Tips for Tax Time Savings

Tax-time is a stressful time, especially if you haven’t prepared for it properly!   

The best way to reduce the stress is to have a plan in place! Each year, after you file your taxes, take a look at what you were pleased with and what you wish was different. Then, you can come up with a plan to help improve the following years’s tax returns.

Below, we’ve offered up some simple strategies that can help you to have a better time on your taxes next year, but if you need more specific advice, a qualified CPA is always the best person to turn to.

Tip #1: Think Long-Term

When you file taxes, it’s tempting to just go with whatever is going to get you the most money the soonest. However, you really need to consider how your tax decisions today are going to affect you in the future; in other words, think long-term!

For example, when it comes to passive index investing, people often put off selling their best portfolio pieces because they don’t want to pay the capital gains. More often than not, though, capital gains aside, selling would still be the wisest and most profitable decision over time. And that phrase- “over time”- is key; no matter what kind of decision you’re trying to make, choose the option that is going to pay off for the longest amount of time, even if it costs you money upfront or gives you a smaller-than-you’d-like amount upfront.

Tip #2: Change Custodians (if necessary)

If your current custodian isn’t working for you, or, if another custodian is offering you better service and a nice bonus to change custodians, then by all means, do it! These days, you can typically switch everything over online, meaning no hurt feelings. Plus, no capital gains taxes are involved, so it’s really a win-win, providing you research your new custodian carefully and make sure it’s a good, long-term choice.

Tip #3: Get Help from a Pro

Finally, recognize that no matter how much you know about taxes and tax law, a professional is going to know more.

As mentioned, a financial advisor can be a wonderful asset to you. Even if you don’t want to work with an advisor on a regular basis, it’s still a good idea to have one go over last year’s tax returns and point out areas in which you can do better. It can make a world of difference!

Building A Business Versus Building Wealth

The market for small businesses has been less than ideal over the past few years. In the third quarter of 2010, just 1,117 small businesses were sold in the United States. That’s equal to the number sold in the same period in 2009 but down from the 1,462 that sold in the third quarter of 2008. Half of businesses sold during the third quarter of 2010 were listed for more than $245,000, but the average sales price was about $140,000 – a 6% decline from the same period in 2009.1


Many of the reasons for the lackluster market may be due to external forces: Weak economic conditions mean many businesses are earning less than in years past. Tighter lending standards have reduced the pool of eligible buyers. Qualified buyers may be waiting for a stronger economy before they assume additional risk.

In other words, your efforts to build a successful business may not always translate to an increase in personal wealth.

One way to help insulate your personal financial situation from the fluctuating small-business market is by investing outside your company. Doing so can have some important benefits.

If you were forced to sell unexpectedly, perhaps because of an illness or a partner’s departure, your post-business lifestyle wouldn’t fully depend on the sales price.

You might be better able to withstand low-ball offers or a buyer’s market if you are in a position to wait for the right buyer.

Think of it as diversification. Allocating too much of your personal wealth to one company — even your own — is a risky proposition. Diversification does not eliminate the risk of investment loss; it is a method used to help manage investment risk.

It’s natural to want to believe that the effort and dedication you pour into your business will help increase the selling price, but there’s always the risk that it won’t. Call today to learn more about how to help insulate your financial future from the risks facing your business.

(1) The Wall Street Journal, October 14, 2010

The information in this article is not intended as Naperville Accounting or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

Related articles

• How Do American Companies Manage Risk? (thinkup.waldenu.edu)
• What's Hot and What's Not, Business Wise (williambruce.wordpress.com)

Protect Your Business with a Disaster Readiness Plan

Prepare for Disruptions — Even from Faraway Events

About a year ago, a volcano erupting in Iceland virtually shut down air travel in Europe. Thousands of flights were canceled, stranding travelers and grounding the 11,000 tons of goods that are normally flown daily between Asia and Europe.1 Businesses suddenly faced shortages of goods and materials because of a faraway natural disaster — a reminder of the need to prepare for a range of emergencies.

Your company may have been unaffected by the Icelandic volcano, but the risk of disaster is always looming. Most people think of hurricanes, tornados, and earthquakes, but a fire in the break room or a flood in the warehouse can also cause operations to come to a grinding halt. By one estimate, one-quarter of businesses never reopen after a major calamity.2 Taking some basic steps now could help you avoid a similar fate.

Stay covered. Even though you probably have insurance, it’s important that your coverage keeps pace with company changes. Updating your policy as you add equipment and other capital expenditures may help you reduce uninsured losses.

Image via Wikipedia

Point and shoot. Taking photographs of premises and property may help speed up the claims process and reduce the risk of disputes with the insurer. Backing up the photos online can help protect them from loss, as well.

Back up and protect. In this electronic age, it’s likely that you already have arrangements to back up important files off-site, preferably 50 or more miles away, with the ability to view them online. But what about records that you keep on-site containing sensitive customer and employee information? Take steps to prevent looters from gaining access to these records in the event you must evacuate.

Keep in touch. Even if your company never suffers a disaster, it may still be vulnerable to disruptions in the supply chain. Arranging for back-up suppliers, deliveries, and other important services may help prevent someone else’s bad fortune from becoming your own. It’s also a good idea to prepare a list with contact information for your employees, Naperville accounting advisor,vendors, Naperville Investment advisor and others with whom you do business. Make sure your managers have copies of the list and keep them at home.

1–2) The Wall Street Journal, April 16, 2010; September 11, 2009

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

Related articles

• Natural Disasters: Planning for the Unthinkable (spendmatters.com)

All About Naperville CPAs

Just like any other state, A Naperville CPA is responsible for managing tax returns and financial matters of their respective clients. A CPA, commonly known as Certified Public Accountant is a designation given to invididuals who have passsed the Uniform Certified Public Accountant Examination held in United States. By using a CPA, you can make sure your business is in trusted hands.

When looking for Naperville accounting,  you should always make sure your accountant is a certified public accountant. In Naperville, each CPA has been formally approved by the state professional licensing board which includes background checks and personal reference checks to ensure that your CPA also has a high level professional integrity. Whether you need to start a new business or balance your books, Naperville accounting will be a lot easier with the help of a certified public accountant.

When choosing a CPA, it’s important to find one who understands your needs. Whether you need someone to manage the books, file taxes or handle your businesses finances, its important you and your CPA are on the same page.

We all know that handling taxes and managing books while running the day to day activities of a business or a household is time consuming work. For this reason alone, contacting a Naperville CPA becomes quite essential so that they can release such pressures of your shoulders and bring their experience and talent to use whenever required.

Related articles

• Is that home in Naperville District 203? (chicagonow.com)

Give Your Small Business A Full Service Accounting Solution

Finding a Naperville accounting service does not have to be a chore. Running a small business involves a multitude of tasks, and keeping the books is just one of them. Unless you have a background in accounting, the bookkeeping side of running your business can often become confusing and time consuming. Choosing to let an accounting professional handle all of your business’s financial records is a great way to make sure that your finances stay in order, while giving you more time to focus on the day-to-day activities important to your business.

If you decide to enlist the help of professionals for your business accounting needs, you should be on the lookout for a firm that can offer you a full service option. Preparing a list of you business’s needs before beginning your search for an accountant will ensure that you find the person or firm that is right for you. A few common accounting needs among many small business owners are the preparation of quarterly tax returns, handling payroll services, and general bookkeeping. Your business needs may vary depending on how your company is structured. Take a few moments before beginning your search to make sure you know the needs your business has. Once you have an initial meeting with an accounting professional, make sure they are capable of providing you with all of the services you need.

Allowing someone else to handle your business accounting should not be a time of worry. Take the time to research the Naperville accounting options at your disposal and your decision will be an informed and intelligent one.