Want to stay informed about what is happening in the world of accounting and tax? Michael J. Yuda, CPA, LLC’s blog is here to help. We understand just how important it is for our clients to not only know what is going on with their finances, accounting and taxes, but also how the constantly changing tax laws, etc. will affect them. That is why we have set up a blog that posts informative articles, tips, and techniques designed to help you stay in charge of your financial life.
Regularly updated, our blog is a great place to learn how to better approach taxes, bookkeeping, and personal finances so that you can give your financial future some direction. If you find an article or piece of information that interests you and want to learn more about what it means then we encourage you to contact us. We always look forward to helping our clients in any way possible when it comes to their financial needs.
Contact our accounting firm in Honolulu, Hawaii, for more information about the different topics we discuss on our blog.
If you are regularly finding yourself in financial trouble, perhaps it’s time to make some changes. Many people sadly live paycheck to paycheck, and find themselves in a never ending cycle of debt each and every month, with no relief in sight. If you find yourself buried beneath credit card bills and other monthly bills, and see your paychecks dwindle before you even see them, consider trying the following:
List your income, and average expenses. It’s crucial to ensure you’re actually making enough money to cover your expenses while also being able to comfortably afford necessities. If you find yourself in an uncomfortable position, consider cutting costs if possible. Do you really need that expensive cable package? Should you cancel a monthly subscription that you don’t really need?
Create a realistic monthly budget. This will help you control where your money is going.
Track your spending, so you can assess any trouble areas. If you find yourself splurging on any certain item, tracking your spending will help you figure this out. Many smart phone apps exist that will help you track your finances.
Sell items you don’t really use. The extra cash can help you catch up on your bills, and pull you out of debt.
Consider possibly taking a part time job on the weekends.
The most important step in taking control of your finances is to stay disciplined. As 2014 progresses, following these steps can help ensure a financially sound and fiscally responsible year! If you need the guidance of a professional, don’t forget about the best CPA in Hawaii, visit Michael J. Yuda CPA, LLC today!
With tax season springing upon us, the time to collect your important documents is not too far off. If you want to make the most out of your meeting with your CPA, it’s important to bring all needed documents. When you’re getting ready to meet with your CPA, make sure you bring the following documents:
W-2s from your employer(s).
1099-MISC forms.
1099-INT (interest) and 1099-DIV (dividends) forms.
1099 B forms if you’ve brokered or traded stocks and bonds during the year.
K-1 forms for income from a partnership, trust or S Corporation.
1099-SSA forms if you are receiving Social Security.
Documents that show additional income not reported on a W-2 or 1099 form.
Canceled checks, receipts, spreadsheets that show any tax-related expenses.
College expense records and 1098-T forms.
Proof of charitable donations.
If you paid estimated taxes, be sure to bring a summary of your federal and state estimated payments.
If you are starting with a new CPA, bring a complete copy of the prior year federal and state tax returns.
If you’re still unsure of what to bring to your CPA during tax time, consider asking your CPA before your meeting. If you’re looking for a CPA in Hawaii to help you get the most out of your taxes, and keep your personal finances in order, make Michael J. Yuda CPA, LLC your only choice!
When you’re trying to save money, it sometimes seems impossible. However, there are a few tips and tricks that can help secure success. Below are just a few fun facts about money saving:
Did you know that by watching less television, you might have an easier time saving money? When you avoid TV, you’re less exposed to guilt-inducing ads, and ultimately a high cable or electric bill. Advertising makes so much money because it works. However, advertising isn’t always friendly on your wallet.
Many credit card companies will work with you on a rate reduction. Although these deductions aren’t extremely high, you can save up to $150 a year.
When we’re stressed, we’re more prone to impulse buys. Going to the gym or participating in any type of exercise isn’t just good for our bodies; it’s great for our wallets too. Exercise reduces stress, which can prevent impulse buys.
Delete your credit card numbers from your online accounts. Everyone loves the convenience of 1 click shopping, but by un-synching your account, you might re-consider your purchase, helping you save money.
Many people aren’t aware of all the benefits they have at their jobs. Do your research and see what types of benefits you might be overlooking; these could help you save money. If you find yourself spending a lot on entertainment, you might find that your employee offers benefits like free or discounted tickets.
If you’re looking for financial guidance and want to finally reach financial stability, consider choosing the premier CPA in Hawaii, Choose Michael J. Yuda CPA, LLC.
Does it seem that as each day passes, it feels harder and harder to save money? You desperately try to put away more money, but the amount of money you’re putting away isn’t keeping up with the rising costs of living. Remember your childhood piggy bank? Well the concept of the childhood piggy bank can be used into your adulthood as well, just on a more mature level. Of course, we’re not opposed to be using a piggy bank. Below are a few helpful suggestions that closely mimic the concept of having a piggy bank:
Every time you make a bank deposit, set a certain amount of money to be automatically placed into your savings account. You can do this each week or bi-weekly. The amount you choose is up to you, but you’ll be surprised how much you can really save in a year.
Perhaps actually use a piggy bank. You don’t necessarily have to go out and buy a ceramic pig, but collecting and saving coinage can really add up. Not only does saving loose change regularly sometimes pay off, but it does build great saving habits that you can use in other financial aspects.
Putting money into a high yield savings account or a CD is a great way to save money, and even increase the value over the years. Consider these accounts a more advanced piggy bank.
Don’t stick to just one method of saving. Having a savings account, CD and even saving pocket change are all great ways to reach financial stability. Quick thinking, smart planning and wise purchases are all extremely important when it comes to saving, however, it’s not always that easy.
We value your financial health, and want to see you reach financial stability. If you’re looking for a CPA in Hawaii who can help you get there, choose Michael J. Yuda, CPA, LLC.
With the holidays quickly approaching, many people will flock to department stores to stock up on the year’s hottest gifts. Many people will spend more than they intend to during the holidays, and this could set a lot of people back financially. This holiday season consider being mindful of what you’re spending with these helpful financial tips from Michael J. Yuda, CPA, LLC.
Decide how much you can actually spend! People often overlook extra fees when they draft a budget: this includes wrapping paper, gas to get to the store, and other small expenses. Come up with a realistic budget, and stick to it.
Much like Santa, make a list and check it twice. Assess your spending limits for the gift receivers in your family, to ensure you can comfortably spend the money on their gifts. Keep your focus on what you’ll spend, and not the gift you will buy.
Pay Cash! Many people rely on credit and debit cards, but without seeing the money dwindle, you’re more inclined to overspend. If you must use a card, use a card with the lowest interest rate.
Give yourself enough time to get your shopping done. When you wait until the last minute to finish your holiday shopping, you’ll end up overpaying for items that may have been priced lower in previous months. Getting an early start also ensures you can breathe and enjoy the holiday without stressing out.
Don’t just focus on material things! Gifts come in all shapes and forms. If you aren’t financially set to spend a lot of money this holiday season, consider giving gifts from the heart.
Your financial health is important to us! If you’re looking for a CPA in Hawaii, consider Michael J. Yuda, CPA, LLC.
When it comes to handling your finances, you won’t find a better CPA in Hawaii than Michael J. Yuda. We’re proud to announce that Michael J. Yuda, CPA, LLC is a certified QuickBooks Online ProAdvisor. What exactly does this mean?
Certified QuickBooks Online ProAdvisors are experts who have gone through extensive testing to become certified by Intuit on a range of QuickBooks products.
Certified QuickBooks Online ProAdvisors are better trained to help businesses get the absolute most out of their QuickBooks software. Having this certification ensures that Michael J. Yuda has the skills and knowledge to provide a wide range of services including: QuickBooks setup, training, payroll and consulting as well as other important skills to help your business thrive.
Certified QuickBooks Online ProAdvisors have the capabilities to reach more small business users, making finding the perfect CPA easier than ever before.
QuickBooks Online ProAdvisors have more tools at their disposable to help you reach financial stability.
Michael J. Yuda, CPA, LLC, has always been a certified QuickBooks ProAdvisor, but with our new certification with QuickBooks Online, we have more tools and resources to help you with your bookkeeping services, monthly, quarterly or annual accounting and so much more. If you’re looking for a QuickBooks Online ProAdvisor in Hawaii, look no further than Michael J. Yuda, CPA, LLC.
Did you know Hawaii is home to over 19 state forests, 52 state parks, and features some of the most beautiful beaches in the entire world? What other facts do you know about Hawaii? Did you know the state motto of Hawaii is “The life of the land is perpetuated in righteousness” (Ua mau ke ea o ka aina I ka pono)? Being a CPA in Hawaii allows us to learn more and more about this beautiful state, and at Michael J. Yuda, CPC, LLC., we like to share these wonderful facts with you. Below are some more fun facts about Hawaii:
The Northwestern Hawaiian Islands are home to over 7,000 marine species, most of which are found nowhere else in the world.
The island of Kauai is home to the wettest spot on Earth. With an average yearly rainfall on Mt. Waialeale of 397 inches.
Hawaii has the highest life expectancy for residents than anywhere else in the U.S.
The ocean temperature in Hawaii varies from 72 degrees in the winter to a bathtub-esque 82 degrees in the summer.
Hawaii is known as the “Aloha State” and also the “Paradise of the Pacific”.
Famous Hawaiians include Bette Midler, Don Stroud, Don Ho, Jack Johnson, and Barack Obama.
“Accounting is the language of business” Warren Buffett
Authored by Chris Vanderzyden
Accounting, financial statements, forecasting, budgeting, taxes…Unless you are an accountant, most small business owners have very little understanding of the finance side of their business, and in order to be successful, it is imperative that you know and understand the language.
According to a recent report from the Small Business Administration, one-third of new businesses fail within two years, and fifty-six percent within the first four years. I actually thought these stats were pretty good – two-thirds stay in business for two years – not bad at all! But, how many are profitable? Only about 40%.
Why the lack of profits and thus the high failure rate? Incompetence, and one of the primary inadequacies cited is lack of financial knowledge.
I get it; the finance side of business is just not as sexy as the product development, marketing & sales, or whatever is your sweet spot in your business. However, it is critical to your success that you not only understand your financial information, but also utilize the data to make sound management decisions.
Hire a CPA and a bookkeeper to do the dirty work, but do not hide your head in the sand in regards to what your financial picture looks like. Your ability to read and properly analyze the information will ensure that your business continues to thrive.
Here are a few key points to understanding two of the basic financial statements – the Balance Sheet and Income Statement:
1. Balance Sheet – The balance sheet is a picture of the position of a company at a specific date. It provides the value of assets, liabilities and owner’s equity and provides the information necessary to determine the level of solvency and liquidity of a company.
A key indicator to liquidity is the current ratio: the ratio of current assets to current liabilities. Current asset are those assets that can be converted to cash within the current period such as, accounts receivable. Current liabilities are those liabilities that are expected to be paid off within a current year, accounts payable.
Computed: Current Assets / Current Liabilities
A 2:1 ratio (twice the assets as liabilities) is a good marker of a healthy small business.
Two additional balance sheet key ratios to consider:
Inventory turnover – the number of times that inventory is replaced in a period. This provides an indicator of how well the inventory levels are being managed.
Computed: Cost of Goods Sold (CGS found on the income statement) / Average Inventory in a Given Period
* Is your rate good? How is it trending compare to previous periods? Compare your turnover rate to your successful competitors.
Receivable turnover – is a measurement of how many times a business collects its receivable in a period or how efficient their collection process is. The goal is to collect receivables as quickly as possible, so the higher the ratio the better.
Computed: Credit Sales / Average Accounts Receivable
2. Income Statement – Displays all revenue sources and expenses for a given period of time. Three key analytics:
Gross Profit Margin = Sales – CGS / Revenue
Analyze – are you making a profit on the products you are selling?
This will indicate how efficient your company is operating.
Net Profit Margin = Net income/revenue
This is the income derived from every dollar of revenue.
VICTORY TIP FOR THE WEEK:
Your financial statements are your greatest tools to identify weaknesses in your business. It will alert you as to when trouble is brewing and allow you to be proactive in resolving issues. Is there a problem in your inventory control? Do you need to tighten your cash management procedures? Is your pricing out of whack? Are your operating expenses eschewed?
Don’t hide your head in the sand—carefully and consistently analyze your financial statements, and watch the trends as you compare period-to-period. Your efforts will guide you to make better management decisions that will positively impact your bottom line. Trust me – it pays to fall in love with the language of numbers!
* This post was originally written and posted on ChrisVanderzyden.com– thanks to Chris Vanderzyden for sharing with us! We’re so excited for you to share this with our readers! Follow her blog for more amazing posts.
Having a positive relationship with your accountant is the best way to help your financial stability. Having regular contact with them is essential to ensure everything is in order. It’s important to try and maintain a good relationship with your accountant, as they can be a crucial component to your personal financial health, as well as the health of your business. The following tips will help you build and maintain a healthy relationship with your accountant:
Keep agreed records and deadlines
If there are any changes to your business or personal finances, make them known immediately
Discuss major issues with your accountant, such as tax implications, salary, dividends, etc.
Always pay your accountant on time
Don’t be afraid to ask questions
If your accountant isn’t adapting to the needs of your growing business, don’t be afraid to speak up
Allow your accountant to focus their energy on helping you succeed, not avoiding IRS penalties. An accountant is there to help you stay on track and ensure you’re finances are in order
The major secret to maximizing the relationship with your accountant is to always keep open communication with them throughout the year. If you’re looking for a CPA in Hawaii, you can trust Michael J. Yuda, CPA, LLC.
Do you have an emergency fund? If you don’t currently have an emergency fund that you regularly contribute to, perhaps it’s time to reconsider this idea. Financial health is sometimes a major burden and stressor in our lives, and when a financial emergency develops, we are often stuck without a safety net. From emergency hospital visits to car troubles, there are a lot of things in our normal lives that can dip into our finances without warning. Starting an adequately funded emergency fund is a great way to be financially safe in the event that an expensive emergency occurs.
With a high number of jobs disappearing and people out of work, starting an emergency fund is a great safety net. A good starting point is saving up to 3 months of expenses to help secure your financial future in the event of a financial catastrophe. If you want to take it one step further, consider setting aside six months of money in your emergency fund especially if you think your job is in jeopardy. Below are a few other tips on how to start an emergency fund:
Set a number that is doable and possible! It’s important to factor in your normal spend when deciding on the best amount to save each month.
Make an emergency fund a long-term goal.
Factor saving into your expenses. Make your emergency fund a priority as you would a bill.
Make your money hard to get to! Look for an interest bearing account with minimum balance or fees. The harder it is to get to your emergency fund, the less likely it is that you will spend it for non-emergencies.
If you’re looking for financial guidance and more in-depth information on starting an emergency fund, contact the premier CPA in Hawaii, choose Michael J. Yuda CPA, LLC.
If you are regularly finding yourself in financial trouble, perhaps it’s time to make some changes. Many people sadly live paycheck to paycheck, and find themselves in a never ending cycle of debt each and every month, with no relief in sight. If you find yourself buried beneath credit card bills and other monthly bills, and see your paychecks dwindle before you even see them, consider trying the following:
