AccountingHelper.org: Accounting and Tax Guide AccountingHelper.org: Accounting and Tax Guide https://www.accountinghelper.org/accounting_guide/ Copyright by AccountingHelper.org en AccountingHelper.org Wed, 30 Nov 2022 20:00:58 -0500 The Big Expenses in Retirement to Get Ready for When you are getting ready to enter the phase of retirement. You need to brace for the big expenses that are yet to come your way rather than to go in blindly and figure it out day by day. One of the biggest expenses in retirement is of course housing, followed by food, health care and transportation. Anticipating small changes in these areas can help you figure out how much you'll spend on these common expenses. Many people work hard to save money for retirement. But how can you predict how your spending will change in retirement?

Although no one can predict the future, research can help us to identify the main expenses of retirement and devise a plan that will keep them as low possible.

What will your retirement spending look like

The Employee Benefit Research Institute has provided data that shows the following breakdown of the largest annual expenses for older households based on a 2017 study.

Categories for Spending

Age 50-64

Age 65-74

Age 75 and older

Housing

45.9%

44.9%

45.6%

Food

11.0%

11.2%

11.2%

Health Care

7.8%

9.6%

10.6%

Transport

13.9%

12.0%

9.7%

Entertainment

10.2%

10.5%

8.3%

Gifts and Contributions

4.7%

5.4%

6.3%

Clothing

2.9%

2.9%

2.7%

Source: Based on estimates by the Employee Benefit Research Institute from the Health and Retirement Study, (HRS).

As you age, some categories like health care and gifts/contributions can become more costly. As you get older, spending on other categories like transportation and entertainment becomes less important.

We have ideas that will help you reduce the main retirement expenses, no matter how far you are into retirement.

1. Housing

There are many ways to reduce the cost of housing in retirement.

  • Repay your mortgage
  • Reduce your living space or downsize

Get Your Mortgage Paid Off

To keep your living expenses down after retirement, it is smart to pay off your mortgage early.

Research shows that it can increase your happiness. It also shows that the most successful retirees had either eliminated their mortgage payments or significantly reduced them before they pushed forth with official retirement. This leads a large chunk of debt elimination allowing them to worry less about their financials.

Downsize Your House

Are you an empty nester or a single parent? It's time to evaluate your living situation. You may not need a large house anymore.

This could be a sign that you need to downsize and move into something more manageable. You might be able to save some money from the sale of the current house. Cashing out on the equity from your house funding retirement.  Perhaps you’ve always wanted to live in New Zealand or simply opting for a sunshine such as Brisbane. However, if you plan to move during retirement, make sure you have the ability to move into a new house without a mortgage. Deciding to move is a big decision to make, however, it is worth spending doing considering you want to make the most of your golden years and if living in the place you want to be will bring your more happiness. It may be the best decision you’ll make. You’ll however, need to budget for moving services provided by interstate moving companies or a local Brisbane removalist. As some interstate moves can run into the thousands depending on how far you are moving.

2. Food

The cost of food, excluding inflation, is one of those things that research shows stays relatively constant after retirement. It's possible to save money on food.

Shopping at a store that offers senior discounts could be a great way to reduce grocery shopping expenses. By seeking grocers that offer senior discounts, you not only save money on your shop but limiting the number of times you eat out will keep the savings going. This is because cooking at home and limiting eating out are two of the best ways to save money.

3. Health Care

The largest expense you will face in retirement is likely to be health care. As you might imagine, health care is one of the expenses that increases with age. If you are able to be on the Medicare system then great, however having a continual health insurance policy in retirement can be costly but one that is needed as you age.

Some health care policies provide seniors a free gym membership. It is often said that prevention is better than cure. This is especially true as you get older. For your physical and mental health, it's crucial to keep active and well into your golden years and avoid a lazy life. Going for walks every day to keep your heart rate up will do wonders than just sitting at home and watching your favorite TV show.

4. Transport

As you get older, the cost of transportation will likely drop. Partly because you have no need to travel and commute to work, also some conditions may prevent you from driving as you age. However, if you are thinking of purchasing a camper van and travelling as a free spirit in your retirement. You can expect your transportation costs to rise in line with that as well.

But there are ways to save money while driving, comparing auto insurance quotes is a good idea. This could help you save hundreds of dollars per year. 

If used wisely, ride share services such as Uber can offer tremendous opportunities to reduce the cost of getting around. These services can be used as an alternative to owning a car. There are also other care sharing platforms that allow you to book a car for use when you need it. If you only need a car 1 or 2 days out of a week, maybe you are better off not owning a car in retirement.

Depending on your location, you might also have access public transportation. If there is a convenient public transport system, you may choose to opt for a yearly senior pass and commute that way.

These options can help you reduce your transportation costs if you have no need for a car which will save you thousands of dollars each year in insurance, registration costs and maintenance.

5. Gifts and Contributions

Contributions and gifts are the only items that can be considered discretionary on our list. This is one category in which your spending will likely increase with age.

You should ensure that the organization receiving your large donation is a responsible a cause you fully support and that they will manage their funding in the right places.

Each charity has its overhead costs. These websites will allow you to determine how much of your donation is going towards its intended purpose and what overhead costs are.

6. Hobbies

In retirement is where most people can explore their interests a little further whether that be travelling, baking, cooking or even a car or motorbike enthusiasts. Some hobbies can be inexpensive such as learning how to cook or bake. Others may be quite an expensive hobby such as restoration of classic cars and motorbikes and paying for motorcycle transportation to auto shows to show off your prized possession. Whatever it may be that interests you, these can be costly and add up quite quickly without income coming in.

Final Thoughts

If you don't know how your expenses will be, saving money for retirement can seem daunting. The Employee Benefit Research Institute has a number of numbers that can help us get an idea of what to expect.

It's easy to cut your spending in these areas. Remember Having a budget will help you stay on track.

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Financial Guide https://www.accountinghelper.org/accounting_guide/the-big-expenses-in-retirement-to-get-ready-for-86402781.shtml https://www.accountinghelper.org/accounting_guide/the-big-expenses-in-retirement-to-get-ready-for-86402781.shtml Editor Wed, 16 Nov 2022 08:16:55 -0500
How To Find A Professional Property Management Company If you are a person who has experience related to the management of property then you must be aware of how important it is to find a good property manager or a good Property Management Company. In this case, you should always consider hiring a property manager who has a good experience in this field and you can also take the services of a company such as real estate property management. This is very important because if you ever encounter an experienced person in this field and you can face great and terrible losses, due to this reason if you want to stay on the safer side then always keep in mind a few thanks before hiring a good and professional Property Management Company.  you must be confused while hiring a Property Management Company but there is no need to think over it and read this article till the end you are just supposed to keep these points in mind while hiring anybody for your property and this can help you a lot

Referrals

You must be aware of the fact that asking for references can help you a lot because many people have first-hand experience with different Property Management companies or property managers and they can guide you a lot in this way.  So due to this reason, it is always recommended that you should ask for references from families, friends, and coworkers which is a great way to start in this way you can extend your search and reach out to property owners and anyone else who is related to this field in a network.  always keep in mind to ask more than one person to get more than one opinion

Online Search

Online search is also an amazing way to find a property manager for yourself in this way you are supposed to search about all of them and after reading their reviews and checking out their ratings you can do some shortlisting for yourself.  After shortlisting you are supposed to meet or visit the person face to face so that you can know more about him and his work also.  always keep in mind that if a company has no social media profile then it is not a good option for advertising in this case you are supposed to look at the Facebook on Google reviews because they are very helpful

Visiting The Properties

As recommended by real estate experts, if you want to check out how a specific property manager is handling a property then in this case there is no other option instead of taking out for visiting the property by yourself because physical presence is more authentic than any other source and you can get a good idea afterward

Interviewing A Manager

Interviewing a manager is also an important thing because in this way you make yourself aware of how much experience the person has and to what extent is it efficient for carrying out the job that you are assigning him.  in this way you also get a good idea that is he a licensed professional or not and should you choose him for handling your property or not

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Financial Guide https://www.accountinghelper.org/accounting_guide/how-to-find-a-professional-property-management-company-86402780.shtml https://www.accountinghelper.org/accounting_guide/how-to-find-a-professional-property-management-company-86402780.shtml Editor Mon, 31 Oct 2022 09:49:30 -0400
How Being a Legal Guardian Can Protect an Elder’s Finances and Care Elder neglect and abuse are more common than many of us care to admit. However, it isn’t always a family member who perpetrates abuse on elders unable to speak for themselves, but sometimes it is the very institution they’ve been placed in to see to their care. Sometimes it is a matter of being charged for services or amenities not being provided and other times it is a matter of abuse or neglect. In either case, being neglected or overcharged can have huge implications on the years they have remaining, so perhaps it is time to have someone named guardian to oversee their care.

Most Common Types of Abuse and Neglect

According to information provided by Romanucci & Blandin Law, the most common types of abuse and neglect in nursing homes are the result of being left for extended periods of time without the services of aides or nurses. Sometimes they are left in bed or sitting up uncomfortably in a chair for hours on end. They are ignored to the point when they have an ‘accident’ and there have been times when staff was so enraged by their own lack of responsibility that they yell, hit or shove the patient who couldn’t hold a bowel or bladder movement.

There are cases on file where security cameras actually showed the nursing staff roughly handling patients because they made ‘more work for them.’ Some of these videos have hit television networks and others made the rounds of social media. Consequently, when it’s caught on camera there is no denying that they’ve acted in a way that constitutes abuse stemming from neglect.

What Being a Legal Guardian Entails

If you’ve consulted with a law firm in an effort to protect your loved one in a nursing home, for example, you will probably be advised to file for guardianship. There are several requirements that must be met and those can also be thoroughly explained by your lawyer who can also represent you in your petition for guardianship. Sadly, even your loved one’s doctors can’t discuss their treatment or any other medical issue with you unless you have been named guardian.

Being named a legal guardian gives you the right and responsibility to act in your loved one’s best interest. You could file a claim against the nursing home on their behalf, speak with doctors and lawyers and make decisions as to their care. You may need to have that loved one declared incompetent, but if it means saving their life, then it’s well worth the time and effort going before a judge.

The Most Common Excuse

The most common excuse for neglect is that the facility was extremely short staffed. That is no excuse. Some nurses and doctors have historically alerted the health officials in their district to seek help alleviating this shortage. Sometimes the edict passed down reduced the occupancy rates to better correspond to the number of staff employed there.

At some point you may wish to move your parent or grandparent to a different nursing home that has great reviews. That law suit you filed against the current facility can give you the much-needed funds to move that patient to a better-quality nursing home. Since many of these abused and neglected patients have also been swindled out of money that they so painstakingly saved all their lives, demanding just compensation is in order.

This is not something you ever looked forward to doing, but it may be up to you as the sole survivor who is able to give voice to the voiceless. Many of our elders cannot speak for themselves, their needs and desires. If this falls squarely on your shoulders, help is out there. Every community has caregivers’ groups you could join to find the encouragement you need to move forward. Just as you wouldn’t leave your loved one alone in this life, so too are their groups of others like you who are committed to providing strength to other guardians like themselves.

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Financial Guide https://www.accountinghelper.org/accounting_guide/how-being-a-legal-guardian-can-protect-an-elders-finances-and-care-86402779.shtml https://www.accountinghelper.org/accounting_guide/how-being-a-legal-guardian-can-protect-an-elders-finances-and-care-86402779.shtml Editor Thu, 27 Oct 2022 23:37:05 -0400
From Documents To Digital Data: How To Automate Your Financial Office The concept behind the adding machine and later the calculator was that they were more accurate and efficient than calculating sums by hand with a pencil and paper. This is the idea behind automation, but not every office uses it to its fullest potential. In financial offices all across the country, you can still find employees doing things the old-fashioned way with paper documents. This is to their disadvantage because it’s estimated that using paper forms costs businesses roughly $120 billion every year.

In addition to the costs of paper, ink and the equipment necessary to make hard copies, there are additional, hidden costs. Waiting for documents to be reviewed and signed by hand and then delivered back to the originator eats up time that could be spent on more-important tasks. The same can be said of digging around in file cabinets searching for records. Also, having sensitive information collected where anyone can see it creates some significant concerns about data security.

How Automation Can Streamline Your Financial Operations

Automating document management through digitization can alleviate these issues and create a streamlined financial office where everything operates as efficiently as possible. When files and documents are stored in the digital realm, employees can find what they’re looking for with greater ease and speed. Emailing documents between personnel for review and approval takes seconds, much less time than shuffling paperwork from desk to desk. Encryption and other security measures also make it much less likely that sensitive data will find its way into the wrong hands.

For instance, scheduling invoices can be a tedious, laborious process when done by hand. However, an automated recurring invoicing module as part of a software package can ensure regular vendors and customers always receive their invoices without the need for human intervention. They also enable one-time invoices to be created and issued from a mobile device without needing a bookkeeper sign off on them.

Documentation filled out by hand can be entered into your system almost instantly thanks to advanced optical character recognition powered by machine-learning AI. Just scan the document and all the pertinent information will be captured and filed automatically.  

These are just two examples of how automation can make a big difference in how well your financial office operates. When you partner with an experienced and capable solutions provider, the benefits can be substantial. To learn more about what automating your paperwork can do for you, see the accompanying resource.

Infographic created by Donnelley Financial Solutions, a regulatory compliance software company

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Accounting Software and Tools https://www.accountinghelper.org/accounting_guide/from-documents-to-digital-data-how-to-automate-your-financial-office-86402778.shtml https://www.accountinghelper.org/accounting_guide/from-documents-to-digital-data-how-to-automate-your-financial-office-86402778.shtml Editor Mon, 17 Oct 2022 23:49:15 -0400
How Do I Know I'm Bankrupt?

If you feel like your debt is spiralling out of control or living paycheck to paycheck, it might be time to consider filing for bankruptcy. But before you do that, you'll want to make sure you understand the signs that you might be headed down that path and what to do about it before it's too late. Here are some ways to tell whether your financial situation could lead to bankruptcy soon - which might be your sign to reach out to bankruptcy companies.

You're Already Missing Payments

The problem will likely worsen if you're already missing payments on some of your credit cards or other loans. Some people skip payments on one or two accounts and then find that it's easier to continue than to get back on track. Before long, they are in default, and their credit scores are suffering even further.

You Can't Qualify for Debt Management

You can't apply for bankruptcy if you don't have any unsecured, revolving debt, such as credit cards. That means if you only have one credit card with a $100 balance, you won't be able to file for bankruptcy until that balance is paid in full. Even if you have debt, you should still be able to get into a program before filing for bankruptcy. Debt management plans allow you to pay off your debts over time with a manageable monthly payment that you can afford. With this option, you don't have to go through the lengthy and costly bankruptcy process.

You Have Exhausted Your Home-Equity Option

You might have exhausted your home-equity option if you can't qualify for a debt management plan. This option helps homeowners stay above water when they can't afford to make their monthly mortgage payments. It works by borrowing up to 50 percent of your home's value from a bank or mortgage corporation and receiving an interest-only loan for a set period of time, usually three to five years. That gives you time to get back on solid financial footing, pay back the loan and work toward becoming debt-free.

You're Getting Phone Calls From Debt Collectors

If you're getting phone calls from debt collectors, it's a good indication that you are in danger of running out of money. Some debt collectors will even call many times a day, which can make people panic. If you're struggling financially, this is not the situation you want to be in daily.

You Have Maxed Out Your Credit Cards

If you have maxed out your credit cards, it's probably a sign that you can't afford the payments anymore. You'll need to stop using those cards until you get your financial situation back on track. You should also prioritise paying them off over time rather than just paying the minimum monthly balance. Otherwise, it might not be long before you are in debt again and facing more problems with collection agencies and other creditors.

You Have Turned To High-Cost Loans

If you have turned to high-interest payday loans or other high-cost loans because you didn't qualify for a debt management plan, it's time to consider bankruptcy. If you decide to file for bankruptcy, you won't have to worry about paying back any of these kinds of loans. In addition, your other creditors can help you find affordable payment options that don't hurt your budget as much.

You Can't Recover From a Major Financial Setback

If you haven't spent much time on your finances in the past year or two, it might be a sign that you can't recover from a major financial setback. People in this situation often feel ready for bankruptcy, but that's not always the case. It can be challenging to get back on track when you have a lot of debt, especially when it isn't all paid off.

The most important thing that you can do to avoid bankruptcy is to take action before your situation gets out of hand. It would help if you took the time to learn more about financial literacy and how you can build a solid financial future for yourself. If your debt is out of control, speak with a financial counsellor or an attorney. You might be able to arrange a debt management plan, which can help keep creditors at bay while you get on track financially.

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Financial Guide https://www.accountinghelper.org/accounting_guide/how-do-i-know-im-bankrupt-86402777.shtml https://www.accountinghelper.org/accounting_guide/how-do-i-know-im-bankrupt-86402777.shtml Editor Sun, 25 Sep 2022 04:19:09 -0400
Error Code C=47 in QuickBooks Desktop Summary: This write-up will help you learn how to fix Error code c=47 in QuickBooks Desktop. It discusses the error code, different occurrences, causes, and solutions. Besides, it also explains the QBW file repair tool to repair the corrupted QuickBooks QBW file and its components.

When using QuickBooks, you may come across different errors that hamper the work. The QuickBooks message code c=47 is one of them, which often occurs when posting payments, emailing a payment receipt, changing transaction records, or deleting bill payments in QuickBooks. Before proceeding to the troubleshooting guide, let's understand the error code c=47 and its major causes.

What Is Error Code C=47 in QuickBooks Desktop?

The QuickBooks Desktop error code C=47 indicates the system cannot find the transactions you are posting while running a report or opening the QuickBooks company file (.qbw). This error may trigger on screen for several reasons like a corrupted QuickBooks Company file, incorrect Internet settings, transaction log file stored in a damaged file folder, etc. You can resolve this error by restarting QuickBooks. However, in some cases, restarting QuickBooks may not work and you may need to implement manual troubleshooting methods or use a Rebuild Data utility software. The error code C=47 looks like below:

Error Code C=47 in QuickBooks Desktop

Causes of QuickBooks Error Code C=47

Some factors due to which QuickBooks error code C=47 occurs are:

  • Corrupted QuickBooks Company file
  • Incorrect Trusted sites settings in Internet Explorer
  • Malware or virus attack
  • The folder storing the transaction log file is corrupted
  • The QuickBooks Desktop is not updated

How to Fix Error Code=47 in QuickBooks Desktop?

Below are various methods for rectifying the QuickBooks Desktop‘s error code=47:

Method 1- Modify the Internet Connection Settings in QuickBooks:

In many cases, the Internet Explorer settings may prevent you from performing modifications in the QuickBooks payroll. For instance, for updating records or performing any payroll-related operations. So here are the steps to configure the Internet Explorer settings in QuickBooks Desktop:

  • Open the QuickBooks Desktop.
  • Click the Help menu, choose Internet Connection Setup.
  • Choose the “Use my computer’s internet connection settings” tab.
  • Click the Next
  • Now choose the “Advanced Connection Settings” tab.
  • The Internet option Window is displayed.
  • In the Internet Options window, click Update Trusted Sites Settings.
  • Click the Security
  • Choose the Trusted Sites zone.
  • Click Custom Level below Security level for this zone
  • Click Reset custom settings
  • Choose “Reset to” drop-down button, click
  • Choose Reset.
  • Click the Yes button to confirm.
  • Click OK.

Method 2- Update QuickBooks Desktop Application

Many QuickBooks errors appear if you have not downloaded the latest updates of the QuickBooks Desktop. So ensure that your QuickBooks application is up-to-date. To check if you have the latest QuickBooks release, then follow the steps:

  • Open your QuickBooks Desktop.
  • Open the Product information window by pressing the F2 Key.
  • In the Product information window, you can check the current version and release of QuickBooks you have installed on the system.

If you find your QuickBooks is not updated, then download the advanced version using the below steps:

  • First, close QuickBooks and the company files.
  • Click the Windows Start
  • Enter QuickBooks Desktop.
  • Now right-click on the QuickBooks Desktop icon, and choose the Run as administrator
  • The No company open window gets displayed on the screen.
  • Click Help menu > QuickBooks Desktop.
  • Choose Options
  • Click Mark All tab, choose the Save
  • Click the Update now option and click the Reset Update
  • Once you are done with this, click Get Updates.
  • Wait for a few minutes till the update is downloaded.
  • Close and re-open the QuickBooks desktop and click the Yes tab to install the updates.
  • After QuickBooks Desktop updates installation, restart the system.

Method 3-Re-Sort the Lists

The QuickBooks Error code c=47 can be fixed by re-sorting the list in QuickBooks Desktop. It changes the lists to their default order, resolving several QuickBooks errors. Here are the steps to re-sort the list:

Note: If you have enabled multi-user mode in QuickBooks, switch to Single-user mode before re-sorting the list in QuickBooks.

  • Open the QuickBooks Desktop.
  • Go to the Lists menu.
  • Choose the list you need to re-sort.
  • Click on Include Inactive checkbox. 
  • Select the View menu, then choose Re-sort lists.
  • Click OK.
  • Close the QuickBooks and reopen the Company file.

Method 4- Run the Rebuilt Data tool in QuickBooks:

The Rebuilt data tool is a QuickBooks built-in tool that helps fix minor company file errors. Using QuickBooks "Verify" and "Rebuild" options in the tool helps identify the data errors in a company file. In addition, it fixes the general discrepancies in reports, missing transaction errors, or corrupted company file issues. Below are the steps to use "Verify Data" and "Rebuild data" features in QuickBooks Desktop:

Step 1- Run Rebuilt data in QuickBooks:

  • Go to the File > Utilities.
  • Choose Rebuild Data tab as shown in below fig:

Error Code C=47 in QuickBooks Desktop

  • In the Rebuilt Data dialog box, click

Error Code C=47 in QuickBooks Desktop

The QuickBooks information wizard will prompt on the screen asking you to backup company file. Click OK.

Error Code C=47 in QuickBooks Desktop

  • You will see a dialog box on the screen saying, “Rebuild has completed.”

Error Code C=47 in QuickBooks Desktop

Step 2- Run Verify option:

After the damaged data is repaired using the Rebuild data tool, run the verify tool with the below steps:

  • Go to the File 
  • Choose Utilities.
  • Click Verify Data.
  • If QuickBooks does not diagnose any error with rebuild data, click the OK button to use the company file. 
  • If the Verify option detects data issues, the window displays three options:

Error Code C=47 in QuickBooks Desktop

  • Click Rebuild Now tab to get started.

Method 5- Use Stellar Repair for QuickBooks:

If the QuickBooks rebuild Data tool failed to resolve data damage within a company file, try Stellar Repair for QuickBooks® Software. It is an advanced tool recommended by ProAdvisors to repair corrupted QBW files. This utility supports all editions of QuickBooks and allows file recovery from QBB (QuickBooks® backup file). Also, it helps fix other components damaged by the QuickBooks QBW file. Follow the steps to use Stellar Repair for QuickBooks:

  • First, download, install, and run Stellar Repair forQuickBooks® Software.
  • Click the Browse tab on the interface window to choose the corrupted company file you need to repair.
  • Click Scan.
  • You will see the scan progress in the scanning window.
  • Click OK.
  • The tool can let you preview all the recoverable QBW file components. Including Employees, vendors, customers, and the company.
  • Click Save to save the repaired file. 
  • A Save File dialog box will appear with the below two options: New Company File (QBW) and QuickBooks backup file (QBB)
  • Choose a suitable option.
  • Click the Save option to repair the QuickBooks file that you have chosen.
  • Once the repair is complete, it will display a message “‘Repair process completed successfully.
  • Click OK.

Conclusion:

The above write-up discussed common reasons behind QuickBooks Desktop error code C=47. This error usually occurs when trying to delete the transactions or other causes explained above. Try resolving the issue using the resolutions explained in the post.

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Accounting Basics https://www.accountinghelper.org/accounting_guide/error-code-c47-in-quickbooks-desktop-86402776.shtml https://www.accountinghelper.org/accounting_guide/error-code-c47-in-quickbooks-desktop-86402776.shtml Editor Sat, 20 Aug 2022 04:34:44 -0400
Business Tax Planning and Preparation Taxes are a fact of life for businesses of all sizes. The good news is that with careful planning, most businesses can minimize their tax liabilities and keep more of their hard-earned profits. As a business owner, you should have a tax plan. 

Preparing taxes can be an overwhelming task, especially if you don't know what steps to take. This blog post is an overview of the most important and essential steps that you need to take before tax time. Business tax planning and preparation is an important element of running a business. There are several steps that need to be taken in order to prepare for tax season. This article will highlight the most important steps that need to be taken before tax time.

Information Gathering

To begin tax planning for your business, you will need to gather some important information. This includes your business income and expenses for the past year, as well as your projected income and expenses for the coming year. You will also need to know your business structure and filing requirements.

Business Income and Expenses

To accurately plan your business taxes, you will need to know your business income and expenses for the past year. This information can be found on your business tax return from the previous year. If you have not yet filed your business taxes, you can estimate your income and expenses using your business financial statements or other records.

Projected Income and Expenses

To plan for the upcoming year, you will also need to project your business income and expenses. This can be done by estimating your sales and profits for the coming year, as well as your expenses. Be sure to factor in any expected changes in your business, such as increased sales, new employees, or increased expenses.

Business Structure and Filing Requirements

Your business structure and filing requirements will also affect your tax planning. Businesses are categorized as either sole proprietorships, partnerships, C-corporations, or S-corporations.

Selecting Tax Planning Strategies

There are many different tax strategies that a business can use in order to reduce its tax liability. The most effective strategy will vary depending on the business's individual circumstances. Some of the most common tax strategies include:

Business Expense Deductions

Are you looking for a relief from your tax burden? Well, all you must do is look to your business. One of the most overlooked deductions for a business is the deduction on business expenses. There are some requirements for deductions and some limits on deductions, but if you qualify for the deduction, you can save some of the hard-earned money you've made. Business Expense Deductions One of the most overlooked deductions for a business is the deduction on business expenses. There are some requirements for deductions and some limits on deductions, but if you qualify for the deduction, you can save some of the hard-earned money you've made. These expenses can include things like business travel, office supplies, and advertising expenses.

Tax-Free Income

Businesses in the United States are taxed on income and investment earnings. However, certain types on income are Tax-free meaning the business does not have to pay any taxes on that income. Tax-free income is often used in reference to the income that is earned from investments, such as dividends and interest, or to the income that is earned from international business activities. One of the most popular tax-free income sources for businesses is net operating loss (NOL). 

Tax-Deferred Income

Tax deferments are a great way to save money for your business, especially when you're just starting out. When you defer your income, you can put it in a tax-deferred account and wait for a specific date when you want to take out the money. This means that you don't have to pay taxes on the interest it earns, and you can plan for how long you want to wait to withdraw the money.

There are a few different types of tax deferments that you can use for your business, and each comes with its own set of benefits and drawbacks. Here are a few of the most common types:

401(k) Plans: A 401(k) plan is a type of deferred compensation plan that allows employees to save money for retirement. The money that you save in a 401(k) plan is not taxed until you withdraw it, which can help you save money on your taxes.

403(b) Plans: A 403(b) plan is a type of deferred compensation plan that allows employees to save money for retirement. The money that you save in a 403(b) plan is not taxed until you withdraw it, which can help you save money on your taxes.

IRA: An IRA is a type of individual retirement account that allows you to save money for retirement. The money that you save in an IRA is not taxed until you withdraw it, which can help you save money on your taxes.

SEP IRA: A SEP IRA is a type of IRA that allows you to save money for retirement. The money that you save in a SEP IRA is not taxed until you

Tax-Efficient Investing

Tax-efficient investing is the process of investing in assets that offer the greatest tax benefits. This can help businesses reduce their overall tax burden. There are a number of different tax-efficient investment strategies that businesses can use, including:

  1. Investing in tax-deductible assets: Businesses can invest in assets that offer a tax deduction. This includes investing in assets such as real estate, equipment, and vehicles.
  1. Investing in tax-deferred assets: Businesses can invest in assets that offer tax-deferred growth. This includes investing in assets such as pensions, 401(k)s, and IRAs.
  1. Investing in tax-free assets: Businesses can invest in assets that offer tax-free growth. This includes investing in assets such as municipal bonds and annuities.

Every business’s tax situation is unique, so it’s important to discuss business tax planning and preparation with your tax professional before making any significant moves. These strategies should help you to prepare for your year-end tax planning meeting and understand more about how your small business can minimize taxes.

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Tax Guide https://www.accountinghelper.org/accounting_guide/business-tax-planning-and-preparation-86402775.shtml https://www.accountinghelper.org/accounting_guide/business-tax-planning-and-preparation-86402775.shtml Editor Mon, 15 Aug 2022 23:52:02 -0400
What's the Difference Between a Certified Financial Planner and a Personal Financial Planner?

If you need to manage your money, you will usually seek a professional's help. A certified financial planner and a personal financial planner or financial advisor are both specialized in managing the consumer's money.

There are numerous financial professionals, starting from accountants and insurance agents to brokers, financial planners, and investment advisors. Each and every planner is a kind of advisor, but every advisor is not considered a planner. A personal financial planner might attain more than a hundred certifications. Key difference points are:

  • A certified financial planner is a type of professional who can help organizations or individuals to meet their long-term goals by creating a financial strategy.
  • A personal financial planner or a financial advisor is a wide category that might also include money managers, bankers, insurance agents, or brokers.
  • Certified financial planners are not regulated by anybody and are regulated entirely based on the kind of services they can provide.
  • If a personal financial planner works with the common public, they should clear the licensing exam of the FINRA (Financial Industry Regulatory Authority) 65 series.
  • Amidst various financial proliferation in the industry, many personal financial planners (advisors) and certified financial planners might perform the same task. Thus, you should do proper homework prior to hiring a professional to guide you financially.

Certified Financial Planner

A certified financial planner is a financial professional who can help organizations or individuals meet or accomplish their long-term goals by creating a financial strategy. A certified financial clanner will typically help you to map a plan for saving, budgeting, retirement planning, and investing. There are certified financial planners who assist people or clients with the help of their individual practice, but the certified financial planners might also work for a non-profit organization, wealth management company, or a bank.

While selecting a Certified Financial Planner, it is very essential for you to understand and acknowledge the landscape of financial planning. According to FINRA, almost anybody can also claim to be a certified financial planner if they are from different backgrounds. Certified financial planners can be investment advisors or brokers, practicing accountants, individuals without any financial credentials, or insurance agents. This is the reason why a consumer should check their due diligence prior to giving the money to any financial advisor.

The certified financial planner might be specialized in taxes, investments, estate planning, and retirement. There are different designations or licenses like CFP (Certified Financial Planner), CFA (Chartered Financial Analyst), CHFC (Chartered Financial Consultant), or CIMA (Certified Investment Management Analyst).

To achieve all these different qualifications, a Certified Financial Planner should complete a whole different requirement of examination, work history, and education.

Personal financial planner or financial advisor

This professional individual should know a wide range of terms that will help in managing your money. One needs to pay the Personal Financial Planner, and in lieu, they will help with multiple money-related jobs or tasks. A personal financial planner or advisor can help you to sell or buy stocks, plan taxes, create a comprehensive estate, and manage investments.

If the personal financial planner works with the common public, they should have the FINRA 65 series license. Additionally, there are multiple personal financial planner credentials that a financial advisor must hold, entirely depending on the services they provide.

A financial advisor or Personal Financial Planner generally denotes multiple professionals like insurance agents, stockbrokers, money managers, bankers, estate planners, and many more. A Personal Financial Planner is a kind of advisor who has a specialty in financial securities.

Conclusion

These two terms might overlap, but a certified financial planner is a type of personal financial planner or advisor. Specifically, a certified financial planner is an individual professional who helps people or organizations achieve their financial goals. The goals can include college education, retirement, home down payment, etc. A certified financial planner depends upon the strategic allocation of the portfolio for investments that have a long-term horizon, and they ensure that the risk tolerances and expected returns should stay in balance.

Whereas a personal financial planner is a comprehensive term for someone, who is involved in this type of plan but also in different aspects of money management. For example, they might offer life insurance, accounting, real estate, banking, or short-term trades.

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Accounting Basics https://www.accountinghelper.org/accounting_guide/whats-the-difference-between-a-certified-financial-planner-and-a-personal-financial-planner-86402774.shtml https://www.accountinghelper.org/accounting_guide/whats-the-difference-between-a-certified-financial-planner-and-a-personal-financial-planner-86402774.shtml Editor Sun, 14 Aug 2022 23:39:44 -0400
6 Tips for Growing a Successful Business Starting a business is very different from ensuring it grows and becomes successful. While starting one has become much easier thanks to the growth of ecommerce, a business owner needs to be organised, good at planning, and have the business skills required to grow a successful business. Although you can transfer most of the skills you need to start a business to running it, there are a few things you will need to learn as your business grows.

Understand Better How Entrepreneurship Works

The definition of entrepreneurship is straightforward; it is the process of creating a business based on a product or service, ensuring it operates successfully, assuming financial risk for its success, and selling it off or enjoying the profits.

However, this definition does not cover the underlying challenges that come with being an entrepreneur.  For example, entrepreneurs have to be strategic thinkers or learn how to be because they need to know when to pursue opportunities, where to invest, whether these opportunities and investments are worth their time, when to expand their business, and so on.

They also have to come up with sustainability plans not only for the profitability of their business but to also ensure its success. Entrepreneurs also have to hire and manage people, something that can be challenging if you do not have the right skills to do so.

Lastly, entrepreneurs have to not only assess their market when starting their business, but they also have to continuously do so throughout its life.

For new entrepreneurs, the best way to gain this knowledge is by investing in additional education. When you register for the online MBA programme at Aston University, for example, you can choose the entrepreneurship path that will teach you the strategic, analytical and additional skills to not only start a small business but also ensure it is successful.

Invest In Marketing

Once your business enters the growth phase, marketing becomes something you need to think about. This is the stage where you should be trying to get as many customers as possible while keeping your overall expenses low.

Start by setting aside a marketing budget that the business can afford. How much you can afford to spend will determine the marketing strategies you employ. For example, businesses with larger budgets might consider PPC and paid marketing while those with smaller budgets might go with direct or social media marketing.

Next, find out which marketing strategies will work best for your business. This will largely be informed by your market research and the types of customers you would like to target. Targeting younger people? Why not try TikTok advertising? Trying to reach those between 40 and 65? Facebook and direct marketing might work for you. For everyone else, there is social media marketing and email marketing.

Keep a close eye on your marketing return on investment, and always be ready to switch things up so you are continuously getting better results.

Hire the Right People

Never underestimate the value of hiring the right people. These are people who will see your vision, take it, and run with it to ensure the success of the business. As a small business, start by hiring people for essential positions such as accounting and marketing if you have a limited budget. Once you start growing, you can start considering positions like product developers and employees for niche roles.

Get Organised

The number of things you need to take care of and that need your attention will increase as your business grows. If you do not have organisational skills, you will find it increasingly harder to stay on top of things and complete all the tasks that require your attention and input.

You can learn how to be organised as you grow and there are a lot of materials and courses that can help you gain this skill. The second option is using software to stay on top of things. There are numerous calendar and to-do apps that will help you make lists of what you need to do and even remind you of things you have not taken care of yet.

The last option is to hire someone to handle this for you. Outsourcing this task to a personal assistant is a great option because they may take care of some things on your list. For example, they can reply to emails and answer calls that are not critical to the business and tell you about the ones that are so you can take care of them.

They can also handle things like booking hotel rooms for you so you can concentrate on running the business instead of these smaller tasks.

Learn How to Keep Records

Every business owner should keep detailed records. There are some records you know you need to keep such as those involving your business’s finances. These are the records that will tell you how the business is doing regarding your costs and revenues, and they will also help you when calculating tax.

Some other records you need to keep include all records of contracts and agreements you have entered into, crucial communications between you and business partners and other records that have to do with the running of the business.

In addition to physical copies, also store some of your records in the cloud. When you take advantage of the cloud, you do not have to think or worry about losing your business records. You can also integrate different software you use with cloud hosting providers so all your documents are saved on secure servers.

This last option provides automatic uploads so that you do not forget to upload and store any crucial documents.

Keep an Eye on Your Competition

Although you have already done competitor research when starting your business, it is essential to keep an eye on them. They might have some insight that you may not and could be responding to something that you might not be seeing. Keeping an eye on them allows you to take advantage of their insights, data and implementations without investing in them.

Once your business enters the growth phase, you know it is time to start putting even more effort into the business. That might mean investing in different things, hiring the right people, and marketing the business to increase customers.

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Financial Guide https://www.accountinghelper.org/accounting_guide/6-tips-for-growing-a-successful-business-86402772.shtml https://www.accountinghelper.org/accounting_guide/6-tips-for-growing-a-successful-business-86402772.shtml Editor Fri, 15 Jul 2022 23:47:13 -0400
What Is the Difference Between an Operational CFO and a Strategic CFO? Strategic CFOs and operational CFOs can both be valuable additions to your company. But while both positions occupy many of the same responsibilities, there are some key differences you should be aware of when deciding which one fits your company best. 

Operational CFOs typically aid your company in the procedural and operational aspects of your finances. They examine what methods are working for the business and the methods that are failing. Strategic CFOs, on the other hand, are more concerned with your company's overall financial strategies and how they will play out in the long-term to affect your business. Both of these positions have critical functions, and this article examines some of the differences. 

What Is an Operational Chief Financial Officer?

Operational CFOs develop more holistic approaches to your company operations rather than strictly focusing on cash flow. This is because operational CFOs have a deeper understanding of how your company creates processes and systems. This gives them a deeper understanding of how cash flow can be affected by operational risk, reporting methods, and accounting functions.

Financial management skills are critical for the long-term success of any company. Traditional CFOs can tell you the exact costs you stand to incur from business decisions but operational CFOs will be able to give you more context around what the figures mean for the overall financial health of your business. They can check for inefficiencies and search for ways to reduce expenses. This added layer of analysis will save you time and money. 

What Is a Strategic Chief Financial Officer?

Just like an operational CFO, strategic CFOs will understand your financial operations inside out. However, strategic and operational CFOs will have different objectives and job initiatives. Operational CFOs are concerned with past and present analysis but strategic CFOs are more concerned with future objectives. Strategic CFOs work closely with chief executive officers to develop goals for companies for their next three, five, and ten years. These financial initiatives come in the form of launching new products and services or deciding what capital the company should focus on procuring. 

How Are Operational and Strategic CFOs DIfferent?

Operational CFOs and strategic CFOs share some responsibilities but they are quite different in a lot of respects. Operational CFOs help companies fully understand their procedures and how they affect the overall financial health of the company. Operational CFOs can help you:

  1. Understand your company’s operations. 
  2. Provide you with long-term financial planning. 
  3. Eliminate unnecessary spending. 
  4. Increase your ROI. 
  5. Identify ways to improve the efficiency of your operations. 
  6. Understand the full scope of your company’s financial operations. 

Strategic CFOs can help in the following ways:

  1. Understand your company’s profit trends and how they can impact the future of your business. 
  2. Determine areas where your business should either contract or expand. 
  3. Provide information and analysis regarding all of your strategic objectives. 
  4. Provide information and analysis for strategic decisions. 
  5. Analyze areas where your business can expand further. 
  6. Predict company future growth. 

When Should You Hire an Operational CFO?

You should hire an operational CFO during times when you need to assess your company’s efficiency and production methods. The business intelligence operational CFOs provide can help mitigate your financial risks and they will also help you deal with merger or acquisitions. Dealing with liquidation or equity and debt negotiations will always be a challenging situation. Operational CFOs can help simplify these processes.

Why Do You Need Strategic CFOs

Strategic CFOs can provide a roadmap to your company's future while providing a strategy for your CEO to improve your company’s profitability. Strategic CFO services also provide stakeholders with the assurance that your finances are stable. With a strategic CFO, existing stakeholders will be able to invest more money into the company while helping you acquire new investors. 

Signature Analytics

Signature analytics identify the advantages of hiring operational or strategic CFOs, but if you run a small to medium-sized business, you might feel like an executive is beyond your budget. One solution is outsourcing your CFO position, which gives you the opportunity to scale your business. With strategic outsourced CFO services, you avoid the expenses of advertising, interviewing, vetting, and training new staff members. You also gain confidence that you’re working with fully qualified professionals who specialize in various industries. 

Deciding whether a strategic or operational CFO is right for you will come down to where you need the most attention. If your company is having trouble preserving its cash flow and operational inefficiencies are hindering its profitability, an operational CFO might be the best option. If your company is lacking foresight into the strategic initiatives that will help it take control of its future progress, then a strategic CFO should offer the most benefits. 

What Questions Should You Ask Your Strategic CFO?

Below are some of the questions you should consider asking your CFO if you plan to optimize their services. 

How Can They Help You Grow Your Company?

You should ask your prospective CFO whether they plan to grow your company using organic growth, M&A, or a combination of both. Your prospective CFO should understand the plan that fits your growth needs. After choosing the right plan, your prospective CFO should ensure the capital is available at the right cost for your choices to be profitable. 

What Constraints Hold Your Company Back from Achieving Success?

The dominant issues your company faces must be brought to light if you are going to achieve success. Prospective CFOs should be able to identify these constraints and communicate them to you clearly and effectively. For example, if your company has a heavy debt burden and is paying interest rates at more than twice the rate available to your competitors, it should consider shifting. The prospective CFO should be able to lay out the plan in a clear and concise manner. 

What Is the Greatest Uncertainty Your Company Faces?

Prospective CFOs should be able to look at your company and identify the weakest point so you can achieve results quickly and measurably. Whether your company faces problems with its operations or overall financial strategy, a CFO such as Fully Accountable should be able to identify your weak points and create strategies that eliminate those weaknesses. 

Conclusion- What Is the Difference Between an Operational CFO and a Strategic CFO?

Operational CFOs are more concerned with how your operational inefficiencies and procedures can hinder your financial progress. Strategic CFOs, on the other hand, will be more concerned with your overall financial strategy. They will identify long-term financial directives that can improve your company’s financial stability and performance. 

Choosing one or the other comes down to how well you can identify where your company lacks. If your company has efficient operations and procedures but struggles with financial vision, a strategic CFO will likely be the most important need. On the other hand, if your company has a well thought-out vision for the future but struggles identifying operational inefficiencies, an operational CFO will likely be the more important need. 

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Accounting Basics https://www.accountinghelper.org/accounting_guide/what-is-the-difference-between-an-operational-cfo-and-a-strategic-cfo-86402771.shtml https://www.accountinghelper.org/accounting_guide/what-is-the-difference-between-an-operational-cfo-and-a-strategic-cfo-86402771.shtml Editor Wed, 06 Jul 2022 23:32:24 -0400
5 Tips to Drive Up the Value of Your Properties for Sale Perth When selling your property, it must be appealing to buyers and priced competitively.

Here are some tips to help drive up the value of your property for sale in Perth. Following these simple tips ensures that your home sells quickly and for a reasonable price.

1) Consider the Surrounding Suburbs

When selling your property in Perth, it's essential to consider the surrounding suburbs. After all, potential buyers look at the whole area, not just your individual property.

Here are a few considerations that help drive up the value of your property:

  • If your land is in a desirable suburb, it will be worth more than similar properties in less desirable areas. Also, people are willing to pay more to live in an area with nice houses and services, better schools, and less crime.
  • Buyers will want to know what's nearby, such as schools and transportation. After all, if your property has everything people need, it will be more valuable.
  • Growth potential. If the area attracts new businesses and residents, it will cost more.

2) Create Real Estate Listings

Estate listings are one of the best ways to showcase your property for sale in Perth. Creating a listing can highlight the features that attract potential buyers.

For example, you can showcase the land size, amenities, and other selling points. Plus, listing allows potential buyers to see the property before making an offer.

Doing so ensures you get the best possible price for your property.

Here are a few things you should keep in mind when creating your listing.

  • Start with the basics. Include the address, number of bedrooms and bathrooms, and other essential information.
  • Write a compelling description. Take this chance to sell the property. Highlight its best features and use keywords that will appeal to buyers.
  • Choose attractive photos. First impressions matter, so ensure the listing photos are clear and inviting. Work with a professional photographer if possible.
  • Promote the listing. Once it's live, share it on social media and with your network of potential buyers.

3) Search Properties on Sale in Perth, WA

Looking for for-sale properties in the area is a great way to define what your house is worth.

By searching properties, you can get full details of the property rates in your vicinity. This information can serve as your price guide for your property and ensure your asking price is competitive.

You can use the details you get to negotiate with buyers. If a buyer offers a low price, you can point to a similar property with a higher price. Use them to support your asking price.

Also, searching properties can give you some great ideas for improving your property. Thus, it helps maximise the value of your home for sale in Perth, Western Australia.

4) Contact an Agent Specialising in Specific Property Types

The market is strong, and values are on the rise. If you're considering selling your property, getting the best possible price is vital.

One way to help ensure this is to contact an agent specialising in your property type. Their experience can help make your property more appealing to potential buyers.

For example, they might suggest renovating, which can make a big difference in selling. And they might also have some great marketing ideas to help make your property stand out from the rest.

Here's a quick rundown of some of the most common types of agents and how to find them.

  • Buyer's agent. These agents can help you find the right property and negotiate the best price on your behalf. You can find a buyer's agent by contacting the National Association of Realtors.
  • Listing agent. These agents work with potential buyers and answer their questions. You can find listing agents through your state's real estate commission.
  • Property management company. These companies manage all aspects of rental properties. You can find property management companies by browsing online or asking reliable friends.

5) Pay Attention to the Market Trends in Perth, WA, 6000

When it comes to real estate, paying attention to market trends is essential. After all, the local market's health influences your property's value.

By keeping tabs on market trends, you can ensure that you're buying low and selling high.

Here's how paying attention to market trends drives your property's value.

  • If prices in your area rise, holding onto your property for a longer time results in a higher sale price.
  • If prices are dropping, it may be a good idea to sell sooner than later.
  • Keeping an eye on market trends can also help you identify potential problems and avoid them.

So if you want to sell your property, following these tips should help increase its value.

Also, consulting with an agent who can give you more specific advice tailored to the Perth market is crucial. By doing so, you'll be well on your way to getting the best price for your home.

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Financial Guide https://www.accountinghelper.org/accounting_guide/5-tips-to-drive-up-the-value-of-your-properties-for-sale-perth-86402770.shtml https://www.accountinghelper.org/accounting_guide/5-tips-to-drive-up-the-value-of-your-properties-for-sale-perth-86402770.shtml Editor Wed, 06 Jul 2022 03:00:27 -0400
What You Need to Know Before Getting a Mortgage Broker Buying a home or financing a mortgage can be difficult. Since there are more mortgage lenders now than ever, the process is even more complicated than it used to be.

Licensed mortgage brokers who give outstanding service can help people who want to buy a home and those who already own one. When it comes to getting a mortgage, these professionals have a lot to offer, but there are also a lot of things to think about before working with one.

First, doing your homework and taking a look at a review for Mortgage broker is a good start. But to help you further, we share these few tips.

What Is a Mortgage Broker?

A mortgage broker is like a go-between for you and a mortgage lender. Brokers are not the ones who give you the money. You don't have to worry about this; instead, they'll shop around for the greatest deal and ensure everything is in order so you can close a deal on time.

A loan officer is not the same as a mortgage broker. Loan officers work for different lenders and can only help you get a personal loan from that lender. Brokers can help you get in touch with many different lenders offering many kinds of mortgages.

With this information, it is possible to determine what sort of mortgage you are eligible for or how much money you can put down, such as an FHA mortgage or a lender that accepts low-down-payment loans.

Why Should You Use a Mortgage Broker?

Know-How of the Market

The best approach to guarantee that you receive the best possible bargain on a home purchase or loan refinancing is to work with a broker. Mortgage brokers have a lot of experience in the industry, specifically on investment property, which they can use to help their clients find mortgage solutions.

They also have a good understanding of the current housing and lending markets and the different types of mortgage loans that may be best for different borrowers based on their own needs. This knowledge can be very helpful in getting the best loan for the long term.

Better Interest Rates

Mortgage brokers can also get home loan rates set at the wholesale level. This interest rate can be lower than retail rates, which can save borrowers money over the life of a home loan. Even if a borrower has bad credit or doesn't have much money, lower rates can make the difference between getting a mortgage that they can afford and one that they can't.

Pre-Qualification

Being pre-qualified means that you are likely to get a mortgage up to a certain amount based on your current finances. But the process of pre-qualification can be hard. To get pre-qualified for a home loan, you would have to go to every bank and give them the necessary information and documents if you were doing everything on your own.

If you use a mortgage broker, you might not even have to go to the bank. They'll do the legwork and check to see if you qualify for different home loans. Even better, the process can be done in minutes instead of days.

How to Look for a Mortgage Broker

How do you find a reliable, patient mortgage broker who knows the entire process? The best thing to do is ask people you trust for recommendations or read mortgage broker reviews.

You can also look for local brokers and read customer reviews on online reviews sites like WalletHub, Yelp, and Google Reviews or simply follow these suggestions:

1)    Read online reviews on the web

You can look for a broker on websites like FindAMortgageBroker.com or brokers near you. Check out reviews on Google, Yelp, and other sites to find out how different people felt about a place.

When you look at a review for mortgage broker, make sure to read what people have said about:

  • When things close
  • Loan process success
  • List of property purchase
  • How responsive customer service is

By comparing these, you'll get a better sense of the transparency and helpfulness of each brokerage.

2)    Suggestions from family and friends

Ask your loved ones whether they've ever dealt with a mortgage broker and if they'd suggest them since this is valuable information.

People you know well will tell you honestly if they liked a broker and what their overall experience was like when they worked with them because they gave a fantastic experience on the whole process.

They might also tell you things about the person's professionalism or personality that you won't find in other reviews, but that could have a big impact on your choice.

You should ask them if they felt the broker put their needs first. If a friend or family member says their broker pushed them towards a certain lender or loan option even though the buyer didn't want it, that's a red flag.

You are the borrower, so you should trust that your broker is helping you find the best mortgage lender for your situation and not just looking out for themselves.

3)    Referrals from a real estate agent

Your real estate agent can be a good source of information about a mortgage broker. Your agent probably knows what kind of home and mortgage you want, and they can suggest brokers who work with buyers like you.

They may even have worked with brokers for a long time and be able to give trustworthy advice based on their years of experience. Real estate agents have a personal reason to suggest a good broker. If the broker can't close the loan on time, the sale might not go through, and the agent wouldn't get their commission.

Find a few mortgage brokers who interest you, and talk to each before you decide. Make sure they answer questions about their certifications, how long they've been in business, how much they charge, and how getting a mortgage or refinancing will work with them.

Bottom Line

So, what are the key things to look for when choosing a mortgage broker? We’ve summarized them here.

Keep in mind, though, that this list is not exhaustive, and you should always do your own research before making any decisions. How does this information help you as you search for the best mortgage broker for your needs?

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Financial Guide https://www.accountinghelper.org/accounting_guide/what-you-need-to-know-before-getting-a-mortgage-broker-86402769.shtml https://www.accountinghelper.org/accounting_guide/what-you-need-to-know-before-getting-a-mortgage-broker-86402769.shtml Editor Fri, 01 Jul 2022 02:48:47 -0400
Car Accident Loans in Texas: 5 Aspects to Consider A lot of Texians travel on the roads every day. Many drive their cars, while others commute to work or school. Annually, 3,478 people die in car accidents across Texas.

If you've been injured in a Texas car accident, you may be wondering how you will pay for your medical bills and other expenses. You may be considering taking out a loan to cover these costs.

While car accident loans can be helpful in a time of need, it's essential to understand the conditions of any loan you take out. Here are five things to consider when looking for Texas car accident loans.

  1. The Interest Rate

The interest rate is one of the essential aspects to consider when taking out a car accident loan in Texas. Ensure to shop around and compare rates from different lenders before choosing one.

The interest rate may differ based on various factors:

-The severity of your injuries

-The amount of money you are borrowing

-The length of time you need to repay the loan

-Your credit score

Ask about all fees associated with the loan before signing anything. Any extra fees can add up quickly, so it's important to know what you're getting into before making any decisions.

  1. The Loan Term

Because of the high traffic volume, approximately three out of every 100 drivers in Dallas are involved in car accidents. The average cost of an auto accident is $612. If you cannot work and earn an income because of your injuries, you may need a loan to cover these costs.

The loan term is determined by the severity of your injuries and how long it takes for you to recover. Some lenders will offer loans with terms as short as six months, while others may offer terms of up to five years.

  1. The Fees

Some factors will affect the fees you'll be charged for your car accident loan. The primary factor is the amount of money you borrow. Most companies will charge between 20 and 30% of the total loan amount in fees. So, if you borrow $17,000, you can expect to pay between $3,400 and $5,000 in fees.

The other factor that will affect your expenses is the length of time you take to repay the loan. You'll likely be charged lower fees if you can repay the loan quickly. However, some companies offer discounts for early repayment, so be sure to ask about that.

  1. How the Loan is Repaid

There are different conditions for each loan, but you will only have to repay the loan if you win your case. If you lose your case, you will not be required to repay the loan.

These are called non-recourse lawsuit loans and are only given to people with a robust legal case with a good chance of winning.

  1. What are the Eligibility Criteria for Car Accident Loans in Texas?

The eligibility criteria for Texas car accident loans vary from lender to lender. Some documents include:

-A copy of the police report

-Medical records

-Bills and expenses related to the accident

-Insurance information

-The contact information of any witnesses

To get a better idea of what is required by each lender, it is best to fill out an online form.

Conclusion

Whether you're struggling to pay bills or need help with your medical expenses, a car accident loan can give you financial relief. But before applying for a loan, it's essential to consider all your options and ensure you understand the terms of your loan.

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Financial Guide https://www.accountinghelper.org/accounting_guide/car-accident-loans-in-texas-5-aspects-to-consider-86402768.shtml https://www.accountinghelper.org/accounting_guide/car-accident-loans-in-texas-5-aspects-to-consider-86402768.shtml Editor Thu, 23 Jun 2022 01:01:40 -0400
5 Great Accounting Tips for Lawyers Accounting, as intimidating as it may be, can be of huge importance to a law firm's success.

It's essential in ensuring that your financial statements are accurate and up-to-date, but also in assessing the financial well-being of your firm.

However, legal accounting comes with many challenges that can make your life a nightmare if not handled properly.

Luckily, we’ve got you covered with these 5 great accounting tips for lawyers. Check them out!

1. Stay compliant in your trust accounting management

Trust accounting requires lawyers to keep their client's money in a special trust account, separate from his personal bank account. This is because the money still belongs to the client, even though the lawyer can be given the right to use the money under special circumstances.

For example, a lawyer can use trust money to charge a retainer at the beginning of the representation, distribute settlement money, or when handling real estate transactions. Just make sure to clearly define the purpose with the client.

State bars have strict compliance regulations regarding how much money can be put in and taken out of a lawyer's trust account and for which reasons.

That's why you should reconcile all of your client's funds at the end of the month, to ensure that your trust accounts are audit-ready in case the State Bar randomly selects you for an examination.

Expert tip: abstain from withdrawing the "earned" fees prematurely, even if you intend to pay them back. It's not worth the monetary penalties and potential disbarment.

2. Set a clear budget

At the end of the year, you should do an overview of your law firm's financial aspects. That includes your loans, outstanding debt, interest expenses, annual bar association dues, IT upgrades expenses, etc.

Figure out which of your expenses are mandatory and where you have the space to make some cuts to save money. This will help you have a clearer idea of your cash outflow.

If you want to predict your cash inflow, try monitoring your A/R aging report. This way, you’ll know which outstanding invoices to follow up on and when you can expect your share proceeds.

In the end, create a financial strategy regarding future investments, prioritizing the most realistic and efficient goals.

3. Use a customized legal accounting software

Legal accounting software is a great way of making law firm accounting management easy.

Using customized accounting software, instead of a generic one, can make your accounting process more efficient and effective.

If you have customized accounting software, you can use it for the automatic allocation of revenue as income, in the case when client invoices are only partially paid. Just make sure that your liabilities and expenses are paid first!

But even if you have a generic version of the accounting software, you can use it to issue and change client invoices, split legal fees, pay your staff, track your expenses, handle and reconsolidate separate client trust accounts and so much more.

Besides saving time, using accounting software will allow you to track the overall financial health of your law firm.

How? By assessing various key performance indicators of your law firm, including your average revenue per attorney, employee, the weight of different expenses on your gross revenue and others.

4. Keep your accounting up-to-date

Predictions are pointing towards an incoming recession and falling behind on your accounting records contributes to unnecessary costs that you really don't need right now.

Unless you have a hefty cash reserve, you should perform regular accounting as the consequences of doing the opposite are just not worth the risk.

In Law S&B Law offices, keeping records up-to-date is a tactic used for monitoring of the business progress, identification of the income sources, tracking of the expenses and preparing the financial statements.

Timely accounting ensures accuracy, which can help you create a budget strategy and increase your chances of running a successful business.

5. Track your firm’s revenue by area of practice

Separating your revenue by area of practice has a huge potential in showing your which practice areas you might be overlooking, that may generate you a lot of revenue.

Apart from that, it can also help you identify unprofitable practice areas and types of cases.

By understanding this, you'll be able to make informed and fact-based financial decisions about moving forward with your law practice.

You might also consider different billing depending on the case type. For example, if your law firm is dealing with torts, you might introduce separate billing systems for personal injuries and property damage.

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Accounting Basics https://www.accountinghelper.org/accounting_guide/5-great-accounting-tips-for-lawyers-86402767.shtml https://www.accountinghelper.org/accounting_guide/5-great-accounting-tips-for-lawyers-86402767.shtml Editor Mon, 20 Jun 2022 04:50:45 -0400
Top 5 Accounting Tips for Your Medical Practice Every business needs a sturdy management system to run smoothly, and medical facilities are no exception. But, managing a medical facility is not a walk in the park for professionals trained to treat people. There are many demands that come along.

First, you may need to hire a physician contract lawyer to ensure you’re compliant with the law and then you’ll need a proper accounting system to stay in business. How do you overcome accounting hurdles as a medical practitioner?

This post covers the top 5 accounting tips for your medical practice. They are:

  1. Select your method of accounting
  2. Use cloud-computing accounting software
  3. Schedule your income statement
  4. Maintain separate business and personal accounts
  5. Hire a professional accountant

Let's dive in.

1.     Select Your Method of Accounting

One of the essential practices in accounting for medical practice is defining which method of accounting you want to use. There are two methods available:

  •  Cash accounting
  •  Accrual accounting

Under cash accounting, you record expenses when you pay for them and record receivables when you receive cash. It is common for private-owned health facilities to use this method as it gives the actual cash in hand the facility has.

On the other hand, accrual accounting allows you to record expenses when you incur them and revenues when you earn them. You record expenses and receivables regardless of whether cash has changed hands.

Accrual accounting gives a more accurate status of an organization because it accounts for receivables and payables. Whichever method you choose, ensure you thoroughly understand how to apply it in daily transactions.

2.     Use Cloud-Computing Accounting Software

Are you still using spreadsheets to prepare your financial statements? Then you're missing on the best accounting treat technology has to offer yet. Cloud-based accounting is a secure way of keeping your records centralized and accessible from anywhere.

It reduces paperwork and saves time when you need records for budgeting and forecasting purposes. If you are afraid of cyber threats, you should use a VPN to keep your account secure.

Cloud accounting software updates financial records in real-time, ensuring your accounting balances are accurate and up to date. Examples include:

  •  QuickBooks Online
  •  Xero
  • FreshBooks
  •  Zoho Books
  • Waves

3.     Schedule Your Income Statement

Your primary role as a physician is to keep your patient's records, so you can monitor their health and help them make an improvement. The same should apply to your bookkeeping for healthy financial results. Scheduling your income statement helps you assess whether you are making profits or losses.

You can validate your daily recommendations with an income statement where necessary. In the long run, you'll be able to:

  •  Make better decisions- Preparing an income statement gives you accurate information about how much money you have. It guides you on how much you should spend and invest.
  • Track your profitability- An income statement informs the stakeholders, such as financiers and shareholders, of the state of operations. You can tell when you are making profits or losses.
  •  Stay compliant with the law- Every business has to pay tax to the government. An income statement provides relevant information necessary for tax computation.

4.     Maintain Separate Personal and Business Accounts

One mistake you should avoid is combining your personal income and business income. It complicates the accounting process and presents you as unprofessional. When filing for tax deductions, it’s hard to separate personal and business expenses.

Also, you set yourself up for audit by the Internal Audit Service, which may deny business losses and deductions. To avoid such incidents, maintain two separate accounts and label and adjust all transactions between business and personal accounts.

5.     Hire a Professional Accountant

Keeping proper books of accounting in medical practice can be overwhelming. And because of the high demands of your profession, you may miss out on the details of every transaction. Hiring a professional accountant ensures your books are updated, and you're compliant with obligations.

Are you concerned about incurring the extra cost of maintaining a full-time accountant? You don't have to. You can outsource bookkeeping services at affordable prices.

Wrapping Up

Like any other business, a medical facility should maintain proper books of accounts. Doing so helps you track your financial status and keep improving your performance. With these tips, your accounting process should be seamless.

Image source: pexels.com

Image Link: https://images.pexels.com/photos/210990/pexels-photo-210990.jpeg?cs=srgb&dl=pexels-kuncheek-210990.jpg&fm=jpg

AUTHORED BY:

Naomi Olson [Website TwitterHeadshot]

I am a CFP® (Certified Financial Planner).

I have a severe phobia of bridges and dirty balance sheets.

Hobbies: blogging, meditation, and loving Bull Market (my dog).

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Accounting Basics https://www.accountinghelper.org/accounting_guide/top-5-accounting-tips-for-your-medical-practice-86402766.shtml https://www.accountinghelper.org/accounting_guide/top-5-accounting-tips-for-your-medical-practice-86402766.shtml Editor Thu, 09 Jun 2022 05:10:03 -0400
How are Gambling Winnings Taxed? How are Gambling Winnings Taxed?

You might think that the only thing you’ll lose when gambling is your money – but that’s not entirely true. You’ll also lose some of your cash as tax. While different states have different taxes on gambling winnings, there are generally three types of taxation involved in gambling: Intentional loss, general income, and specific source. When you gamble, you might win a little or a lot. However, no matter how much you win, you must report it as income. The good news is the IRS doesn’t consider gambling to be a hobby; they treat it like any other source of income. Therefore, all winnings must be reported and taxed appropriately. Keep reading to find out more about how the IRS taxes your gambling winnings.

Tax on Gambling Winnings

The first thing to know about taxes on gambling winnings is that the IRS expects you to pay tax on all winnings. You don’t have the option to decide which winnings to report or not. All gambling winnings must be reported on your tax return. Gambling winnings are taxable as ordinary income. This means that you’ll be taxed at your normal income tax rate. For example, if you file as single, your ordinary income tax rate will be between 10 percent and 39.6 percent. Winnings are also subject to state and local taxes. If you live in a state that doesn’t have an income tax, you’ll still have to pay federal taxes on your gambling winnings.

Losses from Gambling are tax-deductible

Gambling can be a risky business. However, you can minimize your losses by using gambling systems such as poker card counting. If you’re really unlucky, you might go through all your money before you have a chance to win anything back. Don’t worry: losing money while gambling is tax-deductible. When you go through all your money and lose, the IRS still considers that gambling winnings. You can, therefore, subtract your losses from the winnings. For example, if you lose $100, but win $300, you can only report $200 as gambling winnings. You’re allowed to deduct your losses, even if they’re more than your winnings.

General Income Tax on Winnings

When you gamble and win, you’re taxed on your winnings as ordinary income. That means that you’ll be taxed at your normal income tax rate. For example, if you file as single, your ordinary income tax rate will be between 10 percent and 39.6 percent. Winning is great, but you’ll have to pay taxes on it. Some people think that they can avoid paying taxes on their winnings by not reporting them. However, the IRS is keenly aware of this tactic. You may be audited if you don’t report your winnings. To minimize the risk of an audit, you should report all your income, including gambling winnings. You don’t need to report the amount of your winnings, just that you won something.

Specific Source Tax on Winnings

Gambling winnings also have a specific source tax. This means that you’re taxed on winnings from specific sources. For example, if you win at the dog track, you must report that win as income from the dog track. If you win from blackjack, you must report the win as income from blackjack. Winnings from specific sources are taxed at a different rate. For example, winnings from blackjack are taxed at the normal income tax rate. Winning from the dog track is taxed at the special rate for gambling. Winning from a specific source is also reported differently. You don’t need to report specific source winnings as income on your tax return. Instead, you report the amount you won on your W2. You also need to list the source of the winnings on your W-2.

Final Words: Is Gambling for Money Still Worth It?

Gambling may be a great way to make money, but it’s a terrible way to save money. When you gamble at casinos, you’ll lose money if you don’t know what you’re doing. Gambling is a risky business and it’s not something that you can do casually. You’re putting your money on the line and there are no guarantees. If you’re really unlucky, you could go through all your money before you have a chance to win anything back. Gambling is fun as a hobby, but it’s a terrible way to make money. You can’t depend on it for a steady income and there’s no way to know how much you’ll win each time. If you want to make money from gambling, you must be willing to lose money in the process.

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Tax Guide https://www.accountinghelper.org/accounting_guide/how-are-gambling-winnings-taxed-86402773.shtml https://www.accountinghelper.org/accounting_guide/how-are-gambling-winnings-taxed-86402773.shtml Editor Wed, 08 Jun 2022 05:59:23 -0400
Are Consumer Proposal Payments Tax Deductible?

There are many different legal ways and methods through which people can save taxes. Some of the most popular measures for saving taxes include investing in municipal bonds, making long-term investments, starting a business, and making maximum contributions to retirement accounts. A consumer proposal is not a tax-deductible instrument that can help you save on taxes. However, it may provide some relief (including relief from tax debt) in certain conditions.

Know More About Consumer Proposals

Consumer proposals are administered by LIT (Licensed Insolvency Trustee) and are a legally binding and formal agreement. The LIT works with the individual/business (the debtor) to develop the proposal, which is essentially the offer to pay the creditors in percentage. The proposal may also be for extending the time duration that is available to a person and debtor for paying off the debts that he or she owes to the creditor. In some cases, the consumer proposals may be agreements involving a percentage repayment as well as a repayment time-duration extension.

The consumer proposals are usually initiated when a business or an individual is near to being bankrupt and does not have enough capacity to repay the debt to the creditors. It can also be a suitable alternative when a person is close to insolvency/bankruptcy. When you are choosing a consumer proposal for debt repayment, you will have to first reach out to the LIT, which is a professional regulated by the government.

These regulated professionals can provide consultation services to both individuals and parties when they face problems related to debt. The LIT will also draft your consumer proposal. The proposal will outline the way the business or individual is going to repay the debt to the creditors. Once the LIT drafts the proposal, it will be sent to the creditors, who may reject or approve it. Creditors get a maximum of 45 days to decide on the proposal. A consumer proposal can be used for a variety of unsecured debts, including credit card debt, lines of credit, collection accounts, and unsecured personal loans. A secure debt like a mortgage or car loan cannot be resolved based on a consumer proposal.

Are Consumer Proposals Tax Deductible?

An individual may not gain any tax deduction based on the filing of a consumer proposal. It is not associated with taxes in any way. However, most of your income details will be included in a consumer proposal and will have the same priority as the other debts. When a consumer proposal is filed, the proceedings stay. Therefore, the creditors cannot take a collection action after you file a consumer proposal. But taxes are not the same as, say, charitable contributions, which are tax-deductible.

A consumer proposal can offer you relief when you have an income tax debt while not possessing the ability to repay the money due to consumer debts. A debtor can use a consumer proposal to repay the money (including tax debt) at more reasonable/favourable terms by using the proposal. However, you must file your tax returns before you can file a consumer proposal. If it is not done, the regulatory standards do not permit you to get out of your taxes.

Acceptance & Refusal of Consumer Proposal

 If your proposal is accepted, you will have to repay the debt in the form of periodic payments or lump sum amounts in the timeframes outlined by the proposal and agreement. The debtor will also have to fulfill the other conditions of the proposal. However, the debtors can retain their assets. They may have to undergo two sessions of financial counselling. The debtor may also make changes to the consumer proposal and submit it again if it is not accepted by the creditors initially. If nothing works out, bankruptcy has to be declared.

The debtor will be released from all the debt if he/she meets the repayment conditions of the consumer proposal entirely. The proposal will be annulled in cases when the debtor misses on 3 payments or when the payment schedule does not follow the proposal conditions of a consumer proposal.

Most of the consumer proposals are based on a lesser amount than the original credit. Many of the creditors may agree to the consumer proposals as they will be able to receive money on a more regular schedule. It is a better option for them when compared to receiving no money at all. However, the consumer proposal and the repayments are not tax-deductible. Taxes are levied on your income, and the two are not connected in any way. However, consumer proposals may provide you relief in cases when you are struggling with your tax debt.

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Tax Guide https://www.accountinghelper.org/accounting_guide/are-consumer-proposal-payments-tax-deductible-86402765.shtml https://www.accountinghelper.org/accounting_guide/are-consumer-proposal-payments-tax-deductible-86402765.shtml Editor Sat, 04 Jun 2022 23:00:21 -0400
5 Ways to Keep Costs Under Control As Your Business Scales Growing a business isn’t as simple as launching a high-ticket product and placing vague estimates around costs. With the rising cost of goods and services and instability in the labor market, it’s challenging to pinpoint where expenses will land.

But it’s possible and oh so necessary.

Inflation isn’t dropping anytime soon, so it’s unclear where things will stand. But, not managing your costs can be the difference between going under financially and finally scaling your company. So don’t worry; below are ways to reduce business spending roadblocks that stand in your way and achieve projected growth.

Automate Your Accounts Payable

Say you’ve been managing accounts payable manually for some time. Your mountains of spreadsheets manage payroll, vendor payments, and inventory. But somehow, your team found themselves in a deficit and unable to pay your vendor for the consecutive months.

Now that you know how much “in the red” your business is, you try to pinpoint where the money went. Accounting can’t come up with a straight answer because your employees have been scanning several different spreadsheets.

Before you call yourself in, you decide to get everyone on the same page (pun intended). You’re frustrated that your company hasn’t been accurately managing expenses because of multiple touchpoints.

Don’t throw in the towel yet. The solution to your problem isn’t more meetings or covering extra action items. Instead, your business could be lacking steady automation that could simplify invoicing. 

Finding the right automation service is a no-frills alternative to unnecessary meetings, paperwork, and headaches. This service should have integrations that connect your team's documents and work well with your programs. With the right tool in place, you can stop throwing money out because of the slog and unpredictability of handling accounts payable manually and invest more money in your business.

Streamline Your Thinking About Important Business Functions

Your company has been using a popular internal software to onboard new hires for the last few months, and the process has been a breeze. However, months into using this new software, you’re aware of the initial costs of purchasing this product, but you haven’t calculated how much it will cost you over the long haul.

One thing is for sure: you know that this software has onboarded new hires, organized their paperwork, and saved your company considerably. As a result, sales have doubled, and profits are through the roof.

However, you’re uneasy because you don’t know how much revenue the new installment will potentially cost across its lifetime. So you could continue to ignore the future expenses related to new developments and features.

Or you could calculate the money that your company will use as an asset.

Deciding to classify it as an asset instead of an expense gives you the advantage of seeing how much money will come out of your pocket. With every upgrade, you’ll see how much money you’ll spend using the lens of depreciation and amortization.

Using a time tracking system is a great way to understand how the time your team is spending on the resources being expended and if that can be made more efficient.

Use SEO to Eliminate Big Ad Spends

When people search for their next favorite restaurant, they often turn to the “almighty" Google. They see the five stars, the glowing reviews, and human pictures, and now they’ve won a potential new customer.

And they’ve saved a ton of money using organic search. The ad industry is not only competitive but extremely expensive. This year alone, companies expect to shell out around $566 billion to attract more customers to the business.

Fortunately, restaurants (like other businesses) don’t have to secure dependency on paid search when organic search is at their fingertips.

With some research and help from an SEO specialist, your restaurant can rank well on Google like Red Lobster, McDonald’s, and P.F. Changs do. 

The only catch is that instead of money directed at advertising, you’re getting people to discover you and conduct business. In other words:

SEO - Ad Spends = Cost Control

Control Spending Creep

Even your best employees could fall prey to sketchy overspending streaks. For example, if they’re using business for a marketing campaign, but you found a trail of Starbucks charges, you could cut down the cost by setting firm limits.

Before you have to print out the bank statement of project spending, you should begin with planning. First, consider what materials are genuinely needed (like inventory, vendor charges, software development, etc.) and what items are luxuries rather than necessities.

Next, start brainstorming what the cost will look like? But, again, this isn’t the point where you land on an exact figure, just an approximate number.

When you finally arrive at the budgeting stage, you can start to position every dollar in its proper place. Instead of relying on heavy spreadsheets to manage your budget, you could issue your team a business card. The beauty of having an expense card to control costs is that every spend will be a click away when it comes time to monitor expenses. Having a database of spending and fees comes in handy when looking to manage individual employee expenses.

Use Data to Predict Expenses

If you haven’t taken a peek at your data, you might not understand your spending trends. We're not just talking about the vendor updates, the inventory, or the payroll that’s to be expected. 

You could be losing money by miscalculating how much a product costs, relying on paper receipts, and failing to incorporate travel and products into total costs.

And we understand. It’s not fun to input every expense line-by-line into a spreadsheet, gather data around those expenses, and make the change.

By the time you’ve done all of those steps, I’m sure another spend has occurred, which has added a couple more zeros to your budget.

But, you can make your life a lot easier by gathering information about your expenses even before it happens. Imagine having an easy-to-understand dashboard that shows you every increase in spending with full access to your reports at your fingertips. With that tool available, it’s much easier to pull back data that helps you predict fluctuations in revenue and better control costs.

In Conclusion

Business spending, much like today's economy, has become quite unpredictable. With the rising cost of goods and services and the shifting labor market, it’s unclear what your company will expect moving forward. However, if you find yourself consistently over budget and wondering where you can reduce costs, you’ve come to the right place. We hope you get a clearer picture of where your money is going so you can cut costs and considerably scale.

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Financial Guide https://www.accountinghelper.org/accounting_guide/5-ways-to-keep-costs-under-control-as-your-business-scales-86402764.shtml https://www.accountinghelper.org/accounting_guide/5-ways-to-keep-costs-under-control-as-your-business-scales-86402764.shtml Editor Wed, 25 May 2022 23:33:45 -0400
How to Plan Your Retirement Years Nowadays, people are increasingly aware of how important it is to carefully plan their retirement years. This does not only mean planning life from an economic point of view, but also asking yourself some important questions regarding the future. “Will I be able to retire at 55?”, “how much do I need to deposit every month to get a significant income in the future?”, “how much pension will I get?”: these are the most common questions people ask themselves frequently.

The first step to better planning your retirement is to understand what a pension is. A pension is nothing more than a long-term plan designed to provide you with an income that you can live on when you stop working. By starting to set aside money for your retirement years, you are simply investing in your future and in the future of your loved ones to try to ensure an economically stable life. You should also have a small fund to handle any emergencies that may happen in life. Depending on the pension plan you choose, your employer (if you are an employee) and the government will contribute to your future as well by applying tax relief. In fact, in the United Kingdom all employers are required to deposit a minimum amount every month to contribute to their employee’s future. But there’s also a pension scheme designed for independent workers that lets them decide how much and how often to deposit on the fund. Whichever retirement scheme you decide to open, you’ll always be able to enjoy many tax and contribution benefits. Let’s have a closer look on this matter.

Pensions in the UK: how do they work?

Let’s see how the most common pension schemes available in the United Kingdom work. Even though every single one of them has been specifically designed to meet the needs of certain categories of people, all pension schemes comply to some common rules. For instance, you will always be able to rely on the government’s contribution to your future, which, in any case, will apply tax relief. Another important thing you should keep in mind before opening a pension fund, is that you won’t be able to access your savings until you reach the retirement age. This rule has been set to delete the temptation to withdraw money before the time and to grant you a significant income when you stop working. Nowadays, the retirement age is set at 55 years old for personal pension and workplace pension. On the contrary, for the state pension, your retirement age will be set at 66. You should also never forget that, when putting money on a retirement fund, the pension provider will be investing it. This will give it of course money the chance to grow, but will also put it at constant risk. As a matter of fact, all investments are risky and subject to the market’s constant ups and downs, so the chance to get less than you expected is always around the corner.

How does retirement planning work?

Once you know how pensions work, it’s time to investigate your life and financial goals. This is a crucial part of the whole process, because it makes you aware of what your ambitions for the future are. Most people open a pension scheme without asking themselves where will they want to live when they stop working, if their children will need financial help, if they will want to buy a new house, or move to another country. These are all important questions to ask yourself before opening a pension fund: identifying your life goals is crucial to build a stable and peaceful life for when you stop working.

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Financial Guide https://www.accountinghelper.org/accounting_guide/how-to-plan-your-retirement-years-86402763.shtml https://www.accountinghelper.org/accounting_guide/how-to-plan-your-retirement-years-86402763.shtml Editor Thu, 12 May 2022 04:00:09 -0400
Everything You Need to be Aware of About E-Commerce Accounting Trying to do your own accounting is a task that gets complicated very fast. If you've ever tried doing it, you'll be aware that e-commerce accounting has its challenges. Now it is important to hire an accounting firm that specializes in e-Commerce and will help you minimize your tax bill. Undoubtedly eCommerce has a long cash flow cycle when compared to other industries. It is because the flow of inventory and cash is indirect to both the customer and the seller.   

Running your venture is fun and exciting, but it can also be quite overwhelming. Financing is one of the important aspects of your business which is definitely not fun which is why you need eCommerce accountants to deal with it. Though doing finance is stressful and challenging at the same time, it is one of the 

More About E-Commerce Accounting and Bookkeeping

E-commerce accounting and bookkeeping are altogether new for businesses aiming to gain new customers and engage them to be long-term clients. Thus, there are a plethora of things that go into it to provide the assurance accountants, and bookkeepers know their way right into customer engagement. Well, this might seem to be a complicated task, but it is quite simple with all the right tips. And when you know about the issues, it becomes even easier. Let's learn more about E-Commerce accounting and bookkeeping services and how to do them correctly? Keep reading!

The Future Vision 

Accrual accounting (in contrast to cash-based accounting – extra on that here) is critical for getting a comprehensive image of your books. Because inventory and cash flow are external to both the buyer and the seller, e-commerce has a very extended cash flow loop relative to most sectors.

E-commerce data is challenging to create clean accrual-based accounts because of its complexity. There are numerous more areas that e-commerce demands you to consider in addition to the conventional statistics inventory-related, cash, and overhead.

Parting Payments 

Amazon payments arrive every two weeks on average, although each deposit includes several weeks of sales, returns, reimbursements, and fees owing to those mentioned above extremely lengthy cash cycles.

It is critical that these donations are divided in a manner that enables you to classify each trade into the period it happened – which is not always the month wherein you accepted the deposit – in order to appropriately reconcile your accounts month over month.

There are various software tools that handle this problem (see our evaluation of A2X), but parsing out these deposits correctly still requires a while and the sharp eye of a trained accountant.

Managing Inventory Right 

The accounting for inventory at brick-and-mortar businesses is usually quite straightforward: amazon seller accountant can glance around at what's in stock and add anything held in a backroom or maybe a secondary storehouse. Also, it combines the purchase cost with the cost of resources used to produce or obtain the things.

On top of these expenses, e-commerce vendors must account for shipping, storage, taxes, customs, and any other additional expenses connected with making sales. COGS, or Costs of Products Sold, are the costs that make e-commerce bookkeeping more difficult than it does for a traditional vendor.

Your e-commerce CPA will be able to maintain track of your stock holding account — a line item that compensates for merchandise that has been acquired but not yet delivered to a customer. In addition to determining which expenditures to include as Moving parts on your P&L statement.

Advertising 

Advertising is a part of any business, but e-commerce enterprises typically advertise across several media. Amazon advertising may consume a large percentage of a seller's budget. Many sellers also spend on PPC (pay-per-click) advertisements, SEO tools, email, social networks, and affiliate marketing to improve the effectiveness of their ads.

Advertising is usually part of an e-commerce P&L. Create a post-advertising gross (PAG) way of calculating your monthly earnings relative to your advertising costs. Furthermore, which offers you a clearer view of how much money you'll truly take home month after month.

Overhead

Overhead refers to any aspects of your business that aren't directly linked to your products. Salaries, space leasing charges, office equipment, technology and utility subscriptions, and security expenditures are all included.

Website hosting, shipping charges, inventory management systems, storage costs, transactional service charges from payment systems, and computer security and VPN memberships are all part of an e-commerce company's overhead.

What Are Some Minimal E-Commerce Expenses? 

Aside from the aforementioned concerns, e-commerce companies must also cope with a few more areas that contribute to data complexity.

  • For both sellers and accountants, the e-commerce tax rate is a big source of uncertainty. E-commerce enterprises deal with an even more complicated tax issue that often changes based on the state in which the consumer lives, whereas brick-and-mortar retailers simply cope with sales tax in the area they're selling. More information regarding state taxes for e-commerce businesses may be found here.
  • Inventory finance loans, through both Amazon and other lenders, are a common occurrence for e-commerce entrepreneurs. These loans generate a continuous line of credit, which makes accounting even more difficult.
  • Accounts Payable is a difficult task. Payable keeps track of short-term financial commitments, and e-commerce vendors may have many loans due at the same time. This adds to the accountant's workload, as money going in and out of the account can have a significant impact on whether or not a firm seems profitable at any particular time.

How to Optimize Business For Outsourcing? 

Depending on your brand's strategy and demands, it may sound right to outsource the entire arm or just a piece of the management and operation. Any duties that overburden your in-house team or divert your attention away from your main mission may and should be delegated to someone with experience and understanding in that field. You can outsource the following e-commerce functions:

Order Processing and Fulfillment

The top two aspects of a successful online retail experience are fast shipment and a simple delivery process. Businesses must figure out how to handle rising order volume while retaining customer happiness.

Order fulfillment and processing, in practice, demand large investments in warehouses, shipping logistics, and other associated systems. The proper outsourcing partners do have the systems in place to manage all of these responsibilities for you, and they can help you avoid the financial strain of doing it alone.

Product Listing and Catalog Management

When potential customers go online to shop, the first thing they see is your collection page and product listings. Each element implicated in the title, picture, and description—must be carefully created to entice, inform, and encourage clients to make a purchase. With the rise of smart speakers, these postings must also be optimized for voice search.

Approximately 42% of e-commerce businesses provide insufficient information about the product in their item portfolios, making it hard for buyers to decide whether a price is good. You can guarantee that your web catalog is comprehensive, well-written, & search-engine-friendly by delegating product page optimization and catalog maintenance.

Customer Service

Excellent customer service is a strategic edge. It generates positive comments and testimonials, which helps to raise brand recognition and extend your customer base. Half of the struggle for your eCommerce business's success is providing high-quality items. The remainder is handled by the customer service staff. Angry clients may air their grievances in public, perhaps costing you money over the long term. Customer service outsourcing has been found to lower the number of unhappy customers and negative comments.

People read and trust reviews to find out how happy other consumers were with a service or product. According to statistics, if a consumer has a terrible experience, more than half of them would stop buying from that company. Client service outsourcing mitigates these risks while also enhancing customer loyalty.

Businesses that outsource customer service may respond to customer issues, fix problems, and gather feedback from consumers with exceptional care and consistency. To effectively serve an overseas client base, outsourced customer service personnel may work outside of usual business hours.

Accounting and Bookkeeping

Financial records & bookkeeping are necessary for any firm to operate. Regular monitoring of your income and costs is critical for discovering chances for development and avoiding possible problems. However, corporate financial management needs a high degree of knowledge.

Exporting your bookkeeping and accounting reduces the chance of human mistakes and guarantees that your business' funds are in order. You may also be confident that your business follows all financial and tax requirements.

Free Cash Flow: Aiding the Needs of Modern Business With Bookkeeping Services 

Ecommerce accountants do need to go through a lot of struggles for the businesses of their clients. Thus, one of those is the bookkeeping services. Well, you would also want to get help from the best one in the business. At Free Cash Flow, you can avail the finest accounting and bookkeeping services without any fuss. Our experienced professionals carry extensive knowledge in providing top-notch solutions to customers. For more, get along to our website now!

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Accounting Basics https://www.accountinghelper.org/accounting_guide/everything-you-need-to-be-aware-of-about-e-commerce-accounting-86402762.shtml https://www.accountinghelper.org/accounting_guide/everything-you-need-to-be-aware-of-about-e-commerce-accounting-86402762.shtml Editor Thu, 28 Apr 2022 09:52:42 -0400