401K, Accountant, Accounting, expenses, IRS, Retirement
Retirement can be an intimidating prospect, especially for individuals without financial planning experience. Fortunately, there are practical steps that anyone can take to make the process easier – no matter your age and financial situation. These essential planning tips will help set you on the path towards your future as a retiree. Start preparing now for life after work!
Start Early, Save Often
The younger you are, the easier it is to save; parenthood, homeownership and other responsibilities make it harder to put money away each month as you get older.By investing earlier on in life for retirement, the compound interest on your savings will allow your money to grow more and more every year. In addition, you may be able to take advantage of employer-based retirement matching. This will not only provide an extra boost to your savings, but you will also reap the benefits of pretax deductions.
Set Realistic Goals
Retirement planning is all about setting realistic goals and sticking to them. Determine what kind of lifestyle you want in retirement, then set a budget that reflects that lifestyle and make sure that your savings plan works towards achieving those goals. Consider inflation, taxes, health care costs, living expenses and other factors when making your plans so that your money will last as long as possible during retirement.
Create A Diversified Portfolio
When it comes to investing for retirement, diversification is key. Don’t put all of your eggs in one basket by investing only in stocks or mutual funds; instead create a portfolio that contains a mix of investments such as bonds, real estate holdings and other assets that can help balance out riskier investments like stocks or commodities trading. This way if one type of investment does poorly, another may do well and help cushion the blow of any losses incurred by their counterparts.
Retirement planning is not something to be taken lightly; it requires careful consideration and long-term commitment in order to ensure financial security later in life. Start early, save often, set realistic goals based on what kind of lifestyle you wish to lead in retirement and create a diversified portfolio so that any potential losses are balanced out by gains elsewhere in your portfolio – these are all important steps towards creating a secure financial future for yourself after retiring from work life! With these tips in mind, retirees can rest assured knowing they are taking steps towards building a solid foundation for their post-work lives.
Accountant, Bookkeeping, Business Expenses, CPA, expenses, Small Business
If you’ve ever attempted a quick Google search for CPAs in your area, you’ve probably learned there’s no such thing as a quick search for an accountant. Accounting is all about the details, and when you’re trying to find someone to handle your finances, it pays to be thorough. Your money is at stake, and you should only choose someone who has your best interests in mind. A small amount of accountants have questionable (to say the least) practices, and knowing the warning signs makes a big difference:
Outdated CPA Certificate
There’s a reason many people prefer to work with a CPA rather than a general financial planner: the title requires a higher level of expertise. In addition to years of schooling, CPAs complete exams to ensure a high-level understanding of auditing, business concepts, financial rules and reporting. It’s worth asking for credentials to ensure your accountant has retained their license. (more…)
Accountant, Accounting, Bookkeeping, Business Expenses, CPA, Small Business, Taxes
When you start a new business, you have to make a decision regarding how you will approach your financial management. Two basic methods are available to you: cash basis or accrual basis. Although the two methods clash, there are also see some similarities.
Cash basis is an accounting method that counts income only after cash or a check is received and expenses are not counted until they have been paid. This method is the most popular accounting method among entrepreneurs and small businesses.
Accrual basis is an accounting method that counts income when orders are placed or services are requested, regardless of payment being received. Expenses are counted when your request for good or services is fulfilled.
Accountant, Accounting, Small Business
Small businesses are the lifeblood of the American economy. They create jobs and drive innovation, however, inflation hitting a 40-year record high in June is having a significant impact on them. Prices for goods and services have been going up, while profits have been staying flat or even declining, making it increasingly difficult for small businesses to stay afloat. A recent survey by the National Federation of Independent Businesses (NFIB) found that 37% of small business owners reported that inflation was their single most important problem in operating their business. The good news is that there are steps business owners can take that may help your company weather the storm. Consider using these strategies to ease the effect of inflation on your small business.
With inflation on the rise, small businesses need to take steps to protect their bottom line. Discover five strategies that can help ease the effect of inflation on your small business.
1. Cut Expenses Where Possible
Take a close look at your business and see where you can reduce costs. There may be unnecessary products or services that you are paying for that aren’t being used or alternative options that are less expensive. Consider switching to a hybrid or fully remote office model to reduce costs on office space. You can also try and negotiate better deals with suppliers by preordering materials or buying in bulk.
2. Diversify Your Revenue Streams
Look into other avenues to generate revenue for your business. Diversifying your revenue streams helps keep your cash flow moving. When one part of your business takes a hit, another part can pick up the slack. Consider entering the ecommerce space or offering a subscription service.
3. Automate and Streamline Processes
With climbing labor costs, one of the best ways to cut expenses is to automate as much of your everyday labor as possible. From customer service to social media, there are many software tools that can help automate tedious tasks. Automation enhances your efficiency while cutting down on mistakes, saving time for everyone involved.
4. Rework Your Pricing
Raising prices is never an ideal situation, however, it may be helpful in tackling the effect inflation is having on your business. Avoid a dramatic across-the-board price increase. Instead, analyze specific problem areas and raise prices accordingly. Transparency is key. Customers will accept a higher price on your goods or services and remain loyal customers if you are up-front with them about what’s going on.
5. Revisit Product Offerings
To make your business more profitable, you need to focus on products and services with strong demand and healthy margins. Consider eliminating poor performing products from your portfolio so you can put more time towards goods and services that make your business money.
Inflation can be a challenge for any business, but especially small businesses. However, there are steps you can take to help mitigate the effects of inflation and maintain your profitability.
Don’t let inflation get you down. Motl Accounting can help you develop a plan to manage inflation and keep your business thriving. Contact us today for help staying ahead of the curve.
Accountant, Accounting, Payroll
There are many different options for accounting and it can be difficult to decide which is the best for you or your business. You can hire an accountant to do your books or you can use accounting software. Each has its own pros and cons, and it helps to understand them before making a decision. In this blog post, we will discuss the pros and cons of hiring an accountant vs. using accounting software. Hopefully it will help you decide which option is right for you!
Hiring An Accountant
Hiring an accountant is a good option for businesses that don’t have the time or resources to do their own accounting. An accountant can help you with everything from bookkeeping to tax preparation. They will keep your books in order and make sure you are compliant with all applicable laws. Hiring an accountant also gives you someone to rely on for advice and support. A main benefit of hiring an accountant is the time it saves. You can focus on other aspects of your business and personal life instead of working on your finances for hours on end.
However, It can also be difficult to find an experienced accountant who is knowledgeable about your specific industry. Additionally, you are limited to the services that the accountant offers. If you need help with something that the accountant does not offer, you will have to find someone else to help you.
Using Accounting Software
Using accounting software is a good option for businesses that want to do their own books but don’t have the time or resources to hire an accountant. The software gives you access to all of your financial information in one place, which makes it easier for you to keep track of what’s going on with your business and make decisions based on that information.
However, using accounting software can be very time consuming and difficult to learn. You need to be able to understand financial statements in order to use the software effectively. If you don’t have any experience with accounting, it will take some time to learn how to use the software and understand what the statements mean. Additionally, you are responsible for entering all of your financial information into the software, which can be a time-consuming process. If you find yourself struggling with the software, it is wise to consider hiring an accountant.
In conclusion, both hiring an accountant and using accounting software have their own pros and cons. It is important to weigh the pros and cons of each option before making a decision. If you use accounting software, make sure that the software is easy to learn and use before purchasing it. This will help ensure success!
If you hire an accountant, make sure that you hire someone who is knowledgeable about your industry and has experience working with businesses like yours. We pride ourselves at Motl Accounting on helping various types of businesses and individuals with their taxes. Whether you need accounting or payroll services, we can help. The most important factor when it comes to your finances is peace of mind and we offer that to our clients.
Need help with your business finances or personal taxes? Contact one of our experienced professionals at our West Dundee location to get the help you need.