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13 Ways a CPA Can Help Your Business

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A CPA is an accountant who has passed the Certified Public Accountant exam and meets the qualifications to be a licensed CPA in their state. CPAs can help businesses in a variety of ways.

This post comes to you in conjunction with a Personal Profitability partner.

Bookkeeping Records

Many businesses employ bookkeepers or use bookkeeping software to track their own finances. A CPA can review these records for accuracy and compliance with the law, and use this information to prepare tax documents and provide financial advice. They can also help you set up your record-keeping procedures if you're just getting started or give you suggestions for improving your current system. 

Financial Statements Audits

An audit is an independent examination of a company's financial statements. After auditing the statements, the CPA issues a report with their opinion of the statements. These reports are required by some government agencies, such as the SEC. Additionally, publically traded companies are required to be audited once a year and must furnish the audit reports to any shareholders they have. Creditors may also sometimes request these reports. 

Break-Even Analysis

A break-even analysis is an important tool for businesses that are considering expanding their operations, offering a new product or service or making a major purchase. A CPA can perform this analysis, which includes a comparison of current costs and revenues versus projected costs and revenues after making the proposed change, to determine how much revenue would need to be generated to reach the break-even point if the change was made.

Financing

Whether you need a loan to get your business started or to make a major purchase or fund an expansion, you will need to make the case to your potential lender that your business is a good financial risk. A CPA can help you make your case by gathering the necessary information, investigating different funding sources, and completing a compelling loan application. They can also help answer any questions the lender may have about your business's ability to repay the loan.

Tax Advice

CPAs are required to have a thorough knowledge of state, local and federal tax laws in order to pass the CPA exam and maintain their license.  CPAs can provide advice to help you stay compliant with tax laws, keep efficient and accurate records, and maximize tax deductions. They can also prepare and file your tax returns and represent you in the event that your business is audited by the IRS. Additionally, they can assist with calculating estimated taxes that may need to be paid throughout the year, payroll taxes and other tax obligations. 

New Businesses

If you are planning on starting a new business, a CPA can help you with the process by drafting your business plan, choosing and setting up your accounting software, making sure your accounting procedures comply with the law and helping you determine the best legal structure. Getting financial advice from the start of your business can help you avoid any costly mistakes that could derail your start-up or get you in trouble with the law. 

Financial Health

A CPA can help you evaluate the financial position of your business and give you advice on how you can improve it. Many businesses choose to have their financial health evaluated once per quarter so that they can stay on top of financial trends and fix issues or take advantage of opportunities promptly. CPAs can also help prepare quarterly reports for stockholders, creditors, and others. 

Risk Management

Businesses face many different kinds of risks. CPAs have been trained to spot potential risks and recommend solutions. Risks that a CPA might evaluate include uninsured or underinsured property, liability risks, legal compliance and security threats. 

Key Performance Indicators

Key performance indicators are performance measures, such as job cost, inventory turnover or daily sales that can be used to judge the success or failure of a particular aspect of your business. CPAs can help you identify what your key performance indicators are and how to use them when evaluating your business operations. 

Chief Financial Officer

Small businesses may find it more economical to outsource the duties performed by a Chief Financial Officer to a CPA. CFOs typically oversee activities such as bookkeeping, financial statements, cash flow management, and forecasting, payroll, tax obligations, and reporting. 

Business Value

There are many reasons you may need to know the value of your business, such as seeking financing or investors, deciding whether to sell your business or planning for retirement. A CPA can both help you calculate the current market value of your business and help you maximize that value. 

Contracts

It is common practice to have an attorney review contracts and other important documentation to ensure compliance with the law. It can also be a good idea to have a CPA review any contract that could have financial consequences. A CPA can make you aware of any tax or cash flow implications and suggest any changes to the language that might be necessary. 

Business Operations

CPAs can help with day-to-day business operations in a number of ways. A CPA can explain your financial statements to you, ensure that employees and contractors are classified correctly, provide tax advice, and handle payroll. If you're not sure where to find a CPA to assist with your business operations, you can use the CPA Directory website to locate accounting professionals in your area.

Whether you need a professional to oversee the finances of your company or you just need to get your taxes done, a CPA can be an asset to your company. CPAs provide expertise and advice that can help almost any business improve its operations. 

This post comes to you in conjunction with a Personal Profitability partner.

Protect Your Credit After Losing Your Job

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Suddenly losing your job may make your life and daily routine change drastically. If you're unemployed, you may also wonder how this new status may impact your credit. Not having a job or income doesn't mean your credit will plummet. There are multiple strategies to use to help protect your credit and keep your financial future bright. Here is what you can do right now to protect your credit after losing your job.

Have an Emergency Fund

First, before facing unemployment, it's smart to have an emergency fund in your bank account. If possible, everyone should secure an emergency fund of at least six months of expenses to help them survive in case of a job loss. If you have prepared for this and have an emergency fund ready to go, it will make unemployment less painful. If you weren't able to stock an emergency fund like millions of Americans who live paycheck to paycheck, don't panic. There are other ways to help yourself financially after a job loss.

File for Unemployment

After losing your job, one of the most important first steps is filing for unemployment. You'll need to go to your state's unemployment office or website and fill out forms indicating a job loss. Once your paperwork gets processed, you'll receive regular payments of a portion of your salary for a period of time. While it won't be as much as you would normally get from working, at least you'll get some income to keep yourself afloat.

Cut Back on Expenses

Getting through a period of time when you're unemployed is easier if you work diligently to lower your monthly expenses. That means no eating out at restaurants or getting carry out, no going to the movies, and no purchasing anything that's not necessary. Cutting back on wasteful spending will help you get more wiggle room in your budget and be able to pay for the necessities.

Ask for Discounts

You can also get more out of your new, lower monthly budget by seeking out discounts. When you desperately do need to purchase something, such as medicine, food, or other essentials, ask about discounts. You can also call companies like your car insurance company, internet provider, or gas and electric company to see if there are temporary discounts available to those suffering from financial hardship. Keep junk food off of grocery shopping lists and buy only wholesome ingredients. Many companies may surprisingly provide a discount to people who are recently unemployed.

Talk to Creditors

If you have credit card debt, be sure to also reach out to your creditors and negotiate lower payments while you're not working. You may also be able to ask about getting rid of late payment charges and interest during your time without a job. Loan providers, such as mortgage holders and car loan operators, may also help you get some payment relief if you call and speak to a customer representative.

Monitor Your Score

Even when you don't have any income and you're overwhelmed with monthly bills, it's also incredibly important to monitor your credit score. Watch out for any big changes that impact or lower your score during this difficult time period. If you see any significant changes because of late payments, talk to your creditors and ask them to remove any negatives related to your job loss. This can help keep your score from dipping and preserve your financial health.

Consolidate Debt

It may also make sense to apply for a debt consolidation loan if you lose your job and are struggling to pay bills. If you have loans with a high-interest rate, you can take advantage of the most recent changes to the country's interest rates and get a loan to consolidate your high-interest debt. Paying everything off as one big loan with a low-interest rate may save lots of money each month and give you some financial relief.

Look into Government Programs

Another option is to turn to the government for help during a tough economic time. This year, millions of Americans are due to receive a stimulus check of approximately $1200 from the government. Additionally, families can get up to $500 per child under 16. If you aren't sure if you qualify to get these payments, make sure you check your income tax forms from 2019 and 2018. There are strict income requirements to get the $1200, but most people should be able to get the payments of $500 for each child.

Search for a Job

Once you lose your job, you also want to get right back into the workforce as quickly as possible. Start searching for your next opportunity right away. Update your skills and resume to make yourself more marketable for a variety of jobs. Take the initiative and reach out to potential employers to find a viable job opportunity quickly in your field.

Make Some Side Income

A job search in today's economy may be long and frustrating. While you search for the right position in your industry, be sure to take on some side projects or work to help bring in extra income while you're out of work. Consider selling things you have in your house and don't use anymore on secondhand yard sale website groups. Offer your professional services to friends and family if possible. You may also want to consider being a part-time driver or delivery shopper for people ordering groceries and supplies.

Borrow Money

Finally, don’t be afraid or too proud to ask for help if you need it. For most people, there is at least one person in their circle of friends and family members they can turn to in a time of financial need. If you're struggling to pay your rent or buy food for your family, ask for help. It can be in the form of a loan that you slowly pay back when you get back on your feet, or someone may be willing to simply help you without expecting anything in return. Don't let things get too bad before asking for help.

While losing your job can be terrifying, there are some actions you can take to help keep your finances healthy and steady. Follow these tips to give yourself a way to survive during a tough economic time.

This article comes to you from a Personal Profitability partner.

This post was originally published on April 24, 2020, and updated on February 17, 2022.

5 Ways to Save Money Right Away

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Who wouldn't like to have a little extra cash in their bank account at the end of the month? While you probably can't walk into your office and demand a raise, there are a few ways that you can trim down your expenses and give yourself a raise. Making a few simple cutbacks could save you hundreds of dollars every year.

It's important that you take a hard look at your finances to decide where you can make some cutbacks and keep more money in your pockets. None of these ways are going to turn your life upside down. Most of them are pretty simple changes, but they can have a huge impact on your finances.

Make a Budget to Save Money

One simple way that you can save money is by creating a budget. Yes, it sounds painful, but making a budget can be a lot easier than it sounds. Thanks to the Internet and smartphones, it's never been simpler to make a budget.

There are dozens and dozens of apps and websites that you can use, but one of the best is the Mint app. The Mint app can help you create a budget in a matter of minutes. All that you have to do is create an account, sync your bank accounts, and then set some financial goals. After that, Mint will create a budget based on your spending and saving. Not only that, but they will display all of your recent transactions and separate them into the appropriate categories. They will show you any areas of spending that you're spending too much and could cut back.

Cut the Cord

One money-saving technique that has become popular in the last several years is to cut the cable bill. Thanks to devices like the Roku, Apple TV, and streaming services like Netflix, ditching the cable company has never been easier. Instead of paying $150 every month for cable, you can pay less than $15 a month for Netflix or Hulu. You will get all of your favorite shows at a fraction of the cost. This is one of the easiest and quickest ways that you can save money. With all of the streaming options out there, you won't even miss your old cable service, but you will love the hundreds of extra dollars in your pocket at the end of the year.

Take a Hard Look at Your Insurance

If you want a quick way to save money, then your insurance plans are a great way to do that. There are several ways that you can save money with just about every insurance plan that you have. One easy way is to bundle all of your plans with one company. Just about every single insurance company on the market offers bundle savings, the more plans that you have with that company, the more that you're going to save.

If you have your life insurance, auto, and homeowners with different companies, call your agent and ask about holding all of them with the same company. It could save you hundreds of dollars.

Eat-In (Brown Bag It) to Save Money

If you want to save money, you'll need to start cooking. If you enjoy eating out, it could be taking some serious bites out of your bank account. If you eat out for lunch every day or you and the family grab dinner at a restaurant, you could easily be spending several hundred dollars every month. If you want to give yourself more spending money, start cooking your meals at home and taking the leftovers for work the next day. You'll start saving money instantly.

Compare, compare, compare!

An easy way to save money is to do some comparative shopping. This tip applies to just about anything. Most people do a lot of research and comparing when they are making large purchases, like a car or a TV, but it doesn't end there. You should always compare when you're going to the grocery store. There could be a huge difference in the groceries that you buy from one store to another, and it could have a huge impact on how much you spend every month to feed yourself and your family.

Saving Money

These are only a few of the simple ways that you can start saving money today. Following a few of these easy tips will give you that raise that you've been looking for.

5 Ways to Save Money Now

This post was updated on February 10, 2020, and updated on September 29, 2021.

5 Simple Ways to Make Your Spouse’s Day without Breaking the Bank

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Your spouse is your number one partner in life, but the day-to-day grind of work and life can get in the way of your fun relationship. If the spark and chemistry aren’t quite what it was when you started dating, don’t worry, it’s normal. But that doesn’t mean you can’t take a small effort to make your spouse’s day. Doing so improves your relationship, makes your spouse happy and doesn’t have to break the bank. Here are some fun ideas to get you started.

Take a moment to tell your partner why you appreciate them

In your daily life, it’s easy to take your spouse for granted. Maybe they go to work for eight or more hours per day to support your family. Maybe they take care of the laundry and other household tasks. Whether you fall into traditional gender roles or forge your own path, in the rhythm of daily life you may not even notice how much work your partner does that improves your daily life.

Take a few minutes to say thanks and tell your partner you appreciate what they do. It’s free, and only takes a little thought and a few moments of your time. At the end of a long day, it feels great to know that your efforts are noticed and appreciated. If that recognition comes from someone you love, it has even more meaning and impact.

Cost: Free

Plan a surprise date to help make your spouse's day

One of the most fun memories I have with my wife was an early dating anniversary, where I planned an entire day of surprises and fun that included visiting a local wilderness area, building a fort in our living room, lunch at an Ethiopian restaurant, and an evening cuddling on the couch with a favorite movie. I turned the day into a fun scavenger hunt, and the entire cost beyond a little planning was minimal.

I made up clues and printed them out myself, bought some snacks at the grocery store for our home-based activities (about $5), and had a Groupon that made our fun, outside-the-norm lunch about $20 for two. For an entire day and a wonderful memory, my budget was just $25.

Cost: Varies – can be as low as $20

Flowers… just because

I recently took a trip to Dallas for a blogger conference, and on the way home from the airport picked up flowers for my wife (and a tiny bouquet for my daughter). They were not expecting the flowers and it gave them both big smiles.

“Just because” flowers make a much bigger impact than Valentines and anniversary flowers, as those are rarely a surprise. For a spouse, roses are always the best way to go, as they are a long-time symbol of love. Have them delivered to your partner’s workplace to get some extra brownie points when your spouse gets visits from jealous coworkers.

Cost: Starting at $49 for delivered roses

Take care of a chore you don’t normally handle

Does your spouse normally vacuum the house? Maybe they usually do the lawn mowing or dusting? Take care of something they normally do and make it a surprise, to score a big win in making your spouse smile.

At least once every week or two, I try to pick up an extra job around the house. I normally take down the trash and mow the lawn, so I try to add in help with the laundry or other cleaning to take a load off from my wife’s busy week. It only takes a little time. You’d be amazed how much scrubbing a toilet to give your partner a break can make their day, and it only takes a few minutes.

Cost: Free

Take them on an adventure, their style

I like science fiction movies and startup-related speakers and events, but my wife has far less enthusiasm for either category. If you really want to wow your wife (or husband), plan an adventure that is all about what they love, not what you love.

Maybe it’s a cooking class. Maybe it’s a romantic movie. Maybe it’s a baseball game. Whatever it is, make it about them. Relationships and marriage are a two-way street, and ensuring you give, and don’t just take, will help you enjoy a long and successful relationship.

Cost: Free (sometimes)

How Technology Can Help You Increase Your Financial Knowledge

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This post comes in conjunction with our friends at Fisher Investments.

Whether you want to learn more about the different kinds of investments and financial strategies available or are ready to start investing for retirement, modern technology can be extremely helpful. From apps that help you track the stock market to advice from financial companies' social media profiles, you can increase your understanding of the financial world and apply that knowledge to your own investment strategy. Read on to see how technology can help you improve your overall financial management.

Put Your Smartphone to Work

Smartphones continue to become more essential to modern life as technological advances improve performance and increase capabilities. You can use your smartphone to help manage your finances in a variety of ways. If you want to learn how the stock market works and watch ups and downs while you decide whether to invest, you can find a simple, easy-to-use app. Your smartphone can also help you with your daily budgeting and money management. You can use a mobile budgeting app to create and track your budget and expenses.

Embrace Online Banking

Many banks also have apps that allow you to pay bills, deposit checks, transfer funds, and view your balance. Online banking is convenient, and it can also be a powerful tool to help you understand and manage your money. Check out your bank's online site to find all the available features. You may be able to access special loan rates, find protection for online shopping transactions, and take advantage of other tools and tips. You may also be able to access statements, so you don't have to worry about keeping folders full of paperwork.

Research Investment Opportunities

Are you thinking about adding stocks to your investment portfolio but aren't sure where to start? Modern technology and the internet can help you understand how the market works and give you the tools and information you need to make the right decision for your unique circumstances. There are countless articles, videos, and tutorials about how the stock market works, what you need to start investing, and how to incorporate stocks into a well-rounded financial portfolio.

You can also use the internet to research and follow specific companies prior to investing. Say you are thinking about buying stock in a specific company; before you invest, you may want to learn more about that company's mission and corporate values or get a better understanding of the products it produces. A quick online search can help you find the company's official website and social media profiles so you feel knowledgeable and confident before investing.

Learn About Retirement Planning

One of the most important parts of your financial management is planning for retirement. Unfortunately, many people feel intimidated by the sheer volume of information and opinions on the “right” kind of retirement strategy. However, you can find trustworthy sites that provide access to advise from a variety of financial experts. Having access to advise from several experts in one place makes can cut down your research time while also increasing your access to important financial information.

Automate Your Savings

The majority of people consider saving more money to be a vital financial goal. If you would like to increase your savings to pad your emergency fund, work toward a vacation, or increase your retirement accounts, there are several areas where technology can help. You can find smartphone apps that help you save more automatically. Depending on which one you choose, you can invest change from purchases into the stock market or move a portion of your daily budget to a savings account. Some apps even feel like games, so you can feel more motivated to reach your savings goals.

Engage With Financial Experts and Companies

Social media networks have opened up new channels of communication between financial institutions and their clients. Many companies now provide helpful information and advice to clients through tips, videos, and posts on Facebook and YouTube. Following or subscribing to this sort of content can help you increase your financial knowledge automatically by integrating data into your daily perusal of social media feeds.

Social media, smartphone apps, and the internet can provide numerous benefits for those who want to take charge of their financial situation. Between articles, stock market tracking, automatic savings, and online banking, you can use technology to manage and invest your money successfully.

How to Make the Most of a Loan With a Short-Term Financing Company

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This post comes in conjunction with a Personal Profitability partner.

If you’ve found yourself coming up short with enough cash to pay your bills one month, the good news is that you have some options. Consumers who have an emergency expense, such as a doctor’s bill, a car repair, or something else unexpected, can use short-term loans to help them make their finances work in these situations. Short-term loans are best for borrowers who need small sums of money to get by until their next paycheck. Here are some recommendations for those who use short-term loans.

Read the Terms First

It’s important to know what to expect with a short-term loan before signing for one and committing to the terms. Companies that lend money on a short-term basis provide literature that is essential to read if you want to avoid any surprises. Be sure to review all of the terms of your potential loan before making a commitment to borrowing any sum of money.

Shop Around for Interest Rates

The other key part of a loan that works for you is to make sure you understand the interest rate. The interest rate is the additional cost on top of the money you borrow. When paying your loan back, the lender will profit off of your interest charges, so it’s best to shop around for the lowest rate possible. Short-term loans usually have higher interest rates, but it’s possible to get a rate that works for you.

Check Your Credit Ahead of Time

Your interest rate and the terms of your loan are usually influenced by your credit. While short-term loan decisions are usually made in a day or less, you should take the time to check your credit before applying for one. In most cases, you can get a copy of your credit report for free online once a year. You can evaluate your credit and see where you stand before finding out from a lender.

Correct Errors on Your Credit Report

If you notice errors on your credit report, it’s essential to attempt to correct them. Corrections sometimes take many months, so this won’t impact a loan application you’re filling out right now. Problems on your credit report could potentially cost you much more money down the road when you need another type of loan, such as a car loan or mortgage.

Get Documentation Ready

Next, it’s time to get your documentation ready. Short-term lenders most often want to see your paystubs. Some lenders may also ask for more information, such as tax forms or bank account statements. It’s easy to find what you need if you keep everything organized ahead of time and make copies before you visit the lending branch for your short-term loan.

Borrow Only What You Need

Most credit and lending industry experts, like Don Gayhardt Of Curo, also recommend you only borrow the amount you need. A short-term loan is best used sparingly when you only need a little bit of cash to fulfill your financial responsibilities. Like any type of loan, your cost increases if you borrow more. Borrowing a small amount that is just enough to help you stay financially fit can be more beneficial than taking out a larger loan.

Make Timely Payments

Next, borrowers need to make sure they pay back the loan in the allotted time. Missing a payment or making your payment late can negatively impact your credit. For a short-term loan, a missed payment may also mean a higher interest rate or more penalties and fees that don’t help your financial situation.

Pay Off Each Loan Completely

It’s also important to focus on paying your short-term loan off completely as quickly as you can. You can try a variety of different payoff strategies if you have other monthly obligations and installment loans from various sources. This way, you don’t have to worry about taking out a second loan if another financial emergency happens. It’s better to get a clean slate and clear your debt burden as fast as possible to prepare to build up your savings over time.

Make Arrangements During Tough Times

Of course, sometimes consumers do experience another financial disaster before paying off their initial short-term loan. If this happens to you, and you’re unable to make your loan payment, talk to your lender to see about an extension or some other type of arrangement. Not all companies will agree to change the terms of your loan for a short period of time, but it is worth a shot to at least ask.

Budget Your Expenses Effectively

Finally, as you navigate the ins and outs of short-term loans, it’s vital to develop a plan to budget your monthly expenses more effectively. See where you can cut costs on your daily spending, and look for ways to add more into your pocket each month to help.

Before going forward with a short-term loan solution, make sure you follow the steps for an optimal experience. This way, your finances have a better chance of improving for the long term.

This post comes in conjunction with a Personal Profitability partner.