Let’s Get You Scheduled

From a professional point of view, how often should you speak with your tax specialist or CPA?  Surprisingly enough, the answer is usually not often enough.  While there is usually no set timeframe between visits or discussions and even emails, there are a few points to consider that will help you to determine the right frequency for you and your businesses situation.

Ideally, you want a strong relationship with your Accountant.  Don’t get us wrong, the team and I don’t need to be invited for BBQs on the weekend, but the important thing is you have to trust my judgement and the judgement of my team.  I can tell you through the printed page how much we look out for your interests and your specific situations, but the reality is – you have to feel it.  Knowing that we are at the top of our game and the advice we are giving you is tailored to your personal situation is peace of mind in itself.  For this kind of client, which really is the ideal client of any Accounting Firm, you would be looking at meeting with us on at least a quarterly basis.

Ultimately though, it is personal preference, but we think that you should feel comfortable speaking to us quite often about your business.  The reason?  Simple – we make difficult decisions simpler for you.

Contact with us also doesn’t always need to be face-to-face.  A quick phone call or even email, just to touch base, perhaps ask our advice as you need it can result in completely different outcomes for your business.

If you’re a client that prefers to have a relationship with your Accountant that is purely transactional, because you feel you know your business inside and out, it’s making money and is profitable, that’s ok too.  However, this type of client is taking on a lot of responsibility and liability themselves, including the extra knowledge involved in keeping up-to-date with changes within the industry.

It can be a good idea to mine the knowledge that I’ve built in the tax and business field over the years, too – not just in terms of numbers, but of experience from our dealings with other clients.  You may want to ask us advice on how to grow, or how other businesses in a similar situation faced their challenges and what have they done.  While every CPA has a responsibility to comply with Privacy Laws in relations to the specifics of their client’s transactions, I can share with you the basics such as: a business in a similar situation started using a specific QuickBooks Add-on to help with their debt recovery and has seen amazing results.

Accountants can often put you in touch with the right person to help you at the right bank or even law firm.  Getting connected to the right person can make your transactions move so much more seamlessly, after all would you really want to use a lawyer who specializes in family law when you want a trademark applied for?

The only wrong frequency to see me and the team?  Once a year at tax-time.  If you feel that seeing your Accountant is just a pain and costly exercise that you complete because it’s required each year, I hate to say it, but you really won’t be getting much value out of your meetings as you could be.

Go ahead, give us a call and let’s see what we can do…

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem Make an appointment here!  Or, call Toll-free 1-855-254-1892.

Your Home Is Not a Bank!

This tax season, I’ve been shocked at the number of clients who have resorted to suing the equity in their homes to stay afloat. 

I get it – COVID has impacted all of us in many ways, but if you have – or are considering - the various options for using the equity in your home as a way to pay down some other debts, KEEP READING!

Now, you can generally do this in two ways:  the Home Equity Line Of Credit (HELOC) or a home equity loan.   

Now, personally, I’ve always been a fan of HELOCs instead of a second mortgage or a home equity loan, because the HELOC is available to you when you need it, but since you’re effectively creating a line of credit based on the equity you have in your home, you don’t have to spend anything. 

Read that line again…

You don’t have to spend anything.  

With a second mortgage or a home equity loan, you give up some control of the ownership of your home (the way I see it) for a chunk of cash. 

Most of us can’t handle a chunk of cash – that’s the truth, no matter how much you want to protest – and homeowners and their money are soon parted, leaving them with more debt and the goals they had originally set unfulfilled. 

On the other hand, with the HELOC, you don’t have to use the money, you simply have the money available.   You CAN pay off higher interest credit cards with it (essentially swapping the debt to a lower potential interest rate) and that can, in the long term, save you a lot of money. 

But you have to do it properly. 

And you have to have some discipline about it. 

But for the disciplined homeowner who can manage their finances and follow a plan, a HELOC can be a powerful tool to help sort out debt. 

It is NOT a cash machine. 

In fact, to me, one of the biggest benefits of the HELOC is there are a few extra steps to using that equity, meaning you’ll think twice about frivolously using those resources, which, I hate to say, will ultimately save you money and keep you out of debt. 

Now, one last thing before we close for the week – if using the equity in your home seems like a good idea, then talk about it with me and the team AND discuss it with at least two lenders.  Talk with us to make sure it’s a good financial move and then shop around for the best rates. 

Sound good?  Great.  

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem Make an appointment here!  Or, call Toll-free 1-855-254-1892.

2021 Unemployment Exclusion

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200. If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. Amounts over $10,200 for each individual are still taxable. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.

PUSH!

I have to be honest – no matter how long I’ve been involved in the world of accounting, I never thought I’d see as many bad habits among such smart people. 

No, I’m not talking about personal habits, or even business decorum, I’m talking about bad advice.

How to handle money.

How to think about building a business.

How to grow your company.

When to take this action, or make that move.

It’s really a shame that so many people selectively listen to advice and then cherry-pick the things they want to do.

Case in point:  A prospective client many years ago refused to follow my advice on hiring a bookkeeper due to the costs (which, it’s worth pointing out, was less than $500 a month).  His company was, at that time, making nearly $5 million annually, and as you can imagine, his tax preparation fees were astronomical.  He decided to simply do it all himself because he’d save several thousand dollars each year, and guess what?

When Under Armor offered to buy his sports clothing business, his inexperience and lack of professional assistance not only resulted in his business being incredibly undervalued, the resultant mess of his taxes and how he ran both the company and his personal income resulted in a nearly seven figure tax bill out of the blue. 

You see, what happened was simple:  he took advice from folks who had never been in his position before. 

His friends who worked for other people.  His family who had never run a large company.  His sphere of influence and his own relationship with success actually made things harder for him.

This year, I want you to not only admit you might not have the right people in your corner, but I want you to push through all your old ways of thinking about your business and look at what the next level of success really means. 

Is that moving to a C-corp?  An S-corp? 

Hiring professionals? 

Building systems and processes to take certain items off your plate? 

In short, I want you to REFUSE to accept the status quo and instead, make yourself and your business so successful you can’t help but be overwhelmed and expand in every direction – personally, professionally, and even spiritually.

Why? 

Well, two reasons:

First, the middle class is a death sentence.  You’ll never have enough and even a million dollars isn’t really a status symbol like it once was. 

Second, there’s no such thing as “Enough.”  Any living thing that stops growing has begun dying, and while you could say the same thing about a business, what I mean right here is YOU.  If you’re not challenging yourself and your company, you’re really shrinking. 

You’re losing an edge you can’t afford to lose and a market share you MUST be seizing. 

If you’re worried about where the growth can come from, or how to deal with it, the answer is simple – find the people and businesses who are growing and mimic their actions and ideas. 

You can do this … and you HAVE to.

My team and I are here for you, so if this idea is a little scary (and it should be), then reach out and let’s discuss how growth and expansion doesn’t mean higher taxes. 

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem Make an appointment here!  Or, call Toll-free 1-855-254-1892. 

Third Stimulus Payment

More money, fewer problems...the government is working hard to keep money in our pockets. I love it!

The Internal Revenue Service, on behalf of the Treasury Department, worked to quickly begin delivery of the third round of Economic Impact Payments authorized by Congress in the American Rescue Plan Act in March 2021. Here are answers to some common questions about this set of stimulus payments.

#EIP #Freemoney #stimuluscheck

Don’t Worry About Those Folks…

It’s human nature to compare our own situation to those around us, and while we might not think we care, the truth is, we do.  How many times has a coworker or neighbor’s purchase of an item prompted us to buy something? 

Let me tell you this:  When it comes to the call of buying things for the sake of buying them – and going into deep debt for the sake of appearance – but why?

We’ve all got somebody we look up to and try to emulate, but does it really pay off? 

No.  Not ever. 

What it does do is to create a situation where we all start to look the same, sound the same, dress the same, and drive the same thing – all financed at low interest rates that will never let you truly pay it all off.

The point in this is simple:  We’re all bombarded daily with marketing designed to get us to buy things and many people are living at the extreme limit of their income budgets.  We all saw it last year in the mass layoffs and closed businesses, too. 

People who didn’t have even the smallest of cash reserves to weather a few days, much less months.

Now, my point today isn’t about judging someone’s financials, but rather, about helping people to think about what is truly important.

So that brings me to an exercise I’d like you to do today – and maybe, do it tonight with the family around the dinner table. 

Take a clean sheet of paper and at the top, write down a 2-3 things as “headers” along the top of the page.  These are things that you’d really like – they could be goals, aspirations, and yes, even tangible items.

Now, with the first one, ask yourself “why?”  As in, “Why is this important to me?”

Write down your answer. 

Now, with that answer, ask “Why?” again – what is it about that answer that makes it a “real” answer in your eyes.

You guessed it.  Ask “Why?” again with respect to your second answer. 

In my experience, after about 6-8 times of asking the question, you’ll get to your real answer. 

Not the reasons you might tell one another, but the REAL reasons.    

Let this answer drive your motivations, whether for a new car, a bigger (or smaller) house, or even why you want your kid to go to a certain college or follow a certain career path.  And your answer isn’t “right” or “wrong,” but it IS real. 

Wouldn’t it be powerful for your son or daughter to know how to drill down into their own minds to see they really don’t want a PS5, they just want to be “cooler” than the kid down the street?

Wouldn’t it be powerful to know you only wanted that big screen to impress your cousin?

Some of you are going to get to the “real” answer much faster, but in my experience, the older you are, the harder it is.  What’s important, though, is that you do NOT as a way to escape spending money, but to ensure that the money (and time) you spend is utilized for reasons that truly will make you happy. 

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem Make an appointment here!  Or, call Toll-free 1-855-254-1892.

American Rescue Plan Act highlights

Hey, it's Wayne with W Scully CPA PC focused on fixing America's tax problems. I am excited to unpack some of the relief  covered by the brand spanking new AMERICAN RESCUE PLAN Act just signed by president Biden: here are a few highlights:

It’s Never Really Too Late

Let me ask you a question:

No matter how much success you enjoyed last year (with all the challenges), I have to ask you to do one thing for me in 2021:

Dare to grow. 

It’s my belief that, long term, we’ll see more millionaires and household names created from entrepreneurs who took the chance and choose to expand in the pandemic, so I want to challenge you to think like that, too.

Maybe it’s moving your business to a full online store.

Maybe it’s building an automated training program.

Maybe it’s opening up a completely unrelated business that you never saw a need for until last year. 

Whatever “it” is, I want you to do it!

There’s never going to be a more forgiving time in our lifetimes – money is cheap to buy and a lot of people do have cash reserves, and, quite frankly, they’re growing tired of the constant negativity of the news and social media. 

They’re looking for new ways to do old things, and smart entrepreneurs are tapping into those needs and wants.  

Or, to put it another way:  do you want to make “enough” and build a company that is little more than a job you can never sell or do you want to create generational wealth and a brand that will live far beyond your own life? 

Here’s the thing:  Both of those require the same amount of time! 

Don’t believe me?  Think about this:  You have 86,400 seconds today and at the end of the day, those are gone. 

You can build something of value in that time or you can simply watch videos of kittens online and complain about how slow business is. 

Take that one day and look at it over the course of months and years, and I think you’ll see my point. 

Ray Kroc began operating McDonalds in the 1950s and thousands of other men and women opened their own restaurants at that time, too.

Yet only McDonalds is still around today. 

Every one of those entrepreneurs had the same 86,400 seconds in their days, yet only a handful are remembered today. 

No matter how good or bad you think last year went, 2021 can be a great year, and I want you to really stretch your entrepreneurial muscles this year. 

Expand your business, open a new one, or simply find new ways to make your money go to work for you everyday – just recognize that it’s never too late to grow and expand and make this the best year ever.

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem Make an appointment here!  Or, call Toll-free 1-855-254-1892.

Know Your Value and Ask For That Raise!

The last year has changed a LOT of things, and while many people are in new careers or learning how to do old jobs in new ways, let’s take a few minutes to discuss some techniques you might be able to use if you are out hunting a job or looking to make more money at your current one. 

While there are plenty of people who genuinely love their jobs, there's no denying the main reason why most of us are currently in the work force: to make money. Doing the same job for $50,000 a year, as opposed to $45,000, is nearly always a better deal IF you do your research and due diligence.

So how do you ask for more money in your current job or discuss money in an interview?  Let’s look at a few ways I’ve seen clients use to put more money in their pockets.

First, do plenty of research. Before you come up with a figure, make some calculations based on real research.  Talk to people in the field, use the computer to look at how similar jobs and industries pay, and be sure to research the average salary for your target position, the average salary at this specific company, and in the area.

Next, know your value to the company. Remember, you and your skills have far more value than the actual job you’re doing or the one you’re interviewing for.  A "senior marketing manager" with 10 years of experience, an entrepreneurial background, and proficiency in both graphic design and basic programming is going to be worth more than a "senior marketing manager" with five years of experience and not much else on the table. All those secondary skills, related industry experience, and, honestly, just the act of living has an objective value, so don't neglect to include them in your calculations.

Ignore what you previously made. One critical mistake many people make – and I’ve seen this happen time and again - is to use their previous salary as a base. Unless absolutely nothing has changed about you and you're working for the same company at the same position, this is simply wrong.  NEVER base any of your calculations on your old salary or even what you made for the same company last year.  The world is changing rapidly as a result of both technology and COVID, and a lot of companies are being forced to rethink how they base employee’s pay rates.   Don’t confuse the “old” world with the real world.

Be bigger than base salary. Negotiation is a numbers game, but be ready to negotiate for more than just a base salary. For example, you may have a specific number in mind, but would you be willing to lower that number by $2,500 a year in exchange for a more robust health plan or a retirement plan? Many of these peripheral benefits are negotiable in a job – don’t be afraid to negotiate!

Remember, the world is different now, and your salary should be, too.  Maybe things haven’t changed that much, but the fact is, most companies aren’t going to simply give you a raise you’d be happy with – don’t be afraid to go into that conversation well-armed and with solid facts and expectations.

You’ll likely never get a raise waiting on your boss to give you one…

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem Make an appointment here!  Or, call Toll-free 1-855-254-1892.

We’re Almost Done…

 

Well, the countdown is REALLY on now for personal taxes and if you’re like too many Americans, you might be stressed about what effects COVID and a slow 2020 might have had on your taxes. 

The truth is simple:  a lot of people got a lot of benefits from the government, and while that might scare you with the idea you’ll be “on the hook” for income you didn’t plan on, you really shouldn’t worry about it.

Why? 

In the grand scheme of things, the truth is, anything you received last year – from the PPP, various stimulus payments, and so on – was a fluke that you couldn’t plan for. 

In other words, don’t sweat it. 

What I really want you to do is this:  determine the things that happened last year that always seem to happen – at least in terms of taxes, timing, and payments – and let’s plan for them in 2021.

Seriously!  We see the same things sooo many times with entrepreneurs.  Poor planning in respect to growth, little or no thought being given to partnerships or distributions, men and women who refuse to pay themselves a salary and keep taking money from the company in ways that wave red flags, and TONS of account mixing with no documentation as to where monies originate and where they move to.

If this sounds like you, then my advice is simple, and I’m begging you to take it: 

Let’s get together and create the bookkeeping and accounting systems and processes that will make life easier and far more cost effective for you from both a tax preparation and monthly bookkeeping perspective. 

Seriously!

Now, I completely understand that the total amount of work needed to handle a year’s worth of business accounting might seem the same regardless of whether you do it in one dramatic flurry of activity in the Spring or you dedicate time each week or month to handle it.   

…But the truth is, the amount of time needed is considerably longer if you wait. 

By handling taxes and bookkeeping duties monthly, you limit the amount of accounts and statements you could possibly have to look at, so the chances of making a mistake are far lower, and the sheer volume of entries to do is far less. 

As a result, you and your team can keep things organized and easier by eating the elephant one bite at a time instead of trying to do far too much too late.  

If you’re sick of scrambling and tired of paying too much, then TODAY is the day to make time to get organized and set up your systems for 2021.  You’ll be faster, more accurate, and likely spend far less money to have better results.

Go ahead and schedule a call for us to see how easily you can create systems to make life easier!

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out.  If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem Make an appointment here!  Or, call Toll-free 1-855-254-1892.