Tag: Accounting

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.

6 Tips for Saving Money

When it comes to saving money, Americans are notoriously bad. Last month CNN reported that “nearly six in 10 Americans don’t have enough savings to cover a $500 or $1,000 unplanned expense” (Vasel). If you are one of the six Americans that CNN is referring to, then you’ll find the below tips useful.

Track the Money You Spend

You can’t save money if you’re not sure how much you spend each month. Every time you buy something make sure you get a receipt. Then at the end of the month tally up all of your expenses. If you’re comfortable with online tools, Mint is one of the easiest ways to track everything in one location. Tracking your expenses will show you where you spend the most money. If you find that you spend too much money on entertainment each month, then you might need to rethink your spending habits.

Plan a Budget

After tracking your expenses for a couple of months, you can create a monthly budget. This budget will help prevent you from overspending. Once you have a budget you’ll be better able to make spending decisions each month.

Start Saving

You should include a savings category as part of your budget. Saving 10-15% of your income each month is a good starting point. If you find that percentage to be too high, you might need to take a second look at your expenses. Think about cutting back on non-essential expenses like buying coffee each day or dining out each week.

Create a Savings Goal

It’s easier to save money when you have a goal you’re saving for. It’s easier to give up your daily latte when you’re saving for a vacation or a house. An emergency fund is another good savings goal. The above CNN article mentioned how unplanned expenses can catch a lot of people off guard. An emergency fund will help you avoid this unpleasant situation.

Pick Your Priorities

Saving money is easier when you prioritize what you’re saving for. For example, if you are saving for a new car you shouldn’t neglect your retirement savings in the process. Once you prioritize your goals you’ll find it easier to start saving money.

Decide How to Save

When most people think about saving money they think about savings accounts. While savings accounts are a great way to save your money, they aren’t the only way to do so. Take a look at this article to learn about the different ways you can save money.

Tools Every Accountant Needs

You may not have thought about it, but accountants all need certain tools to do their jobs right. Many of the tools used by accountants are to make the job easier and provide ways of offering better services. Below is a list of a few of the most important things every accountant should have.

Reliable Computer

Invest in a quality computer because it is the one that takes on most of your work for you! Having a fast, reliable computer will allow you to run multiple programs at once. It also gives you the peace of mind that you will be able to do your job effectively.

Tax Software

Tax software eliminates the need to file taxes by hand and saves you a ton of time and headache. Investing in a great tax software will help you serve more clients at a more efficient rate. Plus, tax software will catch any mistakes you may make and gives you the option to correct them. Doing so can save your client a lot of money.

File Encryption

Adding a layer of security to the confidential and sensitive information found on most of the files you have will ensure clients that their information is safe. By having file encryption in place you will be able to email sensitive materials without the risk of the wrong person getting a hold of that information.

Scanner

In order to convert paper files into easily accessible electronic files, you will need a scanner. You can get a traditional scanner/printer combo or even a file scanner specifically for scanning documents and sorting them. These special document scanners often can scan both sides of a double sided documents at the same. They also turn your bulky paper documents into easily accessible PDFs.

Gear Up

You can have the best computer all the software in the world, but nothing beats old school gear. Have a great calculator handy for crunching numbers. Also have plenty of writing utensils and notepads around for note taking. Being able to do the thing the “old fashioned” way never hurts. You may not always be able to rely on technology and having the tools to complete the job are important.

Finance Degree vs Accounting Degree

Students looking to get into finances of any sort are often faced with the dilemma of getting a finance degree of an accounting degree. Each one comes with it’s own unique difficulties and job opportunities. Educating yourself on the difference will give you the knowledge to make a decision that makes sense for you.

Money

Typically, finance degrees yield a higher payout. Wealth managers statistically receive higher salaries because they receive commission off of the portfolios they manage. Accountants on the other hand charge a flat fee for the service they provide. If money is your main motivator – finance may be the better major for you.

Education Requirements

In order to take the CPA exam for accounting, there tends to be a requirement of credit hours that succeed a bachelor’s degree, but fall just short of a masters. If you go this route, it may make sense to continue on your education for a master’s degree for a better understanding. Finance majors on the other hand can get away with a bachelor’s, but will have better job opportunities with a masters. Either way, accounting or finance, a master’s degree seems like the way to go.

Job Opportunities

Both degrees provide graduates with a multitude of job opportunities, but they fall into two separate categories. Those with finance degrees will find themselves with jobs managing wealth and investments. Accountants handle more of the tracking financial data. Again, this comes down to a personal choice of which avenue you will have more of an interest in.

Stress

Who is more stressed – those with degrees in finance or accounting? When it comes to stress, each field has its opportunities to provide stressful work environments, but it all depends on the job you pick. Accountants who tackle tax season may work longer, more stressful hours during tax season but see a significant break for the rest of your year. Those finance majors with wealth management jobs carry their own unpredictable amount of stress depending on the clients and the investments.
Overall, when it comes to picking a major, it all depends on what side of the fence you fall on. Do you want to help people manage and grow their money or track and analyze financial data to create budgets and maintain retirement accounts? Depending on what you choose will be the deciding factor of what degree you will pursue.