As Thanksgiving Day and the Holidays approach, we at Soulence, would like to express our gratitude for all of our clients, friends and all those who follow our blog. We recognize that our business would not exist without you. We appreciate the faith you have in us as we continually strive to provide good, quality service and value for all of you. We hope that your Thanksgiving holiday will be filled with family and friends and joy.
My mother was a single mom and raised two children. She was a very organized person and very thrifty. She rarely bought anything unless it was on sale. One day when her children were grown and gone, she went shopping with her sister. She found a dress she loved, but it wasn’t on sale. Her sister said to her, “You know you can buy something that isn’t on sale now”. My mom was so used to scrimping and saving every penny she had not thought to look at her situation and maybe revise her strategy. Taking a step back and looking at your finances is what we like to call monitoring your cash flow.
Whether you have a business or not, monitoring where your money is coming from and where it is going is important. Maybe you are eating out more than you need to. Maybe you could be spending less on office supplies. Maybe you are spending money on advertising that isn’t bringing in enough business to be worth it. Or, like Mom, maybe you could be spending money on some things you would like to have.
How do you monitor cash flow? There are several computer programs that can help you track your income and outflow. Many of them are easy and take little time by allowing you to download your bank account and credit card statements into the program. Set aside a certain time each month to do your bookkeeping and then stick to it. At least every quarter, print up a cash flow statement. Look at where your income is coming from. Is there anything you could do to easily increase your income? Evaluate what you are spending money on. What things could you change to free up more cash?
Monitoring your cash flow on a regular basis helps you spend money wisely. It also helps you to make good financial planning decisions. And of course, when tax time comes, you will be prepared to file your taxes with all the necessary information at your finger tips.
At Soulence, we like to assist individuals and businesses to find a method of tracking Cash flow that works well with their circumstances. If you are not sure what will work best for you feel free to contact us and we can show you your options.
It seems like as soon as Halloween is over, the holiday season is here and before we know it, the year is over. In a few short weeks we will all be busy with family obligations, company parities and shopping, shopping, shopping. Right now is a good time to be reviewing the year, seeing where you are financially, strategizing, and determining if you should do something before the end of the year to minimize your tax liability for the year.
Throughout the year, we try to blog about various tax strategies, but now it is crunch time. It is time to get the bookkeeping caught up, look at all your revenue streams vs. all your deductions and estimate what your tax picture will look like. Here are a few suggestions of what you can look at and what you might want to consider before the end of the year.
1. How much tax will you owe? If you don’t have at least an idea, then it is impossible to make a plan.
2. How much have you paid in federal and state taxes so far this year? The IRS assesses penalties if you owe more than an additional $1000 when you file your taxes. If you haven’t paid enough in, then you need to pay some estimated tax payments.
3. Does your business need any equipment? Purchasing equipment just for the sake of tax deductions isn’t necessarily a good move. But if you need or want some new equipment (including a vehicle) evaluating your taxes now can determine if it would be advantageous to purchase it before or after the New Year.
4. Where can I put money before the end of the year to make it tax deductible? Besides making business purchases, a few things you can do are: putting money in tax deferred accounts such as IRA and 401K plans, donations and putting money into HSA account.