HOODS TAX
  • Home
  • The Hoods Family
  • Services
    • Tax Preparation
    • Quickbooks Services
  • 2024 Tax Prep Checklist
  • Contact
  • Blog
  • Login
  • Home
  • The Hoods Family
  • Services
    • Tax Preparation
    • Quickbooks Services
  • 2024 Tax Prep Checklist
  • Contact
  • Blog
  • Login

​Hoods Tax &
Accounting Blog


​​​THE INFORMATION IN THIS BLOG IS INTENDED TO PROVIDE GENERALIZED INFORMATION DESIGNED FOR A BROAD SEGMENT OF THE PUBLIC; IT IS NOT PERSONALIZED TAX, INVESTMENT, LEGAL OR OTHER BUSINESS AND PROFESSIONAL ADVICE. YOU SHOULD ALWAYS SEEK THE ASSISTANCE OF A PROFESSIONAL WHO KNOWS YOUR PARTICULAR SITUATION FOR ADVICE ON YOUR TAXES, YOUR INVESTMENTS, THE LAW OR ANY OTHER BUSINESS AND PROFESSIONAL MATTERS THAT AFFECT YOU AND/OR YOUR BUSINESS. ​

An Overview Of QuickBooks

10/15/2022

0 Comments

 
Picture

Read More
0 Comments

Bookkeeping Basics Part III

10/15/2021

2 Comments

 
Picture
Hello, readers! Welcome back to the Hoods Tax & Accounting blog! We’re delighted to be able to share up-to-date information about taxes, bookkeeping, and accounting—giving you the tools you need to meet your short and long term goals. Whether you’re managing taxes for your small business or wondering how to take advantage of certain tax credits, we’ve got you covered! Our second to last post and the first installment of this ‘Bookkeeping Basics’ series introduced the concept of what bookkeeping is, what it's used for, why it’s important and how to begin. From the old “general ledgers,” which used red and black ink, to ultra-modern digital programs, understanding the basics of bookkeeping is an essential part of running any successful small business. As a precursor for accounting, bookkeeping provides an accurate basis for evaluating the health of your business and planning for financial growth. For these reasons, accurate bookkeeping is paramount. 
 
The first part of this series explained the difference between single-entry and double-entry bookkeeping methods. As well, we went through the various types of accounts (i.e. assets, liabilities, revenues, and expenses), as well as their underlying subtypes (e.x. accounts receivable, utilities expense, interest income, etc.). We gave you a few options as far as setting up your accounts (e.g. Excel spreadsheet vs. digital bookkeeping software) along with their corresponding pros and cons. We explained the difference between a debit (Dr) and a credit (Cr) and trust us, it’s not what you think. Finally, we gave a few best practices tips concerning bookkeeping to keep your books organized and accurate. Therefore, it’s in your best interest to read our first article (if you haven’t already) before delving into this second part!
 
In the second part of this series, we continued our exploration into the world of bookkeeping. We discussed balancing books, preparing financial reports, and a few more best bookkeeping practices. How do you know when you’ve reached the adjusted trial balance? What’s the equation for determining your books are balanced? What’s the difference between a P&L statement and a cash flow sheet? And, how often should you be setting aside time to bookkeep? We answer all of these questions and more in our last article. We highly encourage you to go check out Part II! 
 
Today, we come upon the final installment in our Bookkeeping Basics series. Our aim is to answer the most commonly asked bookkeeping questions. You should leave this series feeling confident in your understanding of bookkeeping principles and ready to pursue bookkeeping yourself (or invest in an experienced professional). If you reach the end of the article and still have questions, reach out to us! Now, without further ado, here’s Part III!
 
Is cash-basis accounting the same as single-entry bookkeeping?
 
Technically, yes. Cash-basis accounting includes recording a single entry for every transaction which includes the making or receiving of a payment. If you read Part I, you’ll recognize this definition as single-entry bookkeeping. This type of bookkeeping is preferable for small-scale businesses with straightforward transactions (i.e. I make the product and you buy the product). Double-entry bookkeeping, in a similar manner, also goes by the name accrual accounting. Accrual accounting includes recording two entries for every transaction even if the transaction does not include making or receiving a payment. This type of bookkeeping is preferable for larger, more complex businesses with multiple forms of transactions (i.e. I make various products and offer store credit and sell products from other businesses.) 
 
Is there a difference between bookkeeping and accounting? Do I need to hire a bookkeeper in addition to an accountant? 
 
There is certainly a difference between accounting and bookkeeping—and a distinct difference at that. Bookkeepers manage the ever-evolving ledgers of their clients. As transactions accrue, further data must be integrated into the bookkeeping system. Bookkeepers must categorize revenue and expenses, generate financial statements, reconcile discrepancies and continuously review the ledger for accuracy. A bookkeeper’s job is never done, and accounting is actually an extension of bookkeeping. Accountants use the financial data and statements generated by bookkeepers to prepare income tax returns and give tax planning advice. This doesn’t mean an accountant and a bookkeeper cannot be the same person. Many small businesses operate with a single individual fulfilling both positions. However, the obligations of each should not be conflated and, should you choose to outsource, you may have to hire both an accountant and a bookkeeper. 
 
(Keep in mind: Hoods Tax & Accounting offers both bookkeeping and accounting services!)
 
I’m still confused about the difference between debits and credits. How do I know which to put in my books? 
 
Simply put, debits and credits are inversely related. This means each debit corresponds to an equal credit and vice versa. In this way, the books remain balanced. Which means you’ll always put both. Remember: the equation which dictates a balanced ledger is Liabilities + Equity = Assets. Which means if any aspect of this equation changes, the other aspects must change as a result. As a rule of thumb, debits increase asset and expense accounts, while decreasing liability, equity, and revenue accounts. While credits increase liability, equity, and revenue accounts, while decreasing asset and expense accounts. Notice how they mirror each other? 
 
What’s the difference between accounts payable and account receivable? 
 
This distinction will only apply if you use a double-entry, or accrual, bookkeeping system. Accounts payable is, as the name suggests, money which needs to be paid. Or, in other words, a liability. This might be an expense purchased on business credit, which will need to be paid off later (and potentially with interest). Accounts receivable, therefore, is money which needs to be paid to your business. Or, in other words, an asset. This might be a customer purchase made on credit, which they will need to pay off later (and potentially with interest). Both accounts payable and accounts receivable are accounts which you can and should record transactions within. 
 
Why should I invest in a professional bookkeeper? Isn’t it cheaper to simply do the bookkeeping myself? 
 
Do you remember eighth grade math? Do you remember “showing your work,” going through all of the right steps, and still arriving at the wrong answer? Bookkeeping can be a bit like eighth grade math sometimes. The purpose of these articles has been to show you bookkeeping isn’t as complicated as it may initially seem, but that doesn’t mean bookkeeping is easy. Minor mistakes or even procrastination can lead to major confusion. Misplaced entries or inaccurate figures can leave you wondering where money went and wasting precious time trying to find it. No small business owner wants to realize they’ve been doing things wrong when payday comes or tax season rolls around. That’s why you should invest in a professional bookkeeper. Who knows? The investment may end up paying for itself in the long run. 
 
You can hire out to a dedicated bookkeeping and accounting firm (like Hoods) or hire an in-house bookkeeper for your business. If you’re certain you would like to bookkeep for yourself but are hesitant about making beginner mistakes, invest instead in a bookkeeping software. At Hoods, we have QuickBooks ProAdvisors who can train you how to use the software for your businesses bookkeeping needs. 
 
What’s the most common bookkeeping error?
 
There are so many… Primarily, failing to track receipts for minor purchases. We understand, these things can slip the mind, but due diligence ensures you’re able to receive the best return come tax season. More generally, business owners tend to take on too much regarding bookkeeping. As previously discussed, it’s better to avoid mistakes and invest in a professional than do things yourself and make grievous errors. Develop your bookkeeping skills over time by working closely with a professional and, when you feel ready, take on the responsibility. This way you cover your bases and save yourself trouble!
 
Thank you for coming along on this bookkeeping journey with us. Again, our aim was to illuminate the entire bookkeeping process and impress upon you the importance of accurate bookkeeping. Whether you’re off to do your own bookkeeping or investing in a professional, we wish you the best of luck! As always, we’re happy to be able to provide you with the most relevant, up-to-date tax information for you and your family. From savings plans to tax credits to business acumen, the Hoods Tax & Accounting blog is your one-stop shop for everything you need. We offer tax preparation, bookkeeping, payroll, and QuickBooks services. If you have any questions or are interested in a consultation, please reach out! We do offer virtual consultations over Zoom, as part of our effort to accommodate everyone in these trying times. We look forward to hearing from you! Until next time, thank you for reading! 

2 Comments

Bookkeeping Basics: Part II

9/29/2021

0 Comments

 
Picture
Hello, readers! Welcome back to the Hoods Tax & Accounting blog! We’re delighted to be able to share up-to-date information about taxes, savings, and financial literacy—giving you the tools you need to meet your short and long term goals. Whether you’re managing taxes for your small business or wondering how to take advantage of certain tax credits, we’ve got you covered! Our previous post and the first installment of this ‘Bookkeeping Basics’ series introduced the concept of what bookkeeping is, what it's used for, why it’s important and how to begin. From the old “general ledgers,” which used red and black ink, to ultra-modern digital programs, understanding the basics of bookkeeping is an essential part of running any successful small business. As a precursor for accounting, bookkeeping provides an accurate basis for evaluating the health of your business and planning for financial growth. For these reasons, accurate bookkeeping is paramount. 
 
The first part of this series explained the difference between single-entry and double-entry bookkeeping methods. As well, we went through the various types of accounts (i.e. assets, liabilities, revenues, and expenses), as well as their underlying subtypes (e.x. accounts receivable, utilities expense, interest income, etc.). We gave you a few options as far as setting up your accounts (e.g. Excel spreadsheet vs. digital bookkeeping software) along with their corresponding pros and cons. We explained the difference between a debit (Dr) and a credit (Cr) and trust us, it’s not what you think. Finally, we have a few best practices tips concerning bookkeeping to keep your books organized and accurate. Therefore, it’s in your best interest to read our last article (if you haven’t already) before delving into this second part! 
 
Today, we’ll continue our exploration into the world of bookkeeping. We’ll discuss balancing your books, preparing financial reports, then give you a few more best bookkeeping practices. When you’re alone at the computer with a bunch of receipts and numbers, figuring out how to make sense of everything can be overwhelming. Our aim is to showcase how simple bookkeeping can be when you understand the fundamentals. If you begin how you aim to finish, you should establish bookkeeping etiquette early on, as this will ensure later success. If you've been bookkeeping in a messy, roundabout way for years and fear how much effort an overhaul will require, take things one step at a time. We’ll be with you every step of the way!
 
Without further ado, let’s jump in!
 
Balancing the Books
 
This is a phrase many of us have heard thrown around throughout our lives, but what does “balancing the books” really mean? The best way to visualize balancing the books is to envision a scale. Not the scale you step on in the bathroom or the scale your doctor uses to weigh you. In this case, envision what’s called a double-pan balance scale. These types of scales allow you to weigh two things in relation to one another. When you place weights on both sides, the heavier of the two weights will sink lower. If the two weights are equal in mass, then both sides of the double-pan balance scale will appear level. Makes sense, right? 
 
In the same way, when you balance your books, the debits and credits recorded throughout a period (e.g. a quarter, a year) should “match” (which is to say they should correspond. In Part I we discussed the double-entry bookkeeping system. In this system, each transaction is recorded twice. First as a debit, or an increase. Secondly, as a credit, or decrease. For example, if Sally’s lawn company spent $3,000 on a new lawn mower, Sally would record a $3,000 debit in the left-hand side of the Equipment account. Then, Sally would record a $3,000 credit in the right-hand side of the Cash account. Both Equipment and Cash are considered asset accounts and, in this case, Sally has traded one type of asset for another type of asset. 
 
Now, these entries are akin to journal entries. They are a record of the transaction. When you balance your books, you are “posting” these entries into the general ledger in order to extrapolate the final account balances. While most bookkeeping programs will do this math for you (and point out errors in your entries at the time you make them), it’s still important you understand what’s being done. 
 
Continuing the example from earlier, Sally has redistributed her wealth between two different forms of assets in the aforementioned transaction. Thus, her Equipment account will reflect the debit, her Cash account will reflect the credit, but her overall Assets will not change because of this transaction. Now, conversely, if over the course of the month Sally not only purchased a new lawn mower but also needed to pay the firm which markets her services $2,000, the cash account balance and the overall assets would need to be adjusted down by $2,000. 
 
Once you’ve adjusted the balance of each account, you’ll have what’s called an adjusted trial balance. Assuming you’ve done everything right, when you add your company’s liabilities to your company’s equity, you’ll arrive at a figure which is equal to your company’s assets. In short:
 
Liabilities + Equity = Assets
 
Now, equity, if you’re unsure, is the value left over when liabilities are deducted from assets. (Psst! We covered equity in Part I.) This makes the equation, more accurately: 
 
Liabilities + (Assets - Liabilities) = Assets 
 
If you arrive at two different numbers, this indicates a discrepancy in your bookkeeping. You’ll need to comb back over your records, comparing debits and credits and making sure everything is indeed balanced. Once you’ve balanced the figures successfully, you’re ready to close the books and begin compiling financial statements!
 
Yay!
 
Preparing Financial Reports
 
This is one of the most exciting parts of bookkeeping, because this is the stage when conclusions can be drawn based off of the meticulous records you’ve kept. With these financial statements, you’ll be able to assess the health of your business and plan accordingly for future expansion or cutbacks. The three essential types of financial statements are: balance sheets, profit and loss “P&L” statements, and cash flow statements. We’ll provide you with a brief overview of each. 
 
Balance sheets are a snapshot of your books. They showcase the equation at work and include your current assets, liabilities, and equity. You’ll include the balances of your accounts here. When someone looks at your company’s balance sheet, they’ll be able to assess in only a moment the health of your company. Are you in the red? Or, do you have cash reserves which will facilitate expansion? 
 
Profit and loss statements, also referred to as income statements, report on revenues and expenses over a period of time. For example, a clothing company may have grossed $1.2 million in a quarter, but spent $600,000 on materials, shipping, and marketing in the same time span. Therefore, the company’s revenue was actually $800,000. By comparing multiple P&L statements, one can glean the growth (or decline) of a company. 
 
Finally, cash flow statements are a simpler version of a P&L. They focus solely on how much money the company is bringing in and sending out. By evaluating a cash flow statement, you can assess a company’s ability to pay its bills and remain afloat. 
 
Best Bookkeeping Practices
 
Sticking to a regular schedule is key to managing your books. Entering records of transactions can be tedious and time-consuming. Allowing too much time to pass between entries only makes the work unbearable when you finally do sit down. Choose a time every week, two weeks, or month, to input financial information (i.e. invoices, bill payments, revenue, etc.). Keep all of this information in one place and be sure to tackle bookkeeping when your mind is well-rested. Minor mistakes can turn into headaches later. 
 
If you’re unsure about handling the entirety of your company’s bookkeeping, there’s no shame in that! Many successful businesses outsource their bookkeeping needs, as this frees up time and mental energy. Just make sure you invest in a trusted professional to handle your bookkeeping! 
 
 
Thank you for reading the second part of the Bookkeeping Basics series! We hope we’ve demystified bookkeeping, at least a bit. Tune in for the third part of the series, where we’ll be answering commonly asked bookkeeping questions! As always, we’re happy to be able to provide you with the most relevant, up-to-date tax information for you and your family. From savings plans to tax credits to business acumen, the Hoods Tax & Accounting blog is your one-stop shop for everything you need. We offer tax preparation, bookkeeping, payroll, and QuickBooks services. If you have any questions or are interested in a consultation, please reach out! We do offer virtual consultations over Zoom, as part of our effort to accommodate everyone in these trying times. We look forward to hearing from you! Until next time, thank you for reading! 
0 Comments

End of the Year Tax Preparation (Part Two!)

12/24/2020

0 Comments

 
Picture
In part two of this blog, we are going to be finishing up our recommendations on how to prepare for your end of the year tax prep. Our gift to you is to suggest that you get it done now so that when tax season is here in a blink, you'll be ready for it no matter what! 

Hello Goose Creek and to all of our readers! As we are now sitting in the last few days of 2020, and we hope that this blog reaches each of you and helps you prepare for the coming tax season. We have always believed at Hoods that being prepared way ahead of time can not only save you huge amounts of stress and worry, but it can also potentially save you huge amounts of money. This year has been difficult, we've touched on it in almost every blog of 2020. This pandemic has been a devastating blow in more ways than one, and our finances have taken some of the biggest hits and blows. While there is still so much uncertainty about what is to come with the future of our finances, what is in our power now is to control what we do know and what we do have. 

Being prepared can help make any transition or event that may or may not come from the government easier to deal with and easier to move forward with. Who knows what financial help we might receive between now at April 15th or what might even happen between now and April 15th. What we do know is that there will still be tax day and that we have the power in our own hands to organize our tax documents from this current year and get ready to face 2021 head-on. This season might not be as jolly or bright as the years past, we understand. However, we are here to make it as holly and jolly as possible. If you have any questions, concerns, or need help finishing out this year or starting off strong in 2021, please never hesitate to reach out. We believe in our community and what to help and support each of you as best we can, let us do our job for you! 

What is left of 2020 is still ticking down, so let's hop back into part two of this blog. We will be continuing and wrapping up with our tips, suggestions, and ideas on how to wrap up your finances and taxes this year, and get ready for the upcoming tax season! 

HELLO, 2021!
Now that you've read part one of this blog and you have a few ideas on how to prepare for the end of this current year, let's focus on how to prepare for the beginning of this new year. Remember, one of the first things we will always recommend in these situations is to work with a tax advisor or a tax preparation company. Of course, we would recommend working with us, but we understand if you work with another company currently. We've said it before, but please note that tax law does change every year. With how uniquely challenging this year has been, there are bound to be some very new and unique things we will be facing with our 2020 taxes. Working with a company like ours will help ensure that all of these new compliances are followed and that nothing is missed. This will help you avoid any tax penalties, avoid underpaying your taxes, will help avoid overpaying your taxes, and will help get your refund much faster! 
  • Don't begin your filing process until you've received all of your 1099s or W2s. Don't be quiet if a client or your employers are taking their time getting you your tax papers. Make sure to reach out and mention it to them once it's getting a little late in the year. If you haven't received anything by the end of February, it's time to start making phone calls! 
  • When you sit down to file your taxes, make sure you have all of your 2019 tax documents organized and ready to use. Make sure you have all of the documents that you will need and will be used to file for 2020 organized and within reach. This will help the process go faster and will be much less of a headache for you. 
  • Make sure to be prepared for and aware of tax scams and fraud that will begin to pop up starting January 1st!! We've already seen our fair share of scams this year involving our stimulus checks and promising to provide the vaccine early as long as you provide very personal and vital information about yourself, most of the time about your bank account. Please do your research about what scams and frauds are looking like right now, how to spot them, and how to protect yourself from them. Also, if you have loved ones who are unfamiliar with these scams, please make sure you help keep them aware of these possibilities and teach them about what scams are and what they can do. 
  • Decide who's going to prepare your taxes this year as quickly as possible. Decide if it is going to be a tax professional like us here at Hoods or an online option filled out by you. Make the choice now to save money and not miss out on working with a tax pro. The closer you get to tax season, the higher their rates will be. Also, take the time to familiarize yourself with the programs you're going to use and understand how much you will be paying to use them. 
  • Please do not ignore the IRS. If you owe late fees, back taxes, or penalties, please take care of them. Go one step farther and make sure to prepare your taxes on time, if not early, to avoid these issues again. 
  • Make sure your salary is correct, that all of your deductions from your paycheck are correct, and that you've been paid the proper amount throughout the year. This will determine a lot in your taxes. 
  • Consider turning your IRA into a Roth IRA, which will help you save money over time. With a ROTH IRA, withdraws are not looped into your income and you won't have to take out RMPs once you turn 70 and a half. 


Just to make sure that we didn't overwhelm you with either part of this blog, we listed only the top things and tasks you need to be thinking about and preparing for now for both your end of the year tax preparation and the tax prep you should be starting 2021 off with. Don't worry, there will be more to come over the next few months and as we inch closer and closer to tax day 2021. We hope that both of these checklists help prepare you to close this year out strongly and to start 2021 out focused and prepared. If you need help to make this upcoming tax season the most stress-free of them all, never hesitate to reach out! 

Remember, if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. As our last blog of 2020, we want to thank all of you for your support, your business, and for letting us be apart of this wonderful community. We will continue to work hard for the people of Goose Creek and our whole community. From our family to yours, we hope you had a wonderful holiday and have a fantastic New Year! We will see you soon! 

0 Comments

Smart Budgeting For The School Year ( Part 2)

10/19/2020

0 Comments

 
Picture
We are back with our second installment of how best to budget for your school year. If you're still paying for 2020 or wanting to better prepared for 2021, we have more tips and suggestions to make the school year's expenses a little easier on your wallet. 

Hello everyone! Welcome back to the blog. We are going to be continuing with part two of our tips and suggestions series on how to budget and save money when shopping for the school year. We know that many of these suggestions might be better suited for the second semester of the year of 2021, but we hope that if we share them with you now, that you can plan more efficiently for the years to come. Have you used any of our suggestions from the first part of this blog? Have you come across even more money-saving tips that you want to share? Please don't hesitate to comment and share them with us after reading this blog, we would love to hear from you! 

3. Plan It (Part 2)
​
When you're planning on heading out to the store or committing to some serious online shopping, don't forget to research your apps! There are tons of money-saving apps that you can use to get cashback on your purchases. Some apps can alert you if you're getting a good deal or if the item is priced better somewhere else. You can also get alerts when your favorite stores are having good deals and sales too. The school year can also be an exciting task for you, our coupon superheroes! Put your skills to work. You've found incredible deals for your family by using your coupons, use them for the school year too. Don't forget to visit your local dollar stores and clearance stores. They will surprise you with what products they offer. Don't exclude thrift stores or thrifting apps like Poshmark or ThreadUp. While these might not be ideal for electronics, you'll be able to find some incredible deals on school clothes, supplies, and more. For students who are going back to school in person and who wear uniforms, use Facebook Marketplace to good use! Buy gently used uniform items that other students have grown out of and fit your children perfectly! 

Also, don't forget to buy clothes off-season. While you might be needing some new fall clothing to make it through the cooler months, there is nothing wrong with picking up a new outfits at the end of summertime or wintertime for the following season. You can get some incredible deals and a good amount of clothes for your children, including school uniforms, when the seasons are changing. When you're shopping at your favorite stores, don't forget to spend some time on the sales rack. They might be a little terrifying to dive into, but it can help your purse strings. Also, remember to buy a size or two up for children still going through puberty so these clothes will fit them once the appropriate season comes around again! 

4. Inventory
 
Make sure to take a look around the house before you go shopping. Due to the changes this school year has brought, you might already have to reorganize some of your living areas to accommodate room for e-learning, why not take this as an opportunity to do a little fall cleaning? Does everyone in your home think they need new school supplies? Gather up all the pens, pencils, crayons, markers, glue sticks, scissors, and rulers in the house to see what you already have. Go through them and throw out what can't be used, and keep the good supplies. Have 10 bottles of open glue? Pour them into one another to have full bottles and get rid of the empty ones. Have a bunch of worn down crayons? Melt them down and create new ones! This can be a fun family project and can be a huge money saver. They may not be brand new, but you might already have all the school supplies you need in your home, waiting to be used. 

This can also be applied to electronics. Do you have old computers, laptops, or tables that can be refurbished and passed down? How about old pairs of headphones? Can you turn an unused room in your home into a home classroom with pieces of furniture you or your family members already have? Also, there is nothing wrong with sharing. Yes, we know this can be a huge challenge with multiple children. This will have to be a planned effort by the whole family, but you can do it! 

5. Make The Most Of It 
As we've mentioned in previous blogs, going out to eat can add up very quickly, as can getting delivery. The same goes for school lunches. If your child is going back to school in person, do packed lunches and snacks, and eat breakfast at home. These meals can be added to your monthly budget and can help you cut down on outside expenses. Also, look into buying in bulk. Costco and Sams Club do have excellent deals on electronics, but their initial fame came from their bulk-sized products. Buy in bulk, meal prep, and freeze! Getting a membership to these big stores might seem expensive, but you can get cash back and other perks to make it worth your while and benefit your budget. 

Needing extra child care? Ask your tribe first. Can a family member or friend help out? Can you join a nanny pool with your friends and their children who you've already spent time with during quarantine? How about hiring a tutor or personal teacher for your safe bubble of friends and their children? This can cut down costs, give your children personalized attention in their lessons, and help them continue to socialize like they would in class! 

When it comes to school activities, we know that you want your child to be involved with as much as possible. You want them to experience new things, spend time with friends and make new friends, add potential skills and experiences for their college applications, and find things that could help them in their future careers. With the pandemic of 2020, the opportunity to participate has been drastically reduced due to safety measures. Many artistic activities like theater, band, and choir have been canceled along with many indoor sports. Remember, when things get back to normal, your children don't have to do them all. Sports, dance, theater, and any after school program and activity can seriously begin to add up. Pay to play, costumes, equipment, private teachers and coaches, can all add to those expenses. Limit your child's activities to one or two, and let them truly invest their time and abilities to those chosen activities. This will also be a big money and time-saver for you and your whole family. 

Always remember that even while you're making a budget for the school year, continue to make a budget for the whole year. Once the school year is over, that doesn't mean you shouldn't keep it as part of your year-round budget. This can help you save more money for the upcoming school year, and not feel pinched once you have to readjust to those expenses come September. It can help you keep on a consistent and steady track with your budget and your finances without giving you a heart attack at the end of every quarter or change of season. After all, that's a pretty fantastic goal to keep, right? 

We hope that this blog series has helped you plan out your future or current school spending, and how you might look at the 2021 school year's spending as well. With the uncertainty that 2020 is still giving us, it doesn't look like 2021 will be much different. So, while you might have already purchased everything you need this year, or you're still currently in the middle of the process, you will have more time to choose how you plan out your budget from today forward. Remember, if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon

0 Comments

Smart Budgeting For The School Year (Part 1)

9/30/2020

0 Comments

 
Picture
Staying within your budget for 2020 has new meaning and power over your finances. With the school year in full bloom, it's time to stay smart when learning your p's and q's! 

The school year is back, and even though it might look very different than last fall, we know this time of year still has the potential to be exciting and fun. There is nothing like the fresh smell of school supplies on the first day of September! Even with e-learning and distanced learning, and all the different kinds of learning that we are seeing here in Goose Creek, we hope all of our parents and students have a very special school year! While there are already so many things to be worried about this year, your finances might be the heaviest burden of them all. While your children are back to hitting the books, we wanted to offer some tips and suggestions on how to save as many nickles and dimes as possible this school year. There is no one fix it all solution for everyone when it comes to adjusting to this school year or how to make the most out of your finances as you do so. In this two-part blog, we are going to be offering you some suggestions and options that might make your budget work for you and how to remove some worry and stress from the rest of 2020! 

1. Hitting the Harddrive
This year's school spending looks very different than your 2019 school budget. When you went shopping last year new clothes, pens, backpacks, and books might have been on the list. This year, things are looking a little more technical. With so many distance and e-learning classes on your child's schedule, you might be looking into buying new computers, tablets, and software. You might also be looking into paying for more childcare or private tutors to help make your professional schedule work around your family's schedule. In all honesty, it looks like your back to school budget might have to be a tad bigger than last year's. This might be a hard pill to swallow since due to shortened hours or continued furloughs, your family's income might be taking quite a hit.

According to Dave Ramsey, parents are spending an average of $70 more than they did last year on electronics. Add on headphones, traditional school supplies, hand sanitizer, masks, and new furniture, Ramsey goes on to explain that parents could be spending up to $790 for all necessary school supplies this year. With every challenge you and your family have already gone through this year, how is this even possible? What makes it even more difficult is that your children need these items now, and the best time to buy it all is as quickly as you can. Your children will need all of these resources to get the most out of their education, to stay on top of their lessons and homework, and to stay connected with their friends and teachers. Take a deep breath, and don't worry. We are here to help! 

2. Plan It (Part 1) 
​
Be reasonable about your budget and what your family is currently making. What are the bills you have to take care of, and how much does this leave you for school supplies? Sit down and make a plan. How much can you spend on each child? Figure out this number and stick to it while you're shopping. Remember, a lot of the electronic devices that you could be in the market for can be purchased refurbished or secondhand. They do not have to be brand new and straight out of the box. Many companies from Apple to Best Buy all offer some excellent refurbished and refinancing options. Also, remember to check out stores that you might not exactly expect to have great deals on electronics. Costco and Sams Club are already known for excellent deals on their products, and this does include electronics. 

When you do plan your budget and start your research on where to shop, spend time on it. Do not rush. Also, it might be best to stick to the school list and what you absolutely have to buy and not to what your kids are asking for. We might also suggest that they stay at home when you make your school supplies shopping trip. It's easy to say yes to fun add ons that they slip into your cart while you're out and about. A lot of the time these fun items go unused and add up your bill very quickly! While during your research, make sure to learn what all of your needed products are worth. This will come in handy when sales do start to pop up, you'll be able to recognize what is actually a good deal and what just looks to be a good deal. 

We know this has been a stressful time for all of our parents, teachers, and families. This is why we are here with this blog to offer you some tips and suggestions to make this year and maybe even some of the next a little less painful. Try and enjoy the school year, getting back into a schedule, and watching your children blossom in their studies. In our next blog, we will be continuing with more tips and suggestions, and we hope to calm your stress about staying within your means. Remember, if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!
0 Comments

Choosing Necessary Payments During A Pandemic

9/15/2020

0 Comments

 
Picture
Keeping a watchful eye on your finances is always important. During these uncertain times, it is more important than ever.

Keeping a close watch on your purse strings is a necessity. With so much unknown about this year, knowing exactly where your finances stand and how to keep them stable has become a huge priority for most Americans. Since March of this year, over 3 million Americans have filed for unemployment, according to Forbes. Juggling how this pandemic has affected your income and how it will affect your daily and monthly spending could become a huge focus for you and your family. While staying healthy and figuring out new school and work scheduled are our first priorities, it is easy to get overwhelmed with how to deal with these potentially drastic changes in your finances. How do you decide what to cut out? How can you change your spending? What are the necessities that can't be cut out, and how do you make these decisions with the best outcome for your family?

According to Forbes, an estimated 49% of the American population was living paycheck to paycheck even before the pandemic hit. This left no room for extra savings or a nest egg to fall back on. Unemployment has helped, but even that has seen a drastic change since its first wave with the national stimulus checks. Many people have been left without enough to cover their basic needs. The first stimulus check and the additional $600 from the government added to unemployment checks were just short term solutions. What can we do now to help make our bills, keep a roof over our heads, and keep food on the table?

THE NEW BUDGET
You sit down every month and track what you're earning and what you're spending. You create a solid budget based on your calculations that takes care of your bills, your family's needs, and hopefully goes towards a little fun. If your paycheck has been hit or changed due to the pandemic, your budget will have to be retooled. Try and figure out how much of a cut your salary has gone through and try and cut that much out of your monthly spending. Please remember that while you're cutting your budget, your retirement planning and savings still needs your attention. If you can keep paying into those, that is ideal. If you are unable to do so, don't panic. Instead of adding to them, try not touching them unless you have to. Consider what you have in savings during this time, too. If it is needed, remember these funds have been put aside for an emergency.

While the stimulus check will not be part of your 2020 taxes and is being treated as forgiven money, the additional $600 and the now $300 added to your unemployment checks will be taxable income. If you've taken the highest amount in unemployment without choosing to take any taxes out, please prepare for what you will owe in your 2020 taxes. If you can, choose to take out some taxes to make your next tax season a little less painful. Also, try and avoid the temptation of online shopping and avoid making 'panic purchases". Instead of using your extra time to scroll through your favorite shopping sites, sit down and create a brand new long term financial strategy. We have no idea how long this might last, so planning ahead is going to be your best bet.

NEGOTIATIONS
Everyone owes money every month, even those who collect it for a living. We all have bills to pay, there's no exception to that. If you can sit down and take the time to talk with your landlord, your credit card companies, your insurance company, and discuss your current circumstances it could be a huge relief to your bank account. Be honest and ask if they can give you some kind of break or pause in your payments, a break or pause in accruing interest, and if you can negotiate your interest rates. According to Business Insider Apple, Chase, Citi, American Express, and Capital One offered their clients emergency support during the first few months of the pandemic.

THE DINNER MENU
Part of your monthly budget includes your grocery bill and funds set aside for going out to eat. As much as we all want to support our favorite local restaurants, eating out adds up just as quickly as it did before the pandemic. Tack on delivery fees to this bill, and it can be even more expensive. The dangers of panic purchasing delivered meals three times a day is very easy thanks to our favorite food apps. Meal planning is going to be just as important as budget planning. You'll need to stick to both to feed your family and save as much money as possible. We understand a few delivered and take out meals, but try and avoid them as much as possible.

THE (UN)ESSENTIALS
The pandemic has done a good job keeping us at home and helped us save money on group activities like going to concerts, going to the gym, and getting our hair and nails done. While things are getting back to normal and these services are slowly becoming available, that doesn't mean you need to jump back into using them again. It's best to wait and do so when your income is back to normal. You've survived without them up until now, and you can continue to do so a little while longer. If you have a lawn care service or a maid service that helps you care for your home, it might be beneficial to pause these services. As essential as they might be, they aren't as important as many other things in your budget. Making these decisions is difficult, but they are possible. You just have to keep going back to the drawing board when things get tough.

We know the last thing you want to hear right now is that you have to sacrifice more than you already have just to hang on. You've given up so much already, changed plans, and lost out on promised opportunities. The truth is, you can keep going. If you continue to make these hard decisions to save your finances and protect your family, the light at the end of the tunnel will become much brighter. If you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!

0 Comments

Quickbooks And Your Small Business

9/2/2020

0 Comments

 
Picture
Running a small business can be a dream come true and very daunting. If you use all of the correct tools to help you run your company efficiently, it will be the dream you've worked for. 

Starting a small business in 2020 might sound crazy, but more have popped up nationally than you might think. So many people have lost their jobs, been put on furlough, or are unable to do their jobs virtually that they had to do something. With the unemployment rate at an incredible high, many Americans have been forced to creatively do the pandemic pivot. With so many of us at home with nowhere to go, the birth of honing new or rusty skills and crafting abilities had the opportunity to flourish. People started posting their goods and wares on social media and out of the blue, they have a whole new little business operation running out of their homes.

 Some people were already deep in the process of building their small business when the pandemic hit, while others found solace in being hired by one after their corporate jobs were eliminated. Whatever the situation, small businesses have become quite the lifesavers of 2020. To keep that success and productivity as safe and possible, every small business needs the proper tools to stay productive, organized, and financially stable. What is the best tool out there for these situations? Quickbooks! 

We use Quickbooks ourselves and we offer classes to help small business owners and anyone out there grow and manage their money. One of the biggest reasons small businesses fail, according to Forbes, is because there is no business plan. Poorly managed bookkeeping can sink a business before it even had the chance to grow. Admittedly, bookkeeping is difficult, time-consuming, and very meticulous work. This is why working with a company like ours and using Quickbooks is so imperative. We both make sure that every part of your bookkeeping is done in a properly organized manner, allowing you to get back to the business of your business. 

Quickbooks pro was created specifically for small businesses, and it is very user friendly. It does so much of the work for you, that it's hard to get yourself overwhelmed. With a small-ish price tag of $300, it's a very small price to pay for the huge benefits it gives you. Tax season, after using Quickbooks, should no longer be something you dread or fear. Everything will already be taken care of. It even comes with tutorials to help you get started, and the Quickbooks team is also available to help you when you need it. There are so many benefits just waiting to be used. 

[START UP]
  • Everything you need to run your bookkeeping and a majority of your business is in one place in Quickbooks. It will save you time, money, and sanity. 
  • It keeps you organized, and you can see your business growing and change in one place. 
  • It can help you with everything from income and expense tracking to cash flow management and more. 
  • It allows you to accept credit cards and bank transfers from where ever you are. It lets your business be on the go, never restricting your plans or goals. 
  • It can help your employees. You can do your companies payroll in minutes. It even gives you the option to upgrade and let the QuickBooks professional bookkeeping team take care of your payroll. 
  • You will no longer need to worry about manually tracking your employees. You can track their hours, overtime, and add that into payroll anytime and on any device. 
  • If you need more, Quickbooks is there to help. You can connect and partner with a member of their professional bookkeeping staff if you want, and whenever you want. 

[BENEFITS]  
  • Money Management. Quickbooks allows you to pay bills, ask clients to pay you, and tracks all of your due dates for bills. You can print checks directly from the program, every transaction is recorded right into the program, and you can link your bank accounts to the program. You no longer need paper statements. 
  • Billing. The program will record every expense, no matter the size. You can organize your billing by the client and by type of spending. You also no longer need to reconcile your books manually. 
  • Invoicing and Reporting. The program tracks all of your sales automatically. It can create receipts and invoices at the touch of a button. It allows you to bill your clients individually or in large batches which helps when billing multiple clients for the same service. If you have merchant services through Quickbooks, you can accept credit card and debit charges. You can easily scan and deposit checks into your accounts. You also can create all kinds of financial reports including expenses, trends, year over year income, and more. 

[MORE]
  • You can use Quickbooks with other software and programs you're already using. You can import documents from Excel and export data from Quickbooks to make tax preparation and filing extremely easy. 
  • Security is also an added layer of comfort that the company offers, according to The Visual Communication Guy. Quickbooks data centers are monitored 24/7 and are under constant watch to make sure all of your assets are kept safe. It also comes with its own security so no one can just log into your accounts. It is also the leading software company in safety and the adaptation of new technology. 
  • It allows you to customize your business plan for each client so they know that their business is a priority to you. It allows you to nurture relationships with your clients by being able to send messages, notifications, and custom reports through Quickbooks. 

Coming to the point where you can own your own business is a huge accompaniment and celebration. Let that celebration continue and use all the right tools to help you and your company grow and stay organized. If you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!
0 Comments

    Author

    Write something about yourself. No need to be fancy, just an overview.

    Archives

    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    November 2017
    October 2017
    May 2017

    Categories

    All
    1040
    1040-sr
    2019 Taxes
    2020 Tax Bill
    2020 Taxes
    2020 Tax Extension
    2020 Tax Return
    2020 Tax Season
    2021 Taxes
    2021 Tax Season
    2022 Tax Day
    401(k)
    529
    529 College Account
    529 Saving Plan
    Accountant
    Accounting
    Accounting Goose Creek
    Accounting Principles
    Accounting Services Goose Creek
    Agoraplaus
    April 15 2021
    April 15th
    Asama
    ATM
    Back To School
    Bankruptcy
    Basecamp
    Basics Of Accounting
    Black Shopping Alternatives
    Bookkeeping
    Bookkeeping Basics
    Bookkeeping Goose Creek
    Bookkeeping Goose Creek Sc
    Budgeting
    Buffer
    Building A Business
    Business
    Business Consulting Goose Creek
    CARES Act
    CARES Act 2020
    College Loans
    College Planning
    College Saving
    Common Questions
    Common Tax Mistakes
    Consulting Goose Creek
    Contact Hoods Tax And Accounting Goose Creek Sc
    Contact Hoods Tax Goose Creek Sc
    Coronavirus
    COVID 19
    COVID-19
    Cryptocurrency
    Cutting Costs
    Cutting Costs At Thanksgiving
    Cybersecurity
    Debt
    Deductions
    Digital Currency
    Documenting Your Taxes
    Donations To Your 401(K)
    Economic Impact Payment
    Effects Of A Global Pandemic
    Estate Taxes
    Evernote
    Expense Tracking
    Facebook Creator Studio
    Fake Covid Scams
    Fake Emails
    Fake Phone Calls
    Fake Text Messages
    FASFA
    Filing Taxes
    Financial Aid
    Financial Preparedness
    Financial Recovery
    First Time Tax Payer
    Getting Ready For Tax Season
    Gift Taxes
    GoDaddy
    Google
    Goose Creek
    Grants
    Hidden Tax Write Off
    Hidden Tax Write-off
    Home Owner
    Home Ownership
    Hoods Tax & Accounting
    Hoods Tax And Accounting Service
    HootSuite
    How To Claim Unpaid Stimulus Money On Your 2020 Tax Return
    How To Save Money At Thanksgiving
    How To Spend Your Tax Return
    How To Stay Safe At Thanksgiving 2020
    How To Stay Safe This Thanksgiving
    Hurricane
    Hurricane Fund
    Hurricane Plan
    Important Dates
    Important Documents
    Impulse Spending
    Income
    IRS
    Itemized Tax Deduction
    Jumpstart Your Day
    Last Minute Tax Deductions
    Last Will And Testament
    Lowcountry
    Lowering Your Tax Bill
    MailChimp
    Make Donations To Your HSA Account
    May 17th Tax Extension
    Medical Expenses
    National Podcast Day
    Online Scams
    Organization
    Owning A Business
    Pandemic
    Paying Your Tax Bill
    Payroll Services Goose Creek Sc
    Pension
    Phishing Scams
    Phishing Schemes
    Phone Call Scams
    Podcast
    Preparing For 2020 Taxes
    Preparing For Your 2020 Taxes
    Preparing For Your Taxes
    Productivity
    Productivity Tools
    Protecting Yourself From Stimulus Fraud
    Protecting Yourself From Tax Fraud
    Quickbooks
    Quickbooks Services Goose Creek Sc
    Quickbooks Small Business
    Quickbooks Training Goose Creek
    Quickbooks Training Goose Creek Sc
    Recovery Rebate Credit
    ResueTime
    Retirment Taxes
    Save Money
    Saving For College
    Saving Money
    Saving Money For Thanksgiving 2020
    Savings
    SC
    Scam Emails
    Scams
    Scam Text Messages
    Scholarships
    School Shopping
    Security
    Senior Taxes
    Senior Tax Filer
    Senior Tax Payer
    Small Business
    Small Businesses
    Social Security
    Social Security Administration
    Social Security Scam
    Spending Your Tax Return
    Squarespace
    SSI Benefits
    Standard Tax Deduction
    Stimulus Check
    Stimulus Payments
    Stiumuls Scams
    Strained Finances
    Student Loans
    Summer
    Tax Brackets
    Tax Credit
    Tax Day
    Tax Deductible
    Taxes
    Tax Extension
    Tax Fraud
    Tax Implications
    Tax Info
    Tax Payer
    Taxpayer
    Tax Paying Citizens
    Tax Planning
    Tax Preparation
    Tax Preparation Goose Cree
    Tax Preparation Goose Creek
    Tax Professional
    Tax Refund
    Tax Return
    Tax Season
    Tax Season 2020
    Taxtaxes
    Tax Tips
    Tax Write Off
    Thanksgiving
    Thanksgiving 2020
    The Dangers Of Stiumuls Scams
    Third-party Reporting
    Tips
    Tips For Financial Recovery
    Tips For Saving Money
    Todist
    Toggl
    Trello
    Tsheets
    Unable To Pay Tax Bill
    Unable To Pay Your Taxes
    Unemployment
    Unemployment Tips
    Unknown Tax Facts
    What Not To Spend Your Tax Return On
    What To Spend Your Tax Return On
    Will
    Will And Testament
    WordPress
    Working From Home
    Wunderlist

    RSS Feed

Hoods Tax & Accounting Service, LLC.
​105 Etling Ave, Goose Creek, SC 29445

Phone: 
(843) 797-5153
Email: [email protected]
Site created by Creative Consulting
Site powered by
MadeSimply
quickbooks desktop certified proadvisor logo
online quickbooks certified proadvisor logo
Hoods Tax and Accounting service logo
Hoods Tax & Accounting Service, LLC.