How to ensure that your business taxes are filed safely
How to ensure that your business taxes are filed safely
As a business owner, your number one priority is safeguarding the interests of your enterprise, which is why you should take extra precaution to ensure that your information is protected when filing your business taxes. These tips will ensure that your returns are filed safely, and your information remains uncompromised.
Practical protection
Tax returns require sensitive information pertaining to your business as well as personal details which make them attractive to hackers and identity thieves.
Since the Internal Revenue Service requires you to keep your tax filings and supporting documents for a minimum of three years and a maximum of seven years. The agency advises that you keep all paper documents locked safely away.
A locked drawer or cabinet are good options, but your best bet may very well be a hidden, fireproof safe.
When working with a tax professional, take the time to vet their credentials before you hand over any sensitive documents. If you choose to file on your own via tax software, make sure that your computer is equipped with up-to-date anti-virus and anti-malware software and that you are protected by a firewall.
If you store your documents on your computer for record-keeping purposes or for electronic filing, the IRS recommends installing software designed to encrypt your files and backup drives to prevent important information from being stolen.
Once you’re ready to cycle out older tax documents, the IRS advises that you shred any paper documents thoroughly to prevent identity theft. For electronically stored documents, you will need to wipe your drives before selling or disposing of an old computer or external drive.
Delivery methods
Before you send off or hand over physical tax paperwork, The Balance’s William Perez and Beverly Bird advise that you make a detailed list of everything you’re sending and make copies of every document. You can scan and save the documents as PDFs on your computer. To get an extra layer of protection get add secondary copies to a flash drive or an external hard drive.
Having readily available backup copies will reduce the stress that occurs if something should go missing en route to your accountant or to the government.
If possible, Perez and Bird suggest hand-delivering your documents to your accountant or professional tax preparer, as this serves as the best option to ensure the safe filing of your documents.
If your accountant is too far to reach in person, it’s suggested that you spring for delivery or signature confirmation and that you maintain your tracking information to monitor your documents’ progress. Additionally, Try not to use email.
Never send sensitive details within the body of an email and ensure that all documents are encrypted and password-protected.
Your tax paperwork is too important to the health of your business. By taking the proper precautions, you can better ensure its success and stability without having to worry as much.
5 Money Saving Tricks for this Holiday Season
The Holiday season is upon us and this could either mean you are overly excited about the celebrations or you’re overly stressed out about money. Granted, you can also be both, excited and stressed out. This is normal during this time and we are here to offer you some guidance.
How can you save your money and spend wisely this holiday season?
Make a Budget
It should be no surprise to you that a budget is the smartest way to keep track of your money. You should keep one year-round but you should also have a separate one during the holiday season.
When you create your holiday budget, be smart and avoid setting yourself up for failure. Do not set a budget that is unrealistically low or one that is way too high. Also, think about cutting back in other areas. Can you avoid brunch Sundays with your friends for a month? Or even little things like buying coffee every morning?
Make a list of gifts that you absolutely need to get and another list of gifts you can make yourself. Getting a beautiful printed picture in a cute affordable frame can be just as nice as a $50 bottle of wine. After all, it is the thought that counts.
Make a Potluck
Getting your friends and family together to celebrate is always a beautiful tradition. However, if you are the host, it can be a very expensive one too. Deviate from the all-or-nothing thinking and ask your friends to help you with side dishes and dessert for your celebration. Not only will a potluck save you money, it will also save you precious needed time.
Get Flying Deals and Discounts
If you’re planning on taking a nice trip out of town, search for discounts. Gone are the days where travel agents had the only good flight packages. Now you have a million ways to get discounted fly tickets, car rentals and hotels. In fact, you can even get some travel benefits with your BSCU credit card.
Here is a trick: When you search for flights online, make sure to check at different times of the day. Believe it or not, some flights can get very cheap when you purchase them at odd hours like 2:00am.
Have Will-Power and Know When You Need to Stop
When your list is finished and you’ve checked it twice, it’s time to stop shopping. Know when you’re finished, and avoid stopping by the mall “just to see what they have” – this can lead to making poorly planned purchases and blowing your budget.
Most people get the itch to shop a few days before Christmas, if this is you, then leave some shopping you NEED for the last days. This way, you will still feel like you are getting something but you are not just “checking things out.”
Time to Use Coupons.
If this isn’t typically you, that is okay but during this time you’ll be wise to utilize coupons. You can get coupons online, via email, through a newspaper and you can even buy a cheap coupon book at the mall. The point is you have choices. Do not buy that $25 dress when you can get it for $15. Be smart because every dollar adds up.
Finally, remember to enjoy this time with your family and if you have to spend, spend wisely. We hope this helps.
How to make your savings grow with a Money Market account?
Money market accounts can provide a safe, productive way to store your money
A money market account is an account that typically comes with a higher interest rate than other savings accounts. If investing in stocks and bonds is not something that appeals to you, but you would still like to make your money grow safely, opening a money market account could be the right move. There are still some factors that you should consider before committing to your decision.
Higher interest
The main appeal of money market accounts is that they typically offer higher interest rates than savings accounts, though this is not always true on a case-by-case basis. Investing deposits for money market accounts are held in government securities, commercial paper and certificates of deposit, returning higher yields than you would normally get from a savings account.
MMAs also provided the added bonus of security comparable to that of a traditional savings account. According to NerdWallet’s Margarette Burnette, these accounts are backed by the Federal Deposit Insurance Corporation and National Credit Union Administration for up to $250,000.
Minimum balance
Compared to a regular savings account, which may have a minimum balance requirement, a money market account is likely to require an even greater minimum daily balance as well as a higher minimum deposit requirement when you want to put money into the account. The minimum requirement may also be based on a tiered system. With more money in the account, you can benefit from higher interest rates. If you are under your minimum requirements, you could be hit with expensive maintenance fees. Because of this, it is best to open an MMA if you are sure that you will be able to maintain its conditions and reap the full benefits of using it for saving.
Should you open a money market account?
Money market accounts are a great alternative to the traditional savings account that provide benefits similar to that of a checking account should you need to make the occasional withdrawal. Check out our Money Market options. It’s possible they offer even more fruitful ways to store your money, or equally fruitful options that have fewer limitations.[/vc_column_text][/vc_column][/vc_row]
4 Essentials Every Young Entrepreneur Should Know
No matter how old you are, the entrepreneurship bug can bite you and give you the itch to start a business. If you have been working for some time, you probably have some experience in the industry you’re launching into and have spent time in the business world. However, if you’re younger, there is more for you to learn. Here are some financial tips that will help you start off on the right foot.
- Keep it separate
Almost every resource about business finance declares loudly and often that you need to keep business and personal funds separate. It’s easy to think that you’ll make sure to track things and know what money belongs to whom, but when everything mixes together it can be tempting to dip into business funds for personal use. At BSCU we have a low cost Business Checking product that may help you keep things on budget and organized.
Besides that possibility, Dmitriy Fomichenko of NerdWallet points out that if the IRS comes calling for an audit, you’ll need proof of business expenses and income. That is much easier when the money isn’t in the same place. If your business is a corporation, you’re actually required by law to maintain a separate account for your business.
2. File your taxes
Speaking of the IRS, it’s imperative that you remember to pay your taxes. This might seem like an obvious tip, but your taxes get more complicated when you own a company. Project Eve points out that you might be so wrapped up in day-to-day operations that you forget about taxes, or you might not have the right information to file correctly and meet quarterly deadlines. If you don’t have an accountant for your business already, it’s important that you seek the advice of a tax professional now to avoid penalties (or jail time) later.
3. Start a retirement plan
When you first start your business, more money will be going out than in. But when funds do start to come back and you have enough to cut yourself a paycheck, Yoav Vilner of Entrepreneur says it’s important to also start a retirement fund. If another company employed you, retirement plans would probably be part of your intake paperwork and someone else would take care of it. When you’re working on your own, that task falls to you. No matter how much you think you’ll love your business, you will thank yourself in the future for saving now so you can ride off into the sunset later.
4. Get ready for emergencies
You probably insured your business when you opened up, but don’t forget about yourself. NerdWallet points out that, as an entrepreneur, any serious illness of injury can put that source of income in jeopardy. Make sure that you purchase disability insurance to cover you in case the worst should happen. While you’re at it, consider buying business overhead expense insurance. If you have to take an extensive leave of absence and that temporarily closes your business, this policy will cover certain business costs like rent, employee salaries or taxes until you’re back on your feet.
If you’re young, driven and ready to start a business, we wish you the best of luck. Just make sure to look both ways before you make a major decision, and consider consulting a financial adviser.
How to Start a Small Business with Little Capital
Becoming a business owner doesn’t have to require huge capital investment
If you’ve ever dreamt of owning your own business, you probably stopped dreaming the second you considered how much money it would take to make your dream come true. You can dream big and start small, however, by starting up a business that doesn’t require an exorbitant amount of capital up front. The following are just some of the avenues you can take to make your dream of being a business owner a reality.
Get creative
If you count painting or handicrafts among your biggest passions, you have the potential to turn your hobby into a successful business. According to Jayson DeMers, Founder and CEO of AudienceBoom and VIP Contributor for Entrepreneur, selling your paintings, artwork and crafts on eBay, Amazon and Etsy allows you to reach a wider customer base without having to invest capital in a website. If you want to market your products without having to pay for placement, you can start up dedicated accounts on social media platforms like Twitter and Facebook to show off your goods and offer exclusive discounts.
Cook up some cash
Cooking can be an incredibly rewarding experience. It allows you not only to control what you put into your body, but it also provides a creative outlet and rewards experimentation with new things. If you find that your kitchen creations are consistent crowd-pleasers, you might be able to parlay that skill into a small enterprise. Susan Ward, owner of information technology consulting firm Cypress Technologies, writes for The Balance Small Business that gluten-free and artisanal foods are two of the top small-business ventures you can start without a lot of capital up front.
If you can’t afford a retail space stocked with high-end equipment and appliances, you can simply utilize your home kitchen to create your product. Apart from selling your product via social media, you can start by selling your goods at a local farmers market. Once you begin to build a bit of buzz, you can reach out to local grocery stores and restaurants to see if they’ll begin selling your products and incorporating them into dishes.
Selling yourself
If you are in possession of a certain skillset or talent that you think can drive a small-business endeavor, you might be able to put it to use without having to pay the typical small-business startup cost. Jackie Zimmerman, writing for NerdWallet, says that your expertise can be the seed from which a thriving business can grow.
If you consider yourself an expert in some academic field or another, Zimmerman recommends plying your skills as a consultant or private tutor. If you hit upon a formula or approach that works, you can use the positive results seen by students as a proof of concept and begin marketing yourself with testimonials to back up what you’re selling.
Ward suggests that taking care of seniors is a small-business opportunity that can both help keep you financially solvent and provide a meaningful service to people in need. Ward cites the affluence of the baby-boom generation and an American Association of Retired Persons survey that found 90 percent of seniors wanting to live independently as evidence of in-home care being both profitable and important. Ward notes that there are low-cost franchise opportunities available for those interested in providing senior care.
These are just some of the small-business options that can be brought to fruition without a ton of money up front. If you have a particular skill or field that you would like to turn into a business of your own, consider all of your options and be creative wherever possible
4 Reasons to Open a Savings Account for Your Business
When you were a child, your parents opened your first savings account. As you grew and came into bills of your own, you opened a checking account to have better access to your money. Now, as the owner of a business, you’ve probably opened a business checking account so that you can pay your suppliers and separate enterprise money from your personal accounts. If you really want your business to be as sound as possible, consider going one step further and opening a business savings account.
1. Prepare for tax time
If you have spent time as an employee of an established business, you know that the usual automatic withholding of taxes can be extremely helpful every time that tax season rolls around. As a small-business owner, you are the one responsible for knowing how much money you owe in taxes and paying that amount to the federal, state and local governments on time. A business savings account can be a great place to store or hold the money you know you will need for tax payments. Not only will you yield some interest from setting the money aside, but you will ensure that you or your partners don’t spend it on a business investment instead.
2. Save for a rainy day
When you’re managing your personal funds, your savings account more than likely holds the money you are keeping in case of an emergency, such as a loss of job or a medical crisis. A business can use a savings account for the same thing. Amanda Cameron of Patriot Software advises that a savings account is a great buffer to cover unexpected costs that might otherwise severely hinder or even cripple your business. As liquid assets, you can access funds quickly to fix any problems, such as broken equipment or an accident, to make sure that any work stoppage lasts the shortest time possible.
3. Earn interest
Interest rates are finally going up in the United States, which means that savings accounts might once again start earning meaningful interest. Regardless of how much interest your money accrues, the team at the Money Supermarket Financial Group points out that you will almost certainly earn a more competitive rate of interest with a savings account than in a checking account. Whether you intend to use the money in the account for a rainy day or just have it there for safe keeping, keeping it in a savings account ensures that your money is working for you.
4. Stay organized
Just like an individual can have more than one savings account, a business can also have multiple accounts. While it might seem confusing to maintain separate accounts, it is a very basic way to make sure that all of your money will be used for its intended purpose. Keeping your equipment funds in an account apart from the emergency money will help ensure that you don’t accidentally overspend in an emergency and not be able to pay for upgrades your tools need to stay competitive. This ensures more stability, even if it comes at the cost of added account maintenance.
Consider talking to an associate at your bank or your financial advisor for the best advice for taking your business savings to the next level. A business savings account is by and large a sound decision, but there may be options available to you that work better for your business’s needs.
3 Ways to Help Your Teens Build Good Credit
When your teen finally takes the big leap and moves out of the house, they’re going to need a solid credit score for a lot of life steps: renting an apartment, getting a loan or finding a good deal on insurance.
For that reason, it’s important that teens build up their credit scores before they move out. There are a few ways you can prepare them for this in the years leading up to graduation.
- Make sure they have a checking account and debit card to go along with it
Getting your teen started with their own bank account is a significant step in building their credit score without ditching their safety net. A teenager under 18 years old can still sign up for a debit card; they just need a co-signer. Since you are co-signing on the card, your personal account will be linked to your teen’s in case of an overdraft. With this checking account and debit card, you should also teach your teens the importance of managing money well.
- Teach them the credit card basics
Credit cards are a bit more complex than debit cards, so it’s important to sit down your teen and help them understand the basics. Signing them up for their own credit card is a bigger step than signing up for a debit card, but it’s an additional step that will help boost their credit score — assuming they pay the bills on time and in full. U.S. News & World Report contributor Amelia Granger says that the most critical skill a teen can learn is to pay their bills in full, even if that means starting with a smaller credit limit. Make sure you are monitoring your teen’s bills to confirm they’re not damaging their credit score rather than building a good foundation for the years ahead.
- Help them open a Secured Credit Card
A Secured Credit Card is the perfect card to teach your teen how to properly manage money. It does this by not allowing them to use the money they don’t have, instead locking in a minimum amount of $500 they must use as if it were borrowed money from the bank. This card will help them improve their credit score and after a year they will be able to apply to a regular credit card.
Responsible money management is tough to practice if you learn it late in life. Your kids will be much better off by teaching them good financial practices.
3 Simple Ways to Earn a Little Extra
Sometimes your full-time jobs are not enough to pay the bills, save, and have fun. Sometimes a paycheck is only enough to make ends meet. Sure, you can always get another part-time job or look for higher paying job. However, when you have conflicting schedules and a family having an extra job isn’t so easy.
What are some ways to earn a little extra cash and keep enjoying your free time?
- Pet Sitting There are many websites where you can sign up to be a pet sitter. Yes, a pet sitter. Not only do you get to enjoy the company of cute fluffy creatures, you also get to spend some time in the sun. If you do this, plan accordingly. For example, if sign up to pet sit on a Sunday you’ll have company to watch the game and exercise early in the morning. TIP: Pet sitting is in high demand in South Florida. Take some time to look into it.
- Clean your home, and sell your unwanted items online: If you have unused –or gently used items– try selling them. Liberating yourself from all that clutter, will feel very rewarding. Remember, one man’s trash is another’s treasure.
- Participate in surveys or focus groups: Some marketers and research firms offer cash for participating in focus groups. This is not a lot of money, but $10 to answer 10 questions online buys you lunch.
If you ever find yourself in need of a little bit of cash, consider these methods.
Enjoy!
How Can You Pay Off Your High Debt?
High debt can make you feel stressed, worried, and a little discouraged. Just remember, where there is a will, there is a way to pay. One of our goals as a credit union is to help you become financially stable. Take a deep breath, create a timeline and think how you can reduce your spending.
Then use some of the following tips as a guidance to help you pay off your high debt.
- Get rid of high rate credit cards first
What does this mean?
Your credit card interest rate vary between financial institutions. Allowing your spending to increase unconsciously. For example let’s pretend you spend $450 in credit card A with a 29.99% interest rate; and you spend $475 with a 12% interest rate in credit card B. In time, the $450 spent in credit card A may become more expensive due to its higher interest rate. You must avoid falling into this trick.
First, go over all your credit card statements and create a list starting with your highest interest cards and ending with your lowest. By increasing the payment on your highest interest cards you are saving money and avoiding high interest charges.
TIP: Remember to continue paying the minimum amount due on the rest of your credit cards.
- Take advantage of Balance Transfer Promotions.
If you have high interest rates on another credit cards think about moving your debt to your BrightStar Credit Card—especially during our Balance Transfer Promotion period. Keep in mind you must be strict with your payments in order to take advantage of the promotional rate before it expires.
- Stop spending so much on your credit cards.
If you’re trying to pay off your high debt, credit cards are NOT your best friend. Remove all credit cards from your wallet, and start budgeting your expenses with cash. Don’t worry, this change is only temporary, only while you get more financially stable.
- Put work bonuses, or other incentives toward debt.
We get it! Taking that work bonus and using it on a nice vacation is tempting. However, sometimes we need to put temptation aside and start thinking of our financial future. If you receive a bonus for a good sale, holiday, or other use it to pay off your debt. Your wallet will thank you later.
- Sell unwanted items online.
A good way to make some extra cash is to clean your house from unwanted items. Sell those old presents collecting dust and start fattening up your wallet. After all, one man’s trash is another’s treasure.
High debt should not affect your well-being. Go on, change your habits, make some smart choices, and reward yourself in the future.
You can do it!
How to Shop Wisely During the Holidays?
No matter your discipline, the holiday season is always the season of spending. You probably have trips scheduled with your family, fancy dinners to prepare for, new outfits to get, and of course, some presents to get.
So, how can you spend more wisely?
- Create a list: This might seem a little silly, but a simple list can go a long way. Write the names of everyone you’re planning on getting presents for and how much you will spend on each of them. Collect and take advantage of coupons, sales, and time. Try not to leave your holiday shopping for last minute, the earlier you go, the more sale items you will find.
- Keep in mind your Cash Reward Cards: If you’re purchasing gifts with a credit card you have to keep your rates and rewards in mind. Some cards will allow you to have a little extra spending with all the benefits they provide. Some cards will make you go over budget with all their high rates. You must be careful!
- Buy gift cards: Some people find gift cards a bit cold and impersonal. However, gift cards are ideal to save money and to give people the choice of buying exactly what they want.
- Save for the big gifts: If you’re planning on getting a 65” flat screen for your significant other, save money ahead of time. You can start by putting $20 aside every 2 weeks on a separate account, so by the time you find something you like, you won’t overspend.
Remember, your spending does not have to become a headache. So, enjoy the holidays with your family and feel thankful.