Is Outsourcing Bookkeeping a Good Idea?

Typically, yes, it yields various benefits for small business owners.

For many small business owners, managing bookkeeping can feel like an overwhelming task. In fact, it’s often reported as one of the most dreaded tasks. Between tracking expenses, reconciling bank statements, managing payroll, and preparing for tax season, the work quickly piles up.

The question naturally arises: is outsourcing bookkeeping a good idea? The answer is often yes.

Here’s why:

What is Outsourced Bookkeeping?

Outsourced bookkeeping is when a business hires a third party professional firm or individual outside of their organization to manage financial record keeping.

Instead of hiring an in-house employee, you gain access to external experts who manage your books remotely with secure accounting software and keeping up with the most up to date regulations.

1. Save Valuable Time

Your time as a business owner is best spent on growth, strategy, and customer service--not paperwork. Every hour you spend balancing books is an hour you’re not focused on sales or building relationships. Outsourcing bookkeeping frees up your schedule so you can focus on what matters most.

2. Gain Accuracy and Expertise

Professional bookkeepers are trained to handle accounts with precision. They stay up to date on the latest regulations, tax codes, and accounting software. This reduces the risk of costly errors and ensures your financial records remain accurate, compliant, and audit-ready.

3. Cut Costs

Hiring a full-time, in-house bookkeeper can be expensive when you factor in salary, benefits, and training. Outsourcing allows you to access high-level expertise at a fraction of the cost, paying only for the services you need.

4. Scale with Your Business

As your business grows, your bookkeeping needs become more complex. An outsourced bookkeeping team can scale their services to match your growth; whether that means handling more transactions, managing multiple accounts, or generating detailed financial reports.

5. Get Better Insights for Decision-Making

Timely and accurate financial reports provide a clear picture of your business’s financial health. With outsourced bookkeeping, you’ll have the data you need to make informed decisions, identify trends, and plan for the future. Your expert should also be able to dive deeper into the numbers for you and pull out the most important insights.

6. Enjoy Peace of Mind

Perhaps one of the biggest benefits is knowing your books are in good hands. This not only reduces stress but also helps you feel more confident about your business’s financial stability.

Frequently Asked Questions About Outsourcing Bookkeeping

Q: Is outsourcing bookkeeping cost-effective?
Yes. You pay only for the services you need, which is often far less expensive than hiring a full-time in-house bookkeeper. The investment will pay off as your books will be audit-ready and gained insights can save you thousands on taxes.

Q: Is outsourcing bookkeeping safe?
Reputable bookkeeping firms use secure software and follow strict confidentiality standards to keep your financial data safe.

Q: How does outsourced bookkeeping work?
You’ll share your financial data (often through secure cloud software or providing accountant’s access directly through your bank), and your bookkeeper will handle reconciliations, reports, and record-keeping on a regular schedule.

Q: What are the risks of outsourcing bookkeeping?
Choosing the wrong provider can be risky in terms of data security, record keeping accuracy, audit risk, and wasted resources. We recommend always working with a trusted, reputable firm that understands your industry.

Conclusion

Outsourcing bookkeeping is more than just a convenience; it’s a strategic move. It saves time, reduces costs, and provides access to professional expertise, all while helping you focus on running and growing your business. For most small to medium-sized businesses, outsourcing bookkeeping isn’t just a good idea--it’s often the best idea.

 Ready to Simplify Your Bookkeeping?

At V&R Associates, we provide professional, reliable bookkeeping services tailored to your business needs. Let us handle the numbers so you can focus on growing your business. Contact us today to get started.

V&R Associates Recognized as the #1 Accounting Firm in 92130

We’re excited to share some wonderful news — V&R Associates has been ranked the #1 Accounting Firm in 92130 by Business Rate!

Business Rate is a platform that reviews businesses based on Google customer reviews; focusing on the most recent 100 reviews, especially from the past 90 days. Their goal is to highlight local businesses that are consistently providing great experiences to their clients.

For us, this recognition is extra special. As a family-run business, every client we serve is more than just a number — you’re part of our community. Seeing that recent client experiences have placed us at the top in our area tells us that our dedication to being friendly, professional, and reliable is making a difference.

💚 A huge thank-you to our amazing clients and neighbors who continue to support and trust us. Whether it’s accounting, bookkeeping, or tax services, your confidence in us inspires our work every day.

While we’re proud of this recognition, we know that rankings are just one piece of the picture. What truly matters is the ongoing relationships we build with the individuals, families, and businesses we serve.

If you’re looking for accounting support with a personal touch, we’d love to welcome you into the V&R Associates family.

📞 Contact us today! We’re here to help with a smile.

How often should I reconcile my bank and credit card accounts?

In general, we recommend reconciling each month once the statements are available.

Reconciliation requires categorizing each incoming and outgoing transaction in the correct accounts, ensuring it matched your statements, and closing the month.

As company transaction count volume increases, it is recommended to review and track each transaction more regularly.

From our expertise, once your company has a total of more than 300 transactions a month, we recommend tracking twice a month. Once mid month, and once at the end with your statement.

Once your company has a total of more than 500 transactions a month, it may be worth considering weekly management.

This is because tracking each transaction early can help with the following:

• Prevent fraudulent transactions

As transaction volume increases, unauthorized transactions become less noticeable. Catching these early on will help a business ensure they don’t get lost through the cracks at the end of the month.

• Catch errors

Reconciliation is important to ensure your books match your bank records. With more frequent management and tracking, catching these errors help keep your books in order and prevent an accumulation of concerns.

• Manage cash flow better

Business owners will be able to make better decisions and manage their cash flow more efficiently when they know what cash is present at hand.

• Avoid surprises.

Surprises such as bounced check and overdraft fees can be prevented when processing payroll, paying bills or incurring other business expenses. It’s also important to plan ahead with relation to tax liability if your company generates a generous bottom line.

Reconciling these accounts consistency, accurately, and on time can be seen as a business owner’s most dreaded task. However, it’s vital to ensure your company is operating at peak performance.

This is why when company’s begin to grow, it’s top priority to have proper accounting with dedicated resources to ensure it.

Need help with your books? Hire our trusted team of professionals and contact us today.

Free Checklist: Everything You Need to Start Bookkeeping Catch-Up

Sometimes life gets busy and business owners may push off bookkeeping for months or even years. The catch up can feel daunting but hiring the right professional can resolve the nightmare within weeks.

Ideally, finding an accountant that can resolve your bookkeeping catch up and the associates tax ramifications would help make your catch-up experience seamless.

Even when you’re hiring a professional team, it’s best to have your paperwork organized as your accountant will ask for them regardless. This will save you time and frustration.

Here’s a complete checklist of what to organize (free PDF checklist format available for download at the end of this blog):

1.       Business Information

a.       Legal business name

b.       Entity type (single member LLC, partnership, C corporation, S corporation, sole proprietorship etc.)

c.       EIN or Tax ID

d.       State and local business registration info

2.       Bank and credit card access

a.       Logins for all company bank and credit card accounts

b.       Statements for all past closed accounts for the catch-up period

c.       Accountant’s access to your accounts

  i.      This is helpful if you’d like to speed things up from your end and don’t want to send all the PDFs. With your accountant added to your account (limited permissions ok) they can retrieve the PDFs without needing to bother you.

3.       Accounting software access

a.       Login credentials or ownership access to software used to keep your past company financials

 i.      QuickBooks is the most common for small to medium sized businesses

ii. If you have no past software, your accountant should be able to help you set one up

4.       Receipts and invoices

a.       This is especially important if there are relevant business transactions that are not recorded in your statements already; your accountant will need to record them with manual journal entries

5.       Payroll reports (if applicable)

a.       Payroll provider login

b.       Past payroll reports for catch up period

c.       Tax filings (941s, 940s, W2s, 1099s)

6.       Loan and financing documents

a.       Loan agreements

b.       Monthly payments and balance information

c.       Line of credit or cash advance documentation

7.       Tax filings

a.       Sales tax filing (if applicable)

b.       Prior business tax return filings

c.       Any IRS or state notices

 i.      Your accountant will want to resolve them, if relevant

8.       Known Missing Items

a.       Transactions you knew are for business but not recorded in any statements, receipts, or invoices

 Our free checklist PDF download here.

Need help catching up? Our friendly and trusted team is ready to help you navigate this burden with ease. Contact us today!

Why Remote Bookkeeping Works

San Diego is home to a thriving network of business owners in various different industries. Many embrace the remote bookkeeping model and it’s no shock once you take a look at the reasons why.

1.       Efficiency & Cost Savings

Having a remote accounting team, even if they’re in the same city as you, saves you and your business the funds it would have cost to have someone in person at your office. With rising operational costs, finding a reliable hire to come in person puts greater weight on the administrative burden of a company. Having a remote team or individual to prepare the company books increases efficiency and keeps vital resources for more pressing business needs.

2.       Flexible cloud-based options

With the flexibility of online cloud-based software, such as QuickBooks, business owners now have the option to keep their data safe and organized while accessing their books from anywhere. This flexibility not only helps the business and management to make faster decisions, but it also allows the company to find the talent they’re looking for without the restrictions.  

3.       Access to Expertise

With the benefits of the flexible cloud-based options, business owners are able to hire professionals that can truly deliver the value they need for their finances. As hiring remote provides a greater range of the talent pool, they are able to find the right team to help with their accounting. The consulting and strategy received from such professionals will help the business grow at a faster rate.

4.       Business Growth

With the above benefits outlined, businesses are set up for better success and a pathway to grow at faster rates. Resources are allocated to daily operational functions and the company has the ability to run at systematic heights.

These are some reasons why business owners feel remote bookkeeping can truly transform their business. Once a tedious task that must be completed for the ability to have financials and file taxes, is now becoming a strategic function that propels advancement and, in turn, increases your bottom line.

Need help finding that reliable team for your remote bookkeeping? Contact us today and speak to one of our friendly team members.

The ROI of Delegating Bookkeeping: Why San Diego Business Owners are Making the Shift

We understand the do-it-yourself (DIY) mentality -it’s empowering, challenging and is a trait that shows you’re here for the hustle. This trait often makes you stand out and is the reason you have the guts to start and manage your own business.

However, in a competitive city like San Diego, time is your most valuable asset and as a business owner, it’s an element that is constantly running out. When small business owners begin their own company, they often get stuck in the nitty-gritty tasks, piled sky high in receipts, spreadsheets, supplies, orders, you name it. While all elements of a business are important and vital for survival, accounting often gets pushed to the side and can become a daunting task that looms on your shoulders.

If you’re still handling your books while juggling managing and running your own company, it might be costing you more than you think.

We specialize in remote bookkeeping services using QuickBooks online and we’ve seen firsthand the return on investment (ROI) business owners receive once they outsource their bookkeeping/accounting to our hands.

The Damaging Cost of DIY Bookkeeping:

Let’s cut to the chase -bookkeeping isn’t just time-consuming, it’s complex. Accounting is even more advanced. Without a trained licensed and degreed professional, managing your own books could create more damage than good.

Common Errors We See:

1.       Confusion with the basic accounting fundamentals. Most commonly with what belongs on your balance sheet vs profit and loss statement. This is vital for keeping track of your company records, planning for taxes, and preparing your income tax return.

2.       Incorrect opening and closing balances. Monthly reconciliation is a must-do task that often people run into issues with. The opening and closing balances must match your bank statements. Without the numbers matching, your books are no longer accurate, complete, or reliable.

3.       Failure to capitalize on all business expenses. Not knowing what you can expense really will cost you when you file your income taxes. Working with a professional will allow you to take advantage of strategic tax-saving methods that are rooted in your bookkeeping.

Your time could be better spent on:

1.       Client acquisition

2.       Developing and perfecting your product or service

3.       Brainstorming growth strategies

4.       Partnerships

5.       Taking your business to the next level

6.       Spending time with family

7.       Relaxing

The list goes on whether it’s targeted towards your business advancement or personal needs, there are better things in life to focus your energy on.

Let’s quantify it. If your hourly rate is $50 an hour and you’re spending five hours a week on bookkeeping, that’s $1,000 a month on lost opportunity!

If your hourly rate is $100 an hour and you’re spending five hours a week on bookkeeping, that’s $2,000 a month on lost opportunity!

You’re the boss. Pick your hourly rate and do the math. It’s likely the case that professional bookkeeping services would free up your time and be more cost-effective!

What you Gain when Delegating:

Delegating a hired professional is investing in the future.

1.       Accuracy

A professional will ensure accuracy and legal compliance with regularly changing rules within the local/state/federal government and IRS. Your books will be ready year-round and prepared in a way that shields you in the case of an audit.

2.       Insights

Properly prepared financials and guidance from the right professional(s) will allow you to make vital, informed business decisions to grow and flourish.

3.       Scalability

With the proper help, you’re able to expand your business, see a greater bottom line, and have records ready in the case of major expansions, loans, sales, acquisitions and more.

4.       Time

When investing in the right help, you gain time. With extra time you can focus on yourself or your business. You can focus on better things in life that bring more meaning to you.

5.       Tax Strategy/Savings

Having the proper bookkeeping help allows you to plan for the upcoming tax season with your trusted accountant or tax preparer. Investing in your books will allow you to strategize to potentially save you thousands or more in income tax liability.

6.       Audit Protection

Compliant financials will ensure you are up to date with all new regulations and standards. This shields you in the case of an IRS audit to save you thousands in lengthy audit assistance services.

7.       Peace of Mind

You no longer need to worry about the finer details in accounting. You can focus on your business and know all is handled properly. Freeing up your mind to focus on more pertinent business matters allows you to accomplish more and grow faster.

The ROI in Real Numbers

Clients that switch to our services report:

·       90-95% of the time they used to think about accounting, now focus on other business matters

·       100% more confidence in business decision making

·       100% more confidence knowing there’s a team to support them for their outsourced accounting needs

These aren’t just numbers, they’re strategic advantages to put you two steps ahead of your competitor.

Ready to Maximize Your ROI Today?

If you’re a San Diego business owner ready to reclaim your time and take your finances seriously, we’re excited to support you in this next chapter of your life.

Our goals are efficiency, transparency, and accuracy to ensure you have the support to grow. Contact us today and one of our friendly team members is looking forward to speaking with you soon!

How can I separate personal & business finances?

As an entrepreneur, it is essential to clearly separate your personal and business finances from the start. This is vital for accurately preparing your taxes and safeguarding your assets. Whether you are just starting out or seeking more effective ways to organize yourself, this article will guide you to set better habits for long-term financial health, wealth, and success.

1. Separate Bank Accounts

You should have a separate bank account for each business you own. Each business should have its own necessary accounts. Typically, you will start with a checking account. Over time, you may want to open additional accounts that are relevant to the growth of your company such as payroll dedicated accounts and savings accounts.

2. Separate Credit Cards

Your business should have its own credit card(s). This will help you build your business credit and allow you to grow. Building credit will help in the future for inquiries such as applying for a loan or taking governmental contracts (if applicable).

Early on, your business may not qualify for a credit card. If this is the case and you need one, we recommend dedicating a personal credit card in your name for 100% business use and do not mingle. This should be considered a temporary solution until your business qualifies for its own card.

3. Register the Business Properly

You must comply with all government regulations to register your business as a legitimate entity.

The most important step is to register for a valid Employer Identification Number (EIN)/tax ID. You will need this number to accurately file your taxes and to open your business bank account(s).

Other state and local regulations may apply, so you must stay informed about the requirements, such as filing your annual/biannual statement of information. If you are concerned about missing deadlines or need assistance in keeping track of these regulations, we recommend contacting a professional accountant.

4. Accurate & Detailed Records

Proper record-keeping is essential for maintaining your business records and to have valid financials ready for tax preparation. We recommend implementing bookkeeping from the beginning of your company’s early stages. If you need help with bookkeeping, we recommend hiring a professional bookkeeper which will maintain your records on a consistent basis.

Separating records is important to keep yourself organized to maintain the business vs personal boundary. Records may include receipts, invoices, contracts, tax documents etc. Good habits start from the beginning so ensure you have separate files organized from the start or begin now.

5. Salary or Draws

Do not mingle transfers between your business and personal accounts. If you would like to distribute a salary to yourself, we recommend speaking to a professional accountant to determine what the best method would be. The appropriate method correlates with how your business is set up. Draws, distributions, and payroll are methods you may use. The type of business created will determine how you can proceed with the best method.

6. Consult a Professional

Speaking with a professional tax advisor or accountant may be the best way to help you formulate a plan to better separate your business and personal finances.

The initial investment will yield significant returns in the future and ensure your assets are protected for long-term success.

Need help or would like to connect with a professional today? Contact us to speak to one of our friendly team members.

How Can I Prevent an IRS Audit?

An IRS audit can be a daunting and unpleasant experience for anyone. It can take countless hours to resolve and results in a lasting headache.

Typically, people hire professionals to help in the case of an audit, which can result in colossal bills and piling expenses. Working with an IRS auditor can require countless hours and stress. Nobody wants to deal with this.

So how can you prevent an IRS audit? There’s no guaranteed method, however, there are actions that can prevent the likelihood and protect you in the unfortunate case of one.

Here are some steps you can take to prevent an IRS audit:

Consistency

• Remaining consistent with how your taxes are prepared is key to ensure red flags do not arise.

• Avoid huge, uncommon deductions, claims or charitable contributions. Stay within a reasonable number and ensure you always have valid documentation to back up your numbers.

• We do not recommend frequently switching tax preparers as this may cause frequent inconsistencies on your return.

Accurately filed tax returns

• Ensure your tax returns are prepared accurately and filed on time.

• File your taxes every year! Do not leave multiple years unfiled.

• Remaining compliant with what is legally expected and IRS compliant is imperative.

Hiring a professional tax preparer

• Hiring a professional tax preparer will increase the chances of your tax return getting filed accurately.

• IRS rules/regulations constantly change and registered tax preparers are required to renew their licenses and remain up-to-date with all regulations to ensure compliance.

• Double-check the tax preparer’s credentials and verify they are qualified to prepare your tax return.

• We recommend checking their reviews and background online. Make sure your professional is someone trusted and known within the community.

• Make sure you provide all the necessary documentation to your preparer.

• Always review your return when they send it to you for your review. Please review and verify all information is correct prior to signing. You are ultimately liable.

Clear and organized records

• Keep all relevant records and receipts in an organized format.

• We recommend keeping these records for 7 years.

• You may digitize these records if you prefer.

• If you have a business, you must separate business and personal expenses. Mingling business and personal transactions are highly frowned upon and if the case of an audit, will likely lead to all your records getting investigated.

• If you have a business, this leads to a need to have proper financial statements and records kept.

Hiring a professional bookkeeper

• Some people, believe it or not, hire a professional bookkeeper for their personal funds. Although that’s great, it’s not completely necessary. However, if you have a business, you will need proper financial statements and records kept.

• We highly recommend hiring a professional bookkeeper to prepare financials for your business.

• A bookkeeper will ensure everything is recorded in a timely manner and have the organization needed.

• Ensure your bookkeeper is qualified to prepare your company financials. Ideally, you will have someone who is also an accountant to ensure accuracy of all records.

• Early on, you might be able to keep track of your records yourself, however, we highly recommend hiring the right professionals to ensure the accuracy of all financial statements used to prepare your income taxes.

PROMPT ReSOLUTION to IRS notices

• If you receive any notices from the IRS, please respond and resolve them in a timely fashion. Do not leave notices unresolved for weeks and months.

• We recommend double-checking the validity of these notices to ensure they are from the IRS.

• The IRS will send formal mail to your address. The IRS will never call, email, or come to your home.

• Please verify with your tax professional if you have any questions regarding the validity of your notice or need help resolving the notice(s). They should be able to help! This service is included with our income tax preparation fees, so we always have your back.

Sometimes getting audited is like a lottery. It could be by chance. If you are unlucky and get audited, taking the above prevention measures will protect you.

Investing in the right type of help from the start will save you down the line; both financially and emotionally as well.

Need help today? We can be the trusted team to prevent an unwanted audit and protect you upfront. Contact us today!

Can I file a joint tax return with my girlfriend or boyfriend?

Filing a joint tax return with your significant other can bring you beneficial tax benefits.

Let’s cut to the chase, you cannot file a joint return with a partner you are not legally married to.

However, you might be able to take advantage of other techniques that might be able to benefit you and your partner.

Potential Routes:

Head of Household

• You/your partner might be able to qualify as filing head of household and utilize your significant other as a dependent. This could be beneficial for you depending on your unique situation.

Domestic Partnership or Common Law Marriage

• After living together for a certain period, you might qualify for local/state benefits that might be similar to married couples. Please note, you still won’t be able to take advantage of federal joint return benefits.

If you are married legally, you may file a joint tax return, even if you are not living together. As long as you are legally married, you can file a joint tax return.

Some Joint Tax Return Benefits:

Tax Brackets

• Double the income might land you a more favorable tax bracket.

Deductions

• You might benefit more from the deductions joint files can take advantage of. For example, the standard deduction is greater for joint filers.

IRA Contributions

• Joint filers can contribute more to their IRA. Greater contributions can contribute to your retirement wealth and stability over time.

So, if you’re thinking about your tax benefits and have someone you’re committed to, it could be time to take that relationship to the next level and tie the knot.

We recommend speaking to a tax professional to explore the tax benefits of your specific situation.

Need help with more advice and tax strategy? Contact us today and we’re happy to help you and your partner.

Understanding the Tax Implications of Remote Employees/Workers

Remote work is here to stay, and while it’s great for flexibility, it also comes with some tax headaches for business owners. If you have employees working from different states or even different countries, you could be juggling state tax laws, payroll compliance, and potential tax liabilities you didn’t even realize existed.

Key Tax Considerations:

• State and Local Taxes

• Each state has different regulations with taxation. Your company may need to withhold state taxes based on each employee’s location. You may need to register in each state to file accordingly.

• Even if you are a small business and mainly operate in one state, it’s always important to consider local regulations for any of your full-time, part-time, or contractual employees. The same regulations are applicable for both small and large-scale businesses.

• Payroll Tax & Withholding

• Local tax laws vary per location. Employers must ensure the correct federal, state, and local payroll taxes are withheld.

• We recommend outsourcing your payroll to a reliable payroll company to ensure the accuracy of these requirements. This is especially recommended for smaller companies that do not have the capacity or need to have a payroll-dedicated department. Transferring the burden of these tricky details to a dedicated company can help free your time to operate your business and ensure it’s done right from the start.

• Double Tax Issues

• Your company needs to ensure compliance; your employees might face double taxation for your home state of operation and the state(s) where your employees work.

• Some states offer certain credits to avoid double taxation; however, it’s always important to check regulations for each state as they are constantly updating.

• Home Office Deductions

• In the past, employees were able to deduct certain expenses related to their home office. However, reforms and updates to law are continuously occurring. The Tax Cuts & Jobs Act has significantly changed the landscape of the past. Through 2025, most of these prior benefits are suspended (unless you are self-employed).

• However, businesses can still reimburse employees for expenses that can be deductible for the company. Ensuring compliance is always key to getting the most with what’s legally compliant.

• Hiring International Remote Workers

• Ah, yes, outsourcing. A common practice we see more frequently even for local small businesses. Some owners may simply see the benefit of outsourcing for cheaper labor. International tax rules vary per country and require a global tax accountant. Businesses must ensure compliance with each government and verify foreign employees have appropriate and legal work visas with regard to their location.

Staying Compliant:

• Consult a Tax Professional

• Consulting a tax professional is imperative as the regulations and laws around this subject are constantly changing. You may require a certain type of tax professional depending on the situation of your business. It’s always best to invest the time to connect with a tax professional who can tailor their advice to your unique situation.

• Create Clear Remote Work Policies

• Establishing clear guidelines for remote work and any reimbursements your company plans to provide is important from the start. We recommend providing an outline of tax liabilities for your employees to ensure their obligations are transparent from the start. Lastly, state-specific policies may vary per state and require disclosure per law.

• Use Payroll and Compliance Tools

• Payroll software or relying on a professional payroll company is highly recommended. This will save you a headache down the road and ensure a professional takes care of this complicated and time-consuming job.

We hope this blog has shed light on understanding the implications and components within hiring remote workers. Whether a big company or small, it’s always important to consider regulations across states and remain compliant from the beginning.

Need more help or guidance with your business? Contact us today, and we’re happy to help.

What’s the difference between a bookkeeper and an accountant?

There are two roles that play a big role in managing your business’s finances, and those are the roles of a bookkeeper and an accountant. Let’s explore the difference between the two and why it matters for your business.

Bookkeepers and accountants are similar in the sense that they both can prepare your financial statements; however, there are some distinctions.

What is a bookkeeper?

Bookkeepers are responsible for accurately recording and categorizing every transaction your company has to keep your financial books, "records," up-to-date in order to help you make sound business decisions and prepare for income taxes.

Here’s what bookkeepers usually handle on a daily basis:

• Recording transactions—All incoming and outgoing sales, purchases, etc.

• Categorizing transactions—Properly categorizing each transaction to be recorded correctly.

• Bank reconciliations—Reconciling each bank and credit card on a monthly basis to ensure all transactions have been recorded and recognized.

What is an accountant?

Accountants will analyze the records your bookkeeper creates to provide you strategic advice that may be related to your company’s growth, planning, strategic decision making, taxes, etc. Your accountant should really look at the big picture and help you thrive in whatever situation you may be in. An accountant is usually more qualified than a bookkeeper.

Here’s what an accountant usually handles:

• Financial analysis—Analyzing trends and patterns is a trait accountants have to be able to provide the strategic advice that will help you grow.

• Strategic advice—Your accountant should have deeper knowledge to help guide strategic business decisions such as asset acquisition, cost management, and budgeting.

• Tax planning—Preparing for tax season and planning ahead makes a big difference for your company’s outlook.

• Auditing—Reviewing all financials internally on a periodic basis is important to make necessary adjustments, ensure accuracy, and verify legal/IRS compliance.

• Preparing financials for tax preparation—Having the financials ready for tax preparation is an important step that will determine how easy and accurately your tax filing becomes. The main financials used are the balance sheet and the profit and loss statement.

Summary of Key Differences:

• Knowledge: Bookkeepers focus on accuracy to ensure timely recording of transactions. Accountants have greater knowledge to be able to provide you analytical and strategic advice.

• Skills: Bookkeepers have the knowledge to operate the software needed to keep track of your books. Accountants have a broader understanding of accounting principles and functions.

• Scope of work: Bookkeepers manage the day-to-day transactions. Accountants analyze the results to make informed decisions.

Why does it matter for your business?

Both bookkeepers and accountants are vital functions for a company to thrive. It’s important to know the distinction between the two in order to hire the right help needed for your business. Small businesses may be able to get by with a bookkeeper and yearly tax preparer. However, as the company grows, an accountant can play a vital role in truly helping you thrive, gain company insights, and plan ahead.

It's a great advantage to have the benefit of the services both a bookkeeper and accountant may provide. Ideally, you will find someone or a team who can do both!

We can help with this. Contact us today!

When can I file my 2024 tax return?

Tax season is upon us, and it’s a season that could be filled with anxiety, dread, excitement, and hope.

Tax season lasts from January through April and officially starts when the IRS announces that they will officially accept returns.

This year, January 27th 2025 was the official start date of tax season.

However, before you rush or wait to get your return filed. Here is the breakdown of what to consider prior:

1. Ensuring all relevant documents are received

Typically, all relevant documents to file your taxes are not received in time for you to file by the 27th. For example, 1099s are not due until January 31st, so it’s very possible items such as these could still be in transit.

We recommend taking your time to verify all necessary documents are received. Filing with all your documents is vital to ensure your return is filed accurately to avoid amendments and receiving notices from the IRS.

2. Filing in a timely fashion

The faster you file, the faster you can receive your refund. However, don’t rush it. As #1 noted, we recommend allocating time to gather all necessary documents.

On the flip side, if you take too long to file, you may run into problems. Your tax preparer may be busy and unable to meet the deadline in time. You also might have a tax liability and accumulate penalties and interest. To avoid all of this, we recommend speaking to your tax preparer in advance and paying estimated taxes if needed.

You may file by mail or electronically. We recommend filing electronically to avoid delays in receipt of your return. Electronically filing will also allow your tax preparer to receive confirmation once your return is received and accepted.

The deadline to file corporate returns is March 15th, 2025.

The deadline to file personal returns is April 15th, 2025.

Tax Filing Deadlines in Special Situations

We have noticed that in special cases, the filling deadlines may be extended. This is usually for affected areas of natural disasters. For example, in 2024 the filing deadline was extended for San Diego residents due to floods. We predict that victims of recent fires in Los Angeles County will also receive an extension for filing their return. The extensions are announced by the government and vary per case.

3. Receiving your refund or paying your taxes

There are many ways to pay your taxes. Online, through mail, or with ACH. We recommend direct deposits or withdrawals to ensure your refund is received as fast as possible and your liabilities are taken care of. This will be the fastest method. We usually see refunds or withdrawals within days of filing; however, it should be no longer than 21 days.

Need any help filing your return? Leave it up to a professional and relax. Contact us today and happy filing!

What do I do if my tax preparer is ghosting me?

This is a question we get when new clients call us and unfortunately it happens. It’s never fun getting ignored by someone, especially your tax preparer.

First of all, it may be time to consider a new tax preparer. We always recommend sticking to the same preparer, as switching too much (for example: every year) is not good and could create inconsistencies that may cause red flags for an audit.

However, if you’re not able to reach your tax preparer in a timely fashion, it may not be the level of service you deserve or need.

Here are some steps you can take to try to reach your tax preparer:

1.       Email

Email them so you have record of your correspondence. Have it in writing, especially if there are documents that still need to be returned to you, is the first best step.

2.       Call

Call them and if possible, text them. If you can’t reach them after multiple attempts move on to the next step.

3.       Send a letter

Send a physical letter to their address. This letter should outline the situation, items needed, urgency etc. and we recommend sending it with certified mail to ensure it is received. This is another form of writing that will be good to have on record. Sending a letter is especially important if you need to retrieve documents.

4.       Social media

Consider finding them on social media, for example, LinkedIn, and sending them a direct message. It might do the trick.

5.       Go in person

If you have an address they conduct business, it would be a good idea to go in person to try to speak to your preparer, especially if your documents are there and you would like to retrieve them. Perhaps going in person can give you insight of the situation. In unfortunate cases, such as the preparer passing, sometimes the practice may be sold to a new owner or closed altogether. You may be able to gain insight on how to retrieve the files and who is in charge.

If you do not feel comfortable going in person, it may be worth it to contact a marshal to go on your behalf.

6.       Hire another tax preparer

It is likely time to move on to a professional that will provide the service you deserve. A lot of the time we see tax preparers ignoring clients because they simply are too busy. However, you deserve better.

Getting a response back in times of need, especially if you receive an IRS or state notice, is a perfect example of a time you might need to lean on your tax preparer. That’s the benefit of having a professional take care of your filing.

Once you hire someone else and explain your situation, they should be able to help. If you have unresolved notices with the IRS, your new preparer will likely want a power of attorney to try to resolve the issue. Hopefully your issues will be resolved at this point and you can move on.

7.       Report your old tax preparer

Depending on the situation, you might consider reporting your old tax preparer if they have brought you to a situation that is unethical and illegal. For example, if your old tax preparer told you that they have filed your return and you paid them to do so, then you receive a letter from the IRS and discover that your return was never filed, you have the right to take action and seek justice.

Consider filing a report with the Better Business Bureau here or directly with the IRS here.

8.       Seek legal help/Hire an attorney

If further justice is needed, it might be the last resort to seek legal help. Perhaps you may consider small claims court or hiring an attorney. Having an attorney send an official letter, could help resolve the issue at hand. This level of formally with hopefully resolve all issues. Depending on the situation, if nothing above helps, you may consider suing; the last resort we hope you won’t have to arrive at.  

You deserve a tax preparer that will respond to you in a timely fashion and give you the respect and caliber of professional service you deserve.

We strive on customer service and always try to respond same day, or 1-2 business days during our busy tax season. Regardless, we always have clients come to us and feel refreshed with our faster response time.

Tax season is stressful, but that’s why your professional tax preparer should make it as easy and stress free as possible.

If you’re still getting ghosted and would like to make a switch, we’re happy to help you navigate this frustrating situation and look forward to our partnership. Contact us today!

How to Prepare your Small Business for Tax Season

Tax season is a stressful time so here’s a step-by-step guide on how to better prepare for success:

1.       Prepare your company financials

Your company needs to have financials because without financials, your tax preparer will not be able to efficiently prepare your return in the most accurate fashion.

This step should be taken throughout the tax year to ensure you are ready. The January after the year ends should really only be a time to wrap up loose ends and close your books.

Financials that are most important to file your company’s taxes include a profit and loss statement and balance sheet.

The profit and loss statement will include your income, cost of goods sold and expenses. The profit and loss statement should be prepared by utilizing all company bank statements and credit card statements.

The balance sheet shows your assets, liabilities and equity. This includes things such as loans your company may have, machinery, equipment, personal draws. and initial investment you put in your company.

If any company expenses or transactions have been received in other fashions such as your personal account (something we do not recommend) and/or cash, there are ways to record these transactions through journal entries. This is a step your bookkeeper/accountant should be able to assist on to ensure accurate recording.

Most companies have a professional bookkeeper to take care of their financials.  A bookkeeper is helpful especially when your company has a handful or more transactions a month. Most companies that are operating are in need of this service. Having a professional handle this step will allow you to correctly categorize transactions in compliance with IRS regulations and generally accepted accounting practice.

A lot of the time, small businesses might think they don’t have enough transactions to have a bookkeeper or prepare financials. Our general rule of thumb is that even if you’re a small business, you need to keep track of the transactions your company has. Small business owners in early stages of their company often take the burden themselves and might begin bookkeeping without properly understanding where to book certain transactions. This can create problems and may open doors to IRS audits -a time-consuming headache we don’t wish for anyone.

We often get asked if small businesses can use Excel sheets to keep track of their company transactions. Although this might be something business owners can handle initially, the more their business grows the less they will be able to keep track efficiently in this fashion. We recommend at least using a bookkeeping software, such as QuickBooks, to have the proper software that will generate your reports. However, keep in mind that the quality of what you input is the quality that reflects on the reports. If you are not aware of all the tips and tricks accountants and bookkeepers know, it’s truly best to hire some help.

Overall, having these financials are crucial to ensure your tax preparer will be able to prepare your taxes.

2.       Communicate with your tax preparer

Once you have your financials ready and have already distributed forms such as 1099s and W2s your company may process, it’s time to communicate with your tax preparer.

Provide your financials to your tax preparer. Depending on who your tax preparer is, they may have their own protocol regarding how to provide necessary documentation and what deadlines they may have to be able to file your return on time.

If you file with us, we typically ask you to upload all files to our secure portal. Once you are finished, we ask you to notify us. After that, we prepare on a first come first serve basis. Some returns may take as little as 24 hours to complete. Some may require a longer time which can take weeks depending on our backlog or unresolved lingering questions we may have with you.

3.       Sit back and relax

Once your tax preparer is working on your return, you can sit back and relax.

Your tax preparer should contact you as they are completing and finishing your return, so stay alert to your emails and/or phone calls to ensure timely completion of your return.

Try to file your taxes on time. Delaying your filing may develop penalties and interest.

As a reminder, business tax returns (S corporation, C corporation, LLC partnerships) are due March 15th.

Sole proprietorships and single member LLCs are due with personal income taxes on April 15th.  

4.       Pay your taxes or collect your refund

Hopefully you’re receiving a refund, but if not, it’s time to pay your taxes and move on. Once you’re done with this final step you can focus on continuing to grow your business.

No one likes tax season, but it’s best to take care of it in a timely fashion so you have one less thing on your mind.

Need help with any of your bookkeeping or tax preparation? Contact us today and we’ll help you through this process. It should be painless!

End the Year Strong: 5 Critical Steps Every Business Owner Needs to Take

As the year dwindles down and the holiday cheer is among us, it’s easy to push business matters to the side. However, the final quarter is a critical time to set yourself and your company up for success in the New Year. If you’re a business owner, here are 5 critical steps you can’t miss before reaching the finish line with the year end.

1.       Closing your Financials: Why it Matters

If you’re operating a company, you likely already have financials and work with a professional that will properly prepare them to be compliant with US law and regulations.

Closing your financials in a timely manner is imperative. Of course, December cannot be complete until the month has finished, however remaining up to date is crucial at this time of year. Closing your financials means reconciling all company bank and credit card accounts, recording all assets, resolving all remaining questions, and ensuring company financials are ready for tax preparation.

Once you’re in the later half of the year (the 4th quarter), it is a critical time to examine your books. This will allow you to make strategic decisions prior to the year end.

Strategic Decisions:

2.       Tax Planning: Plan Now, Save Later

a.       You cannot plan for taxes without having up-to-date financials and tentative projections for what the year end looks like.

b.       Planning for taxes needs to be done in the current year because if you can make some decisions that can lower your tax liability, those decisions must be done in the tax year. Once the year ends, it is too late to go backwards in time. (Unless you have a time machine.)

c.       You may explore options to defer revenue or accelerate your deductions.

3.       Issuing bonuses: A Win for You and Your Employees

a.       If you see your bottom line is very high and you will be liable for taxes, you may consider issuing bonuses to your employees. This is common practice for larger companies, however small businesses often times don’t consider or forget this simple trick.

b.       These bonuses will increase your payroll expenses and in turn decrease your bottom line.

4.       Asset Acquisitions: Smart Purchases, Smarter Savings

a.       You may want to decrease your tax liability with asset acquisitions. Perhaps your company may find it beneficial to acquire vehicles, machinery, computers and equipment to provide significant tax benefits.

b.       Large purchases can be strategically acquired before January 1st, in order to help decrease your tax liability. To estimate how much, we advise you to speak to your tax preparer.

5.       Paying Estimated Taxes: Proactive Planning

a.       This one is not always a preferred method, however for companies that truly will incur a large tax liability once they file, it may be in their best interest to pay estimates up front to help with your company’s cash flow, avoid large tax liabilities in the future, and ultimately mitigate tax season stress.

b.       Your tax preparer will be able to work with you to determine how much in estimates you should pay and how to make the payments.

Don’t let the year pass without taking these critical steps! Your future self will thank you. Speak to your accountant today or contact us if you are seeking help!

Is my Tax Preparer Responsible for Filing on Time?

Tax season can always be stressful, but having a tax preparer should relieve some of that tension.

In theory, when you hire a tax preparer, once proving all the necessary documentation, your professional should prepare and file your return. However, there are always instances that raise the question of who is responsible. This blog will answer those lingering questions.

Although every story is unique on its own, the government and Internal Revenue Service have laws in place that clearly state who is ultimately responsible.

Situation 1: Failure to Provide Paperwork

If you fail to provide your necessary documentation, your tax preparer will not be able to file your taxes nor meet the deadline. This situation is fairly simple. You are responsible.

Situation 2: Providing Paperwork Late

If you fail to provide your necessary documentation in a timely fashion and you provide your paperwork after the date your tax preparer has requested, they may not be able to meet the deadline. This is why they like to plan ahead and set dates. Typically, this will be a situation where you may request an extension or your preparer will plan to file one for you. Hopefully this situation’s mistake won’t be made with the final extension deadline. Either way, you are responsible for not providing the documentation on time; you are responsible for your taxes.

Situation 3: Failure to Follow Up

If you provide all your necessary documentation in a timely fashion and do not follow up with your tax preparer, it is still your responsibility that they are filed on time.

Situation 4: Providing Paperwork and Following Up

If you provide all your necessary documentation in a timely fashion and follow up with your tax preparer, you are STILL responsible that your taxes be filed on time.

Conclusion: The tax payer holds the ultimate burden and responsibility to ensure their return is filed on time.

The responsibility ultimately lands on the tax payers and any penalties, interest, and fees associated with late filing still fall under the tax payer’s responsibility.

Situation 4 was the story of the case United States v Boyle. Relying on a tax preparer does not remove the responsibility from the tax payer (Boyle, 469 U.S. at 251).

The Journal of Accountancy summarizes this case, “In Boyle, the taxpayer claimed that his attorney failed to file his federal estate tax return by the prescribed due date, even though the taxpayer provided all the records the attorney requested to prepare the return and even sought periodic updates on the status of the return. In its opinion, the U.S. Supreme Court provided a ‘bright-line’ test that ‘failure to make a timely filing of a tax return is not excused by the taxpayer’s reliance on an agent, and such reliance is not ‘reasonable cause’ for a late filing under [Sec.] 6651(a)(1)’ (Boyle, 469 U.S. at 248, 252) .”

The Internal Revenue code clearly puts an “unambiguous, precisely defined duty” on the tax payer to file in a timely fashion.

The Internal Revenue Service explains that reliance on a tax professional is generally not a valid reason for failure to file or pay a tax on time. The IRS details, “You're generally responsible for complying with tax law even if someone else handles your taxes. You should know what your tax preparer files and get proof that your return or payment is sent on time.” 

So, in a nut shell, although your tax preparer is hired to relieve some stress while filling your taxes, it is still your responsibility to ensure your taxes are filed on time.

Finding the right tax preparer for you will help you ease the burden of filing.

At V&R Associates, we strive to follow up multiple times, ensure all paperwork is received and all questions are answered to file on time. However, there’s only so much we can do without proper communication from the client’s side. This is why we stress, that although certain firms like ours strive to provide you excellent service, it’s ultimately your responsibility -and that’s the law.

Want to get in touch with one of our professionals today? Contact us and we will get connected shortly.

New 2025 Tax Rates & What You Should Do Before 2024 Ends

It’s that time of year again. Your favorite governmental agency, the IRS, has released its new tax rates to adjust for inflation. Right in time to give you a scare with Halloween.

Why do new tax rates matter?

Tax rates reflect the amount of taxes you will owe.

With new tax rates, it may be in your best interest to plan ahead and better prepare yourself.

Here are the new marginal rates:

For tax year 2025:

• The top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:

• 35% for incomes over $250,525 ($501,050 for married couples filing jointly).

• 32% for incomes over $197,300 ($394,600 for married couples filing jointly).

• 24% for incomes over $103,350 ($206,700 for married couples filing jointly).

• 22% for incomes over $48,475 ($96,950 for married couples filing jointly).

• 12% for incomes over $11,925 ($23,850 for married couples filing jointly).

• 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).

To read more about the updated 2025 tax year IRS details, please click here.

Although these numbers do not reflect the implications you will have for your 2024 tax liability, it reminds us of tax season in general, and what is in your best interest to do before 2024 ends.

101 Advice: Planning Ahead Before 2024 Ends

For individuals receiving a W2, it would be a good idea to check your pay stubs and ensure that your employer’s payroll provider is deducting the right amount of taxes. You’d be surprised, but we see errors in this frequently. If the right amount is not deducted, it could be the reason you may owe more taxes while you file your return. The amount may shock you, so it’s better to double check. If you need help, please speak 1:1 with your tax preparer.

However, although it’s good to make those corrects to your W2 as soon as possible, it likely won’t drastically change your liability (or refund) this late in the year. If enough has not been deducted, your tax preparer will calculate how much extra you are predicted to owe while filing your 2024 taxes. You may consider submitting an estimated tax payment to avoid penalties.

If you are a business owner, planning ahead is imperative as you have the power to change your fate (at least a little). This is the time of year where every business owner should have a 1:1 with their accountant, analyze their company’s bottom line profit and plan what to do to combat their tax liability before the year ends.

Besides the option of paying estimated tax vouchers, perhaps this is a good time to consider bonuses to add to your payroll, asset acquisitions and other large purchases such as a car/truck, computer/laptop, printer, etc. Decreasing your bottom line will decrease your tax liability so if you wanted to make some purchases for your business and have been holding off the whole year, try to get them in before it’s too late.

Once the year ends, you can’t do much to change the numbers and your ultimate tax fate. (Unless you had a time machine.)

So instead of getting frustrated during tax season, we recommend planning ahead and being proactive about what you can do to decrease your tax liability.

Need help with a professional? Contact us today and an expert will get in touch with you shortly.

Can my dog be a tax write off?

No one loves paying taxes. It is only natural people start to get creative with ways they can decrease their tax liability. With the growing rate of furry friend owners, people can’t help but wonder: can my dog help me decrease my tax liability?

Many consider their dog as their child. So, if you can use your children to decrease your tax liability, can you use your dog too?

Surprisingly, we get this question a lot so let’s break it down…

The simple answer is “no, but…” This is because in certain cases, you actually can use your dog as a tax write off.

Here are some situations that will allow you to use your dog in your tax return:

1.       Service or Emotional Support Animal (Therapy Dogs)

In certain cases, dogs may be used to help you with emotional or physical needs. Dogs may help guide a blind or deft person, help with seizures etc. We recommend having your medical reason documented and diagnosed. We also recommend speaking to a tax professional to ensure you qualify and meet all the IRS requirements.

2.       Business Expense

If you have a business, let’s get creative. Does your dog perform any service that helps you and your business in daily operations?

Perhaps your dog might be acting as security and protecting your business front from potential predators. It may be comical, but depending on your business, it could be a valid claim that your dog is meeting security requirements needed to operate safely.

Maybe your dog serves as your company mascot greeting all your guests. Perhaps your dog is part of your company’s branding and used to lure in clients. Depending on the nature of your business, your dog might be an integral source to your company’s marketing efforts and client retention.

Your dog, or cat more likely, could be acting as pest control. Perhaps any critters you may have will be taken care of by your furry friend. What better way of pest control?

3.       Fostering or Rescuing

You might be spending a lot of time with foster or rescue dogs. If this is the case, you could use your associated expenses in your tax return as charitable expenses. To do this, you must work with a valid 501(c)3 organization. We recommend properly documenting your expenses, and speaking to a tax professional to ensure you meet the requirements needed.

Using your dog as a tax write off is not very common, however you might be able to benefit from talking to an expert about how your situation might align with a legal and legitimate reason to benefit from your dog.

Want to speak to someone today? Contact us and we’ll get int touch shortly.

5 Ways to Get Paid Faster as a Small Business Owner

Collection can get stressful and tricky. As a business owner, getting paid on time is imperative for adequate cash flow and the overall ability to function as a company.

It’s not always as simple, especially for service-based business structures.

Here are 5 tips to help you get paid faster:

1.       Invoice Promptly

Invoicing promptly is important for your on-time payments. If you forget to invoice, or send it late, not only do you look unprofessional, but you can’t expect to be paid on time.

Internally within your company, consider preparing the invoice in advance for it to be ready when needed. This will save time and get you one step ahead.

You can consider scheduling an email with the invoices to avoid forgetting later, have an employee dedicated to sending the invoices, or set up automatic invoices to be sent with software.

2.       Presentation Matters

Having a professional invoice makes a difference; to have clients take you and your company seriously. Ensure all names, addresses, products, and services are spelled correctly.

Branding matters. Having a custom invoice with your company logo and/or color theme can help build a superior perception clients have of your company. Keep it professional but stay consistent with the overall theme of your company. For example, an art company may consider a more creative design compared to an audit company who may strive for a more serious design.

Consider how you’d like to systematically provide invoices. Digital and physical means. Which do your customers prefer? With the push to digital, this may be your preferred first method of delivery. Perhaps mail could also be utilized for larger amounts or certain cases.

3.       Offer Various Payment Methods

Don’t make it hard for customers to pay you. Offer various payment methods and payment plans for larger amounts. If customers ask for specific payment methods such as Zelle and Venmo, perhaps you can consider adding them to your company’s accepted payment methods. 

Pro tip: Ensure they have the correct channels to pay you. For example, if your client sends a Zelle to the wrong company, there’s no way for them to retrieve it back.

Speak their language and adapt to their needs. Once you do so, they will feel more comfortable and feel better paying on time, in the method they desire.

Pro tip: Proceed with caution for payment methods that could be reversable such as Venmo.

Lots of people are busy and don’t read. Explain the various payment methods multiple times. (i.e. On the invoice, in the email, over the phone…etc.) The easier it is for people to pay you, the faster you will get paid.

Pro tip: If you accept credit cards, it may be worth considering to upcharge for the merchant fee you pay. This is becoming a more common practice that sometimes people expect. You may include a discloser on your invoice, website, or business front.

4.       Automate

Software that will help you automate your invoicing could be a strategic investment to ensure the process of collecting receivables is more streamlined.

Certain software can automate from start to finish. You may set up reminders at certain periods in time and decrease the human labor necessary to follow up periodically.

                Pro tip: Proceed with caution if you plan to tie your invoicing software to your bookkeeping software. Duplicates and integration issues are common. Using the same software could be considered. Speaking to your accountant may be helpful to avoid issues down the line.

5.       Consider Deposits and Up-front Payment

For large projects, deposits may be the best option to ensure you recoup some of the cost up front. This is a standard procedure and can be included within your service agreement contract.

You may also consider collecting the full amounts up front prior to beginning any work. This may work in certain situations or become a standard practice of your business.

Collection isn’t easy, but utilizing these tips could help increase your collection process and incoming cash flow so your business can run smoother.

Accounting Tip: Invoice and record payments received in one system.

From an accounting perspective, it would be most effective to invoice and record receipt of payment in one system. The most common in America is QuickBooks.

Recording receipt of payment from customers will help you understand what’s left to collect, avoid duplicate invoicing, and increase the accuracy of your accrual vs cash basis accounting.

When viewing your financial statements, an accrual-based profit and loss statement will show the total income earned. Cash based financials show the total income received. The distinction between earned and received makes a significant difference on your company’s bottom line.

Need more help or clarification? Contact us today and speak to an expert.

5 Ways to Grow your Savings

You have a savings account you want to grow. Here are 5 tips to help you achieve the growth you desire.

1)      Budget

Budgeting never sounds fun, but it can help uncover what’s a necessary expense and what’s “unnecessary” even if desired. To have a thorough idea of the whole picture, tracking all your expenses will help you uncover what should and should not be part of your budget. Bookkeeping is an excellent way to keep track of your expenses so you can see the big picture. You might be surprised with what you find.

2)      Cut Expenses

If you decide to track your expenses as recommended in #1, you will see what expenses are too costly and places you can minimize or cut completely. While doing so, you might find subscriptions you don’t use and are unaware of that you can delete or habits you didn’t realize costed you so much, such as having your daily coffee.

3)      Set Up Automatic Transfers

Once you’ve budgeted yourself and know what is necessary for your monthly comfortable living standards, set up automatic transfers to your savings account so you won’t be tempted to touch whatever you decide to set aside. Once it’s in your saving’s account it’s more likely to stay there as opposed to spent.

4)      Grow your Income

It might be time to consider what stage you are in your career and what ways you can grow your income. Perhaps a side hustle such as consulting might allow you to have the income you need to reach the goals you set.

It’s never too late to grow your income. The people you surround yourself on a daily basis could help foster the environment you need to get motivated. Good vibes and positivity will help you get the boost you need.

5)      Invest

Is your savings account simply earning a few cents a year? Perhaps it’s time to think further than the low interest yielding bank account your funds are sitting in. Consider a high yield savings account, CD, or money market account. Do your research in detail and invest wisely to safely grow your funds. Speaking to the right professionals, such as a financial advisor will help guide you to a solution that will help your situation most.

Strategies to grow the savings you have exist. With the proper knowledge and confidence you need, you’ll be reaching your goals in no time.

Need any help with budgeting, tracking expenses, or simply planning ahead? Contact us today and we can help you plan.