Nick was a man who had a lot going on. He was a member of the sandwich generation, taking care of both his small children and his old parents. He was also self-employed, so he had to file his tax return on top of all that. He was unsure how to pick the best accountant to manage his particular issue because there was so much going on.
Nick conducted some research and discovered an accountant with experience working with clients in comparable situations. He had to confirm that they were a good fit for him, though. Nick posed the following three questions to the accountant to ascertain his level of expertise:
#1 How many clients have you worked with that were in a similar situation and how did you resolve their biggest concern?
Nick had to make sure the accountant had previous experience working with clients in his situation. By having the accountant explain their biggest concern, Nick could determine how closely their situation resembled his. Asking this question helped him...
It’s important to take a step back and think about who you’re trusting with your business finances. Sure, you might just be focused on getting your taxes filed on time and at a reasonable cost, but there’s so much more to it than that.
For example, Nick was a man with a lot on his plate. He was a member of the sandwich generation, taking care of both his small children and his aging parents. On top of all that, he was self-employed and had to file his tax return amidst all the chaos of his life.
Nick wasn’t sure how to pick the best accountant to manage his particular situation. He found someone that seemed reasonable and hired him on the spot, without much thought. At first, things seemed to be going fine. But as time went on, Nick began to realize that he had made a mistake.
The accountant never bothered to ask him any questions about his future plans. Nick had mentioned that he was planning to start another division, but the accountant didn’t...
When it comes to overseeing your taxes, it’s important to know who you’re working with. There are two types of professionals who specialize in tax preparation: Enrolled Agents (EAs) and Certified Public Accountants (CPAs). While both EAs and CPAs can prepare tax returns and provide tax advice, there are some key differences between the two.
First, let’s talk about EAs. EAs are licensed by the IRS to represent taxpayers before the IRS, which means they can assist with audits, appeals, and collections as well as prepare tax returns. They have passed a comprehensive three-part exam on tax law and must complete ongoing education requirements to maintain their license. While EAs can provide tax advice and prepare tax returns, not all are specifically trained in every area of accounting.
On the other hand, CPAs are licensed by state boards of accountancy and that licensing allows them to perform a wide range of accounting services beyond tax preparation, such as...
Did you know that neglecting to track your expenses is similar to leaving the doors of your home wide open, allowing anyone to come and go as they please? It's an open invitation to financial challenges and uncertainty.
Understanding where your money goes is essential for making sound decisions about budgeting, saving, and planning for the future. If you're like most people, you might not have a precise monthly spending figure. Failure to track your expenses can lead to feelings of financial strain, stress, and anxiety, pushing you to live paycheck to paycheck. These financial pressures can hinder your ability to concentrate on your job and family, causing constant worry about meeting basic needs like groceries, medicine, and clothing. As bills arrive daily, you could find yourself trapped in a cycle of living paycheck to paycheck, with debt looming large and unending financial stress. This situation can erode your self-confidence and impact your relationships, exhausting...
Net worth, a term often mentioned in financial circles, wields a significant influence on your life, more so than one might initially comprehend. It serves as a financial health barometer, much like the vital metrics assessed during a medical checkup, including blood pressure, blood sugar, weight, and body temperature. In the realm of personal finance, net worth encompasses critical indicators represented by your assets (what you own) and liabilities (what you owe). Just as a medical checkup detects your health status, understanding your net worth is paramount for assessing your financial well-being. The insights derived from knowing your net worth empower you to make informed and strategic financial decisions, paving the path to a more secure financial future.
Ever wondered how to gauge your financial standing in a straightforward way? Well, that's where 'net worth' comes into play. Think of it as a practical report card for your money. This simple concept...
Money is a fundamental part of life, and understanding its value is crucial. As parents, we have the privilege and responsibility of teaching our children about money, ensuring they are equipped to make informed financial decisions. However, this doesn't have to be a daunting task filled with lectures and "don't do that" moments. In this blog, we'll explore a more enjoyable and productive approach to teaching your kids about money.
Let’s face it – emergencies happen. Even in business. If you need to step back from your business for a season or an extended period, you will need help managing things. Who will step in when you’re away? And how will they know what to do?
As a solopreneur, you are the chief everything officer. You are the boss, chief financial officer, administrative assistant, human relations rep, salesperson, marketing director, and janitor. But as a solopreneur, it’s also your responsibility to future-proof your business. This includes preparing for emergencies and having a system in place that’ll help your business function or close shop if something happens to you.
You know your business inside out. So, you don’t need a how-to sheet to get stuff done. But your proxy will need a how-to reference sheet. And the best way to build one out for them is by creating an emergency transition plan.
This plan is not about getting proper insurance or securing...
When it comes to budgeting, it’s easier to focus on cutting small expenses here and there to save money. Canceling a subscription to a streaming service you no longer use or cutting down on your Starbucks pitstops are all simple steps you can take to reduce expenses. But let’s be real – your most significant savings will come if you cut costs in the most expensive areas of your budget. This can help you significantly impact your financial picture without sacrificing too much. In this article, we’ll discuss which areas of your budget you can cut down on to create the greatest impact and provide tips and strategies on how to do it.
According to the Bureau of Labor Statistics, the top three areas that Americans spend the most in are housing, transportation and food.
Housing accounts for 33% of total expenses, followed by transportation at 16% and food at 12%.
Additionally, tax expenses are another key area where we can save more if we plan wisely. I like...
Most of us will experience grief during our lifetime. Losing someone or something you love can be a devastating experience, and can leave a permanent mark on our lives. Often, there is also a financial aspect to our grief. The fusion of money and suffering creates strong emotions that affect our mental health and our relationship with money. This emotional turbulence can be overwhelming and difficult to manage, especially when you’re feeling lonely and stressed.
Let’s explore the challenges of financial grief and some practical steps for coping after a loss.
Limiting financial beliefs or money habits may rise to the surface during times of grief. For example, you may believe that "good karma" will take care of your finances. Or you may question why you, a good person, should have to experience financial struggles.
These are some limiting beliefs you may struggle with during these times:
The harsh reality is that most of us weren't lucky enough to be blessed with parents who talked openly about finances in the home and ensured that we were equipped with the foundational education needed to know how money works and build wealth. The reasons may vary, and this oversight, in most cases, occurs because they never had this conversation with their families growing up. While we may brush this off as adults, the discussion around the money mindset is more significant than we realize; it has layers of emotions surrounding it. And as adults, we have to dig deeper!
As a certified financial planner who has experienced this misfortune and the lack of education on money matters, I am writing this post to share this emotional journey and connect with you regarding your challenges in maintaining and managing your finances. Maybe you were like me, grew up dirt poor, or experienced financial challenges mixed with loads of debt in your marriage (yes, we've been there too). I'm...
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