who seek greater profitability and practice management tactics that enhance deeper client relationships.
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Sue Anderson has 30 years of experience in continuing education for accountants. Currently she is the program director for online CPE provider CPE Link.

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Jim Fahey is COO of Apple Growth Partners, a regional CPA firm in Ohio. His focus is on the effective and efficient use of technology within the firm by all team members.

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