Managing
Your Finances
by, Tashia M
Flucas
Personal Finance
Are you having a difficult time with money management in your
personal life? Well you are not alone. Many Americans report
being overwhelmed by their personal finances – even those who
successfully manage businesses! A few common reasons for this
are as follows:
·
Not having a budget
If there is no budget, there is
no control on spending. When there is no control on spending,
there is not enough knowledge of where the money is going. As
the saying goes, “Knowledge is power”. Do you want power
over your money? If the answer to that question is yes, then use
budgeting to shed light on problem areas and overspending. You
can use the tool of budgeting to show your total income and and
the areas in which you have good spending habits. An accountant
can help you set up a budget that is personalized to your
income and expenses.
·
Overusing credit cards
Of course, it is possible to
use credit cards wisely and responsibly, but it's also very easy
to be irresponsible with them, since they often don't feel like
real money! Your accountant can advise you on how to make the
most of your credit cards and help you create a payment plan to
make paying off debt less overwhelming.
·
Instant gratification
Credit cards make it easy to
buy things that you shouldn't buy. When the credit card bill
is not paid in full within 30 days, expensive interest begins to
accumulate. Sometimes, these impulse buys are still being paid
off years later! Reducing credit card debt is one way a budget
can be helpful.
· Emergencies
Any unforeseen event such as
fires, theft, or illness can contribute heavily to financial
problems, especially for those people who have no savings or
emergency fund. Whether these problems sound familiar or you
struggle with different financial difficulties, a quick trip to
an accountant is likely to bring relief from financial stress.
Your accountant can help you with these financial issues, as
well as staying current in all aspects of your personal
finance.
Small Business Finance
Owning
a small business is exciting and empowering – after all, it is
the American Dream. But, as any small business owner knows,
having your own business comes with its own share of headaches.
Owning a business requires being knowledgeable in more than just
your field. Small business owners should have a basic
understanding of accounting, even though using the professional
services of an accountant is generally the best way to manage
your finances. A basic idea of the financial status of your
business goes a long way in running it effectively. An
accountant can keep you apprised of exactly what you should know
about the financial health of your business.
Another financial issue for people
who are self-employed is the tricky matter of estimated tax
payments. While most employees have their income taxes deducted
from their paychecks, business owners should make quarterly
payments. These payments are based on the next year's projected
income, and can get fairly complicated, especially when the
self-employment tax is thrown into the mix. A knowledgeable
accountant can sort all of this out for you.
For
many business owners, it is difficult to keep personal and
business expenses separate, which can create chaos at tax time.
Having a separate business credit card and
only using it for business expenses can go a long
way towards keeping your business expenses organized. To do
this effectively, you'll probably need to create an operating
budget for your business as well as your personal finances –
again, the perfect job for an accountant!
Although
small business owners have many and varied responsibilities,
they don't have to work alone. Contact your accountant for more
advice tailored to your specific business situation.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Tashia M.
Flucas is in the business of saving both time and money for her
clients. As the owner of tmf Accounting Services she provides
expert, professional financial services, and writes the Money
Matters with tmf Accounting Services newsletter on a monthly
basis. To find out more about saving time & money to focus on
building your business, give Tashia a call at 510.706.7711 or go
to
www.tmfAccountingServices.com for more info.
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