How Can an Accountant Help Your Personal Life

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Your Personal Life

When most people think of an accountant, the first thing that comes to mind is someone who manages a company’s money. While managing money is certainly one of an accountant’s chief functions, it’s not the only thing that an accountant can help with. In fact, an accountant can help you in your personal life as well.

Here are a few ways how your accountant can boost your personal life:

Recently Married

Were you recently married? If you were, your tax filing status will likely change, and if you’re not familiar with the relevant tax laws, this change may be an issue for you and your spouse. Hiring an accountant will help you as you file under your new status and also help you maximize your savings.

How To Save Money

An accountant can teach you and your family how to save money. Spend lots of money recklessly? No problem. An accountant can easily help you identify what is a need and what is a want. Once that’s been established, they can work with your family directly to ensure you have a budget in place.

How To Spend Money

Nobody likes to be told how to spend money; however, an accountant can literally do just that. They can work with you and your family specifically in determining what may or may not be a good purchase both long-term and or short-term.

How To Earn Money

Struggling with ways to generate an increased amount of income? No worries. An accountant can help you determine ways to earn money and add income to your family’s bank account.

Newborn Children

Children can be hard to save for, but they can be even harder to spend for. Additionally, during tax season, children can also help you receive more money from the IRS; because of this, you will want to make sure that your accountant is equipped with the necessary tools to be able to help you (and your family) receive the most out of your deductions for your children.

What ways have you found an accountant to be helpful in your personal life? Leave your comments below.

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Looking to Make a Big Purchase? Here’s How a CPA Can Help

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Big Purchases

Are you a business owner looking to make a big purchase? Do you want to make the purchase but have no idea where to begin? Whether you recognize it or not, making a big purchase is not something you have to do alone. In fact, your CPA could be the one who helps you as you prepare to make your next big purchase, and here are several ways that your CPA can do this:

Your CPA Can Tell You What Your Budget Is

Just because you want to buy something doesn’t mean you’re in the financial place to buy it. Working with your CPA before you make a big purchase can help show you what exactly you can afford, and what expenses you may need to eliminate in order to afford it.

Your CPA Can Help You Save Money

Perhaps you can’t spend money right away. While this may be discouraging, when you’re looking to make a big purchase, your CPA can actually help you save money that will go toward your big purchase.

Your CPA Can Put You On A Spending Diet

When your money is funny, sometimes it’s important that your CPA put you a spending diet. A spending diet will help you eliminate useless spending, and put you on a pathway to ultimately buying exactly whatever it is you want.

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Four Ways to Get Your Money’s Worth When Hiring a CPA

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Getting Your Money’s Worth

One of the most common reasons many businesses do not hire a CPA is that they believe they cannot afford to hire a CPA. And while in some cases this belief may be accurate, in the long-run hiring a CPA will usually result in an improved financial situation for most businesses. However, in order to receive the greatest benefit from a CPA, there are certain ways along which you have to conduct yourself.

Here are four things which can help you get your money’s worth when you decide to hire a CPA:

Build a Relationship

Once you find a CPA that you like and have built a great relationship with, stick to it. Building relationships is vital to success in any situation involving frequent client to customer interaction. It is especially important once you find a great CPA simply because it’s not always easy to match up with the perfect accountant.

Be Organized

CPAs usually charge by the hour, and so it’s important that you make sure you’re always organized and thoroughly prepared. Being organized and prepared will ensure that you utilize your CPA’s time in the most efficient manner possible.

Be Honest

If you tell the truth, you don’t have to remember what you said.  Don’t ever attempt to undercut your CPA by low balling your financial earnings or even by overestimating them. Be completely honest with how much money you are making and how much you are spending. Being totally honest with your CPA will enable them to help you the most.

Consult Your CPA about All Financial Matters

Don’t ever be afraid to consult with your CPA about your financial matters. Some people often wonder if the questions they have for their CPA are “dumb” questions, but there is no such thing as a dumb question. If you’re worried about your finances, tell your CPA. If you are fearful that you are overspending, tell your CPA. Any situation that involves money should be shared with your CPA up front and candidly.

What ways have you identified that help you get your money’s worth when hiring a CPA? Leave your comments below.

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Five Bad Money Habits Your CPA Can Help You Break

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Money Habits

Let’s face it, we all have bad money habits that we need to break. While we may not want to admit it, it’s a reality that many of us face every day. If you want to know whether someone has bad money habits, the best place to check is their bank account. If their account is always in the red, you’ve definitely found a bad money habit.

Having bad money habits does not mean you are a bad person, nor does it necessarily indicate that you’re a bad business person either. What it does say is that you lack self-control as it relates to your finances. Sadly, this is a flaw many business owners across America share.

Here are five bad money habits your CPA can help you break. Breaking these bad habits can help get business on the right path.

  • Spending Money Before You Get it
  • Spending Money You Don’t Have
  • Spending Money on Unnecessary Purchases
  • High Interest Rate Credit Card Usage
  • Failing to Calculate Taxes

Do any of these bad money habits sound like the habits of your business? Don’t worry, you’re not alone. 75% of businesses have one or more bad financial habits. With diligence and perseverance, these habits can be broken.

These bad money habits are exactly why it’s imperative to have a CPA on your team to help you break the bad financial habits which are extremely hard to break all on your own.

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4 Deductions Self-Employed Professionals Should Utilize

Being self-employed can often feel like having two jobs rolled into one: not only do you have your work or service you provide, but you often have to solicit new business, do your own marketing, bookkeeping, expense tracking and so on. Although you’d likely be best served by a CPA, here are a few deductions to help maximize your tax return.

Tax Calculator Freelance Deductions

Tax Deductions

Business travel costs

Track everything when you travel for work! This includes gas, meals, lodging, airfare, train tickets, even regular maintenance on a work vehicle. Remember that any non-business activities along the route cannot be deducted as a business expense. That means if you take a detour to see your parents on the way to a business conference, you cannot deduct any expenses incurred related to your detour.

Social security taxes

You can write off half of what you pay in social security taxes. This is only applicable if you’re self-employed and thus are paying the full 15.3% tax by yourself, instead of splitting the cost with an employer.

The home office deduction

Your business may have an office or facility, but odds are if you’re self-employed you do at least some work at home. While no one really enjoys bringing their work home, the good news is that if you have a dedicated business work space in your home, you can deduct that from your tax liability. This includes part of your rent, any associated utilities (e.g., your internet service fee), or you can use the simplified method: deduct $5 for every square foot that qualifies for the deduction.

Health insurance premiums

If you’re self-employed you can deduct medical insurance premiums for yourself and your family. Further this applies whether or not you itemize your deductions, but you’re automatically disqualified for the deduction if you are eligible for employer-sponsored health insurance through another job.

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  • Huddleston Tax CPAs / Huddleston Tax CPAs – Bothell
    Certified Public Accountants Focused on Small Business
    19125 N Creek Parkway #120 / Bothell, WA 98011
    425-242-3836

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve: Tukwila, SeaTac, Renton. We have a few meeting locations. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.