Kenneth Boyd's Blog, page 28

Should You Really Plan Your Funeral Now?

Before you click to another post thinking this one will be depressing – wait!

 

Funerals and death? It’s obviously not the nicest subject to discuss. The thing is, this is something that will happen to literally every single person in the world, and avoiding the conversation doesn’t stave off the time you have. Talking about death isn’t going to trigger a Reaper with a scythe to sneak up behind you.

 

Death is death and it occurs to every living thing on the planet. The thing is, you need to talk about it and talk about what you want from your death – yes, you read that right.

 

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While death is a subject that no one wants to think about, it’s something that will help you to face your mortality and help you to plan what to do when it happens. It’s scary to consider that you won’t always be in existence on this planet, but it’s an inevitability and you have to plan for it.

 

Now, you can’t plan for your death necessarily, but you can plan for what happens afterwards. While it’s not always easy or straightforward to learn about funerals, you really do need to think about yours as much in advance as possible.

 

It’s not just because it’s smart, but because you’re going to be doing something for yourself that no one can touch. Planning your funeral in advance is going to allow you to think about what you want and not what someone else sets out for you. So, should you really plan your funeral now? Yes – and here’s why:

 

It’s not cheap. Sadly, funerals are a business and they are not always cheap. You can find some that are cheaper than others, depending on the type of funeral you want, but the bells and whistles all cost money and you have to consider that future planning your funeral is going to save your loved ones some cash.

 

Making your own choices. If you want to be buried with all of your worldly goods, you can. If you want to be cremated and have a jewel-encrusted urn, you can. The point here is that planning your own funeral gives you the chance to choose exactly what you want for your end of life party (if that’s your preference) and this choice is something you can control.

 

Removing the conflict. Families become highly emotional when death is the topic of conversation. You can avoid the family fighting when you ensure that you have planned your funeral. No one has to argue about what you might want, as it’s all there in black and white for them to refer to when the time comes. You can also guarantee no one overrides your wishes.

 

 

It’s a gift. Grief is hard, and hopefully you have so much love in your life that people will grieve you for years. Preplanning your funeral can be a gift to them, and you will find that people are able to grieve when all of the details are taken care of.

 

Consult with an attorney regarding legal issues related to funerals and estate planning

 

 

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Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

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5 Ideas To Reduce Your Driving Costs

Owning a car can get pretty expensive: there are the purchase costs, insurance, fuel, and the repairs. Fortunately, there are lots of ways that you can reduce your driving expenses. Here are five ideas to help you start saving.

 

1 . Regular maintenance

 

When you own a vehicle you must schedule regular maintenance checks. Failing to fix minor issues could leave you with incredibly expensive repairs in the future.

 

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It can also be dangerous to skip your car maintenance checks. To help you keep on top of your maintenance try using the Car Minder app, it sends you a notification every time that you need to have your car serviced. You can use the app to log all previous maintenance work, repairs, and expenses.

 

2 . Compare fuel prices

 

To reduce your driving costs, it’s well worth comparing fuel prices. The GasBuddy tool can help you to find the nearest gas stations, and compare the different prices.

 

You can also use GasBuddy to track your driving habits, get gas rewards, and track fuel consumption. Keeping track of how much fuel you use can help you to reduce your carbon footprint, and save money.

 

3. Consider an electric vehicle

 

Running an electric vehicle can help you to save plenty of money. According to Consumer Reports, a typical Electronic Vehicle (EV) owner who does most of their fueling at home can expect to save an average of $800 to $1,000 a year on fueling costs over an equivalent gasoline-powered car.

 

Consumer Reports also discovered that “maintenance and repair costs for EVs are significantly lower.” Next time you upgrade your car, consider switching to an EV.

 

There are plenty more benefits of buying an electric car, such as:

 

Zero emissions, helping to reduce your carbon footprint.Less depreciation than traditional vehicles.Less noisy to run, and a smoother drive.

 

4. Take a defensive driving course

 

Defensive Driving means driving predictably while anticipating the actions of the drivers around you. It’s about driving as safely as possible and identifying all hazards.

 

A defensive driving course studies safe driving in detail, helping students to reduce the risk of being in an accident. The course covers topics such as crashes, psychological factors, safety equipment, and more.

 

When you take a defensive driving course, you’ll be able to save money on your insurance package. Consult with an insurance agent for more details.

 

5. Limit your mileage

 

Reducing your mileage can help you to save money on fuel and limit the depreciation of your vehicle. Before you jump in the car, consider if you need to drive for this journey. For shorter journeys consider taking a walk or using public transport. Driving less can also help you to go green and protect the earth.

 

Further ideas

 

Small changes like this can make a world of difference. When you update your car, consider buying a second vehicle instead of something brand new. There are plenty of quality second-hand cars out there, just ensure that you shop with a reputable dealer.

 

One of the most irritating car expenses is getting a traffic ticket! To appeal against a traffic ticket, you can contact TicketBust. Consult with an attorney regarding all legal issues.

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Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

 

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Planning to Become a Freelancer? You Need a Website

Freelancing offers many benefits. As a freelancer, you get to choose the clients you want to work with, decided on how much workload you want to juggle, work anywhere you want and allow you to work on a variety of projects. Getting further in your career without having to work for a single employer- or a 9-5 job- is possible.

 

Despite the freedom and flexibility that come with working as a freelancer, this path won’t be easy. You’ll likely be competing with millions of freelancers not just in your country, but all over the world. If you plan to become a freelancer in any industry, you’ll need to have a quality web presence in the form of a clear and well-constructed website.

 

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Here’s why you should have a website:

 

Sets You Apart from Other Freelancers

 

Many freelancers out there are just selling themselves generically, and some clients aren’t interested in that approach. These freelancers, therefore, are not giving themselves a personality to make a strong connection. Don’t follow the same route. Create a website to set yourself apart from the rest.

 

A website enables you to captivate your target audience through the way you promote your products or services. If you want to become an independent insurance agent (the freelancers in the insurance world), for instance, you could build a website and promote your life insurance products using that platform.

 

Makes You Look More Professional

 

Getting a professional-looking website shows everyone that you take your business seriously. It makes you appear like a professional, and not just a wannabe or a hobby freelancer looking to casually score a gig.

 

Your website, when built and designed properly, will communicate who you are, whom you work with, and what you do. If you want clients to take you seriously and charge the rates you want, you’ll need to make a website.

 

Builds Your Credibility

 

Credibility is crucial in the digital sphere. Having a website can do wonders for getting better business, especially in a world where everyone is equal until proven otherwise. Clients are more likely to hire you and even pay you more if you can show them recommendations and positive reviews from previous clients.

 

Client recommendations are especially effective when you’re serving a local market. Favorable user reviews bolster local SEO tactics, because a majority of consumers rely on previous consumer experience before choosing a service.

 

Enables You to Showcase Your Portfolio

 

Some clients don’t want to hire or work with freelancers unless they get a portfolio. A website can serve as a ready portfolio where you can proudly showcase your best work to potential clients who will immediately find out just how skilled you are.

 

Whether you are a coder, graphic designer, writer or digital marketer, a website is an effective way to woo clients who are on the fence about working with you.

 

Establish Yourself As an Expert

 

Being a jack-of-all-trades kind of guy won’t take you far. Instead, you need to become an expert in one area to help you become a successful freelancer. A website is an excellent platform to position yourself as an expert in your industry or area of practice.

 

Expand Your Reach Through Social Media

 

The world of freelancing is both crowded and competitive. If you want to enter this world, you’ll have to get your voice heard above all the noise. Having a website allows you to promote your products or services using popular social networking platforms, such as Facebook and Medium, at no extra cost to you.

 

This strategy will help you establish a more solid customer base, as users are more likely to trust service providers that have huge followings on social media. What’s more, it gives you the opportunity to run ads on social networking platforms. Ads can promote your business and increase awareness about you.

 

Gives People a Way to Get in Touch with You

 

What good is being a freelancer if clients are unable to reach out to you to request your product or service?

 

A professional website is a great way for clients to contact you. Using advanced contact forms, you can ask your clients to upload files and other information specifically related to the service or product they’re requesting. This makes getting a job quote much easier for you.

 

Helps You Make More Money

 

A popular website that’s receiving a respectable number of visits regularly can be a gold mine. If your website is getting a lot of traffic, you could make money out of that by running ads using Google AdSense.

 

Also, you can diversify your earning options if your website promotes you as an expert on a particular industry or topic. If you run a popular blog on cars, for instance, you could potentially earn extra dollars writing guest blogs on other publications with the same focus.

 

Go beyond creating a professional profile on social media. Make a website that highlights and promotes your skills and expertise to prospective clients.

 

Good luck!

 

Ken Boyd

(website and blog) http://www.accountingaccidentally.com/

(you tube channel) https://www.youtube.com/user/kenboydstl

 

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What the Biden Putin Summit Teaches Us About Business Negotiations

The Biden Putin summit is dominating the news in mid-June of 2021. There’s a lot on the line, including security in Eastern Europe, trade, and cybersecurity issues.

Both sides have strengths and weaknesses. Take economics, for example. The US economy (measured by gross domestic product) is over 20 billion dollars, while Russia’s economy is about 1.5 trillion. Can US can afford to spend more on defense, if needed, and that’s a bargaining advantage.

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Business owners also need to understand and apply negotiation techniques before signing an office lease, making a salary offer, or- the biggest of all- selling a business. Here are three negotiation tools, and how you can use them in your business.

 

In a negotiation, both sides are giving consideration. In your business law class, you have learned that consideration refers to giving something up. In a job offer, for example, the employer gives up salary and benefits, in exchange for the worker’s time and effort.

 

Here are some negotiation terms you should know:

 

Reserve price (reservation price)

 

The minimum dollar amount that a party is willing to accept. Think about the owner of a painting at an auction who won’t take less than $10,000 for the artwork.

 

In a negotiation with a client or prospect, you might say: “I can’t do the work for less than $5,000.” It’s a floor, a level that you won’t go below.

 

Setting a reserve price connects to how you position the value of your product or service. In that last three years, I have turned down more work than ever, and it’s paid off. I do business with nice people, who are willing to pay a reasonable rate for what I do.

 

Say no more often- talented business owners can find more business.

 

Small pie bias

 

Many people in salary negotiations underestimate the size of the bargaining zone- the range of salary that both parties are willing to accept. The concept is referred to a small pie bias. Is it a $5,000 range, or $15,000? If you bring value to the firm, it’s probably $15,000.

 

I’ve misunderstood this for years, because I’ve found that people are nearly always willing to pay more than I suspect. Why? Because as I raise prices, I rarely get someone who says: “Well, I can’t pay that rate.”

 

How do you learn about the bargaining zone? Ask your peers and others in your industry about their pricing and negotiation strategies. The more industry knowledge you gain, the better you can estimate the bargaining zone.

 

Zone of possible agreement (ZOPA)

 

What needed is to find is the zone of possible agreement, or the range within which a deal can be reached. Think about a company sale, for example. The seller says: “I can’t accept less than $15 million”, but buyer doesn’t want to pay more than $13 million. Maybe the parties can tweak the negotiation and come up with a price range between $14 and $14.5 million.

 

Negotiations are important, and you can benefit from an expert.

 

Ask for help

 

Biden and Putin are surrounded by dozens of experts- specialists in negotiation, public relations. Don’t hesitate to ask a trusted advisor for help.

 

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Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

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How Can You Save Money On Your Large-Scale Building Project

The construction of apartment buildings is one of the most complex and large-scale projects one can undertake. Large jobs take up thousands of square feet and cost a lot of money. How do you maintain the highest quality and safety of your project, while keeping vital construction costs under control?

 

In this post, we will look at a few of the ways you can save money without sacrificing safety, appearance, or overall performance.

 

Have a solid master plan in place

 

Everything from site location and architectural design to the safety management of your apartment building construction is covered in a comprehensive master plan. Collaborate with your contractors and architects to create a detailed summary that maintains the project on schedule and within budget. A well-defined master plan will aid in reducing unplanned expenditures and the likelihood of costly and time-consuming design changes.

 

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Use a design to build scheme

 

Businesses have typically used a variety of services for large-scale project planning and design, engineering, and construction. Some of the top industrial construction firms combine all three critical functions, so that you just have to deal with one agency or one point of contact, who then manages all of the teams.

 

It also eliminates contact issues, because you know you are working with a contractor that is in charge of all project details. From health and safety checks to working with your vendors, they can handle it all.

 

Understand the rules and regulations

 

There is a complicated web of federal, state, and municipal regulations that apply to various types of heavy construction, particularly when it comes to residential property.  Failure to meet them at any stage during the project can be costly, and you may lose the project entirely. Inquire with your contractor about the zoning restrictions, construction permits, and environmental rules that will apply to your project.

 

Look at sustainable choices

 

Sustainable construction approaches help you manage costs while you are building, and they are also a solid long-term investment. Use low-cost materials like recycled concrete and steel. Keep energy-efficient industrial metal structures’ heating and cooling costs low. Speak with your contractor about environmentally friendly options like LED lighting and triple-glazed windows. This will also make the property more appealing to buyers and renters when it gets to that point of the process.

 

Would alternative building structures work?

 

If your project requires a reasonably simple structure, you can always acquire a modular or prefabricated building for a fraction of the cost of buying all the materials and completing the job yourself. The cost reductions might be enormous.

 

Prefabricated construction cuts the project’s manufacturing time in half, and just requires you to hire a few people. Of course, this is neither practical nor suitable for every project, but it is something to bear in mind.

 

A large-scale building project such as an apartment building is always going to be expensive, but as with everything, you can make savings with some careful thinking and creativity.

Consult with experienced, engineers, architects, attorneys, and contractors before you start any project.

Go to Accounting Accidentally for 500+ blog posts and 450+ You Tube videos on accounting and personal finance:

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

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The Financial Perks Of Downsizing

Contrary to popular belief, bigger isn’t always better. A smaller home can have many advantages, such as reducing clutter and making easier to clean and maintain. Smaller homes can also save you money in most cases. Below are just some of the financial perks of downsizing.

Reduced rent/mortgage

A smaller home is likely to be cheaper to rent or buy. Lower monthly rent or monthly mortgage payments could give you a lot more disposable income to spend each month. It could give you a chance to pay off debts, or even a chance to set aside savings. If you’re currently struggling to get by financially and you could reasonably cope in a smaller home, consider whether downsizing could be the solution to your problems.

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Lower energy bills

Smaller homes don’t require as much energy to heat up or keep cool. Properties such as upper story apartments can be particularly good at saving energy, as you often benefit from the rising heat coming from lower occupants’ apartments.

Many new builds are also smaller and tend to be built with superior insulation. As a result, you can expect lower energy bills in a smaller home. On top of reduced rent/mortgage rates, this could further increase your monthly disposable income.

Reduced travel expenses

Downsizing could allow you to afford somewhere in a more central location. You may be able to pay the same rental/mortgage rates while potentially reducing commuting expenses.

If you currently have to travel a long distance to get to work, consider looking into local apartments for rent nearer to your workplace. A more central location could also be nearer to shops and other services, saving you travel expenses here too. When moving to a city, you may even be able to get by without a car, relying on public transport to get you around.

Free up cash by selling up

If you’ve already paid most of your mortgage, downsizing could be a way of freeing up cash. When selling your home and buying a cheaper smaller property, you’ll be able to buy this new property in cash, allowing you to live mortgage-free.

You may even have money left over, which you can use for travel or put towards your retirement. Downsizing to free up cash is a popular retirement strategy – most people don’t need a large home in their senior years.

Free up cash by decluttering

When moving from a larger property to a smaller property, you’ll need to consider getting rid of some possessions. This could be an opportunity to get rid of some of the clutter that has been gathering dust in your home and to live more minimally.

Some of this clutter could even be sold in order to make some extra cash. Many people don’t realize just how valuable some of the unused stuff is in their home.

Go to Accounting Accidentally for 500+ blog posts and 450+ You Tube videos on accounting and personal finance.

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

 

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Time For A New Place To Call Home?

If you are planning on selling your home, we have some great tips to help you. After all, selling your property can be a daunting experience, so you will want to make sure that everything goes as smoothly as possible. So, let’s take a look at some pieces of advice that can help you through this experience.

 

Make sure that you budget effectively

 

You can use MortgageQuote.com to get mortgage loan rates, so you know how much you will need to budget for the house you’re going to move into. It is important to do this before you start making improvements to sell your home.

 

There are a lot of different costs that are entailed when it comes to buying and selling a property, so you need to make sure that you manage all of these carefully. Don’t think that any cost is too small. Having an accurate overview is paramount.

 

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Be sure to de-personalize your home

 

One of the best things that you can do when it comes to putting your property on the market is to de-personalize your home. One of the biggest problems people have when viewing a property is imagining themselves living in it. This is because the property in question is filled with personal items relating to the individual who lived in it.

 

This is why home stagers advise that you to make sure that your home is a blank canvas so people can imagine themselves moving into it and calling it their own home.

 

 

Look into improvements you can make to boost the value of your property

 

In addition to this, it makes sense to look into different improvements that you can make to boost the value of your property. For example, you may want to think about modernizing your kitchen or improving the security system at your home.

 

Changes like this are recommended, because they can help you to make more money on your property and to sell your home quicker. However, it is vital that you consider the improvements carefully to ensure that they will actually add value to your home.

 

Choose an estate agent with care

 

Last but not least, spend some time researching the estate agents in your area with care. You need someone who is experienced and knows the area well. You need someone who can market your property effectively and is going to give you the best possible chance of selling your home.

 

A lot of people underestimate the importance of choosing this professional with care, simply electing to go for the first or cheapest estate agent they find. This is no way to go about selling your property.

 

To conclude, there are a number of different factors that you need to consider when it comes to selling your home. We hope that the advice and suggestions that we have mentioned above will help you to sell your home effectively throughout the year ahead.

 

Consult with a real estate agent and a tax expert on these issues

 

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Good luck with your venture!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

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What Happens To Your Debts When You Pass Away?

Our debts stay with us until we pay them off. But what happens if you pass away before you’ve had a chance to pay off your debts? Are they written off, or are your loved ones expected to pay the remaining debt?

This post explains what happens to debts after death. Consult with an attorney before making any decisions regarding these issues. These laws may differ, depending on your state of residence.

Do my debts disappear when I pass away?

Sadly, your debts may not immediately get written off when you die. Your estate (any money or assets that belonged to you when you died) is used to pay off your debts.

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If you don’t have an estate when you die (no money or assets), only then will your debts be written off when you die. If your estate is worth less than your debts, your estate will be used to pay off as much of the debts as possible and any remaining debt will be written off.

It’s worth noting that even if you plan to leave money and assets to loved ones in your will, any debts must be paid out of your estate first. If you have large debts, all your money may be used to pay these debts off, and your loved ones may not receive anything.

Will my loved ones have to pay off my debts?

Your loved ones shouldn’t have to pay for any of your debts out of their own pocket. There are however exceptions where your loved ones may have to pay out:

Joint debt: If you and a partner took out a loan together, your partner may still be expected to pay off the loan. For example, if you both took out a mortgage together, your loved one would be expected to pay off the mortgage because it’s also in his or her name.Guarantors: If you took out a loan and someone signed their name as a guarantor, they may still be legally expected to pay off the loan when you die. For example, if you took out a car loan and someone else had to sign their name as a guarantor, they might have to pay off the remaining debt after your death.

If none of these exceptions apply, your loved ones may not be liable for any debts.

What can I do about my debts before I pass away?

Worried that your loved ones won’t receive any money due to your debts? Or worried about loved ones having to pay off joint debts or debts for which they are a guarantor? There are measures that you may be able to take now to protect your loved ones. Below are just some of the measures you can take.

Get help with estate planning

Estate planning involves taking measures in order to control where your money and assets go when you pass way. On top of writing a will and appointing an executor, you may be able to start making legal changes to ownership of your assets while you are alive.

For instance, if you want to start leaving money behind to a loved one and don’t want this money to be put towards paying off debts, you may be able to start contributing it into a trust fund.

Take out life insurance

The proceeds of a life insurance policy are typically not counted as part of your estate. In most cases, the proceeds will go directly to your loved ones. This means that if all of your estate is used to pay off your debts, your loved ones will still receive some money after you pass away.

There are other forms of insurance that you can look into, such as mortgage life insurance, which can help to pay off a mortgage. These could be worth looking into if you have a large mortgage in place.

Start paying off your debts

Alternatively, you can start taking measures to pay off your debts now while you are able. This could allow you to save up money to leave behind to loved ones without worrying that it will put towards your debts. If loved ones have signed as guarantor or you have joint debts, you also don’t have to worry about them having to pay off the debts after you die.

There are lots of different strategies for debt relief. When it comes to high interest debts, it could be a case of refinancing your debts or consolidating them. You should avoid extreme measures like bankruptcy as this will similarly use money and assets from your estate.

Again, review these issues with an attorney before making any decisions.

Go to Accounting Accidentally for 400+ blog posts and 450+ You Tube videos on accounting and personal finance.

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

 

 

 

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Fail the CPA Exam? Action Steps to Pass the Exam

After my 4th call to technical support to fix an email issue, the customer service asks if I can stay on the line and take a survey about my satisfaction.

If it takes 4 calls, I’m probably not satisfied. It’s frustrating.

If you failed to pass the CPA exam, you’re not alone. It took me several tries before I passed, and thousands of others are in the same boat. The question is: what do you do now?

The experts at Universal CPA Review have some action steps that will help you get on your feet, and prepare to pass that darn CPA exam. You’ll find links to four videos below.

Let’s take it one test at a time.

Preparing for AUD

I think this test is the most difficult to study for, particularly if you took an undergraduate auditing course from an instructor who has no auditing experience. The only way to explain these concepts is using real-life examples.

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How do your explain internal controls when performing a physical inventory count? Only someone who’s performed a count (and probably seen control issues) can explain it clearly. I think auditing textbooks can be poorly written and not useful.

Here’s what you need: a solid example for each auditing issue you’ll face on the exam. Auditing is done by first working on each balance sheet account.

If you have an example for each common account (cash, accounts receivable, etc.), you can understand concepts and pass AUD. Internal controls and the auditing assertions (completeness, occurrence, etc.) are heavily tested.

If necessary, ask someone who has auditing experience for work examples. CPAs are always willing to help others pass the exam.

Getting your arms around FAR

Financial accounting and reporting (FAR) is a beast of an exam. It includes most of the number crunching on the exam, and FAR requires the most study time. If you didn’t pass FAR, not a surprise, but you can get over the hurdle.

As Universal CPA Review explains here, all you need is a 75%, so there is room for some amount of error.

Plan out your study time, and focus on one module (topic) at a time. When you’re studying a module, step back and think about where the topic fits into the set of financial statements. Treasury Stock, for example, is in the equity section of the balance sheet. Remind yourself of this fit whenever you start studying.

Don’t lose the forest for the trees. If you stick to a study plan, you can get through FAR.

Studying for REG

Regulation (REG) is the most technically demanding test, and it boils down to business law and tax concepts. You can overcome a poor business law instructor by using good test prep materials. Tax, however, has been the biggest study challenge for most exam candidates.

Personal tax questions make up the biggest portion of the tax section. I suggest that you print out a copy of Form 1040 and the supporting schedules (A, B, C, etc.). When you study a personal tax concept, find that topic in the tax forms.

If, for example, your answering a question on mortgage interest deductibility, find the mortgage interest deduction on Schedule A. Next, glance at Form 1040 to remind yourself where itemized deductions (totaled on Schedule A) are located on the 1040.

This approach helps you visualize where topics appear, and you’ll start connecting ideas.

Overcoming the BEC test

Business Environment and Concepts (BEC) tests many topics that a business major studies. Management, economic, and IT concepts are tested here.

To pass BEC, you need to think like a business manager, and ask yourself the why behind each concept. Let’s assume that you’re studying liquidity ratios and memorizing formulas. Well, why should you care about liquidity?

Firms that don’t generate sufficient current assets to pay current liabilities frequently run short on cash. They may have to raise capital by selling equity, or by borrowing money- both steps to avoid.

That is the why behind liquidity- and you should focus on the why for each BEC question. Think like a manager.

So, where do you go from here?

Get the tools to succeed

Universal CPA Review is revolutionizing how candidates study for the CPA exam by providing a visual learning platform. Use Universal’s platform to master concepts in less time. Use the code 20%OFFCPA to earn a discount on their great test prep material.

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

 

The post Fail the CPA Exam? Action Steps to Pass the Exam appeared first on Accounting Accidentally.

Startup Business? Don’t Make These Catastrophic Financial Mistakes!

Each year, thousands of Americans ignite the spark of their entrepreneurial spirit and start new businesses. They do so with the aspiration of building a brand and working towards some sense of financial freedom.

The sad truth is that some of those people end up making mistakes during their crucial startup stages. As a result, they sometimes end up in deep financial trouble. If you’re starting a business, you need to avoid making the following catastrophic financial mistakes:

 

Not Getting an Accountant

It doesn’t matter if you’re a sole proprietor, in a partnership with some other people, or you’ve set up an incorporated company. If you want to make sure your tax affairs are in order and you’re not doing anything wrong, you need an accountant, preferably a CPA.

Have a question about personal finance or entrepreneurship? Join the Ask Me Anything live chats on Conference Room.

Otherwise, you could end up falling afoul of the IRS and needing tax resolution services to sort out your taxation problems. Another fact to keep in mind is that an accountant can also help you save money on your tax returns.

Accountants are generally affordable to virtually all startup businesses, and the relatively low cost of their services for startups will be worth the support and advice you receive from them.

Not Keeping Your Finances Separate

Irrespective of how you set up your new business, one thing is vitally important: you should always keep your business and personal finances separate. If you blur the lines between the two, it can be quite challenging to differentiate between the transactions.

It can also raise some eyebrows at the IRS, because they might suspect that you’re filing incorrect tax returns. Whenever you start a new business, always open a separate business checking account.

That way, you can use it for all business expenses, and it shows anyone that looks at your bank statements how much money you and your business partners put into your startup.

Going Crazy With Spending

The aim of building a successful business is to keep your expenses low to maximize your profit. It can be frustrating when you want to buy all kinds of cool and useful items for your business, but you have to be strict with your spending.

Otherwise, you might find that you have no money to operate it, and you’ll either have to invest more of your money, or borrow some from a financial institution. Of course, there are some ways you can get what you need without making yourself bankrupt in the process.

For example, you could consider used or refurbished items instead of brand new ones. Or, you might start building a savings fund for certain machinery or equipment you need for your business to avoid borrowing the money for it.

One of the main reasons for many a startup’s downfall is through over-enthusiastic spending.

Final Thoughts

The above is by no means an exhaustive list of reasons why some startup businesses end up in financial ruin. But, it’s a list of the most common ones. If you’re starting a new business, make sure you avoid those financial problems.

 

Consult with an accountant and an attorney when you start your business.

 

Go to Accounting Accidentally for 400+ blog posts and 450+ You Tube videos on accounting and personal finance:

 

 

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) http://www.accountingaccidentally.com/

 

 

The post Startup Business? Don’t Make These Catastrophic Financial Mistakes! appeared first on Accounting Accidentally.