Some years back, I used to work in my dad’s office, and I was very young then. We were in Washington, DC, and I must say that not many things were pleasing about me. For example, this was in an impoverished, predominantly African American community. I saw firsthand the struggles that people go through. The struggles were part of my life too – perhaps, until a time when generational wealth became a subject of interest.

Having been working with my dad, that was the time when I started my own generational wealth journey. For him, he was also playing a part in something that could end flourishing when my kids are older. This means that this kind of wealth is focused on kids you have now, as well as theirs in future.

Looking at the above, it is clear that, being a business person, you can’t just work alone for your kids. But you fulfil the generational wealth conundrum by helping your kids become business minded too. If they can’t be like that, how are they going to sustain the wealth you build today? Only their business acumen and financial discipline will ensure that there is generational wealth some 30 years down the line. In short, you build generational wealth while working with them.

Kiddipreneurs and the generational wealth conundrum

After saying all the above, it makes sense to bring the subject of kiddipreneurs. This is a word used to describe kids that become entrepreneurs. I brought them in this article to show you that generational wealth is not only about hiring them. But goes beyond them using the set of skills they learn while working in their parents’ business to build their own.

Therefore, as you hire your children, make sure to steer them towards business leadership and entrepreneurship. These are the qualities they will use to grow and sustain generational wealth.

I know, many could wonder if it is possible for kids to start businesses. I say that it is totally possible. “My name is Hannah Grace and I’m 12 years old. I love using health and beauty products and I love making them too!” This is the message you get on the homepage of BeYOUtiful, Hannah’s bath bomb business website. She is only twelve years old, but has been in business for a couple of years now.

From her story, I discovered that she was challenged by her father to make the things she loved. And, by mentioning her father, I am reminded of the role that parents play in helping their children become millionaires. Even if we are to say Hannah’s dad did not own a business to hire her, he helped her develop an entrepreneurial mindset. And we don’t know how much business acumen she is still learning from him.

So, by hiring your children, you want them to run a bigger business in future. That bigger business they will be running is the one that creates more generational wealth.

How can parents help their children become millionaires?

First, you got to learn how to hire them. This, you can do through learning from a tax practitioner or accountant. The purpose of going through an accountant is so that they tell you what tax benefits you stand to get. They tell you how to avoid payroll taxes legally.

Secondly, once you start saving money from tax, you now have something to reinvest in the business – so, that helps you grow YOUR current business. The child can inherit it later when it grows. That is another part of building generational wealth.

Still on this, there is the money that you pay your kid. Teach her to save this money since that young age. We spoke about various means of doing so in the previous How to Hire Your Child Masterclass. For those that did not attend, the replay is available for purchase.

In terms of her saving her earnings, the IRS allows her to invest up to $6,000 per annum. Now, this is a lot of money, especially if you teach them when they are still under the age of ten. The money grows to something amazing after 50 or so years.

Therefore, think about it this way; there is now the business you grew through tax savings from the IRS. And there is also her money that she invested over all these years. These two, combined, gives her an amazing shift in her net worth. With all this money, she can invest in real estate, stock market, or expand the family business, opening up new branches. That is how you build generational wealth.

Thirdly, besides all things money, tax breaks, and so forth, part of generational wealth building involves learning. When you hire your child, you show her many things about the business. Every task you let her do is a learning curve. Importantly, you also show her how to work with teams since that young age.

Besides the above, your child also learns how to handle her finances since that young age. I know someone that does not own a business but always gives her kids some money so that they know how to own it. Some people just get all over the place whenever they get money in their hands. So, as soon as your kids start earning, they will learn to own money and make good decisions with it. When the time comes for them to enhance wealth accumulation, they will do it responsibly.

Therefore, the conclusion to this matter is that as a business owner, all your decisions must be about the child. By running that business, you already started something, and to take it to millions, you will need someone to carry on the load. Therefore, the best way to ensure that someone is available when needed is to hire your child. And, hiring them must be done lawfully.

Ps. Watch out for our upcoming “Business Taxes for Kids”. Coming this Black Friday.

The post Building Generational Wealth Is All About Your Kids first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Building Generational Wealth Is All About Your Kids appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

So, we have been going on for the past weeks about hiring your child, and how that helps you gain many tax benefits.

As we get to the end of the month, we focus on generational wealth because we know that all the efforts that we put in are directed towards having to be able to pass on a healthy button to your kids as they do the same to theirs.

Just from the above, when ‘you pass on the button to your kids,’ you are finishing what you would have started when you hired them, as you will see later in this article. And, when ‘they pass the button to their kids,’ they cement the meaning of generational wealth they would have played a part in creating when you hired them some 40 or 50 years back – indeed, that is how far long it takes to build those million-dollar investments for the family.

As such, generational wealth is all about the assets (usually quantifiable in monetary terms) that are passed down from one generation to the next. If you can leave a noteworthy inheritance to your descendants, that is called, or, is part of generational wealth. I understand, there could be issues around the classification of such, but if part of the inheritance is real estate, a business, stock market investments, or anything else which contains a monetary value, you may as well have left them generational wealth.

Nevertheless, for it to make sense, this wealth has to be significant – enough for them to make a living out of it and grow it for the generations that come after them. 

Why is generational wealth the best for your kids?

If you successfully help your children inherit generational wealth, you would have given them a significant financial advantage over their peers that don’t have it. This way, your kids would probably have the ability/means to avoid student loans and other types of costly debt that many young people find themselves entangled in. Debt is one huge blow that you can ever allow to yourself. So, for your kids, after you make them good generational wealth, they have enough to send towards income-generating investments, assets which appreciate in value, and even towards the purchasing their first home or building.

How then does hiring your children build generational wealth?

1. It allows them the first step into acquiring assets

Wealth that gets to be passed on is huge; it means that you got to start building on this a long time before retirement. Therefore, you must hire your children to set them on this path as early as possible. Remember, we discussed that the issue of age and other rules don’t matter as long as they work for you.

Hiring them is a huge financial step that works really well, provided you have the patience and discipline. Remember that this costs you nothing other than waiting for years. Consider the following example;

If you hire your underage child now, aged 7 years and getting them to save, for example, $5,000 annually in their Roth IRA. By the time they retire aged 65, they will have a projected $3.7 million waiting for them to buy buildings or invest in stock for profits. This is how rich families do it.

If they don’t do this and invest only when they are aged 30, they will only have just $739,000 at retirement – a far cry from the $3 million.

2. You prepare them as they grow in the business that you want to pass down to them

Have you ever wondered why so many small businesses carry the “& Sons” words in their names? Well, it is because many small businesses are geared towards allowing their children to take reigns at a certain point in time. According to The Census Bureau, 90% of all business enterprises in North America belong to the family. And, of these, almost 70% state that they want to pass the company to the next generation.

In as much as it sounds great, it is just sad that only about 30% are successful in passing down their business. What seems to be lacking here? I am, sure it is not education that we get in colleges, but I believe many of them lack the practical knowledge and passion that gets learned at the real workplace. In other words, hire your child to firmly prepare them to take the reins in the family business when you retire or die.

Finally, having considered all the above, make sure that all your debts are paid off. It won’t help it if you make your kids inherit a business that is already heavily burdened by debt.

3. You also get the chance to learn which one of your kids is best suited to lead the family business

We are building businesses in hopes that one day our kids will take over. Exposing them makes us see which one of them would make a good business leader. This is necessary education needed to make sure that the wealth you leave behind does not get squandered by your now-grown children that do not understand first the value of money and, second, how to keep the money growing in the family business.

I say this because a report from Market Watch found out that approximately 70% of families lose their capital in the second generation while 90% lose it in the third. But when you groom them well, these children will know not only to keep the wealth intact, but also to build the wealth further.

Therefore, in a nutshell, hiring your children helps you build generational wealth in a few ways. First, by hiring them, it makes them earn income. This is the same income that they use to buy into other investment vehicles when they retire, on top of your already growing family business. Secondly, you get a chance to prepare them to lead and make difficult financial decisions that pay off in the future. Lastly, hiring your children is an easy way to closely study how they all handle situations in a workplace, as well as how they spend their earnings. From there, you can easily identify the right leader to pass on the button to when the times comes.

Ps. Join our MasterClass – “How to Hire your Child in your Business” this coming August 27^th for $147. And learn how you can build Generational wealth for your children.

Click Here to reserve your slot!

The post How Hiring Your Child Build Generational Wealth first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post How Hiring Your Child Build Generational Wealth appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The first one is the fact that, an average black child does not start their retirement fund until they are aged between 25 and 26.

Secondly, for some time now, I have been hearing about this rule of reinvesting money back into your small business. The rule states that you must reinvest at least 10% of profits earned back into the business. And, according to Fundera, 86.3% of small business owners make less than $100,000 a year in income.

Lastly, I learned from Market Watch, that it’s actually shocking how many families squander inherited wealth. It says that rich families tend to not be able to sustain their level of wealth beyond two generations. And, as you read further this article, you will learn why this could happen even to your family as I posit how you can minimize the risk of this happening in your own household.

So, what do the above assertions say to you as I want to speak to you about the importance of creating generational wealth using tax savings from hiring your under age children?

First things first, tax saving is the first step to building generational wealth. In opening up my how part, I direct you to my first fact in the first of the above three; with hiring your child, you allow them to start contributing towards their retirement (using their Roth IRA) when they are still in their teens.

So, if your 13-year-old girl starts investing about $4,000 in her Roth IRA now, by the time she turns 25 (where the rest of the average black child starts saving) she would have saved $4,000*12, and that is a massive $48,000 ahead of the curve! And remember, this assumes that as she grows up into her late teens and early twenties, she keeps on saving the same amount of $4,000. Imagine if she enjoys that savings culture and actually increases her annual savings with time?

So, as an average black child starts to think of contributing to her savings, she will already be thinking of putting her money into stocks or real estate – and this would have started when you hired her and started paying her a salary.

Furthermore, as I look at my second fact in opening up this article, I see that at average, a small business owner can reinvest about $10,000 (10% of $100,000 annual income) back into the business. But, I would also like to say, as much as this is looking OK, hiring your 3 children could more double that amount just in one year, and that is all possible! Imagine when you hire 3 children and reduce your taxable income by up to $12,000 per child per year? If you are in the 35% tax bracket, that amounts to an extra $12,600 in your balance. Add that to the $10,000, you end up reinvesting more than $20,000 in your business every.

Now, there is a lot you can do with that amount every year. It, therefore, accelerates your journey to building generational wealth for your family.

The last fact in my opening remarks is on how families squander wealth that they inherit. Now, remember that all the generational wealth you build is for your future family to enjoy and pass on to the next generation. But, without hiring your kids when they were still minors, they could destroy it all when you leave them in charge. Why is it so? Well, we once said that hiring your child helps them with financial literacy.

This is a true fact because once they start getting paid, they suddenly know how to budget because you could easily tell them to pay for their own data and phone expenses. You may also tell them to pay for their own hair-do and still encourage them to save extra money.  A child that grows like this can easily look after your business and properties when you are gone. They will also know how to teach their own children how to safeguard the family’s generational wealth.

I say the above because if this is not done, sometimes money can use your kids if they make money as a young person without being taught on how to use money as a tool for them. Being at work with their family is an easy way to help them learn how to be in control without being controlled by money.

You must never underestimate the power of exposure. As for me, I wanted to be an accountant since the age of 14, but without the exposure, how long do you think I was going to take to become as brilliant as I am in the field?

Generational Wealth is a long-game, it requires patience

If you look at all the above facts about hiring your child for creating generational wealth, they all speak of small savings that must build up to something meaningful. As such, saving when hiring your child is a long-game, it is also about the small amounts you save, not hundreds of thousands in a few months as many people dream of. Thinking you can save hundreds of thousands and wanting to do it in a short space of time is misleading, you got to play and plan it well.

Therefore, stop the pressure that gets generated in your circles that generational wealth is only created when you start buying buildings in the real estate sector. If you have the money to do that, then great for you, but if you don’t, there is also an opportunity for you to start building generational wealth using this strategy that I am telling you about.

Don’t worry about the rules, rather worry about keeping your money in the family

Some people approach me and ask if they won’t be in trouble for hiring certain people, including their own kids. Well, there are no regulations from the government or the IRS that says you should only hire so and so. It is entirely up to you, the business owner, to choose the people that you hire. And, I am saying that your kids should really be set in front of the line because that alone sets you up on the path of saving on tax and building generational wealth.

If your business makes $50,000, and you have a child that can do your social media for you for $5,000, this means that when the IRS taxes you, they do so only on the $45,000. What would just have happened here is the fact that you reduced your taxable income by $5,000.  

Here is a simple math, from the above, if you pay your child the $5,000, it means that your household retains the whole amount of $50,000. But guess wat? Many of you out there are paying someone else to do the social media. And when you do, you let your family keep the $45,000 alone, also without reducing taxable income by that same amount.

Therefore, hiring your child is a simple way of saving on tax and helping your journey to building generational wealth. All you need is to give yourself a chance to learn how to do it properly, will you?

Short Copy for The Article

You ever think of generational wealth planning? You ever think of creating a lasting solution for poverty in your household? Think about hiring your own under age child as a tool for achieving this. The US tax rules legally allow you to do so, you just need to know how.

The post Hiring your child for generational wealth first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

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You are a non-tax return filer and was worried about how to apply for COVID-19 related economic stimulus? No need to worry at all at this stage. We understand that since money has been starting to trickle into filers’ accounts. Others were bound to get worried sick – not knowing what to do in order to get their very hands-on their own payments.

In light of this, it should put a smile back on your face to know that the IRS, working with the US Treasury. It has put aside a web-based application where you can use to enter your banking details and receive your payments.

Here is what you need to know about this;

• This application is meant for Non-filers Stimulus Payments
• On the IRS website, there’s a link button that says, “Non-Filers: Enter Payment Info here.” Use that to self-help
• You qualify if You did not file a 2018 or 2019 federal income tax return. Because your gross income was under $12,200 ($24,400 for married couples). This includes people who had no income.
• Also, qualify if you weren’t required to file a 2018 or 2019 federal income tax return for other reasons known by law.
• You can also use this service to apply for your qualifying children – that is if you have qualified under this category.

For more tax information, get in touch with us and one of our consultants will walk you through a myriad of top services. We have an offer, from bookkeeping to tax filing, as well as small business coaching. You can also speak to us. If you have questions regarding current COVID-19 related payments.

Ps: If you have a question about what is happening? And what needs to be done get Coronavirus Stimulus check. Go to our Coronavirus FAQ: The Cares Act. Don’t forget that we can help you file your taxes! Have a Free Quick tax Chat with your Dave Ramsey Endorsed Tax Accountant

The post Non-Filers to Register for Stimulus Payments first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Non-Filers to Register for Stimulus Payments appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

Yesterday, the Treasury, together with the IRS announced extensions of over 300 Tax Filing. Payment and Administrative Deadlines in a continued effort to stop the impact of the ongoing coronavirus disease-2019. This comes in the middle of fears of a prolonged lockdown which the government fears might have devastating effects on businesses.

Here are a few pointers for you to understand this recent announcement better;

1. This recent action was to also include several fiscal year businesses. Tax-exempt organizations and certain estates and trusts in the fold of businesses who have been granted relief measures this month.
2. For these organizations, their tax returns have been postponed to July 15, 2020.
3. Tax return and payment deadlines for estate taxes and associated gift taxes, usually due within nine months from the date of death, are also postponed to July 15, 2020.
4. There’s more; an additional 270 administrative deadlines are also being postponed to July 15, 2020. More on this can be found on the treasury department’s website.

Your business might be falling under one of these categories. You might not be too sure you are one of the above mentioned, give us a call for further explanations before you go the wrong way and lose out on these benefits.

PS: Give us a quick call to ask more about the above and more. The last thing you want is to lose out on an opportunity to save your business from costs related to the COVID-19 pandemic for a fraction of the cost

If you have a question about what is happening and what needs to be done get Coronavirus Stimulus check. Go to our Coronavirus FAQ: The Cares Act. Don’t forget that we can help you file your taxes! Have a Free Quick tax Chat with Folasade.

The post Treasury and the IRS American best interest continues unabated first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Treasury and the IRS American best interest continues unabated appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

I understand that there have been quite a number of narratives out there saying tax practitioners help businesses evade tax. Well, that’s not correct. In fact, we help you make the best out of staying tax compliant. As such, I thought I should just deal with this misleading narrative before delving into today’s article. This, I did in case you would choose to follow the wrong narratives without adequate information.

Nevertheless, this article serves as a pointer to the reasons why 4 out of 5 people have been losing money through tax. Imagine, going out to do the right thing only to realize that you have overpaid your dues to the IRS. Or, worse off, to realize that you could not claim back what the IRS was supposed to give to you? These kinds of things are happening daily, and ought to be dealt with, once and for all.

Indeed, 4 out of 5 small business owners are leaving their money at the IRS table. How did I come to know of this? My other professional friends and my clients to have been talking about this figure for too long now. It got me worried, and I decided to explain why is this happening – that 4 in 5 people lose money out on tax in just one tax season!

Why are businesses leaving money on the table?

1. You did not keep a record of your charitable donations

Charitable donations are all the small, or big, things that your company gives out to charity. All your local school visits with a few goodies, they make up charitable donations. Keeping a record of those saves you more money from taxes.

One of my clients took all the pictures of her charitable donations. I told her to do so, and it helped her a lot. You can also follow this practice and thank me later. Guess what, all her pictures corresponded to the receipts for the donations. Because it was like that, she easily got her rightful tax refunds from the IRS. What’s the lesson from my client’s clever move? Always keep the paperwork, and make sure it does correspond to the pictures you take when giving donations. Organize yourselves and get the maximum returns!

Remember, all I am about are the numbers. And, the numbers are supposed to work really well where the paperwork has been neatly organized! Have your receipts in place, and in this case, have your pictures in place too! This simple reason can protect you from paying more to the IRS.

2. They are operating businesses with no record system

I hope by now we all understand the importance of your business records. However, we cannot just keep them in a safe, and easily readable manner without a good system in place. Without such a record-keeping system, you lose out on your tax savings. I hope we are all following these simple, but more important tax tips for small business owners.

Nevertheless, small entrepreneurs have disappointed the most in this end. From the small invoices to the small donations made to charity, there are just no proper records, at all. Small businesses lose so much more to the IRS when the state of the paperwork is in shambles.

Please take the time out and put a proper records system in place. Failure to do so only hurts your business. Be good stewards of your own money, and what you have right now in order to become financially free.

I will tell you that 4 out of 5 small business owners I spoke to this year have no records system in place. These are some of the things that they easily ignore, but by doing so, they are bleeding their businesses of a couple of thousands of dollars.

I wouldn’t lie to you, that (ignoring record-keeping) is the easiest formula to failure. Why? Because doors shut easily on you when you don’t have records, and you lose more money to the taxman when nothing is in place in terms of your records. If you want to be a real business owner step up and do the right thing. It’s cumbersome, but worth it in the end. Never sound like an employee if you want to run the show, and stay being the boss. Just stop leaving money on the table! I say so because employees complain about the workload and the following procedures. They want things easy, but you shouldn’t because a lot depends on your business acumen, and the willingness to put in the hours.

3. You are basically frustrated about the tax system; you lack knowledge

There are just a few reasons why an entrepreneur would be frustrated all day long. One of the reasons is, your income is so low and you are concerned about how to save it through manipulating tax systems. When it is like this, you easily forget about making more money. More frustration piles up!

Frustration comes from a lack of knowledge, and I have been seeing it over the past years. 85% of the advice that most people are giving to each other is lies. You are just not fully knowledgeable of the tax system, and, the end result is prolonged frustration that eats away from your business time. You get easily frustrated about the small nitty-gritty of the system, thus forgetting to improve your products. Just stop taking bad business advice. Stop taking bad advice because you want a tax refund. Concentrate on the more important things about your business.

These important things are; organizing your numbers, hiring the right tax professionals, and improving your products and customer services.

So, you don’t have the knowledge, fine, but, will you pay for it? Always find the right information for the business. Paying for it should not be the reason to be worried about it. But, always make sure to know what you have to know so that your business is protected enough. Do not go the shady way, it is not worth it. Tax fraud can be the worst nightmare to happen to your business, so, do not cut corners. Find the right tax practitioner and keep your business running, and profitable.

The post People Have Lost Money this Tax Year first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post People Have Lost Money this Tax Year appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Why businesses need an Accountant? first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

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I have posted various articles on many subjects, and this time, I am writing on the truth about the numbers. From my long career in accounting, I have noticed that this is the subject that many small business owners don’t know much about, of which numbers carry a huge significance in business and entrepreneurship.

How do I know about this weakness in entrepreneurs? Well, I’m consistently having a few accountants who come online, and say that, “Oh! You need to know your numbers!” This points out that much is not being done well; perhaps we need more accounting tips for small businesses?

Nevertheless, I want to go ahead and show you the kind of persons that I have been coming across, and it’s interesting to see. Number one, you have someone that’s going to use their accounting expertise to cheat or beat the system. Or, you have someone that doesn’t have accounting knowledge, and uses their inability to know numbers for cheating the system.

Therefore, a person with accounting expertise beats you down by contracts, and adding confusing numbers and terms. On the other hand, the one who lacks this knowledge may underpay employees, and skip taxes occasionally. The ones who underpay may even have more different gigs on the side; so much different messes!

Still, we’re talking about the truth about your numbers, and, the first principle is that you should pay your taxes.

More so, I call on businesses to know the numbers that show what’s coming in, which is business the income. All transactions are the numbers, where your clients pay you either via STRIPE, PAYPAL, or whichever means.

Besides just income, there are your purchases, which can either be an investment, or an expense. Remember, in your cash flows, there is cash spent on investment purchases, and cash spent on expenses.

Those are the numbers too. When you make a purchase for your business, or when you make an investment for your business, the investment could be considered an asset, and that’s also the numbers. If you had a down time in business, those numbers could probably have been prevented if you had numbers look at.

So, I feel like I should go back to explaining what bookkeeping is, just in a short and sweeter way.

Bookkeeping basically takes your day-to-day transactions and turn them into financial statements, which is then turned into your story. That’s what I mean by ‘the numbers’.

It is what’s coming in, or going out of your business, thus, your day to day transactions. I mentioned ‘turning your number into a story’, and by this, I mean that with numbers, there is a track record of how the business has been performing. Like, you can tell the IRS, or potential investors that you have been doing well by showing them performance over time.

Having highlighted the above, I also want to highlight the biggest truth about the numbers; you just can’t hide them! With this, I don’t care what you do, or what you say – things like you try as hard to collect cash from every customer. I see this more often, when entrepreneurship turns cunning, and suddenly people want to accept more cash.

Let me tell you this; collecting cash only, or using PAYPAL to get your customers paying will not help you.

We have examples where it backfired, badly. Think of when you want to get insurance cover for your business? Think of when you want to get a contract with a local business, or an investor? What happens with these? And, what is the first thing that they demand from you?

The numbers! But, when you have been collecting cash only, and not recording all transactions in your books, there will be no track record to show. When there is no record, or history to show, you lose your insurance, and potential contract.

So, in the process of trying to cheat the IRS, you end up shooting your business in the foot.

This becomes an important observation; that business is not always about having the IRS in mind, but other factors matter. You need a financial history to cater for all, and this is achieved by capturing all sales, and expenses in your books.

Trying to cheat the system by hiding numbers is not always the wisest thing to do, and I give reasons. A business needs a number of services, as long as it is operational. Think of how your business requires insurance? For you to be covered properly, they want to know your business’ worth, as well as how much you make.

Now, if you have been hiding sales, you may end up being under-insured, something that’s not too good to have. Your dilemma is that you want to hide from the IRS, yet you also feel the need to be fully insured. When it happens like this, you may think of having two sets of books as the solution, but that’s also too much to bear.

I feel like the fear for the IRS is overrated, resulting in businesses making such huge mistakes. On the back of this, my recommendation is that you get as many tax tips for small businesses from experts, before committing to unnecessary mistakes.

Why do I say you need help with tax, and business tips?

Well, throwing yourself under the bus can be sometimes an easy task, even though you do this thinking that you are saving yourself. Imagine, if I was to look, and audit your business, and say, “OK, so this person said they only made $50,000 in their business. And, they are operating at a loss of $10,000, meaning they are supposed to have savings of at least $10,000 to cover for those expenses that allow for a $10,000 loss.

In addition to $10,000 loss, they also have personal bills that they have never been late in paying. And, the bills, let’s say, are at $2000 per month, for 12 months. These translate to 24,00 per annum. In addition to the $10,000, you are now telling IRS that you are hiding $34,000, and you did this unknowingly, even if you thought that you were hiding numbers.”

So, if I was your agent, I would say, well show me the payment history with your car payment. And these will show me that you make at least so much every month. I see this easily because if you are not late with a single payment, then surely you have been making money. You see, there is a difference between making a loss, and not reporting everything.

The post The Truth About the Numbers first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post The Truth About the Numbers appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

Auto insurance protects drivers in the case of auto collisions by providing them with coverage for medical bills and car costs. However, before purchasing auto insurance, there are some things you should know. Read the following article for advice on auto insurance.

If you can afford to do so, save some money on your car insurance by paying the entire year’s premium at once. Most insurers will offer the option to pay premiums monthly.

But this adds on a fee for the convenience, which can add up over the course of the year. You can still save by splitting the annual premium into two payments.

When insuring a teenage driver, lower your car insurance costs by asking about all the eligible discounts. Insurance companies generally have a discount for good students, teenage drivers with good driving records, and teenage drivers who have taken a defensive driving course. Discounts are also available if your teenager is only an occasional driver.

People with clean driving records, will pay the least in auto insurance premiums.

Keep your record clear of tickets, moving violations, and accident reports if you want to lower your premium or keep it inexpensive. A single accident or ticket will likely increase the amount you have to pay.

When switching your auto insurance coverage, one important tip is to cancel your old insurance policy just before accepting the new one.

Auto insurance is expensive enough without having to pay for two policies at the same time, so be sure to cancel the old policy and have the new one issued on the same day so that there is no period of double payment.

Planning for disasters is very important and you should prepare for anything that can happen.

This includes getting the best car insurance coverage that you can. If you are in an accident you want to be confident that the car insurance that you have will cover the damages.

Do not add features to your car that will increase its value if you want to keep your car insurance rates down. To a car insurance company, making your car worthwhile means that it is more likely to be stolen by a thief, which causes insurance companies to increase your rates.

Determine how much coverage is really appropriate for your needs.

The lowest possible coverage accepted by your state could differ from other states, but does offer the lowest rates possible for auto insurance in your state. However, make sure that this is adequate coverage, otherwise you will require a higher rate for appropriate coverage.

When keeping down the cost of insurance, protect your no-claims record. If you have several years of auto insurance with the same company and you have not needed to file any claims, avoid filing a small claim.

The increase in your premiums will be more expensive than simply covering the small claim damage out of pocket.

In conclusion, auto insurance is an important tool for all drivers.

It protects drivers in auto accidents by covering costs. There are many things to remember when purchasing auto insurance, and if you remember the advice in the article above, then you should be able to select auto insurance that will protect you. You can contact me to help you more.

The post You Invest In A Car So Invest In Auto Insurance first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post You Invest In A Car So Invest In Auto Insurance appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

This is a wake up call.

If you don’t have a rich uncle that can loan you the money that your small business needs……you’ll need those banks that can give you the loans! As a small business owner, your odds of surviving without that loan are slim! For those of you that realize that a loan will help you immensely with the success of your small business, let’s look at a few reasons why you may not get that loan initially!

1.       You don’t understand that you have to prepare yourself to get the loan!

Regardless, at some point in time, you may need that loan. Even if you may not think so now, are you absolutely sure that you may not need it 2 years later? With that type of mindset, you steer far away from needing a loan until the situation arises. When you actually need the loan, you walk into the bank and get denied. The lack of knowledge into the loan preparation process is what keeps most small business owners revenue capped at the low six figures!

There’s a preparation that goes into getting a loan for your small business. You’ll have to file your taxes, do your bookkeeping (which you should really leave to an accountant that has specialized bookkeeping software), and have ANY and ALL records requested from the bank. In many instances, you’ll need revenue projections (which go in conjunction with your Key Performance Indicators, which we’ve spoken about before). Prepare now, so that you can succeed later!

2.       You give up far too easily!

I’ll be perfectly honest here. Many African-American small business owners may have a tough time getting a loan. You’ll get turned down by many banks; you’ll get many no’s before you get that yes! What you don’t understand is that you may have to take the opportunities as they come! While you may not initially get the loans (because your bookkeeping isn’t in order, or because you don’t have any tangible assets that banks may reclaim if you default on loans), you must understand that banks NEED you in order to grow! They make money off of the interest accrued from your loan! You have to have thick skin and perseverance (and a good accountant or account manager!) in order to get that loan! Last, but certainly not least….

3.      You lack the financial knowledge to get a loan!

It’s not as simple as going to a bank, and asking for a loan; there’s more that goes into it! Do you know your own profit margins? Do you know your KPI’s? Is your bookkeeping in order? Have you done your mid-year review? Do you have a proper accountant that has legitimate accounting and bookkeeping software? You don’t have to know everything under the sun when it comes to your business, but if you don’t speak the language and have the financial knowledge, it will be apparent when it comes time to talk loans!

Unless you have that rich relative that can just give you that loan that you need to get your business off the ground, you need the banks with the loans just as much as they need you! Stop making it difficult on yourself to get what you need to succeed!

The post 3 Reasons Why Small Business Owners Have a Hard Time Getting Business Loans! first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post 3 Reasons Why Small Business Owners Have a Hard Time Getting Business Loans! appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.