Tag: Accountant (page 1 of 2)

When Should You Consult an Accountant for Tax Help?

When people are making plans to file their taxes, they may discover that there is a need for an accountant to help them complete the forms. Those who are uncomfortable with filing should seek an accountant that can help them make sense of the tax rules and what they need to do to file before the deadline. Unusual circumstances, such as changes in marital status and career, may call for additional assistance. In such instances, accountants are a taxpayer’s best friend.

Amended Taxes

Inevitably each year, taxpayers file erroneous forms. There may be mistakes and letters from the IRS that indicate that there is income that has not been accounted for, an incredibly stressful situation for everyone involved. If you’ve dealt with erroneous forms in the past, or if you’ve received notice from the IRS that this year’s submissions contain errors, seek out an accountant to help you readjust and refile. 

Owing Taxes

Anyone who owes taxes can benefit from involving an accountant in the process. After all, taxpayers may take the standard deduction when they could owe less or no money at all, all because they’re unsure how to itemize deductions. It’s an involved process, one that requires an expert eye. For this reason, professional accountants are there to help; by pointing out any overlooked itemized deductions, accountants can provide a better understanding of the deduction process.

Change of Status

Plenty of things can change in a year, not the least of which is household status. A single person that files as head of household may be unaware of changes in deductions when they get married. If you’re unsure about the best way to file taxes when your marital status changes, consider working alongside an accountant. 

First Time Tax Preparation

Filing taxes for the first time can be a confusing process. With all of the paperwork and math required for each form, it’s common for people to struggle to wrap their heads around everything. This situation is precisely what accountants handle regularly. Accountants want to help everyone ensure that all guidelines are followed and numbers are accurate. To pay taxes by the deadline, new taxpayers should schedule early consultations with local accountants. 

Four Easy Ways to Budget This Month

For some, creating and sticking to a budget is a simple task. For others, it’s a strenuous and seemingly impossible task. The temptation to eat out, splurge on clothes, and throw caution and cash to the wind can be huge, so it’s essential to find ways to stay on track. Here are four ways to create a budget that works and stick to it.

Meal Prep

In addition to various forms of outside entertainment, eating out is a considerable expense. Since most restaurants mark food up—sometimes as much as 300 percent—the only sure-fire way to save money on food is to cook meals at home. However, this is a lot more time-consuming and can be difficult for those without much cooking experience.

Take the time to plan meals, including the cost of ingredients, for at least a week’s worth of meals. Also, include the costs of snacks as well. One way to save on food is to buy in bulk. Look for items that can be purchased in larger quantities and divide up for later.

Set Up Autopay

Another way to stick to a budget is by setting up autopay. Instead of having to pay bills and charges every month manually, autopay lets budget-setters know what they pay and when. The same concept can also help track savings. Just have a set amount of money transferred each month into a savings account.

When it comes to paying utilities, look into budget billing. Customers pay a set amount for power and water. After a set time frame, they’re either refunded the difference or charged for any overages.

Entertain at Home

Simply put, going out is expensive. Everything from grabbing drinks to seeing a movie is expensive these days. Instead of breaking the budget, invite friends over and find ways to create a social atmosphere at home. Cocktails made at home cost half the price when ordered out. The same holds true for take-out. If your group wants pizza and a movie, rent a flick and make homemade pizza.

Track Success

Tracking success is a great motivator, so make sure you keep track of how much money you’ve saved over the month. After seeing positive results, you may feel even more motivated to stick to their budgets.

With a little planning, creating and sticking to a budget is easy. Since everyone has different needs, never compare budget planning. Finally, make sure that the budget isn’t so rigid that it’s impossible to follow. Just be sure to leave some wiggle room for the occasional splurge.

Where to Get a Loan Besides the Bank

When it comes to expenses, money can be a point of contention. With the cost of living and the need for appliances and machines on the rise, it’s not always easy for people to come out of expenditures with money in their pockets. For this reason, people often resort to loans to help keep themselves and their families afloat. While many people go straight to their local bank to take out a loan, there are other options that are not considered or even well-known. These are some of those lesser-known places to acquire loans.

A Credit Union

Acquiring a loan from a credit union is sometimes considered a better alternative to getting one from a bank. Credit unions can offer recipients lower fees and interest rates than a bank, which makes paying back the loan a lot easier on the wallet. However, there is a slight drawback to using a credit union. In order to qualify for a loan, people must be a member and meet their requirements. If you’re a member of a credit union such as Members 1st or PSECU, give customer service a call to learn more about how to qualify and what loans are offered.

A Payday Lender

A payday loan is a type of short-term loan amounting to, at most, $500. Often, these loans are taken out to cover unexpected expenses and late bills. Applying for one of these loans is simple; all you have to do is apply online or at a payday loan facility. 

While these loans are helpful in the short-term, there are a few drawbacks. To start, these loans must be paid back as soon as the recipient gets their next paycheck. Secondly, payday loans can be very expensive in terms of fees and interest. If the loan is not paid by the due date, the lender might extend it, but at the cost of tacking on additional fees. Think carefully about whether or not your situation calls for a payday loan.

A Pawnshop

There is one massive difference that pawnshop loans have over others; the shop won’t check credit scores or require an application. A pawnshop loan works like this; you take an item such as jewelry or an electronic to a pawn shop. Should the pawnbroker be interested in the item, they’ll offer a loan.

How much the recipient will receive varies on the overall value of what’s being pawned. Pawnshop loans are a great way to get money quickly, but this speed comes at the cost of substantially high interest rates. Extra fees may also be included, depending on the pawnshop.

Loans may be a surefire way of obtaining money, but they are a huge responsibility. It’s important that people consider all the factors of taking out and paying off a loan before making the investment. 

The Best Personal Finance Software

In the world of personal finance, there are some software programs that stand out from the rest. These programs make it much easier to manage budget and track spending within your household. If you’re looking for software to manage your personal finance, these are the programs you should check out.

Quick Books

If there is one program that has continued to stand out over the years when it comes to personal finance, it is QuickBooks. This software has become the cornerstone of personal financing for people who want to keep up with their household spending. The program allows people to set budgets and get running totals for their spending during the month. Users can see how much they deviate from the budget each month, and plan accordingly to save more in the next month. QuickBooks even offers the ability to compare previous years and see if a user’s spending has increased or decreased. With quick references and an easy budgeting interface, this is a great program for users who don’t want tons of fancy features.

Microsoft Money

Another program that stands out amongst personal finance software is Microsoft Money. This is a program that tends to work well for those that have already utilized Microsoft Excel spreadsheets over the years. Users have the ability to create formulas, track their spending, and create easy-to-manage documents.

The ability to add different categories of expenses becomes much easier with a program like Microsoft Money. It has a user-friendly interface that makes it easy for people that are not computer savvy to create documents of their personal finances. This program tends to be one of the favorites for people that like to create documents that can be saved in different formats. These documents can be exported to Excel spreadsheet or saved as PDF files, offering plenty of versatility depending on a user’s needs.

Mint

In the growing age of portable personal finance software, Mint is the finance tool that has gained a lot of attention with the younger crowd. Mint has offered the millennial generation a viable personal finance program that gives them access to an online platform that is not limited to their personal computers.

Mint users have the ability to add their credit and debit cards to track purchases without manually typing in everything that they buy. The Mint app for smartphones allows users to access their financial budgets whenever and wherever they want. 

The Differences Between CFAs and CPAs

CFAs and CPAs may sound like the same thing, but their responsibilities differ. For people who are not familiar with the financial and investment industries, the differences between the two may not be that clear. While CFAs and CPAs are both financial professionals, these individuals travel along different educational and professional paths. 

What is a CFA?

A CFA, or chartered financial analyst, analyzes financial reports. Such reports include financial statements revolving around wealth planning and mutual and hedge funds. 

The job of a CFA, or a chartered financial analyst, is to analyze financial reports. These financial reports include financial statements that revolve around wealth planning and mutual and hedge funds. Typically, CFAs find employment with investment management companies, equity firms, and organizations that navigate mutual and hedge funds. In addition, CFAs can work with individuals to plan personal finances and offer advice on investing. 

The path to becoming a CFA involves a slew of experience, including four years of some mix of professional and educational experience. Typically, a bachelor’s degree or four years of professional experience are valid for becoming a CFA, and precede a triumvirate of exams to earn the CFA designation. Such a designation is awarded by the non-profit organization known as the CFA institute. This global organization lays out standards of professionalism and ethics in the investment industry. 

What is a CPA?

A CPA, or certified public accountant, is an individual who has passed the Uniform Certified Public Accountant Examination. The exam is given by the American Institute of Certified Public Accountants. Professionals must also meet their state’s requirements in order to be allowed into the ranks of the Institute.

The job of a CPA is to audit and put together the financial reports that CFAs analyze. They are involved with audits, accounting and taxes; specifically, CPAs keep track of the business dealings of the individuals and companies for whom they work. In addition to putting together this documentation, CPAs also file and officially report them. Outside of formal reports, CPAs are able to give advice about how to pay as little taxes and possible and how to profit as much as possible.

In conclusion, these are the differences between CPAs and CFAs. CFAs are involved in the analysis of financial reports, while CPAs create those reports. They are two very different types of professionals involved in finance that commonly get confused. However, knowing the differences can help you make better decisions when you need financial planning help!

Common Financial Mistakes Many People Make

Common Financial Mistakes Many People Make

Rarely, does someone have a perfect financial history.  Mistakes in finance are common and it’s likely that most people have experienced them at one point or another.  The important thing is to figure out how to correct them, as they can tend to pile up and create somewhat of financial hardship.  However, don’t panic; with the right tools, you can easily change your financial habits. The following tips are a great guide and provide insight into the many financial mistakes people tend to make.

Too Many Monthly Payments

You may not realize it, but your monthly payments tend to add up, quickly.  Many people are seeking the “better” things in life, so they’re willing to tack on monthly finance payments to acquire the things they desire.  And while the monthly payments may not seem like a big hit at the time, the more you have, the more they tend to add up. Additionally, it’s not uncommon for people to have monthly payments that are more on the unnecessary side.  Consider the gym, for example. While for some, a gym membership is a great investment, for others, it may just be a monthly bill that isn’t regularly utilized.  Consider where your bills each month are going, and see which ones are actually necessary.

High Credit Balances

While credit cards may seem like a great way to get what you need, without having to see your bank account take an immediate hit, they can do more harm than good if they aren’t used properly.  Think of a credit card as borrowed money; money that needs to be paid back, and should be paid back in full to avoid any further charges like interest and late fees. The days of cash only are gone for many people, as credit cards are a regular part of today’s society.  Utilize your credit cards to purchases that you know you’ll be able to pay in full and avoid using them for everyday purchases that will increase your balance quickly.

Failing to Set a Monthly Budget

Budgeting your expenses on a monthly basis is a great financial habit to have; however, many people neglect to do this.  Without a budget, you’re freely spending your money without keeping track of where it’s going. By the end of the month, you’re left wondering where your paychecks have gone and why you aren’t able to contribute anything to your savings account.  

Falling Behind on Bills and Payments

Making late payments is an unfortunate, but common habit for many individuals.  Late payments can hurt your financial health in that you will likely get hit with late charges and increased interest payments.  Additionally, late payments can affect your overall credit score and lower it by a few points. Once this cycle starts, it can be hard to correct and break.  

Great Ways to Boost Your Credit

Great Ways to Boost Your Credit

 

One of the many ways we are “defined” by society, is by our credit score and history.  Your credit information has a very significant impact on not only your personal finances but also a majority of your life and different events you may experiences, such as buying your first home.  The first step in credit management is establishing your credit score. Once this is done, it’s important to remember that you’ll want to continue to build your credit up in various ways; you can do this by gradually making small credit charges or larger transactions such as financing or leasing your first vehicle.  Always remember that any credit charges you make need to be paid back within a specific period of time, and late payments can negatively impact your score, as well as result in late charges and higher interest payments. Here are some great tips for boosting your credit:

Make Payments On-Time

Whenever you make a credit charge, you should keep the payment due date noted somewhere where it will help you remember.  Credit cards are a great tool for boosting your credit when they are used properly; however, they can do more harm than good when they aren’t managed correctly.  Any credit card charges you make should always be paid on early or on time. This will give you a good rapport with the credit company, as well as boost your score.  You’ll also avoid any late charges, and you’ll have a better chance of getting future credit cards and other purchases with low-interest rates.

Avoid Making Minimum Payments

While minimum payments are an option that you’ll usually see when you’re making a payment, it’s best to pay your bills in full if you can.  Minimum payments tend to extend your payback period, as you’ll incur interest that can sometimes make a minimum payment useless. Do your best to make any payments in full.  If you’re unable to make them in full, try to pay back well over the minimum, to tackle the balance the best you can.

Address Any Late Bills or Payments

Late bills or payments can happen sometimes.  As humans, we forget, and it isn’t uncommon. You may have changed bank accounts or hit a financial hardship that caused you to get set back on some payments.  If that’s the case, once you’re in a better financial position, work on getting any late payments or bills settled as quickly as possible. This will help bring your credit score back up if it’s taken a hit recently.

Essential Saving Tips for First Time Home Buyers

Essential Saving Tips for First Time Home Buyers

 

Buying a home is a process that can often take a substantial amount of time, and cost a lot of money.  As a new homeowner, it’s wise to expect a number of expenses, in addition to your mortgage and taxes. From closing costs to renovations and new furniture, buying your first home can prove to be quite costly.  If you want to make sure you budget properly, and remain in control of your finances throughout the home buying process, here are a few solid tips to follow.

Home Repairs

Unless you’re buying a brand new home, you will likely be faced with a few repairs; if you’re in a fixer-upper situation, your repairs could run you thousands.  Older homes face tremendous wear and tear, and you’ll need to spend on different materials and tools to make fixes are or completely replace something. Having a separate budget after closing costs is a great way to ensure that you’ll have the right amount of funds to cover any necessary repairs or renovations. As time goes on, you can use your budget to focus on other things you may want to change in your new home.

Maintenance

Property upkeep is another financial factor to consider when purchasing your first home.  You’ll need to set aside money throughout the year to save for general maintenance. Exterior projects such as lawn and landscaping, or interior projects like painting or purchasing new appliances, to mention a few.  

HOA Fees

Depending on where you decide to buy your home, you may need to factor Home Owners Association fees, into your budget.  HOA fees can potentially add a few hundred dollars to your monthly expenses, in addition to your mortgage and other utility bills.  Additionally, it is wise to consider other expenses, like homeowners insurance; which is sometimes required as a first time home buyer or buyers that are using an FHA loan.  Never forget to factor in your property tax; depending on your location your property tax cost could vary.

Emergency Fund

Creating an emergency fund is essential when owning a home.  It isn’t uncommon for an unexpected expense to come up that may require immediate payment.  Plan ahead for things like this, and assure that you can handle a financial emergency. Contribute a percentage of your pack check every month into a separate fund that you don’t use unless you absolutely need to.  

4 Ways to Make Money During Your Morning Commute

It’s normal to dread your morning commute as you spend time in traffic before arriving at the office for a long day of work. Although it may seem like a waste of time sitting on the bus or train, there are ways that you can earn extra money before arriving at the workplace. If you want to make cash during your commute, there are a few different methods to consider to occupy your time each morning.

Sell Items on eBay

Selling items on eBay.com or Amazon.com is an excellent way to supplement your income and enjoy a fun hobby. You can create a seller’s account and list items that are sitting in your attic or that you find at yard sales. Drop shipping is also available where you purchase items for lower prices on other websites and list them for a higher price. Drop shipping is convenient because you don’t have to worry about having the items in your possession and manually shipping everything.

Sell Your Handmade Goods

Whether you enjoy making knitted scarves or jewelry items, you can sell your handmade goods on Etsy.com without worrying about having to get a business license. Take high-quality photos of each product and write a thorough description that engages the reader to attract more customers.

Write

If you’re good with words, you can make extra cash by writing articles and selling them to clients online. Creating your own blog is also a great way to earn money by attracting traffic to your website when you write posts based on topics that you enjoy and are knowledgable about, which can include cooking or fashion. You can integrate SEO tools to increase your ranking on search engines and make it easier for people to find your blog online.

Take Surveys

According to lovemoney.com, many websites offer gift cards and cash to individuals who take surveys. The websites will also pay you to watch commercials and ads. Each activity that you perform will allow you to earn points, which can be redeemed for money over a period of time. You can use the money to save for an upcoming trip or use for Christmas gifts, which can allow more wiggle room in your budget for your daily expenses.

Tips for Saving Money While Traveling Abroad

Traveling abroad is an ideal way to become more culturally sensitive and aware. At any stage of life, traveling abroad allows you to gain skills and experience that can benefit you professionally. The only downside to traveling abroad is that it may prove to be quite expensive. Here are some tips to help you save money while traveling abroad:
Credit Card

The first tip is to make sure that you have a credit card that is going to be able to be used in a foreign country. You are going to need to do some research before you do any traveling internationally since some credit cards offer better benefits than others. Be sure to look at the fine print to see if you will be charged a foreign currency transaction fee.

Contact the credit card company

Next, make sure that you inform the credit card company with all of the dates that you are going to be traveling abroad. This is going to need to be done at least a week before you travel. There is a high chance the credit card company will assume the international purchases are fraudulent and will freeze the account if they are unaware of your travel plans.

Travelers’ check

An often neglected tip is obtaining a travelers’ check. These can offer you a bit more of security if your credit card cannot be used in the foreign country or if your credit card is stolen.

Local Currency

Save some money by exchanging your cash into the local currency as soon as your arrive instead of doing it at the airport. Most airports  have a lo of different fees that they are going to charge you.

References

The final tip to saving money when you travel abroad is to make sure that you have created a reference list of the credit card companies. This should include all of their phone numbers.

Stay tuned for more personal finance tips.
Safe travels!