Why You Need An Accountant For Your Business

CPA - Golden Key.It should seem like a no-brainer that when beginning a new business venture you also need the expertise of an accountant and lawyer to ensure you are doing things properly. Legalese is like a foreign language and ensuring you pay your taxes and stay out of trouble should top your list of priorities.

However, aside from those obvious reasons, there are many more circumstances in which you will need the assistance of an accountant. As you become more experienced, you’ll find that your accountant and attorney will overlap a bit in their services and expertise. That being said, here are a few examples of services your accountant should provide:

*Help you decide what type of entity (such as S-Corp or LLC) and ownership structure to have when you first get started; your accountant may work with your attorney on this.

*Design and set up your accounting system so that year-end financial reporting will be easier.

*Ensure that you pay the correct types of taxes in the correct amounts.

*Ensure that you send out W2 and 1099 forms to the proper people at the proper times, and also make sure that if you send out 1099s, the IRS will agree with you that those individuals are independent contractors and not employees.

*Advise you on deductions and how to separate your personal and business expenses.

*Advise and guide you through an audit if you ever have one.

*Advise you on specific transactions, such as whether it’s better to lease or buy.

*Compile your financial records for the past period.

*Help you understand your financial statements. You should use your accountant’s expertise to help you analyze your financial statements.

*Knowing what kinds of business expenses are deductible.

It’s best to ask your accountant’s advice before you take any kind of financial action regarding your company. If you’re looking for a CPA in Hawaii to help guide you in your new or existing business ventures, visit Michael J. Yuda CPA, LLC today!

When’s The Perfect Time To Visit Hawaii?

iStock_000005654084SmallKnowing the perfect time of year to visit Hawaii that will offer the best weather for all of the sights you wish to see, along with navigating when is the most affordable time to visit, can be a bit overwhelming. As a CPA in Hawaii, we’ve got the experience and some inside tips that can aid in your travel plans.

#1 When’s the best time of year to visit?
There are many things to consider – the weather, which island(s) you plan to visit, the cost of airfare, where you plan to stay and what you want to do when you arrive.

The weather in Hawaii is consistently good most of the year, but the prices are much higher during the “high” travel season. Deciding what you want to do while in Hawaii and when the best time to do and see those things will help narrow down when you should visit.

#2 Weather in Hawaii
Visiting Hawaii during the winter season for mainland America is actually not the ideal time to find the best weather and bargains. The best weather is often found in April, May, September and October. These are also the months when you can find some good travel bargains. Hawaii has a dry season (April to October) and a rainy season (November to March.) The summer months can be hot and humid, especially in Honolulu and Waikiki.

#3 Which island to visit?
There are eight islands in Hawaii, six of which you can visit. The time of year you choose for your trip is a consideration for which island(s) you visit. For example, if you want to see the high waves that make Hawaii a world famous surfing destination, you’ll want to plan your trip for November – January. However, during summer, this same surf is mostly calm and a great place to bring the whole family.

#4 Cost of airfare
Airfare tends to be more expensive during the “high” season of mid-December to mid-April. The cost of a round-trip airline ticket to Hawaii has increased substantially over the past 10 years. However, there are a large number of airlines that fly to Hawaii, and the costs due vary from day to day and airline to airline, so the key is to plan ahead and compare prices.

#5 Where to stay?
Like airfare, lodging tends to be more expensive during the “high” season of mid-December to mid-April. There are resorts, standard hotels, condominium hotels, bed & breakfasts and vacation rentals. Cost will vary, often greatly, depending on where you decide to stay. Larger resorts tend to be more expensive than a standard hotel, but they often offer nicer rooms and pools, on-site restaurants and shopping, and more activities. Condominium hotels and vacation rentals are a great alternative for families since most come with a kitchen and you can save significant money on food.

Why Choose Michael J. Yuda?

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Are you looking for financial stability and guidance? Michael J. Yuda, CPA, LLC in Honolulu, Hawaii can handle your personal or business day-to-day accounting! Why should you choose Michael J. Yuda to help with your finances? Consider these reasons when seeking  a CPA in Hawaii:

  • Michael J. Yuda is a Certified QuickBooks ProAdvisor.
  • Michael J. Yuda is a Certified QuickBooks Online ProAdvisor.
  • With 2 certifications in QuickBooks, Michael J. Yuda is a proven professional at bookkeeping services and can help create a personalized service that is unique to your specific and unique business.
  • Michael J. Yuda has a proven track record in accounting and taxes. He began his career working for the IRS before starting his own Accountancy Corporation in 1983.
  • Michael J. Yuda is a licensed CPA in both Hawaii and California.
  • Michael J. Yuda is a member of the Hawaii Society of Certified Public Accountants, the California Society of Certified Public Accountants, and the American Institute of Certified Public Accountants.
  • At Michael J. Yuda, CPA, LLC, we offer tax consulting services that include the preparation of all personal and business income tax returns. We also prepare all required state tax returns, as well as multi-state returns.

If you’re looking for a CPA that you can trust, choose the best CPA in Hawaii, choose Michael Yuda today!

Vacation Money Saving Tips

The weather is warmer around much of the country, and mostly everyone has received their tax return, so now comes the time for vacations and other expenses that you might just not be ready for. Has it been awhile since you’ve had a vacation with the family? Is the reason due to financial problems? Perhaps a lack of saved money for events and expenses like vacation planning? If you’re hoping to enjoy a summer get away this year or in future years, consider these helpful tips:

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  • Set up a separate savings account that isn’t related to your current savings. Having this account will help you pay more attention to your specific vacations savings and allow your everyday savings account to stay separate.
  • Scale back on leisurely expenses. Do you truly need that triple macchiato every morning? Cutting back on eating out and other expenses that can be prevented will ensure you have money to add to your vacation savings.
  • Do you have a lot of clutter that you don’t need? Consider having a yard sale to collect vacation money.
  • Keep track of your finances with a savings or budget app.
  • Plan a week’s worth of spending. This ensures you stay within a budget and can count on having a comfortable amount of money to spend on a vacation.
  • Make weekly contributions to your vacation fund. By making a weekly contribution, you’re proving that your vacation is high priority in your financial life.

Do you need more in-depth help with saving money and having a more financial foundation? Consider seeking out the premier CPA in Hawaii, visit Michael J. Yuda CPA, LLC today!

The Hawaiian Lei Tradition!

iStock_000000976187SmallBeing a CPA in Hawaii, we are well acquainted with the history and custom of the lei. But seeing how many of you aren’t lucky enough to call one of our islands home, we thought we’d share some history and etiquette with you! It will come in handy on your next visit!

History of the Hawaiian Lei
The lei custom was introduced to the Hawaiian Islands by early Polynesian voyagers, who took a journey from Tahiti. With these early settlers, the lei tradition in Hawaii was born. The original leis were constructed of flowers, leaves, shells, seeds, nuts, feathers, and even bone and teeth of various animals. In Hawaiian tradition, these garlands were worn to beautify themselves. Among other sacred uses, it was used to signify a peace agreement between opposing chiefs.

An Island Hello!
Today, the lei is the symbol of Hawaii for the millions of visitors worldwide. During the “Boat Days” of the early 1900s, travelers were greeted at the pier at Aloha Tower to welcome malihini (visitors) to the islands and kama’aina (locals) back home.

Lei Etiquette
There are very few “rules” when it comes to wearing a Hawaiian lei. Anyone can wear one, anytime – no special occasion is necessary.

Unspoken Rules
While there aren’t any “formal rules”, there are a couple of “unspoken rules” that should be respected. * A lei should be a welcomed celebration, therefore, always accept a lei, never refuse.
*The proper way to wear a lei is gently draped over the shoulders, hanging down both in front and in back.
*It is considered rude to remove a lei from your neck in the presence of the person who gave it to you, so if you must, be discreet.

Achieving Financial Wellness

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What does financial wellness mean to you? Does it mean not living paycheck to paycheck? Does it mean having a little extra cash each month to spend on dinners out, the newest fashion and weekly Friday night happy hour? Or does it mean having the luxury to vacation annually anywhere in the world?

Financial wellness means something different to everyone, but the one key factor that applies to everyone is the need to manage our money so that we can live life without overspending and overextending our financial means. It’s never too late to take a step back, reevaluate your spending and living costs and come up with a plan that will lead you to financial stability.

Here are tips you can easily incorporate into your life that will allow you to achieve the financial wellness you desire!

1) Create a budget – The very first step to achieve financial wellness is to develop a budget that contains your monthly income and living expenses.

2) Automate your savings – Before you spend a single cent of your earnings, have your savings auto drafted to an account. If possible, set aside at least 10% of your income. If 10% is too much, don’t sweat it. Put as much as you can in, but do it every paycheck, automatically. It’s also a good idea to put any extra income – like bonuses or income tax refunds – into this account too!

3) Cut unnecessary expenses – Limit your surplus spending. Eating and drinking out is often the main culprit. How about that daily coffee that costs $5? That’s $150 per month in unnecessary spending. Do you need all those cable channels? Or how about that gym membership? If you’re only going once per month anyway, it makes sense to pay by the visit and save the difference.

4) Carry cash – Pay in cash when possible. Swiping plastic does not have the same realization as to what you are spending as handing over cash.

5) Plan for major purchases – Sticking to your budget means not splurging on a new flat screen TV or laptop on a whim. If you intend to buy something expensive, add it to your budget plan and save. This way you’ll be able to purchase it without using credit (and paying additional finance charges).

6) Plan for your retirement – It’s never too early – or too late for that matter – to start planning for your retirement. There are many options, including money market accounts that can exponentially increase your contributions. Seek out advice on how to best meet your future needs.

7) Get tax advice – Finally, if you’re not good with numbers and finances but you want to learn how to achieve financial wellness and you’re looking for a CPA in Hawaii, Michael J. Yuda CPA, LLC can help!

Hawaii Tax Consulting

money-256301_640 (1)Hiring a Certified Public Accountant to help with your taxes is well worth the money spent. If you’re in need of strategic tax planning, which is important for small business owners or individuals with complex returns, someone who pays high income taxes, or have unusual circumstances that warrant the guidance of a professional, then choosing a CPA over another enrolled agent or general tax preparer is highly recommended.

CPAs help provide guidance related to the grey areas of your taxes, whereas anyone can deal with the black and white of filing tax returns. The guidance and strategies provided by a CPA in terms of tax preparation of consulting are based on their interpretation of IRS rulings and past experiences.  Michael Yuda previously worked for the IRS as a revenue agent and has unparalleled experience in handling tax preparation.

When you’re in need of tax consulting in Honolulu, Hawaii, choose Michael J. Yuda, CPA, LLC. The tax consulting services with Michael J. Yuda include the preparation of all personal and business income tax returns. This includes and is not limited to partnership, corporation, S-corporation, and limited liability company returns. We also prepare state tax returns, as well as multi-state returns, such as required for entertainment individuals and professional athletes, who work in several states during a calendar year.

Planning for Your Retirement

Retirement is something that seems quite far away, however, it really isn’t. If we live long enough, some of us eventually reach a point where we leave our careers and opt for less intense work life. Many years ago, there was a time when companies included pension plans in their compensation packages and employees could look forward to receiving a percentage of their salaries to live on for the remainder of their lives. However, now it’s important to us to create a comfortable retirement that we rely on when we’re lucky enough to sit back and enjoy some time off. Here are a few tips for retirement savings:

Saving Retirement

  • Make a Plan! Saving for retirement might seem difficult at first, but with some guidance, coming up with a foolproof plan could be a breeze. Meet with a CPA to learn how much you can comfortable contribute to your retirement goal each year.
  • Start saving! It’s sometimes hard to just start saving money, but once you get into the proper mindset, saving becomes almost second nature. Designate an amount of your pretax income to contribute to your retirement savings on a monthly or bi-weekly basis. It’s easier to save money that you don’t have in your hands, so set it up so that your retirement savings automatically go into your savings account. Be sure to keep your hands off your savings!
  • Take advantage of retirement plans! Learn about programs your employer offers. From 401(k) plans to IRAs, take advantage of these.

There are many other ways to help amp up your retirement savings. If you’re looking for a CPA in Hawaii to help you guide you down the path of a more financially secure future, visit Michael J. Yuda CPA, LLC today!

Overlooked Tax Deductions

Every year, the IRS reports on the most common mistakes that taxpayers make on their returns. Everything from missing Social Security numbers to name misspellings make the list. However, there are some mistakes that people make on their taxes every year that you might not be aware of. Here are a few common overlooked tax deductions that you might miss when filing your taxes.

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  • Dependent Parents: If you’re providing more than 50% of your parent’s financial support, and those expenses exceed 10% of your adjusted gross income, you may qualify for a very large deduction.
  • Sales tax on a new car: Used cars don’t count, and there are a few restrictions, but if you purchased a new car, you might be able to deduct the sales tax.
  • Continuing education deductions: If you itemize your deductions, you may be able to deduct various employee business expenses, including continuing education, professional publication subscriptions, professional association dues, and even tax preparation fees.
  • Business meals and entertainment: If you’re a small business owner or work freelance, you can write off business and entertainment expenses.
  • Home energy efficiency improvements:  If you are or have made your home more energy efficient, you may be able to deduct up to $1,500 off your tax bill.

There are many more hidden deductions that are often overlooked. If you don’t want deductions to be overlooked, consider seeking the tax consulting service of Michael J. Yuda CPA, LCC today!

Have A Less Taxing 2013 Tax Season

Under PressureTax day is less than two months away, and you aren’t alone if you haven’t even begun preparing your taxes. This year, how about you keep tax season less taxing, and take away the stress filing taxes can impose on your life. Below are a few helpful tips to make the 2013 tax season less daunting.

  • Get Organized: Easier said than done, right? The first step toward preparing your tax return is to organize every necessary document you need.
  • Become Aware: It’s important to understand what income is taxable. Reach out to a tax professional or do research to educate yourself on what is and what isn’t taxable.
  • Learn About New Tax Changes: In 2013 no major tax changes occurred, but there may be a few tweaks that could affect some taxpayers. Most of the changes that did occur are related to federal health care.
  • E-File: E-filing is the quickest way to receive your refund.
  • Seek Out Help: If you’re completely lost, choose Michael J. Yuda, CPA, LLC in Honolulu, Hawaii. Our tax consulting service includes preparation of all personal and business income tax returns. Michael J. Yuda is a trusted CPA in Hawaii, and can help make your 2013 tax season less taxing on you.