VOIP Terminology Explained

Chances are, you’ve heard something about Voice Over Internet Protocol (VOIP) technology and that it can save you money on your monthly phone bills. But if you’re like many people, you don’t quite understand how it all works, or what you need to know in order to get the appropriate service for your home or business.

The following represents a dictionary of VOIP terminology that can help you understand this cutting-edge technology and make more educated purchase decisions.

VOIP Dictionary

Broadband – A broadband connection is one that transmits data at a rate of over 100kps. Broadband service is required in order to access the services of a VOIP provider.

Clipping – Term that refers to words or parts of a conversation being dropped when either two people attempt to talk at the same time over a VOIP line or due to a temporary loss of signal.

Digital Subscriber Line (DSL) – One of the types of high-speed Internet access required to access a VOIP service.

Hub – A hub is a device that distributes communication data between different devices, such as a PC, printer, fax machine or VOIP set top box.

Internet Protocol (IP) – The method by which information is sent from one computer to another using the Internet. Computers have their own individual IP addresses that help differentiate it from other computers delivering information online.

Internet Service Provider (ISP) – A company that, for a fee, provides access to the Internet. An ISP account is required to gain access to a VOIP service.

Internet Telephony – Refers to any means of voice communication transmitted over the web. For example, “VOIP is a growing method of Internet telephony.”

Online – A term used to describe an individual who is currently active on the Internet.

Router – A router is a device used to connect computers on an Ethernet network and deliver data between them.

Set Top Box – A device that is installed near the PC and high-speed Internet connection that allows individuals to access their VOIP service.

T1 – A high-speed method of data transmission that is currently one of the most widely used forms of online communication in the United States.

WI-FI – Wireless internet technology that allows individuals to access the Internet without wires while in the vicinity of the signal.

WI-FI Phone – A WI-FI capable cell phone allows individuals to access their VOIP services without using a phone connected to their computer. As long as the VOIP service is active, and the individual is within range of the WI-FI signal, they can communicate as if using a standard cell phone.

VOIP – An acronym for Voice Over Internet Protocol

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Small Business Tax Tips

Any small business owner knows that they may live or die by the financial decisions that they make. While many cut corners by making prudent purchase decisions, few realize the opportunities that are available to them when it comes to working out the taxes for their business. In this article, we’ll give you some tips to help you realize the best ways to optimize your taxes.

- One interesting write-off that many small business owners fail to realize is their health insurance. The taxing laws dictate that self employed people may write off a full sixty percent of their health insurance costs, saving them potentially thousands of dollars. In addition, medical savings accounts can be set up and the contributions made up until April 17th are considered by the IRS.

- When considering employees for your business, think family first. If there are people in your family that can help you to operate the business, you can allow them to take on some of the income of the business, allowing you to put your earnings into lower tax brackets, assuming the relative performs some type of service to the business.

- Another aspect often neglected by uninformed small business owners is the prospect of a retirement fund. You can contribute to a qualified self retirement fund which is completely tax deductible in your returns.

- The first year expense limitation for any small business is now $19,000. Don’t forget to write off any business-related practices, including taking potential clients to lunch, or golfing, or whatever situation may merit as an expense. One technique often employed when it comes to lessening the taxes that you face is to buy supplies that you know that the office will need in the coming year early so that you can write them off. While it’s not a permanent solution, it can defer the damage your taxes do to you.

Keeping track of your financial records and keeping a clear separation between expenses made for yourself and those made for your business can really ease your struggle come tax time. Being organized and having a plan can save you both time and all-important money.