Student Loans: Should You Pay Them Off Early?

Student LoansIf possible, paying off any debt early may seem like a good idea – But when it comes to student loans, it could be more beneficial to put your money elsewhere. There are some calculations you should consider before making your decision to pay off your student loans early.

Today, students are graduating with immense student loan debts as college tuitions rise to unsustainable levels. We all know the deeper you are in debt, the harder it is to get out – so if you have some extra cash, should you pay down your student loans early? Due to interest costs, it sure can save you money. If you pay your debts early, think of it as an investment – You’re paying more now to owe less interest over time. It can also help free up your monthly cash flow. If you have a plan to pay $150/month for ten years, and you pay your balance early, that’s $150 more you’ll have in your pocket each month.

On the other hand, you may be able to earn a better rate of return investing in the stock market than you can by paying off your loans. (The exception to this rule is if your student loan has an interest rate higher than 10 percent.) When prioritizing your money, you should first pay off any high-interest credit card debt. You should also invest in mutual funds, like your company’s 401K. Of course, still make your regular student loan payments each month. Honolulu accountants also agree that paying off your student loans in full is not recommended if it means draining your savings account!

Detecting and Preventing Accounting Fraud

No matter the industry, location or size of your business, it is possible to become a target of fraud. Fraud can be inflicted by employees, managers, and vendors in a variety of ways. Prevention and detection are fraud preventioncrucial to reducing fraud, and every business should have a plan in place. Remember, preventing fraud is much easier than recovering the losses!

Signs of Fraud

Fraud perpetrators often display behavioral traits that can indicate their intentions. If you find that an employee is working excessively and denying assistance, they may not be working extra hours because they’re a model employee – especially if they are still producing poor accounting records. Other red flags include managers performing clerical duties when they normally would not, and employees who display different behaviors with their peers than with management.

Fraud Prevention

There are simple steps that every business owner should implement to prevent fraud. When hiring, do not solely rely on a recommendation, even if from someone trusted. Perform background checks on employees, and be sure that everyone is taking some time off. This way, employees can review each other’s work and there are fewer chances to keep secrets. Perform periodic inventories and maintain accurate accounting records. Most importantly, create a fraud-hostile environment!  If employees are encouraged to be on the alert for fraud, other employees will be much less likely to attempt it.

When you’re in need of financial guidance, visit the premier CPA in Honolulu! Request an appointment with Michael J. Yuda, CPA, LLC in Honolulu, Hawaii today!

Get Your Taxes Done by April 15!

As the deadline to file taxes approaches, millions of individuals and businesses across the United States scramble to get their returns completed. Tax return preparation in Hawaii can be done through several methods, and the right method for your needs likely depends on how complicated your tax return is expected to be. Tax Day

A great way to get started with tax return preparation in Hawaii is to be prepared for the task at hand. QuickBooks bookkeeping allows businesses to keep track of revenue and expenses throughout the year. If you implement QuickBooks bookkeeping in your business at the beginning of the fiscal year, you can make the process of filing a tax return go much smoother in April.

Businesses that have not kept records with bookkeeping software have a challenge to face when filing taxes, but it is still a task that needs to be done. Failure to comply with IRS tax regulations will result in fines and penalties that continue to accrue until a return is filed and all fees are paid.

If you are dealing with a complicated return and have yet to get organized, the best option is to seek out a tax professional. Michael J. Yuda, CPA, LLC is an experienced tax firm serving clients in Honolulu, Hawaii. Not only is the firm able to assist with the preparation of tax returns, but it can also help businesses with tax planning to ease the burden of filing next year.

Tips for Getting Your Taxes Done on Time

When you are facing the strict deadline associated with tax filing, the pressure is on. Failing to meet this deadline will result in significant penalties, but people who have complicated tax returns may hesitate to get started. Here are some tips for staying on track when it comes to tax return preparation in Hawaii. Money

  • Gather all of the necessary forms and paperwork before you get started. Not only do you need W-2 forms and the tax forms associated with your return, but you may also need receipts to accurately claim deductions. Keeping this information centrally located throughout the year will help you avoid the hassle each April.
  • Start on your tax return as soon as you receive the necessary paperwork from employers, banks and investment companies.
  • If it becomes apparent that you are not going to meet the April 15 deadline, consider filing an extension. The simple form required to file for an extension is due by April 15 and gives you an extra six months to work on your taxes.
  • Do not go through tax return preparation in Hawaii on your own. Michael J. Yuda, CPA, LCC is a CPA firm that has extensive knowledge when it comes to filing tax returns for clients. You do not have to worry about complying with complex tax regulations when you hire someone else to complete and file your return.

Tax Preparation Checklist

Before preparing your income tax return, it’s important that you have everything that you need, and have any and all information ready available. Below is helpful checklist to get you ready for your income tax return preparation: Tax Preparation Checklist

  • If you’re planning to have your return electronically deposited, it’s important to know your bank account and routing number.
  • Social security numbers of your spouse, dependents, and yourself.
  • Education Payments: Forms 1098-T from educational institutions, receipts that itemize qualified educational expenses, and other documents related to student loans or tuition.
  • Employee Information: W-2 forms and other income related documents. If you are self-employed you will need forms 1099-MISC, schedules K-1, and income records to verify amounts not reported on 1099s.
  • Business Expenses: Logs showing total miles driven per year, parking tolls paid, and other expenses related to using a vehicle for business use.
  • Rental Property Income: Records of income and expenses related to rental properties.
  • Retirement Income: Pension, IRA, annuity income (1099-R), Social Security, RRB income (1099-SSA, RRB-1099).
  • Savings and Investments: Interest, dividend income forms (1099-INT, 1099-OID, 1099-DIV). Income from sales of stock (1099-B, 1099-S).
  • Other Income: Unemployment (1099-G), gambling income (W-2G), and other forms related to income or expenses.

When you’re in need of professional tax preparation, visit the premier CPA in Hawaii! Request an appointment with Michael J. Yuda, CPA, LLC in Honolulu, Hawaii today!

Organizing your Records for Tax Time

Good organization is one of the first steps to having a stress-free tax season. For many, the biggest hassle at tax time is often getting all the proper documentation together, including last year’s tax return, W-2 form, 1099s, receipts, and so on. If you’re hoping to have a smooth tax season, consider these helpful tips. Tax Preparation

  • Print out a tax checklist to help you gather all of the proper documents you’ll need to complete your tax return.
  • Group similar documents in the same file folders.
  • Collect receipts that you’ve compiled throughout the year.
  • If you’ve sold stock, be sure to know the price you paid for them or the funds that you have sold. If you’re unsure, call your personal broker before preparing your tax return.
  • Keep all information and forms that come in the mail in the same place. This includes items like W-2s, 1099s, mortgage interest statements, and even student loan documents.

By organizing early, you give yourself plenty of time to complete filing your taxes properly, saving you much needed time, stress, and even money. Proper planning is the key to an easy tax season.  If you’re looking for the very best tax preparation in Honolulu, Hawaii, make Michael J. Yuda, CPA, LLC your first choice!

Tax Consulting in Honolulu

83901064_scaled_153x180Tax season is here and at Michael J. Yuda, CPA, LLC in Honolulu, Hawaii, we offer tax consulting services for personal preparation as well as business income tax returns. This includes partnership, corporation, S-corporation, and LLC returns. When you choose Michael J. Yuda, you can rest assured that you’re getting the very best tax consulting imaginable. Michael J. Yuda has an extensive tax background that dates back to the years spent working for the Internal Revenue Service.

From tax planning to tax representation, we’re equipped to handle all of your tax needs. We take pride in helping our clients secure a financially healthy future, and look forward to working with you this tax season and beyond. Your success is our success, and we are committed to not only help you reach short term financial goals, but help foster a relationship to keep you financially stable and happy for years to come.

Michael J. Yuda, CPA, LLC not only prepares federal returns, but also prepares all required state tax returns, as well as multi-state returns for those who work in several states during the year. When you’re looking for a CPA in Hawaii to help you with your taxes, there’s only one choice. Choose Michael J. Yuda, CPA, LLC today.

Contact us  today to schedule an appointment to discuss your tax situation.

 

Financial New Year’s Resolutions

dollar-163473_640Did you make New Year’s resolutions this year? Were they related to your financial health and well-being? As we finish up the first month of 2015, many of us seem to have abandoned our resolutions, but that doesn’t mean you can’t reinstate those resolutions, and secure a healthier financial life. Here are some helpful ways to keep your financial resolutions in the New Year:

  • Set specific, measureable, realistic, and attainable goals! Creating a broad goal like paying off all debt, or just simply saving money is a recipe for failure. Making goals like saving $200 per month or $5,000 this year are more attainable and easier to maintain.
  • It’s important to figure out how much you can actually save per month. Calculate your monthly costs and income to figure out a number that you can put away and still be able to live day to day.
  • Revisit your goals often and adjust as needed. Every so often, it’s important to take a step back and see how you’ve been doing with meeting and maintaining your goals. It’s important to adjust your goals as needed, to ensure you can actually reach them.
  • Review things like your 401(k), meet with a CPA, and review retirement plan contributions to help ensure a financially healthier life beyond the New Year. There might be things you can be doing that will help you save more money.

When you’re in need of financial guidance, visit the premier CPA in Hawaii! Request an appointment with Michael J. Yuda, CPA, LLC in Honolulu, Hawaii today!

Common Misconceptions about Credit

credit-card-509326_640It’s no secret that a credit card is a great financial tool that if used wisely can help you learn better spending habits and financial responsibility. However, there is a sense of mystery surrounded by credit. Knowing the facts about credit cards can help you avoid significant pitfalls towards your financial health.

  • Did you know that regularly applying for new credit cards can actually hurt your credit score? Only apply for a new line of credit when you actually need a new line of credit.
  • If you don’t make at least the minimum payment on the card, the payment will count as missed. Some people believe that if you pay at least something, you won’t be affected by a negative credit score.
  • If you manage your credit cards wisely, a high credit limit is a very positive thing. Some people believe a high credit limit can lead to financial crisis quite quickly, but as long as you’re responsible and have a repayment strategy in mind, a high limit can actually be advantageous.
  • People think that having more than one credit card can lead to a higher credit score. You don’t need to stick to having just one card, but opening credit cards too frequently can actually negatively impact your credit score.

These basic facts should help you gain more knowledge of credit cards, as well as clear any misconceptions. Whether you need guidance or more tools on managing your credit and maintaining a strong credit history, visit Michael J. Yuda CPA, LLC today.  Michael J. Yuda is the premier CPA in Hawaii and can help keep you financially healthy.

Paying Off Credit Card Debt Fast

money-trap1-771882-mThe holidays have come and gone, and for many, a cloud of credit card debit hangs overhead. However, you can pay off the debt quickly by utilizing the following strategies. The secret to paying off debt fast is to develop a plan and stick to it.

  • Concentrate on one credit card at a time. Of course if you have multiple cards it’s important to pay at least the minimum on them, and concentrate on paying more on one card at a time. Make sure to check the interest of each card, and concentrate on paying the card with the highest interest first. Of course, you can also pay off the card with the smallest balance first.
  • Always try to pay more than the minimum! Pay a bit extra each month. Every time you go over the minimum payment, the money will go toward the balance, which will lower the balance, and result in less interest being paid.
  • If you feel as if you’re in a considerable amount of debt with multiple cards and bills piling up, consider consolidating your debt.
  • Start categorizing and organizing your monthly spending. Look for areas where you can cut back on monthly spending, and use the money that you’ve freed up to apply to your debt.

If you find yourself completely overwhelmed with debt, consider seeking out a CPA in Hawaii. Visit Michael J. Yuda CPA, LLC today.