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.
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.
“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.
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.
School is in session, and excited high school graduates are preparing for a rewarding educational experience as college students. Once college is over, the dreaded student loan bill begins! Whether you’ve just graduated, are going into college, or have already started paying your student loan debt, these tips will help you keep your student loan debt under control. With finding a job being extremely difficult, you might feel as if you’re suffocating under a mountain of debt. Follow these tips to help keep your debt under control:
Be knowledgeable about your loan! It’s extremely important to keep track of your lenders, balances, and repayment statuses for each student loan.
Understand the grace periods attached to your student loans. A grace period is essentially how long you can wait until repayment begins after college. The grace period can vary depending on your lender, so it’s important to find out this information.
Keep in touch with your lender! If you’ve changed phone numbers, addresses, or e-mail addresses, notify your lender immediately. This ensures proper billing documents and the similar records are always at your disposal.
Pick a repayment plan that works for you! A lot of loans come with a standard 10 year repayment plan, but not everyone can afford this. You can extend your repayment plan for lower monthly payments, but remember that interest will build the longer it takes you to pay.
Don’t panic! The best thing to do is to figure out how to pay your loans in a timely manner! If you’re struggling with finances, consider seeking advice from a CPA.
Pay off your most expensive loan first. These loans have the highest interest rates.
The best way to stay ahead of stressful student debt is to start repaying as soon as you can. If you can afford to pay the interest of your loans while in school, you’ll get an excellent head start on what can be the most expensive monthly bill of your life. If you’re feeling burdened by your finances, consider seeking out the help of the best CPA in Hawaii; choose Michael J. Yuda CPA, LLC.
Even though tax season has come and gone, April 15th is always looming in the future. There are steps you can take to relieve the stress of this upcoming tax day by following the Yuda.com ABC’s of tax preparation.
A. ASK QUESTIONS! Seek out a CPA, and prepare questions to be answered. Seeking out the help of a professional CPA can help you avoid errors in your tax returns. Don’t be afraid to ask as many questions as you’d like, and always try to seek out a CPA that is qualified. Michael J. Yuda CPA, LLC previously worked for the IRS and has substantial and expert experience in handling tax examinations.
B. BRING ALL DOCUMENTS: Be sure to keep all important tax documents and files together when seeking out tax help. Bring every item you suspect might be necessary for the most accurate completion of your tax return. Important documents include:
Previous tax returns
All tax forms
Records of income and expenses
C. COMPLETE YOUR TAX RETURN EARLY! Filing early means your refund will come sooner! Even if you might owe money, filing early is never a bad idea and payment can be delayed until April 15th.
Even better, when you decide to get your taxes out of the way earlier, your tax professional may be able to devote more time to your return, because you’ll be avoiding the annual procrastinators scrambling to get everything done in time! When you’re ready to get the ball rolling on your taxes, choose the best CPA in Hawaii, choose Michael J. Yuda CPA, LLC!
Are you looking for someone to handle bookkeeping for your small business? If the answer is yes, it’s best to choose a bookkeeper that is a Certified QuickBooks ProAdvisor. A Certified ProAdvisor knows the ins and outs of the powerful and useful software, and can help keep your books in order, which translates to a more financially stable business. Why should you choose a QuickBooks Certified ProAdvisor?
In most cases, Certified QuickBooks ProAdvisors are trained CPAs, accountants and other professionals who have spent years studying and learning how to handle small business finances.
Certified QuickBooks ProAdvisors have completed a comprehensive and thorough QuickBooks training course and exam in order to be certified.
They can help get you started on the right foot with aiding in set-up, proper training and even troubleshooting.
Certified ProAdvisors can help provide the best guidance to help you have the highest satisfaction from using QuickBooks.
A Certified ProAdvisor knows how to get the most out of the software.
If you’re looking to get the most out of QuickBooks for your small business bookkeeping, consider contacting Michael J. Yuda, CPA LLC, in Honolulu, Hawaii. There’s no better QuickBooks ProAdvisor in Hawaii, than Michael J. Yuda to help learn the ins and outs of QuickBooks. With personalized service and attention to your unique business, Michael J. Yuda can help provide only the best and most experienced QuickBooks bookkeeping services! Contact us today!
Poor financial decisions can add up and wreak havoc on your life. Piling debt can be crushing to your emotional well being, and could get you in a lot of financial trouble. If you’ve found yourself in debt, it probably feels as if you’ll never be able to rid yourself of this burden, but there are plenty of ways you can help your situation and even become debt-free:
Make cutbacks: Nobody loves the idea of making cut backs, but cutting money from certain aspects of your life can help you take care of debt a little more. Working on a budget when money gets tight may sound like a daunting and awful task, but it might also have you realize where your money is going, and potentially improve your financial health for the long term.
Seek help: If you’ve found yourself in a tough spot financially, perhaps seeking out a CPA could help teach you fiscal responsibility and get your finances in order. A CPA may not actually get you out of debt, but can help set you down the path to a more sound financial life, and help you know how to handle your money so you can stay out of similar situations. Consider seeking out help before making any drastic decisions, such as claiming bankruptcy. There are many professionals out there who can help give you advice, before contacting lenders.
Prioritize Your Debt: Study the consequences of missing certain payments. It’s not the best choice to only pay the largest debt with the biggest interest rate first. Read over any lending agreements and statements, to get a picture of which debts should be a top priority, and which can wait.
Avoid Pay Day Loans: Burying yourself in more debt in order to pay off existing debt is a recipe for financial destruction. Stay away from pay day loans, loan sharks, and any situation which makes you feel like you’re solving one problem and creating another.
If you’re looking for a CPA in Hawaii, consider contacting Michael J. Yuda CPA, LLC! Your path to financial stability begins with proper assessment and the best guidance from the very best CPA in Hawaii.
You’ve probably heard it time and time again, but saving money could be one of the most important things you can do in your life. There are a variety of great reasons as to why saving money is a great long term decision. You may or may not have enough money to pay for everything you need now, but taking the initiative to save money is never a bad idea. Here are a few great reasons to start saving now!
Emergency: It’s a great idea to set a fund aside to cover unexpected expenses that may arise. Surprise expenses like car repairs, sudden job loss, and medical emergencies are things that can happen, and having an emergency surplus of cash handy is a smart way to ensure you’ll be able to handle the hardships.
Retirement: The sooner you begin saving money for retirement, the less you will have to save in the future. Starting a retirement fund early is a great way to build financial stability in your older years. It’s a wise decision to contribute up to what your employer matches, and then gradually contribute more of your gross income.
Buying a House: Saving money to make a down payment on a house could be one of the biggest decisions you will ever make. If you’re able to save enough to pay the down payment up front, you can cut out the stress of loans and avoid high interest rates.
Education: Whether hoping to obtain a master’s or doctorate degree, or send your children to college, saving now is a great way to guarantee you don’t lose your shirt with student loans and high tuition prices.
There are many different reasons to save money! If you’re unsure on how to handle your finances, consider seeking out a CPA! If you’re looking for a CPA in Hawaii, don’t hesitate to contact Michael J. Yuda today!
Would you believe that being a CPA might be one of the most important jobs today? It’s no secret that the world is always getting more and more complicated, and financial concerns are the driving backbone of these complications. Over the last few decades, CPA’s have been responsible for handling many major issues for the government and even some of the world’s biggest corporations and organizations. A CPA knows the inner workings of the companies and clients they work for, and can effectively create and analyze financial information to see where a company or client is and where they need to go. A CPA is almost like a financial James Bond, always on top of the situation and an expert in the field. Without CPA’s, the business world would crumble.
Many businesses rely on a CPA to help guide them with investments, budget and even decide on expanding a company or waiting until more fiscally strong. It’s undeniable that a CPA may be one of the most important components of any business. Regardless of whether you’re part of a giant corporation, or just a small start-up company, it’s essential to hire a CPA that will help make important and often crucial decisions involving your finances. Skimping accounting can affect an entire business sector, and cause major problems. Finances and accounting are crucial to the success and stability of the business world, and a CPA is the nucleus of any business, as they can help control a businesses’ growth much like a cell.
