Why Get A Tax Planning Accountant For Fiscal Strategies

It is almost the end of the fiscal year, and you might have probably submitted your tax returns a few months ago. When everything is said and done, many business owners don't want to think about taxes when they have finished everything. 

However, it is best if you could plan for the tax season before it arrives so you won't be panicking. A little preparation for your future can make a significant impact, but most business owners may not be doing this. They can be too caught up with their businesses' daily operations (and nothing's wrong with that), but it is still best to give a little thought about the taxes for the following year. 

Contrary to what other people may be thinking, you don't necessarily have to be a big corporation or a Fortune 500 company to plan for your taxes. You may be a small business owner who wants to pay a significant reduction in taxes and ensure that the money is going to where it matters the most, which is to the other more important aspects of your business. 

About Tax Planning 

This process is more than just coming up with an estimate of your liabilities for the end of the year and knowing the tax amount. This is often the process of looking at your current financial health, ensuring that the figures work cohesively, as well as paying the least possible amount when it's time for filing. 

This is a process that may include various considerations like credit opportunities, legitimate deductions, expense planning, timing and size of the purchases, etc. This will help you select the most optimal investment out there that will complement your filing status and current strategy. 

Know that you may need to get help from a certified accountant to do all of these things. With experienced CPA services you will be able to reach your goals, raise more funds, deliver a positive ROI, and minimize cash tax liabilities. All of these are done in the right way, so you wouldn't have to worry even if the IRS contacts you. 

The Role Of Accountants 

For many business owners, the laws and regulations are simply complex and hard to understand. As an individual or a company owner, professional accountants will ensure that you're complying with the federal and state income tax returns so you can pass an audit with flying colors. There are also planning advice services that help individuals and businesses save money in general. Other services include: 

Preparations Of Tax Returns 

Self-employed accountants or those who are currently working for firms may specialize in assisting their clients with preparations of their returns. They meet with the business owners, assess their books, go through their records, and help them prepare. 

In a meeting, there is a need to gather the necessary documentation, get copies of investment income statements, have pay stubs, and check various documents that will be included in the paperwork. Most of these experts are familiar with the law, and they will usually look for credits and deductions for their clients to minimize their payments. 

Helps With The Planning Phase 

Every decision made in a corporate setting may involve tax changes and ramifications. These are very complicated, especially if the company does business internationally. This can result in the growing need for tax planner professionals. 

Some accountants may choose to specialize in the planning phase, where their primary objective is to minimize income taxes. This is a strategy that's often common in corporations where they develop long- term plans to save money for a period of time. 

Planning For Your Retirement 

Know that accountants can also help individuals aside from business owners. Those people who are saving their hard-earned money through a retirement plan can effectively reduce their taxes. This is when you contribute money into a traditional individual retirement account, which is deducted from your gross income. 

For 2021, if an individual meets all the qualifications, the maximum they can contribute under the age of 50 is $64,000. If they are 50 years old or older, the most will be $7,000 a year. For example, if a 51-year-old female has an income of $60,000 annually and has made $7,000 in contribution to their IRA, the adjusted $53,000 will be taxed, but the contribution will be deferred until she retires. 

Many other retirement plans are out there, and they are available for many people who want to reduce their liabilities. For larger companies with many employees, there is the 401k plan where a participant can defer his income from their paycheck, which goes directly to the company's strategy. The differences between a 401k and a traditional IRA are their contribution limits. 

Gain-Loss Harvesting 

The process gain-loss harvesting can be another kind of management and planning that's often associated with investments. This is very beneficial since can help capital gains offset and your accountant can help you with this. The Internal Revenue Service has a long-term and short-term capital loss that should be used to offset a capital gain of similar types of investments. In the year 2025, here are the taxation for long-term capital gains: 

• A payee who has an income of less than $78,750 is taxed at 0%. 

• For those who are single that has more than $78,750 but they are earning $434,550, the rate will be 15% (Married couples who are filing jointly will be included in this percentage if they have a combined income of $488,850, $244,425 for married people filing separately, and $461,700 for the head of the house.) 

• 20% of the tax for people who have an income that is higher than the 15% bracket. 

According to the IRS, if the capital losses exceed the capital gains, the total max you can claim to lower your income tax is $3,000. If you are married, the amount will be $1,500, but you are filing separately from your spouse. This is also the case if the overall net loss is included on the list shown on Form 1040, line 21 of Schedule D. Have an experienced CPA assist you with these calculations or advise you before making any finalized estimates and payments.

Considerations Before Applying For Tax Relief

Before applying for tax relief, it is essential to thoroughly evaluate your financial situation and understand the implications of seeking tax relief options. While tax relief programs can provide significant benefits, it is crucial to consider several factors to ensure that you make informed decisions with regards to the Internal Revenue Service (IRS). This article highlights seven key considerations to keep in mind before applying for tax relief services in the USA. 

7 Tax Relief Key Points 

1. Eligibility Criteria

Different tax relief programs have specific eligibility criteria. Before applying, carefully review the requirements and determine if you meet the qualifications. For example, some tax credits are income-based, while others may have restrictions based on factors such as age, education, or employment. Understanding the eligibility criteria will help you assess whether you are eligible for the relief program you are considering. 

2. Financial Impact

While tax relief can reduce your tax burden, it is important to evaluate the overall financial impact of seeking relief. Consider the potential short-term and long-term consequences of the relief option. For instance, some relief programs may require you to repay a portion of the relief in the future, which can affect your financial stability. Assess how the relief will impact your current cash flow, financial goals, and potential tax savings to make an informed decision. 

3. Documentation And Compliance

Tax relief programs often require documentation to support your eligibility. Before applying, gather all the necessary documentation and ensure that you meet the compliance requirements. Failure to provide accurate and complete documentation may result in your application being rejected or delayed. Additionally, be aware of any reporting obligations or ongoing requirements associated with the relief program to avoid penalties or loss of benefits. 

4. Future Tax Implications

Consider the potential impact on your future tax returns when applying for tax relief. Certain relief options may affect your future tax liabilities, deductions, or credits. For example, if you choose to claim a tax credit for energy-efficient home improvements, it may limit your ability to claim the same credit in future years. Assess how the relief option may influence your future tax planning and consult with a tax professional if necessary. 

5. Alternative Strategies

Before pursuing tax relief, explore alternative strategies that may achieve similar or better results. For example, if you are considering applying for an installment payment plan with the IRS, evaluate whether it would be more beneficial to secure a low-interest loan from a financial institution. Comparing different approaches can help you identify the most cost-effective and advantageous option for your specific circumstances. 

6. Impact On Credit Score

Certain tax relief options, such as offers in compromise or settlements, may have implications for your credit score. These programs may require negotiation with the IRS or other entities, potentially impacting your creditworthiness. Understand the potential consequences for your credit score and consider whether the relief option outweighs any negative impact on your creditworthiness. When you are taxed, it could hurt your credit or even cause you to consider bankruptcy. 

7. Professional Advice

Seeking professional advice from a tax attorney, certified public accountant (CPA), or tax professional is highly recommended before applying for tax relief. Accountants can provide expert guidance based on your specific situation, help you understand the implications, and navigate the application process. A tax professional can also provide insights into alternative strategies or additional relief options that you may not be aware of. 

Tax Relief Considerations Conclusion 

Before applying for tax relief in the USA, carefully consider factors such as eligibility criteria, financial impact, documentation requirements, future tax implications, alternative strategies, and the potential impact on your credit score. Making informed decisions about tax relief options requires a thorough evaluation of your financial circumstances and objectives. 

Seeking professional advice can provide valuable insights and help you navigate the complex tax landscape, ensuring that you choose the most suitable relief option for your needs. Don't try to go it alone when you are seeking reduced taxes or other financial assistance! It is time to say goodbye to excess taxation.

Income Limits For Chapter 7 Bankruptcy Filing

If you are at the point of being overwhelmed by debt without an easy path out, it may be time to consider whether or not bankruptcy is a valid option for you. Before you file for a Chapter 7 bankruptcy discharge, you should first determine if you meet the income limit for getting a Chapter 7 bankruptcy discharge from the bankruptcy court. 

Although Chapter 7 bankruptcy is often the cheapest, quickest and easiest bankruptcy to file under, debtors still have some stringent requirements they must meet before the bankruptcy discharge is issued. 

The entire purpose of filing a bankruptcy case is to get a bankruptcy discharge, as it releases the debtor from any legal obligation to repay the debt. Without getting a bankruptcy discharge, you are obligated to pay every dollar you own in 2024 to destroy your debt. 

Understanding The Income Limit For Chapter 7 Bankruptcy Cases 

Before getting started, it is important to realize that bankruptcies can vary from state to state. For instance, if you file for Chapter 7 bankruptcy in Michigan, it may look different than an Ohio Chapter 7 bankruptcy or a Texas Chapter 7 bankruptcy. Keep this in mind when moving forward with filing for bankruptcy in the states of TX, MI, or OH. 

Congress revised the law that guides who get a bankruptcy limit in 2005, during which they added an income limit for anyone who wishes to file under Chapter 7 bankruptcy. BAPCPA (the Bankruptcy Abuse Prevention and Consumer Act) was set up to change the way debtors qualify to get a discharge under the Chapter 7 bankruptcy debt relief plan. The reason for this modification was to prevent abuse by high net worth individuals, and ensure that only those who can’t afford to pay their debt qualify for a discharge. 

Why Income Limits Are Important In Chapter 7 Cases 

Your income can stop you from getting a bankruptcy discharge if it is above Chapter 7 income limit for your state of residence. Although, this income limit doesn’t stop you from filing a Chapter 7 bankruptcy case, as you can file irrespective of what you earn. In other words, that you filed for bankruptcy does not necessarily mean that you’ll get debt relief as the bankruptcy court can reject your application based on abuse. 

If you notice that your income is higher than the acceptable income for Chapter 7 bankruptcy, then, the most suitable alternative is to file under Chapter 13 bankruptcy to get a discharge, the general assumption is that if your income is higher than the state’s median income; then, you can afford to pay part of your debt to unsecured creditors. 

Unsecured creditors are those that don’t have a lien on your property; as such, they are at risk of losing money when you’re unable to pay back. Some examples of debts in this category are medical bills, credit cards, and personal loans. 

Here are the income limits for the following states for cases filed after 2023. If your household size is greater than 5, you would add $9000 per member. 

Michigan 

# Of People : Annual Income 

1 : $53,815 

2 : $67,015 

3 : $80,465 

4 : $99,179 

5 : $108,179 

Texas 

# Of People : Annual Income 

1 : $52,953 

2 : $71,287 

3 : $77,110 

4 : $89,196 

5 : $98,196 

Ohio 

# Of People : Annual Income 

1 : $52,415 

2 : $67,059 

3 : $79,022 

4 : $96,175 

5 : $105,175 

Let’s now discuss how income works in the Chapter 7 means test. 

How To Calculate Income For The Chapter 7 Means Test 

The first thing is to show the proof of your earnings in the last six months. Income is calculated based on what you earned six months prior to filing a Chapter 7 bankruptcy case. As such, if you’re filing for a Chapter 7 bankruptcy on July 10, then you have to show your proof of income from January 1 to June 30. 

The income that should be declared is those earned and those from other sources, with the exception earned as a result of the Social Security Act. When calculating the Chapter 7 Means Test, you won’t add income from SSI, SSDI, and Social Security retirement income. 

Some of the incomes used in calculating Chapter 7 Government Means Test are: 

● Unemployment income 

● Royalties, dividends, and interest 

● Salaries and wages, including commissions, bonuses, and overtime 

● Rental Property Income 

● Income from operating a business or self-employment 

● Income from workers’ compensation 

● Spousal support and child support 

● Pensions, annuities and retirement income 

● Income from private disability insurance 

● Income from others in the household, such as money from a friend, parent, roommate, or domestic partner 

Also, if this feels complex, a free Chapter 7 means test calculator can help you estimate qualification. 

Completing The Means Test 

Your bankruptcy attorney may be able to fill out all of this information for you unless you decide to file without an attorney. 

Section One—Median Income 

Before filing the first part of the means state, you should first understand two terms, which are: annual median income and current monthly income (CMI). The annual median income in itself is calculated based on your CMI. 

If you want to calculate CMI, the income you got for six months prior to filing for Chapter 7 bankruptcy should be added and divided by six. Thus, if after calculating your six-month income, and the total sum is $25,000, then your current monthly income will be $25,000 divided by 6, which is $4,166.67. 

You can calculate your annual median income by multiplying the CMI by 12. In the example given above, the median income will be $50,000.04 ($4,166.67 multiplied by 12). 

A comparison will be made between your annual median income and the annual median income for your state of residence (See our chart below). But in a situation where your median income is lower than that of your state, then it is assumed that you’re eligible to receive a Chapter 7 bankruptcy discharge. 

As stated above, the income for Chapter 7 bankruptcy is often dependent on where you are in the United States. For example, the income limit for filing bankruptcy in Tennessee may be different than the income limit for filing Chapter 7 bankruptcy in Illinois every single one of those places are going to have their own specific requirements. 

Section Two—Disposable income 

If you earn above the income limit for a Chapter 7 bankruptcy, you can still qualify for a Chapter 7 bankruptcy discharge if you pass the disposable income test. 

Disposable income is your remaining income after deducting your mandatory payroll deductions and ordinary living expenses. You must include your disposable income when writing your Chapter 13 bankruptcy plan. 

It is possible to qualify for a Chapter 7 bankruptcy discharge even if your annual median income is higher than the state’s income limit—this can happen if your disposable income is lesser than the limit stipulated by the state law. 

Some expenses you can deduct from CMI to calculate disposable income are: 

● Clothing, food and household expenses 

● Public transportation costs and vehicle operating costs 

● Disability insurance premiums, term life insurance, and health insurance 

● Some health care costs 

● School expenses and some childcare costs 

● Alimony payments or court-ordered child support 

● Some payroll deductions like uniforms, union dues, compulsory retirement savings, and payroll taxes 

These expenses are determined by the number of individuals that reside in your home. Also, some acceptable monthly expenses depend on the national standards for living expenses. Monthly expenses that are high-end like golf clubs or expensive gym memberships cannot be used if you go bankrupt. Also, if your expenses seem outrageously high, then the bankruptcy court will ask you to provide proof to support your claim. 

The Bottom Line On Bankruptcy 

Filing Chapter 7 bankruptcy is a big decision that takes a lot of consideration. Understand the income limit for Chapter 7 bankruptcy filing in Michigan, Texas and Ohio. You can also look for alternatives to bankruptcy filing with such options as debt negotiation, debt management or debt payoff planning. If you become bankrupted, there are solutions and there is help!

7 Instances When You Must Hire A Tax Attorney

Getting behind on your taxes is never pleasant, but it is incredibly common. More than 15 million taxpayers owe the IRS back taxes. 

When this happens, taxpayers face scrutiny from the IRS, audits, fines, and sometimes even criminal charges from a judge. 

A tax lawyer can help represent your case and interact with the Internal Revenue Service (IRS) for you. However, understanding when it is time to get legal help can be more complicated than you might have thought. 

Here are 7 major instances where getting legal help for your taxes is in your best financial interest. 

7 Times You Need To Hire A Tax Lawyer

1. You Are Getting Audited By The IRS

No matter how many times you have filed taxes in the past, it never gets easier. Even the simplest return can be incredibly complicated. 

This leads hundreds of people to make mistakes on their returns every year. While some of those mistakes are minor, others can be large enough that the IRS audits your finances. 

Dealing with an IRS audit is something no one should try to do on their own. 

If you have received notice that the IRS is auditing your accounts, hire a tax attorney as soon as possible. They will be able to communicate with the IRS on your behalf and will do everything they can to reduce any fines or penalties the IRS may assess. 

2. You Own Your A Company 

If your personal tax return seems complicated, just think how difficult it will be to file your business’s taxes!

For business owners, a tax attorney will be able to make sure you’re filing everything correctly and receive the deductions you qualify for. They’ll also be able to double-check your hiring paperwork so your payroll and employee tax documents get issued on-time and correctly. 

They won’t be able to help you file your returns. You’ll still need to hire an accountant and get them to help you claim deductions, fill out tax documents, and stay on top of quarterly payments. 

3. You Are In Major Debt 

Getting behind on your taxes isn’t something to feel ashamed of. It is, however, something you’ll want to get help dealing with. 

The IRS will pursue you for taxes that you owe. If you only owe a few hundred dollars, they’ll likely be flexible. If you owe a lot, you can expect the IRS to come knocking. 

Hiring tax relief attorneys can help you negotiate the amount that you owe the IRS and can represent your interests in court if needed. Experienced attorneys may be able to get the IRS to forgive a large portion of your debt. 

Keep in mind that all situations are unique and what your attorney may be able to do for you may not be what others have experienced. The best thing you can do is schedule a consultation. 

4. You Did Some Hiding Of Income In Past Years 

No one likes paying taxes. The more money you make, the more money you owe the IRS at tax time. 

It makes it tempting to lie about how much income you generate or to fail to report a good portion of your income. 

Unfortunately, the IRS has a way of finding out that you hid income in the past. If they do, you could face criminal charges and even be sent to a white collar federal prison like countless others for tax evasion. 

A tax lawyer will be able to represent your case and argue on your behalf. Keep in mind that they may not be able to get the tax evasion charges against you dropped completely. Every situation is unique though when it comes to tax evasion. 

5. You Are Self-Employed 

When you’re self-employed, there are all sorts of challenges you’ll face. Taxes are some of the biggest ones. 

A tax attorney will be able to make sure you’re on the right track and are submitting things correctly. Even better, they’ll be able to make sure you’ve formed your business in such a way that you’ll be able to enjoy tax savings every year. 

If you haven’t, they’ll be able to recommend a simple restructuring process that will let you take advantage of tax savings for years to come. 

6. You’ve Planned Your Own Estate 

Most people want to set aside money for their loved ones or set up funds to support their favorite causes when they pass away. While a clear will is always an absolute must, there’s more to leaving money to those you care about than you might think. 

You need to understand the tax risks associated with your accounts. You will also have to work to find a way to reduce the amount of taxes your loved ones will pay when they receive the money. 

Hiring a tax lawyer will help you figure out the best way to set up funds to reduce the amount of taxes your loved ones will owe. They’ll also be able to double-check the way your accounts are set up currently so you can maximize your contributions and save on your personal taxes. 

7. You Have Assets You Do Not Want Seized By The IRS

If you’re facing a tax levy, the IRS can seize assets to settle your debts. Without the help of an experienced income tax attorney, you may lose assets that you would rather the IRS not know about in the first place. 

When you hire an attorney, they will be able to review your assets and potentially find ways to keep them out of the IRS’s hands. 

They will also be able to review the ways you store those assets to find better and more tax-secure options. 

Don’t Wait Any Longer If You Need To Hire A Tax Attorney 

If you are getting audited or just have questions about the amount of money you owe the IRS this year, don’t wait. Schedule a consultation with a tax attorney immediately. 

The sooner you do, the sooner they will be able to review your legal tax case and find a positive solution. 

Just make sure that the attorney you work with has experience representing cases like yours. This way, you will get the best legal representation possible. 

Conclusion

Interested in finding more tips to help you save money on your taxes year after year? Check out our latest posts in the Frugal Finances section of the Frugal Finance Blog. Also visit the Legal section of our business site for additional insights on corporate law and compliance.

Simple Guide to Small Business Tax Credits

Tax season is upon us, and it's time to work our brains around what applies to us and what doesn't. The tax code can look like a labyrinth, and we are here to decode its mysteries. 

There are certain things you need to know when it comes to small business tax credits. Check out our guide to learn more about SMB taxes.


What are Business Tax Credits? 

When businesses file their annual tax return to the IRS, they are eligible for credits that alleviate their financial obligations to the federal government. 


Demystifying Business Tax Credits

Tax language can seem like hieroglyphics at times. We are here to translate. There are many forms of business tax credits. A few examples to check include investment, work opportunity, welfare-to-work, alcohol fuels, r&d tax relief eligibility, low-income housing, and enhanced oil recovery.

Each of these credits requires a specific form that you can find on the IRS's website. You can also consult an accountant or a licensed tax professional if you want to make the process easier. Business tax credits, as well as their specific forms, are subject to change year to year. To avoid misfiling, refer to the IRS website.

Business tax credits eliminate certain tax obligations for businesses that apply. These credits reduce the amount of money the company owes to the federal government.

Businesses may exceed their tax credits for the current year and still be able to apply those credits to return years they already filed. Companies may also carry over tax credits they can't apply to the current year, and use them for a future year. This process is known as a carryforward. 


Small Business Tax Credits vs. Tax Deductions

Small business tax credits apply to businesses engaging in activities that benefit the economy or society. Small business tax credits are not to be confused with tax deductions. 

Tax deductions refer to claims made by companies for ordinary business expenditures. These are known as "write-offs" and have nothing to do with the benefit of society. 

Specialized deductions apply to specific businesses, such as home-based businesses. Deductions minimize your taxable income and affect which tax bracket you report.


How to Claim Small Business Tax Credits

If you are planning on applying more than one tax credit to your return, you must submit an IRS Form 3800 with your tax return. This form lists all of your desired small business tax credits. You can calculate your General Business Tax Credit by then adding the total credits.

To calculate your limit of small business tax credits, use the following 2 step process.

1. Add your net income tax and alternative minimum tax.

2. Subtract the greater of either your tentative minimum tax for the tax year or 25% of the amount of your regular tax liability that is greater than $25,000.

Consult With a Tax Professional Today 

Consult a tax professional before filing a return to figure out which business tax credits apply best to your company. Tax credits often expire and interchange, so it is essential to have a professional guide you on your business tax credit journey.

Finding A Top Financial Advisor In Gold Coast

It is never too late to start saving for your future, and even more so if you have a family to take care of. So many people put this simple step off for years and when the time comes the investment is either too large to catch up, or they put a sum away that they ‘can’ comfortably afford but in the end, the payout was not worth it. 

Don’t leave it to the last minute, the sooner the better as they say, and even if it is just small, to begin with, it is better than nothing. A boss I used to work for always used to quote to us, ‘a small percentage of something is far greater than 100% of nothing,’ and it is so true. This could explain why he was financially secure and well off come to think of it. 

If you are like me who knew nothing about how or where to invest then fear not, with a few basics under your belt and some organized research you will be well on your way to making a future that is financially sound and secure for you and your loved ones. 

Choosing An Investment Company

This is where people get overwhelmed and feel daunted by the vast options available and with every firm offering you a special that either seems too good to be true or that is out of your price range, we don’t know where to turn. 

Ticking off a few essential features to consider before making the final decision will make the process less stressful and you will be aware of what to look for when something doesn’t seem right and you can be cautious. 

Be sure that when you do invest your money with a company that you feel comfortable with your consultant and how he handles your policy, the customer service levels are a good indicator of the quality of care you are likely to receive once you have ‘signed on the dotted line.’ 

4 Factors To Look For In An Investment Company And Financial Advisor 

• Reputation

Most big brand companies have names that speak for themselves and that are well known, if you are looking to go with a more ‘boutique’ firm then reading their client comments on their website can show you how they treat their customers and the experience they had when the firm dealt not only with their inquiries but after joining. 

• Experience

A firm that’s been in business for several years gives peace of mind and shows they have a working formula with return or life-long clients. You ideally want a firm that has seen and handled all situations and financial scenarios, whether you are a big or small fish the client care should remain the priority. 

• Communicative

You want to be involved in all aspects and areas of the process, and a good company will understand this and keep you informed every step of the way. No question or query is too tricky to answer and if everyone is honest, open, and on the same page there will be no surprises down the line.  

• Services

Do they offer flexible plans and payment values, are they able to tailor packages to your needs and adjust as needed? What are the features they bring to the table that will not only benefit you but ensure the security of your arrangement in the long run?

These are simple yet essential features and companies who are worth working with will tick these boxes effortlessly, to find out more visit www.coastfinancialplanning.com.au and find a business that will advise and guide you on your investment journey. 

This is an exciting chapter in your life and the fact that you have taken the initial step to plan is an achievement in itself. The main objective is to become aware of your financial goals and utilizing the resources you have available to reach them. 

There are a lot of considerations and features to account for, take your time, if it feels right you’ll know. A rushed decision so as not to be left behind on the ‘investment train’ can lead to (preventable) issues in the future. 

Planning

So what is investment planning? In simple terms, so as not to get too technical, it is the plan of action and decision to take a look at your finances and see where you have the means and flexibility to put a small (or large) sum of money away into an account that grows through interest over several years. 

For a more in-depth explanation and insight into the term and management of investments, you can click here to read about it and when it comes to going ahead with the decision you will be well-versed in the jargon and less anxious if this is the first time you are investing. 

The Advantages Of Investing Through A Financial Advisor

There are a lot of perks when you have someone you can communicate with easily and often that makes this financial adjustment worth it, for starters you can define and write out clear goals of what you are looking to achieve with this investment. 

As you become more comfortable with them the lines of communication will be more open and flow easier, this way regular reviews and sit-downs over coffee and cake (which is always a must in my book) allow for flexibility of the plan and you can make tweaks and adjustments as your financial situation changes. 

The list is extensive and you can read some of the more popular opinions here on the benefits of working with a financial advisor and conclude from there. Then the big plus is that where you may have limited knowledge of what you are capable of they will be able to point these out having studied many years on the subject and honing their skills. 

Lastly, and certainly not the least important, investment is a great way to be as efficient and effective with your finances with regards to taxes as possible, and that is a win-win situation for everyone, am I right?

Financial Adviser

Most people often think that a financial adviser is a professional who only gives financial advice to individuals who are interested in investing their money in an insurance policy. But unknown to many is that a financial adviser would also be somebody who can help people with their wealth management and financial goals. Simply put, they help in financial planning by presenting strategies to eliminate financial risks while building wealth for the long term and provide guidance along the way. 

Like medical professionals, they also have their specialization. Financial advisers in Australia can be any of the following roles: 

1. Investment Professionals 

Generally, they are known as investment advisers or stockbrokers. They get paid for giving specific advice and plans on investing. They assist in client asset management. They should have a fiduciary duty to their client as well as they should prioritize their client's interests. Clients can give them the authority to act on their behalf. 

2. Financial Planners 

Financial advisers who have extensive certification for financial planning expertise are known as Certified Financial Planners. Their job is to maintain a financial goal and assess a client's financial risk. They advise the proper choice of investment, preparing for home investment, and preparing for retirement. CFPs are required to act on behalf of their clients. 

3. Wealth Managers 

Wealthy clients often hire a wealth adviser to help them with their investments. Their job is to provide strategies for investment and estate planning, taxation, concierge healthcare, and investing for social responsibility.

4. Tax Professionals 

Nobody likes taxes. Dealing with them is quite overwhelming, but with the assistance from tax professionals, a person can understand the importance of taxes in their finances. Tax professionals like CPAs help individuals plan and optimize their tax returns. They also represent their clients to resolve potential tax issues. Their main job is to minimize tax burdens while having higher returns. 

5. Financial Coaches 

One of the main reasons why financial goals fail is debt. Individuals who want to maximize their finances hire financial coaches to help them maintain debt-free cash flow. Their job is to encourage people to have good progress with their finances, whether they have debts. They will help in getting debts settled as soon as possible so that a person can move forward and plan for the future. 

6. Robo Advisers 

One of the low-cost options for people who are looking for a long term financial goal such as retirement, Robo advisers can be the most efficient financial manager. Companies offering wealth management usually have this type of adviser. A Robo adviser will assess an individual's goals, investment preferences, and risk tolerances. From here, the Robo adviser offers investment portfolio options for the person and provides investment management services to maximize the funds and reduce taxes. 

How To Choose A Financial Adviser 

Get To Know The Types Of Advisers 

For every financial goal, there is an appropriate financial adviser who can meet the requirements of every person who aims to be financially independent. Whether it is choosing an investment, budgeting, real estate planning, debt management, or portfolio management, hiring the appropriate adviser can help in the success of any goal. 

Identify Financial Service Requirements

If the task is as simple as managing investments, a Robo adviser is a cost-effective choice to do the job. Getting the service from a Robo adviser is a good option for beginners who want to learn the basics of managing their financial budget. This choice can save on money since it is an online service that will not require in-person meetings with an adviser. 

For complex financial planning needs, hire a financial adviser so that it can be possible to set up meetings whenever the need arises. They will give better advice and strategies for estate planning, insurance, charitable investment, health care, and retirement goals. 

Know Your Budget 

Financial advisers may charge based on the amount of money that they manage, and some give a flat hourly or annual rate. Robo advisers and financial advisers charge based on the account size. Whereas, online financial advisers can charge a flat hourly rate. 

Be Familiar With The Financial Adviser's Work Ethic 

Before choosing a financial adviser, always check the record of the person or the company. Some important details that should be known are rates, previous customers' feedback, expertise, conflict of interests, and disciplinary issues. 

Benefits Of Seeing A Financial Adviser 

With the help of a professional planner, a person can see where he is in his financial status. Given the right tools and knowledge from a financial adviser, a person can understand how his cash flows in the market. As a result, there is a better chance of reaching his goals for his wealth. 

Organized Personal Finances

A financial adviser organizes a person's finances, and he is held accountable for following through financial commitments from his customer. Making decisions will not be as hard since the financial adviser can rationalize and choose the right options. As a customer, a person has the privilege of other financial resources and has valuable experience with a certified Financial Adviser. 

Holistic Financial Planning

Another benefit is Holistic financial planning. Holistic financial planning is more extensive than portfolio management. Financial advisers allow a person to see a bigger picture of the financial market that will affect decision making. They help provide solutions to risks, insurance options, tax optimization. A holistic financial plan will give a person a view of his financial status in an integrated way, starting from wealth accumulation, generation, and retirement. Thus, a person gets protected as well as his family or loved ones in the event of financial strain. 

Financial Advisors Manage Money Masterfully

In general, having a financial adviser is having somebody to talk and collaborate with when financial setbacks or opportunities arise. Having somebody to manage money also gives a person time for other aspects like family, business, and career. 

A good financial adviser can be worth it if a person saves more money, reduces his unnecessary expenses, and has a better plan for his future. A financial adviser helps a person feel secure with a balanced financial status. An experienced financial advisor provides priceless situation for having a professional manage his wealth.

The Main Benefits Of A Good Self-Employed Accountant

Are you a qualified accountant who is good at his/her job and considering whether to branch out and startup on your own? You are in luck as this post is equipped with useful information on why I think it is beneficial to be a self-employed accountant. 

There are many pros to being an independent professional. You have the freedom to manage your organization as you deem fit. And you get to choose the numbers of clients you want to work with and how much time you want to spend working daily. The link here financeequation.co.uk has contacts with professionals in the UK who offer remote services to clients in any part of the world. 

As an independent accounts manager, you get to set up your schedule working at the best periods suitable for your working style. There are many opportunities out there for independent professionals. Many businesses are currently outsourcing bookkeeping services to professionals to help them save money and manage their businesses' financial aspects. 

You get to make as much as you want as a self-employed accountant. Some might say that determining your income level might be a lot of responsibility. A good professional knows how to manage his / her work schedule and knows that they are not limited to any employer's wages set. 

As we continue to elaborate, here is a list of what we consider are the main benefits of a self-employed professional 

1. A Perfect Work-Life Balance 

As discussed earlier, by being an independent accountant, you get more time on your hands. And as a result, you get to take care of other businesses and do a couple of things that satisfy you. 

An excellent independent accountant knows how to quickly manage his or her clients' financial affairs in a short period. And because you now can work at your schedule, you have the time to prepare for a trip to see your loved ones and family members. There are more benefits of working remotely, and you too can enjoy them. This article discusses an organized work-life balance is one of the significant benefits of being self-employed. 

2. Higher Income And Lesser Expenses 

Although there is a saying that money isn’t everything, satisfied life isn’t achievable without it. There are lots of people who venture into freelancing and independent work due to losing their jobs or unsatisfied pay. 

But an excellent self-employed accountant without a job understands that there are lots of opportunities out there for freelance accountants and that those opportunities come with better packages. 

As a self-employed professional, you have the option of increasing or reducing your working hours. And if you’re skilled with good work ethics, you end up earning a lot more income. 

You can start earning as an independent accountant with little setup and expenses. You already have a computer; you only need to match that with the right paperwork, and you’re good to go. 

3. High Demand 

Accounting has to do with managing money. Every business venture or organizations seek accountants' help to manage their company’s financial affairs, which means a constant demand for accountants. And if you’re an excellent self-employed accountant who can audit and manage a company’s affair from any location, then there is job security for you. 

As long as some businesses and corporations need assistance with their taxes, there are jobs for accountants. 

4. Better Working Relationship With Clients 

As an independent professional, you get to handle all the work, mostly at the early stages. That means that your clients give you trust and know about your work ethics and expertise, leading to a better relationship and proper connection with your clients. 

Working with all of your clients directly and providing consistent bookkeeping and accounting services gives you a better opportunity to understand their needs and provide reliable services. A better connection also helps to gain trust with your customers and ensure that they keep coming for more. 

5. Become Your Boss 

With no superiors to report to, you get a relieving feeling being your superior. You take charge and control of everything that you are running. You assume the risk and rewards. A good accountant is skilled at setting a plan, managing their time, and have the experience to make informed decisions. This makes accounting a whole new positive challenge for the self- employed. 

6. Location 

Because being a self-employed accountant means that you work remotely, you can choose to live wherever you please and work from anywhere you feel most conducive. You can decide to leave the city to spend time elsewhere, save time traveling, and go wherever the wind takes you. 

As a self-employed professional, your office is mobile. Even when you choose to move with the wind, your office moves along with you. Therefore, it means that your office goes wherever you go, making it more fun to provide accounting services in different environments. 

Regardless of the profession, you are in, the startup isn’t the easiest of times when getting a business off the ground. But once it gets going, it becomes better and more productive. Plus, there is a lot to learn along the way. There are useful suggestions here https://www.skyword.com/contentstandard/6-ways-to-scale-your-freelance-writing-business/ on how to start and scale a freelance business. 

Final Note On Self-Employed Accountants

Being a self-employed accountant comes with lots of benefits, as discussed above. There are many financial rewards, better connection, and trust, and you can serve as a mentor to up and coming professionals by offering accounting advice and tutoring services. 

Also, we advise that companies, whether small or medium-sized, should invest in recruiting independent workers and freelance accountants to their organization because it makes all finance tasks easily outsourced and handled.

How Much Taxes To Pay As An Independent Contractor

It is believed that between 7% and 10% of all workers in America are independent contractors. 

Whether you are freelancing as your full-time job or as a side-gig, being self-employed can make paying taxes more complicated. 

How are you supposed to know how much to set aside for taxes? 

Let's take a look at what you should know about planning for taxes as an independent contractor. 

What Is an Independent Contractor? 

When you work as an independent contractor, you are working for someone else but not as their employee. You are therefore considered self-employed because you are running your own business and taking someone on as a client rather than working for an employer. 

When you work as an employee, someone else determines what will be done and the way it will be done. When you're an independent contractor, you're hired for specific work and paid based on the resulting work. 

Types of Independent Contractor Jobs 

There are a lot of different occupations that could lead to you filling out 1099 taxes. 

Tradespeople are frequently independent contractors. This could mean painters, carpenters, plumbers, electricians, bricklayers, wedding planners, hairstylists, mechanics, and many more. 

Consultants are another group of occupations that are often independent contractors. This refers to advisers in any sector of the economy such as financial, legal, health care, or personal services. 

People who work as artists will often also pay taxes as independent contractors. Whether they are musicians, photographers, writers, sculptors, glass cutters, or woodworkers, they are seen as having and running their own business. 

People who work in the gig economy are also frequently going to file independent contractor taxes. No matter what job you work, it is important to understand whether or not you're an employee or a sole proprietor, as it impacts how much you pay in taxes. 

What Is a Sole Proprietor? 

A sole proprietor is a business with a single-owner that isn't a corporation. If you are an independent contractor, you will be considered a sole proprietor when it comes time to pay your income taxes. 

Does Being an Independent Contractor Affect My Pay? 

When you are an independent contractor, you still get paid for your work but not in wages or a salary. Rather, your payments are taken out of the business's income. When you get paid for your work, the money goes into a business checking account. 

Since you are an owner and not an employee, you can take money out in the form of a "draw" but not in the form of a salary. You must pay taxes on all of the money you make, it doesn't matter how much you draw out of this account. 

Since you aren't an employee of another company, taxes haven't been deducted out of the money you receive for your work. Whereas for another job you might even get a tax refund come tax time, as a freelancer you're responsible for paying your own self-employment taxes. 

Saving for Taxes as an Independent Contractor 

The best way to save taxes for freelancers is to actually have the IRS do it for you. Every three months, you should be sending estimated quarterly payments to the IRS. This way, you're basically paying your taxes as the year goes along, the same way you would if you were employed by a company. 

The IRS can apply penalties if you don't pay quarterly taxes by the due dates each year. Paying quarterly also avoids having a big terrible surprise once a year come tax seasons. 

How Much to Set Aside For Taxes as a Freelancer? 

The recommended percentage to set aside for independent contractor taxes is 25-30% of your income. If this sounds high, it is because you're paying self-employment tax on top of income tax. The self-employment tax is the FICA taxes, which is the Social Security and Medicare normally withheld from your paycheck. 

When you are employed, you are only responsible for half of these FICA taxes while your employer is responsible for the other half. When you work for yourself, you've got to fit the whole bill. 

How to Calculate Your Income 

While this all might sound like a lot, don't forget that you can deduct the costs associated with running your business from your freelance taxes. When tax time rolls around, you will fill out a Schedule C form that documents your business expenses. You will be able to subtract your deductible expenses from your income, leaving you with your taxable income. 

The best way to do this is to keep track of your deductible expenses as the year goes on. Things that are deductible include travel expenses, office supplies, maintaining an office, and miles driven for business purposes. 

If this is only your first year freelancing, you will have to estimate taxes. It is best to estimate your income on the low side rather than too high with the IRS, but you can always make an adjustment the following quarter or year. 

Are you employed after all? Check out this salary calculator. 

How Much to Set Aside For Taxes: Final Thoughts 

There are a lot of advantages to working as an independent contractor as well as a lot of disadvantages. The tax situation is definitely on the 'cons' side of the list. 

If you value being your own boss and being in control of your own schedule, however, dealing with slightly more complicated and more expensive taxes can be worth it. It is just important that you understand how freelance taxes differ from employee taxes so that you aren't caught by surprise come tax season. 

Did you find this article about how much to set aside for taxes helpful? If so, be sure to check out the rest of our blog for more useful and informative articles!