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Starting 2018 With A Financial Plan

The vast majority of people only see their accountant once a year, and that is typically between New Years and April when they are turning in their tax documentation for filing. 

While preparing and filing your taxes is an important part of what your accountant does, if this is the only time you see your accountant, you are not taking advantage of the education, information, and potential money-saving options your accountant can provide. 

As this is often a slower time of year for everyone, why not plan to meet with your accountant to review your financial plan for 2018 and the future? With this meeting you will be able to:

• Take a close look at your monthly budgeting practices and plan. Bring your current budget or at least a list of all your expenses and payments as well as your income. You don't need to create a full budget with the accountant, but he or she can be instrumental in getting you started in developing a spending plan. 
• Review your investments and make changes based on any life changes. This is particularly true if you have married, divorced, had a child, started caring for an elderly payment, changed jobs, lost a job, or any other type of major life event. 
• Review risk factors for investment based on life events and where you are in relationship to your long-term investment plan. Typically most people move from high-risk to low-risk investments as they get closer to retirement to protect their investments. 
• Learn about tax credits and deductions you can take advantage of in the upcoming tax year. This can include maximizing your retirement investments, taking advantages of tax credits with regard to specific types of purchases or home improvements, or other types of tax programs. 
• Set long-term financial goals that will allow you to retire, invest, fund college for the children, or even pay off your home early. 

The more you plan and work with your accountant the more benefits you will find to create the type of wealth you need. This is true if you are just getting started in life or if you are close to retirement: It is never too late to get started.

Preparing For Tax Season

Preparing for your annual visit to your accountant for tax season doesn’t have to be a stressful time in your life. In fact, if you have kept organized records, or at least have all your receipts and documentation in one place, it can be very easy to do. 

Working with an accountant ensures you are able to take full advantage of any changes in the tax law which can be applied to your taxes. As there are always changes in the law this can be a real advantage over trying to do it on your own and not recognizing tax credits or offsets that you can use. 

Simple tips to get your tax forms in order include:

• Make sure you have all your healthcare information available. This includes the new form you will need (1095-A) which should arrive in the mail and can also be printed from the Healthcare.gov website. This only applies if you used this service, not if you used private health insurance or if insurance is supplied through your employer.
• Make sure all receipts for charitable contributes list the organization the contribution was made to as well as their contact information and charitable status which is a 501(c)(3).  Exempt organization such as churches or recognized religious group or organization may not require this specific information.
• Ensure you have copies of your property tax payments.
• Have W-2s and 1099 forms available for all jobs that you and your spouse have had in the tax year.
• If this is your first time seeing an accountant list all individuals on your tax form by their legal names, not nicknames or middle names, and also include their social security numbers. Double check all social security numbers to makes sure nothing has been incorrectly transposed. 
• Include all receipts for business related purposes in a separate file if you have a business. You will need to review these with your accountant to verify they can be used as tax deductions. 
• Include all relevant bills for your home if you are claiming a home office. Talk to your accountant about the percentage of these bills what can be used on your tax return. 

Make an appointment to visit with your accountant well before the end of tax season. This ensures you won’t have to file an extension and prevents a last minute scramble if additional documentation is required to file.

8 Questions To Ask Any Accountant Before Hiring

When you are working with an accountant to do your taxes you are really hiring them to complete a service. This means that you have the opportunity, and should take advantage of, the chance to ask at least a few basic interview questions. 

Meeting in advance of tax time, or in advance of doing any investments or financial planning, will give you the time you need to interview and talk with a couple of accountants you have researched in advance. Getting referrals from friends, family members and other professionals is also a great way to narrow down your choices. 

Important questions to ask and get answers to include:

1. How long have you been an accountant and what are your credentials?
2. What type of financial planning services, investment advice and financial guidance can you offer and what is your experience level in this aspect of accounting?
3. What are your fees, how are they calculated and what payment methods do you accept?
4. Do you use any third party professionals for your work or do you outsource anything to other accounting or financial companies, planners, etc.? If so, how do you evaluate their services and what standards do you require in these professionals?
5. What are your hours and how long does it take to get an appointment to meet with you in person?
6. What continuing education programs do you attend and do you belong to any professional associations, groups or organizations?
7. Can you provide me with a list of names of clients that would be references for your services that are similar to my situation?
8. Will the accounting software that I use in my business or for my personal accounts be compatible with the software that you use?

Whether you are a small business owner or need an accountant to handle your personal taxes and financial planning, getting the best professional possible is a critical decision. Take your time and interview a few accountants until you find the right match for your needs.

Money Saving Tips

There are a lot of simple ways anyone can incorporate into their daily activities and money management strategies that can add dollars a day to your bank account. While dollars may not seem like much, over the years they can add up, and with a wise investment in a top-performing mutual fund, money market, account or even in CDs, you will add to your retirement. 

Here are a handful of simple money saving tips you can do starting immediately:

• Pay your savings account first – Set up an automatic withdrawal to coincide with your automatic pay deposits. Move a dollar amount each paycheck into a savings account before you even have a chance to start spending. 
• Pay cash or with debit when possible – Whenever possible, pay with cash or with debit rather than credit. Credit interest is substantial for most individuals and families, and simply eliminating that will leave a lot more money for saving. 
• Use layaway rather than credit – If you are buying a big item or for holiday gifts or other purchases, use free store layaway programs rather than using your credit card. This is another way to save money on interest and to have your purchase paid for quickly. 
• Cut down on eating out – Eating out is a great way to treat yourself and the family, but it is a costly habit. Consider limiting this to once a week or perhaps once a month, and see the difference in your saving account. 
• Don't visit the coffee shop daily – Like eating out, buying a five-dollar coffee a day adds up. In a typical year, there are about 251 working days, which means simply cutting out the coffee would save you $1255 per year. 
• Shop sales for necessities – Buying something because it is a good price is only a money saving tip if you actually need the product. Often people buy sale items that are a "deal," but they don't typically use the product, which means it isn't a deal, it is an added expense. 
• Use reward programs – Online retailers and even local businesses are more willing to offer significant rewards programs to customers. Collecting points or rewards for items you need can help to save money. 

Remember, it also is essential to have a realistic operating budget. An accountant can help you to set up a workable program that helps you to save money while also being able to do the things you enjoy.

Helpful Ideas For Your Income Tax Return

Every year a large percentage of people get tax returns. Some get a lot and some just get a little, but what you choose to do with your return may have a big impact over time. Different individuals have different plans for the return, including going on a shopping spree or buying something luxurious or even necessary for themselves or their family.

There are a few things to consider that will add to the value of your tax return. First, and perhaps most important, is to consider adjusting your tax withholding through your employer. You can add to your retirement or make an investment which will provide you with interest on the money throughout the year, something the IRS doesn’t provide.

In addition, you can use your tax money wisely by:

• Use all or part of your refund to pay off the balance on high-interest rate credit cards, and then avoid using the cards because they now have spending ability. You will literally be saving yourself the interest rate on the card times the balance and the time you would need to pay it off.
• Make a tax-deferred IRA contribution if you are not already contributing. This can be as much as $5,500 per person or $6,500 if you are over 50.
• Carefully review your insurance coverage based on your age and possible risk factors. You may also want to make any repairs on your home which may negatively impact your insurance coverage if you have to make a claim.
• Pre-pay for special events such as weddings, vacations or set aside cash for travel. This avoids having to carry a balance on your credit card, saving that interest amount.
• Make a charitable contribution which will be tax deductible if you are itemizing your expenses. You can also gift money to a family member for tax savings, just talk to your accountant.

You can also choose to start an investment or add to your current portfolio. Just be sure to understand which options actually end up saving you in taxes for your next tax year.

Tips for Using the IRS Form 2106

If you have any expenses for businesses not covered by your employer, you may be able to file the IRS Form 2106 that allows you to make these deductions on your taxes. It is important to remember that this form is only used if you are an employee, not if you are a business owner or are self-employed. The important point to remember is that you must receive wages and a W-2 from the employer to use this form.

It is designed to allow employees to itemize business-related expenses that are not otherwise reimbursed by the employer. It is essential to avoid duplicating any items on the form if they are reimbursed by your employer.

Additionally, to use the form, you will need to ensure that the total amount of the deductions exceeds two percent of your total gross adjusted income. You may still be able to claim these deductions if the total amount is below two percent of AGI (adjusted gross income), but you will not be required to add the additional form.

Some of the expenses that can be claimed using the IRS Form 2106 include:

• Client Entertainment – If you take clients out for business-related meals, business trips, or events, you may be able to claim this expense on the IRS Form 2106. There is a limit of 50 percent of the total that can be claimed, and it has to be directly related to business, and not a personal meeting, which determines if it is allowable or not.
• Car expenses – If you use a personal car for business, you can either claim mileage or actual expenses. You can also claim parking fees, tolls, or other associated costs, but not vehicle repairs.
• Other travel – In most cases, employers will reimburse employees for larger travel items such as flights, train tickets, or taxis as well as hotel costs to a reasonable accommodation rate. It is important to understand that luxury hotel stays will usually not be eligible for a claim. Other expenses related to travel such as dry cleaning and even gratuities can be claimed using the form.

It is important to talk to your accountant about your options for using IRS Form 2106. In many situations, there may be other methods to claim the expenses that are more appropriate given the specifics of your return.

Tips For Organizing Receipts To Help Your Accountant

It is never too early to start organizing for tax time. If you have a desk, box or simply a folder full of receipts and tax forms, you can develop easy organizational practices or habits to make your life easier and to help your accountant when you actually go to file.

Here are some simple ways to get organized for this year's filing and stay organized in the future.

• Use one card – If you are going to use a debit or credit card for payment, use the same one for all tax-deductible purchases. Also, choose a card that allows you to group or categorize purchases, so you can easily print the list and have an easy-to-use record for the accountant. Try also to keep the actual receipts as well; they can be placed in an envelope and kept if necessary for records.
• Scan receipts – If you don't like the idea of keeping all your receipts, you can run them through the scanner and keep them in files on your computer. This eliminates the problem of receipt ink fading, but you will still need a backup copy in case of a computer crash.
• Avoid using cash – Cash makes things more difficult as there is complete reliance on one receipt rather than a record through a statement or other type of document. If you are using cash, be sure to scan and save receipts that are itemized.
• Set up a file system – An accordion or expanding folder or a set of large manila envelopes that are labeled as to the types of receipts included is a simple and easy filing system for the hard copy receipts. There are lots of low-cost and free software options and apps that will allow you to organize your receipts electronically; some even have the ability to allow you to take an image of the receipt with a smartphone and post it for all data entry.
• Deal with receipts or purchases daily – Avoid putting everything off until the end of the week or the month. Instead, file all receipts on a daily basis which will avoid mistakes and omissions in what you can claim.

Your accountant may also be able to recommend the software, apps, and options that she or he finds to be most efficient for other clients, and that is a great resource to use.

Accounting Apps for Simple Money Management

There is a wealth of different money management and basic bookkeeping or accounting apps available online. Some are designed for use for personal finances while some offer more of a business model.

Different credit card companies also have handy apps that allow you to instantly categorize purchases, keep records of receipts by snapping a picture, and even keep track of where you are spending money.

Regardless of the specific type of app you choose, there are some important considerations to keep in mind when using apps on your computers, smartphones, tablets, or other types of mobile devices.

• Linking to bank accounts – Many of the most popular apps will allow you to link the app directly to your bank accounts or credit cards. If this is the case, make sure that the app can be fully locked to avoid anyone from accessing this information if your phone is lost or stolen.
• Security issues – Smartphone hacking is very real, and it is a lot easier for hackers to get into apps on smartphones and tablets than through your computer. There are security programs for phones that are important to install and use if you are entering financial information through these devices.
• Customization – Some of the apps offer very little in the way of customizing or grouping your spending activities and habits. Look for the apps that allow you to create your own categories and group items in ways that make sense based on your spending patterns.
• Ease of use – Some of the older apps available are not intuitive or user-friendly. If you have an older budget or money management app, consider looking at some of the newer designs.
• Link to your big money management software – There are apps that will sync or link to Quickbooks and other types of accounting software you may use for your personal financial records or for your business. Check apps to make sure they sync to limit your data entry time and to help prevent errors with transferring data manually.

How to Delegate Effectively

If you want to expand, you will need to multiply yourself. This will require you to have employees and then delegate work to them. This is one area that very few business owners do effectively. They try, but they soon give up because their employees make mistakes and take much longer then they do to finish the work.

I often hear from business owners that they would like to expand, but they just can’t find good employees. My answer is always the same: “That’s funny – your competitors have found a way to get good employees!”

The truth is that their competitors have learned how to hire effectively, train effectively, and delegate effectively. Since you have employees now, learning how to delegate effectively is one of the quicker ways to free up your time so that you can work on improving your business and increasing profits.

Effective delegation requires you to:

• Properly define the task and the required result.
• Put a deadline on every task.
• Have a method for progress reports and follow-up. I used to use a delegation book. But I now use an online program that allows me to track employee progress easily. (Check out www.smartsheet.com).
• Don’t just delegate the job. Delegate the authority to complete the task.
• Hold weekly progress meetings.
• Don’t accept the “monkey” back! If, or should I say, when they come back to you with questions, insist that they come prepared with possible solutions.
• Understand and accept that mistakes happen when you delegate authority. Deal with them. Do more training. But don’t stop delegating!

The Buck Stops Here!

In my 30+ years working with small business owners, I have found there are two main reasons that a business ends up struggling to survive.

The first is a failure to understand that everything the owner hates or is going wrong in their business, they caused!  Most business owners pay lip service to this but don’t truly understand it.

They are quick to give excuses because that is much easier than taking responsibility for their struggles and failures.  During good times, like we had before 2007/2008, money was easy to get, people were spending, and just about everyone was making money.  Since then, I have spoken to many clients who have seen their sales drop to the point where they can’t survive any longer or they are just barely holding on, hoping for a miracle in order to survive.  They all have excuses.  The two most common excuses are:

• Customers aren’t buying!  True, but I have clients in every industry who are doing well.  For instance, 10 out of the 13 truckers I did tax returns for in 2007 are out of business now.  But three did survive, and two of them are making good money.  What did they do differently?  Why did they have time to develop a new market in this economy? 

Most of my retail clients have experienced a loss in sales of about 30 to 50 percent.  Yet I have other retail clients who are showing steady increases and making a nice profit.  What did they do differently?  Why are they expanding their marketing in this economy? 

• I can’t hire good employees!  A variation of this is, “I don’t have time to do the things I need to do to improve my business!  I am too busy!”  My answer to this is always the same:  Your competitors do!  They have good, well-trained employees.  They have time to develop new product lines and increase their marketing, which has replaced their lost customers.

The clients that are doing well all have one thing in common:  They take responsibility for their actions and don’t accept excuses!  When the rules change, they react.  In fact, many of them anticipate and plan.

Forming a Partnership with your Accountant

Forming a working relationship with your accountant, either as a business owner or as an individual who wants to take control of your financial future, is perhaps one of the most important partnerships you can build.

Unfortunately, a lot of people fail to do this and only spend a few minutes talking with their accountant at tax season. If this is the only time you talk to your accountant, here are just a few of the many important aspects of your finances you may be missing out on:

• Planning for your retirement with the most comprehensive approach to short and long investment strategies with risk levels you are comfortable with.
• Determining options for creating tax savings for years to come. This could include strategic use of allowable gifts, donations to charities or even the option to develop different types of trusts and funds.
• Providing a complete financial overview of your personal finances or helping to develop a financial analysis of your comprehensive business plan.
• Helping you with important information on what to consider, what to track and record, and how to make the most out of tax credits and deductions you may be eligible for throughout the year.
• Helping you to develop an effective and accurate budget to allow you to save, pay for a home, buy vehicles or even to plan for kids to go to college.
• Assist you in making any large investments, sales of financial decisions to ensure all aspects of the transaction are in your best interests. This is true for both a business acquisition or sale or for major financial issues in your personal life as well.

In addition, an accountant is a great person to consult when you are thinking about starting a business, growing an existing business or perhaps in buying a new home or making a large purchase. Having a professional to go to for specific information, and a big picture look at all options, is a great asset for anyone to consider.

Starting 2018 With A Financial Plan

The vast majority of people only see their accountant once a year, and that is typically between New Years and April when they are turning in their tax documentation for filing.

While preparing and filing your taxes is an important part of what your accountant does, if this is the only time you see your accountant, you are not taking advantage of the education, information, and potential money-saving options your accountant can provide.

As this is often a slower time of year for everyone, why not plan to meet with your accountant to review your financial plan for 2018 and the future? With this meeting you will be able to:

• Take a close look at your monthly budgeting practices and plan. Bring your current budget or at least a list of all your expenses and payments as well as your income. You don't need to create a full budget with the accountant, but he or she can be instrumental in getting you started in developing a spending plan.
• Review your investments and make changes based on any life changes. This is particularly true if you have married, divorced, had a child, started caring for an elderly payment, changed jobs, lost a job, or any other type of major life event.
• Review risk factors for investment based on life events and where you are in relationship to your long-term investment plan. Typically most people move from high-risk to low-risk investments as they get closer to retirement to protect their investments.
• Learn about tax credits and deductions you can take advantage of in the upcoming tax year. This can include maximizing your retirement investments, taking advantages of tax credits with regard to specific types of purchases or home improvements, or other types of tax programs.
• Set long-term financial goals that will allow you to retire, invest, fund college for the children, or even pay off your home early.

The more you plan and work with your accountant the more benefits you will find to create the type of wealth you need. This is true if you are just getting started in life or if you are close to retirement: It is never too late to get started.

What You Need To Consider With Financial Apps

With smartphones, tablets and even computers there is a range of different options available for financial management apps. Typically apps for financial issues are going to focus in on either personal finance or business, but some provide options for multiple types of entries with different possibilities.

If you are considering adding an app to help you with business or personal financial monitoring, budgeting and tracking, there are a few considerations to keep in mind. By choosing the best app you will have a very practical, handy and relevant way to keep up on financial issues.

Security

While this may seem evident, linking your accounts or linking apps to accounts poses a real security issue. In many cases, especially with apps containing personal and financial information, there is some level of security, but not often what you may expect.

Before you add any financial information or personal information to an app, be sure to check the security. This is particularly true if it is linked to your bank and your credit card or business accounts.

Practical Use

Not all apps are user-friendly, and not all offer the features you may want and need. Before taking all the time to input your information into the app, spend some time reading reviews and determining what other people experienced.

You should look for an app that allows some customization with regard to categories of income and expenditures or budget line items. Some apps also integrate with other types of accounting software, which can save time on double entries and having to manually transfer data.

Keep in mind, you may also have to have more than one app if you wish to manage your business and personal finances on the go. There are also apps for managing investments, stock market accounts and online trading services that can be helpful in keeping your finances up to date at all times.

5 Reasons to Talk to an Accountant Before Starting Your Small Business

As a small business owner and entrepreneur, having the correct information to set up your business and to capitalize on accounting tips and strategies is often an overlooked part of the process.

People may naturally be more excited about actually starting to build a business and start earning a profit, but making the wrong financial choices in the first few days, weeks and months of your business can have a long-term impact on your income.

To get help with starting your business off on the right foot, talk to an accountant before making any financial or business structuring decision. Some very important reasons to do this include:

• Avoid Mingling Funds – Mixing your business and personal accounts, business and personal credit cards or debit cards, or otherwise having accounts that are used for multiple purposes can become a serious tax liability and issue. Always set up separate business accounts and avoid mixing and mingling.
• Personal Guarantees – Often a business owner may use a personal guarantee on a business loan. This is a potentially risky consideration as you may be using your home, personal vehicle, or other types of assets as collateral for a business that may or may not be successful. There may be other options in funding to consider to avoid putting your personal assets on the line.
• No Account Receivables System – No matter what a great job your business is doing if you don't have an accounts receivable system in place that is easy to use and efficient, you are going to have challenges in invoicing, collecting, and record keeping. This can end up in challenges with delayed invoicing, missed invoices, customer dissatisfaction, and more time spent in trying to collect overdue accounts.
• Use Technology – There are simple programs offered through several apps and accounting programs that allow you to capture copies of receipts at the time they are issued. When these systems allow you to correlate this with your expense account program, you have a very effective way of continually staying on top of spending as well as preparing for tax time.
• Not Meeting Regularly – If you are a small business, it is a good idea to meet with your accountant at least once in between tax seasons. This will help you to plan effectively for the next few months or years, ensuring you stay within your business finance plan.

Find an accountant you trust, who has a schedule that works for your business, and who is willing to work with a startup company to make the most of their financial opportunities.

Easy Ways to Cut Down on Christmas Spending

The holiday season is the time when most families spend the most money. The other time of the year that is a big expense is summer vacation, but most families have more trouble budgeting for Christmas and New Year’s than in the summer.

To help you save money over last year without cutting into your enjoyment of the season, here are some easy ways to start saving money and to avoid those last minute "splurge" issues that can add hundreds of dollars to holiday spending.

• Shop online – If you are shopping early for Christmas, you can find terrific online deals, starting in mid-November. Shopping online also allows you to have the gift wrapped and delivered right to the recipient, saving you on those costs as well. For impulse buyers, staying out of retail outlets is a cost-saving factor as well.
• Use cashback cards – Saving up to five percent per purchase makes sense, so using these credit or debit cards within your budgeted amount is always a good idea. Remember to only use credit cards if you have the cash on hand to pay the bill in total to avoid interest.
• Host one major event – Instead of a number of smaller dinners, parties, and gatherings, have one major event that allows you to set a budget and stick to it. You can even make it a potluck or a themed meal that will help to spread out the cost while allowing everyone to contribute.
• Use coupons – Even if you don't use coupons throughout the year, this is a great time to get started. Grocery stores and other types of retail outlets will have coupons, online specials, or specials through their apps that can really help to save money. If you don't want to keep using the apps, just delete them after the holidays.

Talking to family and friends about limits on gifts is also a great option. Most people are uncomfortable about bringing up the topic, but they appreciate the ability to have the discussion once it is raised.

What To Do If You're Audited

No one likes to get a letter from the IRS stating that you are being audited. The good news is, that there are less than 1% of all people that file income taxes making less than $200,000 that will ever get one of these letters on any given tax year.

However, if you make more than a million you have about a 10% chance of being audited any tax year. This is typically because people that make more money tend to have more deductions and this can often trigger the audit. Generally, audits are not random and it isn’t just your turn to be audited, it is because of a pattern of deductions or offsets that triggers a computer to generate your name on a list.

If you are audited and you use an accountant, your first step should be to get in touch with this professional. From there, you can discover what needs to be done to clear up the issue, which may actually be relatively simple in many cases.

To prepare for an audit your accountant will typically have you sit down and:

• Make a complete review – your accountant will double check all information you have provided for accuracy. While uncommon mistakes can occur in copying information or in failing to enter the correct information on a software program that automatically transfers data to the accountant.
• Check your write-offs – your accountant and you should review all your tax write-offs to ensure they are correct. This can also include assisting you in determining what data or documentation will be needed to prove these claims are accurate and valid.
• Review any areas of concern – for those that are self-employed, there can be more potential concern from the IRS than for those that are employed. If you are self-employed your accountant will assist you in gathering information and even getting third-party verification of income, business-related travel and other areas where the IRS is asking for further information or verification.

Last but not least the accountant will also be able to represent you at the audit, helping you to provide the information that is needed to prove the validity of the data that you have submitted on your income tax return.

Why Every Small Business Owner Needs an Accountant

As a small business owner or an entrepreneur, you may be used to doing everything on your own to save money. However, when it comes to financial issues, an accountant is an important professional to have on your team.

The simple fact is that a small business accountant can typically end up saving you money, which will cover the small fees your business will pay for their services. These professionals can assist in providing information on changes in the tax code, tax credits, and even tax deductions that can add up to thousands in taxable savings.

There are several ways that an accountant can help a small business at any stage:

• Assisting in protecting yourself and your business with the use of the correct business structure.
• Setting up your accounting practices within the business to comply with all the governmental requirements.
• Verifying you are using the right classifications of employees for all your staff as well as making sure your independent contractors are correctly classified for taxation purposes.
• Checking that you are using the right type of payroll and accounting software based on your business needs and suggesting modifications to make the process more accurate and efficient.
• Providing you with information on any tax credits or tax deductions for which you are eligible and completing any required documentation.
• Suggesting and advising you on ways to decrease the costs of doing business, boosting your overall bottom line.
• Developing short and long-term financial strategies for business growth and expansion.
• Completing your taxes correctly and completely to help to limit the chances of an audit and also working with the IRS is there is an audit or a need for additional clarification on financial issues.
• Consulting and working with you to understand your business cash flow and how and where expenses and costs are a concern.
• Advising on large purchases, such as commercial property, equipment or even when considering merging with, buying out another company, or selling your existing business.

For the small business owner, an accountant should be a year-round consultant. By meeting with your accountant regularly, you can maximize your profits and have a complete understanding of your business financial plan.

Is Tax Software The Same As An Accountant?

Although it isn’t close to tax season yet, it is really never too early to start thinking about your options. As people try to save money and do things on their own they may be tempted to try out the different tax preparation software on the market today and save some cash by not going to an accountant.

However, before you decide if going to the software is really your best option think about the following:

• Basic isn’t always best – the software offered for free or at a very low cost is basic tax preparation software. It is not the same software that is used by your accountant and there are very definite limits on the features that you have access through with the software.

• Questions – while most software has an FAQ section it is often very simplistic and really has to do with how to use the software, not specific tax questions. If you call the hotline offered with some tax software you are not likely to actually speak with a CPA but you will be speaking to a tax preparer. This may provide you with a less than complete answer to a more complex question.

• Past tax filing – when you use an accountant through the years he or she becomes very familiar with your regular deductions and your various 1099s and W-2s and may help you catch an error or omission that may end up causing a delay on your return or, worse case scenario, an audit notice.

• Offers ideas for tax savings – when you have an accountant prepare your taxes she or he will meet with you for a review before e-filing. This allows you a chance to discuss possible options for tax savings for the upcoming tax year.

In addition, working with an accountant is a must if you are self-employed or own a business of any size. These can become very complicated tax returns and making a mistake can end up costing you much more than the cost of an accountant.

Tips For Choosing A Top Accountant

It seems that many people think that having an accountant is something that is only necessary if you have your own business, a large investment portfolio or if you are one of the very wealthy. In fact, having an accountant that does your taxes on a yearly basis is actually a great way to take advantage of incentives, deductions and even long-term investment opportunities that can save you thousands of dollars over your life.

Choosing the right accountant is important as you want a top professional that is knowledgeable, experienced and very ethical in their handling of your financial matters. To choose an accountant, consider the following:

• Qualifications – it is a good option to work with a professional that is a CPA or a Certified Public Accountant. This means that the individual has completed all required training and also passed the very comprehensive Uniform Certified Public Accountant Examination and meets all state-mandated membership requirements.
• Experience – if your taxes and financial issues are straightforward, experience is not as critical. However, if you have a small business, a larger investment portfolio or any special financial issues, including a home business, look for an accountant with experience in that area.
• Good communication skills – you want an accountant that you can talk to about your issues and get an explanation that is meaningful and relevant. If your accountant can’t communicate effectively then you will have difficulty in making informed decisions based on his or her advice.
• Price – while you may have to pay more for an experienced, top accountant than a new professional, the slight increase in price for service may actually save you money over the long run.

It is a good idea to ask around for referrals from your friends, family members, and even coworkers to find out if they have an accountant that they recommend. Often this is the best way to ensure that you find someone that is a great professional to work with. 

So How Do I Know If My Employees Are Making a Good First Impression?

Awhile back I wrote a blog article about the importance of making a good first impression on your prospects (http://bit.ly/sblW7W). But how do you know if your employees are losing possible customers by making a bad first impression? One of the best ways is to “mystery shop” your own business or practice.

You should do this with your employees’ full knowledge. Being open with them about it will:

1. Let them know it will happen. They will not know how or exactly when, so they will automatically treat prospects better.
2. Let them know that the results will be part of their reward, bonuses, pay raises, etc.

You can hire someone yourself or can check out www.mysteryshop.org and www.shopreports.com to hire from businesses that specialize in mystery shopping (Disclaimer: I have not researched the quality or level of service they offer. You should still do your normal due diligence.)

Making sure your customers are receiving the best service possible is always your responsibility. Testing your staff isn’t dishonest; it’s good business practice.

Thank you for your continued support and let's make this year our most profitable year ever!