The importance of accounting

The reason accounting is important, it is a pivotal aspect of the business that essentially allows it to function. It does this by keeping tabs on the influx of money coming in and out of the business. Tracking income and expenses, and verifying compliance while providing all parties involved with the necessary information to make the correct business decisions.

What type of accounting do new businesses use?

Generally, small businesses can use either cash or accrual accounting methods. A small business accountant is responsible for recording, analysing and reporting the business's financial transactions. The numbers which are collected are converted into an understandable statement for the business owner to decipher.

Tips for choosing an accountant

Working with reliable individuals is paramount to the success of your new business, this is why you need to do the required research to find the perfect fit for you. The following tips should help you find the right accountant. 

1. Make sure you know what you need

When handpicking your accountant, you will have to identify what type of tasks and responsibilities you expect the accountant to perform for your business. Whether that entails bookkeeping tasks, or if you require monthly financial statements to be completed, a bookkeeper can be recruited rather than a start-up accountant.

If you require advice regarding your tax, preparing tax returns, and auditing financials, you will need a certified public accountant (CPA).

2. Look for small business experience

When in search of financial expertise for your new business, steer clear of the big accounting firms, because you will need an accountant which has experience with working with new businesses preferably in the same or similar industry.

The knowledge and expertise they have gathered will be important in helping your business avoid possible mistakes and mishaps they have come across in the past, being proactive and identifying issues before they escalate into larger problems. These decisions essentially fast track the growth of your business by making the right financial decisions.

3. Ask for recommendations

When purchasing a product, consumers often seek out product reviews to get an understanding of the performance of that particular product. Speaking to other trusted business owners and receiving recommendations about who to approach and use, your peers will always give your trustworthy advice as well as recommendations.

4. Compare fees

Before making a decision it is important to make sure how your shortlisted accountant plans to bill you.  Different accountants charge different rates, whether it be a fixed monthly fee to complete all your bookkeeping, but may add an additional fee for completing and submitting compliance documents. The fee for each service varies based on what services are provided and the qualifications of the person providing the services. Not all accountants and accounting firms charge the same fee for their services.

The three most important things your accountant should do

Along with having numeric skills, being computer literate and having business awareness, your accountant will need to complete important tasks for your business. Maintaining major financial reports. Preparing taxes and monitoring payments. Analysing the operations of an organisation’s finances and recommending best practices, identifying problems, and strategising solutions.

Importance of learning and understanding accounting as a business owner

Having an understanding of accounting and being aware of what needs to be done eliminates the risk of your accountant falling behind on their work. Being able to hold them accountable helps maintain their performance. As a new business, the managers are now also able to make future projections and do so by making predictions using accounting practices. In addition to being necessary for a business's immediate financial health, being familiar with accounting is also an important strategic tool to utilise and understand to grow your business.

Conclusion

While not being a straightforward recruitment process, with the help of the tips your search will be simplified if you follow the steps provided.

As stated, accountants play an integral role in your business's success and growth, with the right accountant the sky's the limit. Placing all the responsibility on the accountant though will not ensure your success, you will be required to bring your end of the bargain by providing a suitable environment for your business to succeed.

What is considered to be good or poor credit?

Generally speaking, a credit score of 670 to 739 is a good credit score. However, building credit is not just for those with poor credit scores. It is always beneficial to get into financially healthy habits and build your credit score up as high as possible. 

Having a good credit score boosts your chances of being approved for loans and lines of credit and maximises the likelihood of receiving the best rates available, all of which will save you money in the long run.

1. Join the electoral register

Joining the electoral register helps lenders to confirm your identity when reviewing your application for loans or a credit card. If you are on the electoral register, there is an official record of your name and address. This is a free and simple action that means that you are making life easier for lenders and ensuring that when they go to verify your information, they can do so quickly via the electoral register.

2. Pay off existing debt

If you already have a large amount of outstanding debt, you should work to pay this off as quickly as possible. Generally speaking, if you make regular repayments in a timely manner, this will help your credit score in the long term as it shows you to be a reliable borrower. Lenders and credit card providers want to know that you are able to pay the required amount at the required time.

Clearing out any debts is a good way to keep your credit score nice and clear, except for a mortgage that people would expect you to have for 10 or 20 years.

There are some products such as payday loans which are less desirable for your credit score and even though paying them on time is a good indication of creditworthiness, such high-cost products including rent to own and logbook loans are often associated with those living week to week and generally do not help your score.

3. Manage your credit utilisation rate

In order to build credit, you should manage your credit utilisation rate. This is the amount you are spending versus the amount of credit you have available. It is also known as a debt-to-loan ratio. Your credit utilisation rate lets lenders know how responsibly you are using your credit.

Financial experts recommend keeping credit utilisation at 30% or under meaning that you are never spending more than 30% of your available credit. For example, if your credit card has a limit of £1000 per month, you should try not to spend more than £300 in order to keep your credit utilisation ratio in check and positively impact your credit score.

4. Cancel unused cards

Unused lines of credit can cause unnecessary noise on your credit card. Not only that, but multiple lines of credit may indicate to lenders that you have a risky borrowing profile and that you need to seek out multiple forms of credit. Having multiple lines of credit open means that, in theory, you could be spending a large amount of money at any given time as you have a lot of credit available to you. If you have multiple cards that are unused, you should pay these off or close the accounts as soon as you can. This action can go a long way in improving your credit score.

5. Dispute any mistakes on your credit report

Errors on your credit report are easily made. Whether they have recorded payments that were on time as late, confused someone else’s credit activity with yours, listed closed accounts as open, or are showing information that is no longer valid, there are many mistakes that could negatively impact your credit report. 

Keep on top of your credit report and make sure that you identify any errors to credit reference agencies (and it is free to do so). Once identified, you can contact your credit bureau to contest these errors and remove them from your report. This will have a positive impact on your credit score.

1. Find a good home buyer

The first step in getting the most money for your home is to find a good home buyer. There are many factors to consider when choosing a home buyer, such as their financial stability, their ability to close on the deal quickly, and their willingness to negotiate. You should also make sure that you are comfortable with the buyer and that they have a good reputation. Once you have found a few potential buyers, you can start negotiating. You should also consider selling your home to cash home buyers where you can have a hassle-free sale of your home and that you get the best possible price. Also, be sure to ask for recommendations from friends or family who have recently sold their homes.

2. Home staging

Home staging is the process of preparing your home for sale. This includes decluttering, deep cleaning, and making any necessary repairs or updates. Home staging can be a time-consuming and costly process, but it is worth it if you want to get the most money for your home. A staged home will sell faster and for a higher price than a non-staged home. If you are not sure how to stage your home, there are many resources available online, or you can hire a professional home stager. With a little effort, you can make your home look its best and maximise its value. Also, be sure to declutter and deep clean before showings and open houses. This will make your home more appealing to potential buyers and help you sell your home faster.

3. Pricing your home correctly

Pricing your home correctly is one of the most important factors in getting the most money for your home. You should price your home competitively, but not so low that you leave money on the table. The best way to determine a competitive price is to look at comparable homes in your area that have recently sold. You can also get a professional home appraisal to find out your home's value. Once you have determined a competitive price, you can start negotiating with buyers. Remember, the goal is to get the best possible price for your home, so don't be afraid to hold out for a higher offer. Some people are reluctant to negotiate, but it is a necessary part of selling your home. 

4. Get a good home inspector

A good home inspector can make or break a sale. A home inspection is an important step in the selling process, and you want to make sure that your home is in top condition before putting it on the market. A good home inspector will find any potential problems with your home and help you fix them. This will not only make your home more appealing to buyers, but it will also help you get a higher price for your home. A home inspection is a small investment that can pay off big time when selling your home. The inspection looks at the physical condition of the property and evaluates if it is up to code. Many times, home inspectors will also find hidden damage that you may not have been aware of. This can be used as a negotiating tool to get a lower price for the home or to ask for repairs to be made before closing.

5. Use a real estate agent

A real estate agent will help you with pricing your home, marketing your home, negotiating with buyers, and more. They will also be there to answer any questions you have throughout the selling process. Selling your home can be a daunting task, but working with a real estate agent will make it much easier. They will guide you through every step of the process and help you get the best possible price for your home. If you are thinking about selling your home, be sure to interview a few different real estate agents to find the right one for you. Working with a professional will make the selling process much smoother and less stressful. Also, be sure to ask your agent for recommendations on home staging, pricing, and marketing. They will have a wealth of knowledge and experience to help you sell your home quickly and for the most money. 

6. Marketing your home

Marketing your home is one of the most important steps in selling your home. You need to make sure that potential buyers are aware of your home and its features. There are many ways to market your home, including online listings, open houses, flyers, and word-of-mouth. You should also make sure that your home is easy to find online. Potential buyers should be able to find your home easily when they search for homes in your area. Be sure to include plenty of photos and detailed information about your home. You want potential buyers to know everything they can about your home before they even step inside. Marketing your home correctly will help you sell it faster and for more money. 

7.  Closing the deal

Once you have found a buyer for your home, it's time to close the deal. This is usually done through a real estate agent, but it can also be done without one. Closing the deal involves negotiating a sales price, signing a contract, and transferring ownership of the property. This is typically a fairly straightforward process, but there are a few things to keep in mind. First, you will need to decide on a sales price. This should be based on the current market value of your home, as well as any repairs or upgrades that have been made. Once you have agreed on a price, you will need to sign a contract. This contract should include all pertinent information about the sale, including the sales price, closing costs, and any contingencies. Be sure to read over the contract carefully before signing it. 

Final Thoughts

By following these tips, you can be sure to get the most money for your home when you sell it. Just remember to do your research, take your time, and be prepared to negotiate. With a little effort, you can get the best possible price for your home, so don't hesitate to put your home on the market. Good luck!

1. Map Out Your Goals

Think about your financial goals, now and in five-year increments. Maybe you want to travel for three months. Or, maybe you want to start a family or buy a new home. Once you write down your goals, you need to prioritise them according to importance. Decide which one of your wants is easiest to achieve and which will take longer. The ones you put at the top of the list are the most important.

If buying a new home in a year is your number one goal, you will need to make a down payment. You could dip into your savings, or you could look into getting a life settlement. A life settlement is when you sell your policy to a third-party buyer. In turn, you receive a portion of the total cash value. The third-party then becomes the owner of the policy. If you’re not sure how the process works, there are guides that go over the best life insurance settlement companies so you can find a reputable company that fits your needs.

2. Put Your Plan In Motion

Once you flesh out your plan, you need to put it in motion. You need to set realistic milestones for each goal and then create a strategy to surpass them. If you’re trying to pay off a high-interest credit card, where can you cut corners in other areas? If you work out at the gym, you could start exercising at home. On average, you could be saving up to $50 dollars a month just by getting in shape at home. You could then put that money onto your credit card to lower the interest rate and pay off the balance. There are plenty of other ways to save money, which include bundling your insurances, shopping for off brands and clipping coupons. You can also buy gently used clothing instead of new clothing. Now, you can buy high-end clothing and accessories for a fraction of the cost online.

3. Create A Budget

Everyone says they have a budget, but how many people actually stick to it? Look at your finances and see which areas you’re having the most trouble with. Create a new budget, which aligns with your goals, and think of strategic ways to stick with it. Note, your budget doesn’t need to be so strict that you can’t have any spending money. You can set up automatic money transfers from your checking account into your savings. That way, you won’t be tempted to overspend. You can also set up your savings account so there’s a limit on how many withdrawals you can make within a month.

4. Reward Yourself

Once you reach your goals, don’t forget to reward yourself. It’s easy to get so caught up in saving that you might forget to treat yourself.

Even though you won’t be around to play a part in managing your estate, you do have a say in what happens with it once you’ve passed. Consider doing some of the following things to look after your money and loved ones. 

Create A Will

A core part of estate planning involves drawing up a will. A will or testament is a formal, legally-binding document that outlines your wishes once you have died, such as who you want to manage your estate and how you wish your assets to be divided. A will can also outline instructions for any dependents or pets. 

According to a 2021 Gallup poll, less than half of US adults don’t have a will, and the results have been relatively similar in poll results dating back to the 1990s. While it can be challenging to think about your passing and put instructions in place for how your family can manage it, it can be crucial to have your money and family looked after. 

Failure to create a will can mean that your estate is divided in probate court, and someone other than who you wanted may end up with your assets. Not making a will may also mean that your family can wait months, or even years, for a resolution, and the details of your probated will can be a public document for anyone to read.   

Name Your Beneficiaries

Telling certain friends and family members what they can expect from your estate upon your death doesn’t guarantee that your wishes will be followed. Unless you have legally named people and assets, there is a genuine risk of your wishes being contested. 

To prevent this from happening and ensure your money goes to the right people, legally name beneficiaries for your assets, and don’t forget to update them as the years pass. If you have a retirement fund or life insurance, you may be able to name beneficiaries at the time of their creation. 

In some states, such as Colorado, transferring properties to your loved ones upon your death can be made much easier with beneficiary deeds. These are legal documents that allow you to pass titles to property under a grantee-beneficiary at death, with no need for probate administration. These deeds must be recorded before your passing. 

Keeping your preferred beneficiaries up-to-date is crucial, for any discrepancies between a will and deed will see the deed beneficiaries prioritised. 

Set Up Trusts

It’s natural to worry about what your family will do with your money once you pass. You might have concerns about specific family members misspending it, or you have a large estate that will see someone receiving hundreds of thousands of dollars upon your death. 

One of the most sensible options to look after your money is a trust. You can appoint a trustee who will distribute your wealth as you see fit, and the money within the trust isn’t subject to estate taxes. However, once your assets are in a trust, they no longer belong to you. 

Setting up trusts can be a complicated undertaking, particularly when several assets are involved. Estate planning attorneys may be necessary for ensuring your money is taken care of how you would have preferred. 

Gift Your Money

When your estate is subject to hefty taxes that could see your family members receiving less than you would have liked, consider gifting them assets and money while you’re still alive. In the US, you may give one person up to $15,000 per year without having to pay tax. However, if you plan to gift assets in this way, be mindful of value appreciation. Depending on when you provide the gift, they may need to pay tax on it if its value is adjusted upon your death and ends up being worth more than $15,000. 

Switch To Roth Accounts

Your heirs may be required to pay a significant amount of tax on an IRA or 401(K) account, which means they may not receive as much as you had anticipated upon your passing. This is especially true on accounts with large balances since heirs must withdraw all money from the account within 10 years. 

By converting your traditional retirement accounts to Roth accounts, your heirs may be able to make tax-free withdrawals. They will still need to pay income tax, but it will likely cost less than it would if you hadn’t converted the account. 

Final Thoughts

As challenging as it can be to think about your death and the future of your assets when you pass, it can be necessary to ensure your money is managed in a way you would have wanted. Now might be the right time to put a will in place and start thinking about family members you’d like to take care of.

Whatever your reason for starting a business may be, one thing is certain, you'll need to have a well-thought-out plan before opening your doors for business. It goes without saying, you'll need financial resources — capital — to build this vision of yours into a reality. You know what they say about all great plans having solid foundations. And that costs money! So how much money will you need? The following 6 tips on how to plan your budget will help you figure that out.

1. Know Your Business Needs

Before you can determine how much money you need to start your business, you'll first need to know what it is that your business does and the products or services it will offer. Knowing how much money you're going to invest in the company and overhead costs such as payroll, taxes, the cost of getting a registered office address for a limited company in the UK or other locations, rent, utilities, and other expenses is vital for planning a budget. To do this, you must know how to calculate your fixed costs and your overhead costs. 

Fixed costs are those expenses that don't change regardless of how much or how little business you have. Think rent, utilities, etc. To determine your fixed cost per month for one year, multiply the yearly amount by 12/52 (there are 52 weeks in a year) = monthly fixed cost before adding on any other overhead costs.

Now add your overhead costs to your monthly fixed cost: advertising, marketing, phone bills, insurance premiums, and any other expenses that vary from month to month. Subtract this amount from the gross income you expect to generate each month after expenses. The resulting figure is your net profit per month. Here's an example:

• Monthly Fixed Cost = $500/mo 
• $500 x 12 months = $6000 yearly fixed costs 
• $6000 + $300 for utilities ($300 x 12 months) = $9000 monthly overhead cost 
• Projected Monthly Gross Income = $25,000 (from sales and services provided by business) 
• $25,000 - ($9000 + $3000) = $10,000 monthly net profit

2. Determine The Number Of Months You Will Need to Break Even

To determine the number of months it will take you to break even on your investment, divide the total cost needed to start your business by your projected monthly net income after overhead costs are paid. This is how many months it would take you to pay off all opening expenses if no new business came in during this time. Let's use the example above for this calculation: 

• Breakeven point (months):  
• $25,000 / $10,000 = 2.5 months to break even

3. Determine The Additional Cash You Will Need to Keep Your Business Afloat

Let's face it, there are times when our business doesn't generate enough revenue to cover expenses during that period. Perhaps you've hired staff only to realise it would be difficult for them to find clients right away, or you thought your marketing campaign would attract more customers than it did. So now you're stuck with overhead costs but no income coming in. This is where your contingency fund comes into play - another very important part of your start-up plan. To determine the amount of money needed as a contingency fund, take what you currently have plus any additional cash needed until your business can stand on its own two feet without needing a subsidy from your personal account. Here's an example:

• Additional Cash Needed = $3000 for 3 mo (3 months' projections)
• $25,000 + $3000 = $28,000 total cash needed to start up business

4. Use An App

If you're a bit of a techno-geek, then why not try an app to help calculate your budget? There are many to choose from. When choosing an app to help with your budget, consider the following factors:

• The number of features and functions that will best suit your business needs and operations.
• How user-friendly and intuitive it is (i.e., how easily you can learn to use it).
• Whether or not you will be able to access it from different devices (desktop, smartphone, other tablets) when you're on the go (so make sure your device can support the software if this is important to you). 

5. Get Professional Help

Perhaps the best way to determine your budget for starting a business is by getting some professional help. There are plenty of business advisors who can come up with an accurate projection based on their own experience and advice tailored specifically to your business needs. How much this service will cost depends on the complexity of your business (and how much guidance you need) but it's worth considering, especially if you're venturing into uncharted territory or if you don't know where to begin.

When choosing a professional to help with your budget, consider the following factors:

• The number of years they have been in business and their success rate.
• How experienced they are with small businesses (you'd be surprised how many big-company executives don't know what's involved in running a startup).
• Whether or not you feel comfortable interacting with them on your own terms (as opposed to following their requests or conditions). 

6. Be Realistic About Your Startup Budget Plan

Many hopeful entrepreneurs make the mistake of planning big-dreaming big, hoping for big profits and cash flow, only to become disappointed when things don't turn out as planned. You can avoid this by keeping your budget realistic and making sure the numbers add up. To illustrate the importance of planning your budget realistically, consider this example:

Let's say your budget calls for $8,000/mo in sales and you want to bring in $8,000/mo before taxes. You anticipate needing $2,500/mo for rent and utilities because you plan on having 5 full-time employees. Here's what will happen if things don't go as expected:

• Month 1 - Sales = $8,500 (sales are higher than anticipated)
• Cash Flow = $0 because all cash is tied up into expenses

When deciding on a budget, consider what needs to happen in order to reach that goal - and then plan accordingly. The key is not to be afraid of making mistakes along the way as long as you learn from them and adjust accordingly. The first step is always the hardest but once you're there, it's only a matter of doing it over and over again until you get it right.

But as the attack surface expands with the growing use of social media and external digital platforms, many FinServ security teams are blind to a new wave of digital threats outside the firewall.

Here Anthony Perridge, VP International at ThreatQuotient, discusses how all businesses need to fully understand the threats they can face on social media and how to prevent them, and specifically how FS’s can protect their institutions online.

More than three billion people around the world use social media each month, with 90% of those users accessing their chosen platforms via mobile devices. While, historically, financial services (FinServ) institutions discouraged the use of social media, it has become a channel that can no longer be ignored.

FinServ institutions are widely recognised as leaders in cybersecurity, employing layers of defence and highly skilled security experts to protect their organisations. But as the attack surface expands with the growing use of social media and external digital platforms, many FinServ security teams are blind to a new wave of digital threats outside the firewall.

Social media is a morass of information flooding the Internet with billions of posts per day that comprise text, images, hashtags and different types of syntax. It is as broad as it is deep and requires an equally broad and deep combination of defences to identify and mitigate the risk it presents.

Understanding prevalent social media threats

Analysis of prevalent social media risks shows the breadth and depth of these types of attacks. A deeper understanding of how bad actors are using social media and digital platforms for malicious purposes is extremely valuable as FinServ institutions strive to strengthen their defense-in-depth architectures and mitigate risk to their institutions, brands, employees and customers.

To gain visibility, reduce risk and automate protection, leaders in the financial industry are expanding their threat models to include these threat vectors. They are embracing a data-driven approach that uses automation and machine learning to keep pace with these persistent and continuously evolving threats, automatically finding fraudulent accounts, spear phishing attacks, customer scams, exposed personally identifiable information (PII), account takeovers and more.

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They are aggregating this data into a central repository so that their threat intelligence teams can trace attacks back to malicious profiles, posts, comments or pages, as well as pivot between these different social media objects for context. Network security teams can block their users from accessing malicious social objects to help prevent attacks, and incident response teams can compare their organisation’s telemetry of incidents with known indicators of compromise to mitigate damage.

Employee education is also a critical component of standard defences. Raising awareness of these threats through regular training and instituting policies to improve social media security hygiene with respect to company and personal accounts goes a long way to preventing these attacks in the first place.

A Checklist for Financial Institutions

This checklist that encompasses people, process and technology will go a long way toward helping FS teams better protect their institutions, brands, employees and customers.

1. IDENTIFY the institution’s social media and digital footprint, including accounts for the company, brands, locations, executives and key individuals.
2. OBTAIN “Verified Accounts” for company and brand accounts on social media. This provides assurance to customers that they are interacting with legitimate accounts and prevents impersonators from usurping a “Verified Account.”
3. ENABLE two-factor authentication for social media accounts to deter hijacking and include corporate and brand social media accounts in IT password policy requirements.
4. MONITOR for spoofed and impersonator accounts and, when malicious, arrange for takedown
5. IDENTIFY scams, fraud, money-flipping and more by monitoring for corporate and brand social media pages.
6. MONITOR for signs of corporate and executive social media account hijacking. Early warning indicators are important to protecting the organisation’s brand.
7. DEPLOY employee training and policies on social media security hygiene.
8. INCORPORATE a social media and digital threat feed into a threat intelligence platform as part of an overall defense-in-depth approach. This allows teams to ingest, correlate and take action faster on attacks made against their institution via social media.

By utilising high-quality and targeted data, you can be able to connect with more of the right individuals, getting more leads and reducing costs during the process. On the contrary, utilising the wrong data can result in dire consequences for your entire organisation other than your marketing campaign failing to gain traction.

As such, picking the right B2B data provider is imperative. You need to be sure that the partner you will be working with has the credentials and ability to provide the results you are after. Whether you want phone numbers, postal addresses, email addresses or a combination of all, you will only have peace of mind if you trust that your data provider really cares about your company.

That being said, here are important things to look at when picking a business data provider in the UK.

Verifiable Sources of Data

Can the provider tell you just how they garnered the data that they're selling? Also, have their sources been thoroughly inspected? If the answer is no, that should be a red flag. If you have proof that the business data is from a credible source, you'll want to check how often it's updated. Business data is constantly evolving and decays pretty fast. As such, the data needs to be cleaned and refreshed on a regular basis or you won't get the results you're after.

Proper Accreditations

Your business data provider needs to be registered with the Data Protection Act and the Information Commissioner's Office (ICO). Ideally, it is worth looking for a data provider that's registered with the Direct Marketing Association. This is a network of over 1000 firms that provides the best practice guidelines and legal updates. Each member is expected to collect data in an ethical manner.

While undertaking this process, it is a good idea to review the business data provider's own site in a more general manner. Do they have contact information like postal address and phone number? An unscrupulous provider may hide being their site, selling you data and then going missing thereafter.

Thorough and Targeted Data Records

What you deem as targeted and thorough will certainly depend on your specific needs. Regardless, it's best to have detailed information than the opposite. For instance, are you just given employees names, or are you told more about their roles? Also, can that data be paired up? For example, a postal address linked to an email address?

The best business data providers in UK will work closely with your to source data that best match your marketing and business goals. They will conduct penetration analysis or profiling which involves analysing your clients and looking for what they have in common as well as what drives them. This information is then used to get similar prospects from their database and thus help boost your sales.

Guarantees in Deliverability

It is also important that your business to business data provider can verify that your marketing message will reach the individuals you are targeting most of the time. Of course, a 100% deliverability guarantee is impossible as there are numerous variables that can impact the outcome. However, your business data provider should be able to show that your emails and direct mails will reach the intended prospects and that your phone calls will be answered by the right individuals majority of the time.

Business data is imperative in reaching prospects and boosting sales in this day and age. You want to ensure you are on the right side if you're going to use a business data provider. Use the tips above to ascertain such.

Here Chris Heerlein, author of Money Won’t Buy Happiness – But Time to Find It,  and Investment Adviser Representative and partner at REAP Financial LLC, provides expertise on the little known tax breaks you could be making the most of.

The Tax Cuts and Jobs Act of 2017 gives us a lot to think about when crafting a financial framework. With the legislation scheduled to run through 2025, you want to be aware of certain provisions and exceptions in the tax-reform law and how you can take advantage of them.

State taxes

The tax-reform changes impose a $10,000 limitation on the deduction of state taxes. The IRS says that maximum does not apply to property taxes imposed on business property. For those of you with home offices, to the extent that you can allocate real estate taxes on your home to that office, understand that’s deductible outside or above the $10,000 limit.

Home equity lines of credit

If you take out a home equity line and use the proceeds to reinvest in your home, such as a new kitchen or a new wing in your bedroom, the interest remains deductible. But if you use those proceeds to, say,  pay off college tuition or credit cards, there’s no allowable deduction. We see families borrowing money on their home to use for repairs, improvements, and sometimes even to cover retirement income and keep their tax bracket under control. Borrowing home equity can be good, but you need to keep track of what you’re doing with the proceeds because if they’re invested in the home, you can still take a deduction.

Charitable contributions

These are deductible, as they always were, but the reason to be concerned about this category is the doubling of the standard deduction. Prior to the new tax law, only about a third of people in the United States actually itemized deductions. And after this increase in the standard deduction, guess what? It goes down to less than 10% of Americans.

Think about that: 90% of people will claim a standard deduction. Now, why does that affect charitable contributions? Well, as you may know, you can claim a deduction for a charitable contribution only if you itemize. If you don’t itemize and take the standard deduction, you get no tax benefit for charitable contributions. But here are some workarounds:

For people over the age of 70 ½ — the age when you have required minimum distributions on your IRAs and 401(k)s — there’s something called a qualified charitable distribution (QCD), and you can take up to $100,000 out of your IRA each year and basically have it sent directly to a qualified charity. This is a wonderful strategy for families that give small amounts and large amounts. And you avoid all tax on that distribution that ends up at the qualified charity. You can claim the standard deduction and still avoid tax on the IRA required distributions, but remember, the first dollars you give to charity should be money out of your IRA.

What about those of you younger than 70½? Here’s what you might want to do. This is a little outside the box but it’s a powerful strategy. Bundle several years or so of contributions to your qualified charity. Let’s pull five years out as an example. You can actually bundle these contributions into a single year so that you will go over the standard deduction in that one year and claim a deduction for the excess contributions. A Donor Advised Fund (DAF) is when families put money into the fund, they get the full tax deduction for whatever goes into the fund that year, plus they can distribute that money over time, at their direction. I recommend this a lot of times to clients, especially those taking the standard deduction.

Entertainment and meal expenses

There are some big changes when it comes to entertainment expenses and meal expenses. The new tax law disallows any deduction for entertainment expenses period. Meals — an integral part of business dealings, of course — are a bit different. The IRS says you can still deduct the meal expense as long as you have a separate receipt. Going forward, make sure that your food costs for clients are separately stated on those invoices and receipts. That’s a big one and can add up fast.

Then there’s the very important SSA-44 Form. Let’s say you’re a high-wage earner and you are going to work half the year when you retire at 65. You get off the employer health care plan and go on Medicare. Well, the government dictates your Medicare premiums by how much income you report. If you go over these thresholds, you are going to get a letter in the mail that says, “You’re Medicare premiums are going up.” And I’m talking perhaps $500-plus per person more for the same coverage your neighbor is getting. The SSA-44 Form is something you would file with your tax return in a year that you retired and were over these income limits, and they’ll give you a once-in-a-lifetime exception around those limits.

First time homebuyers looking to purchase an abode for the future can look to six savvy tips from the conveyancing experts at jmp-solicitors.com.

Here’s a list of savvy tips for first time homebuyers.

1. Decide on a realistic budget

When purchasing a home, the deposit isn’t the only cost you’re going to need to cover. As well as the budget for a deposit, which will be around 5%-20% of the value of the home, there will be a number of initial fees such as the valuation fee and the surveyors fee, as well as the additional parties to pay such as the lender/broker fees (if first time buyer no estate agents fees) and the conveyancer. There is then the fees associated with the mortgage including the booking fee, arrangement fee and mortgage valuation fee. We recommend saving an additional £2,500 on top of your deposit to cover the costs.  Please be aware that if more than one person is purchasing and they have already owned a property then stamp duty will be payable even though the other person has never owned a property anywhere in the world before.

2. Find a suitable conveyancer

It’s important to find an experienced conveyancer who will provide a thorough service when you’re buying a home. Your conveyancer will be able to give legal advice, handle contracts, undertake important searches, deal with the Land Registry, and the transfer of funds. Many estate agents will recommend a conveyancer, but it’s important to undertake your own research to make sure you find the right one for your particular purchase. Ensure that they are certified by either the Solicitors Regulatory Authority or Council for Licensed Conveyancers or the Law Society.

3. Take extra care in filling out paperwork

Miswritten paperwork is a common cause of delays when it comes to buying your home. It is important to ensure you read all contracts in full detail and fill in all paperwork openly and honestly. Any incorrect paperwork could lead to a great deal of legal problems in the future. Taking a little extra caution when filling in forms and applications can save you a great deal of time in the long run.

4. Be patient 

While you may be itching to get into your new home, it is vital that all aspects of the process are dealt with thoroughly. Sometimes the conveyancing process may involve a lot of paperwork and additional enquiries, but it is important to understand that all the legal aspects are being done in your best interest as a first-time home buyer. Aside from conveyancing, the mortgage arrangements, estate agent negotiations and the actual moving in process will also take some time.

5. Uphold good communication with your agents

Ensure you are always kept in the loop with the seller, your estate agent, mortgage advisor and conveyancer. When you have decided on a property, you want the process to be as smooth and hassle free as possible, so don’t be afraid to keep pestering your agents. In the same way, make sure to keep your phone on at all times in case you need to be informed of any major turning points. Additionally, keep up to date with your emails, including checking your junk, as conveyancers will often send over documents via email.

6. Ensure you are fully satisfied with your final arrangements and negotiations

For first time home buyers, you may go into a contract not fully understanding what is in your best interest. Your conveyancer will be able to provide you with the best possible advice to ensure you get the best deal for the short and long term. If at any time you are not satisfied with your agreements, it is vital you speak with your conveyancer and they will endeavour to resolve any issues before it is too late.

For a newbie, the wealth management industry is a lot to take in; but that should not stop you from dabbling in investments and asset management. All you need is a wealth management firm that you can count on to put together a sound financial plan for you!

Take note of these important factors when looking for a wealth management firm:

Expertise and Experience

It’s no secret that the world of investment and financial management is a complicated one. That said, you’ll need a firm with the expertise to handle complexities and deliver the sophistication that unique situations require.

Don't fall too quickly for advisors who claim they've handled plenty of clients like yourself. Keep in mind that people's financial circumstances are rarely alike, and this is probably just a tactic to lure you in. Instead, why don’t you ask the financial advisors about specific clients with financial situations quite similar to yours? How were they able to help them grow and manage their money?

A good and reliable wealth management firm should have advisors who can make you understand their insights and ideas even if you're new to the whole thing.

Continuit

Here, consistency is key. In 10 or 20 years, you'll want to retire and enjoy the fruit of your hard work and investments. However, you definitely do not want your wealth management firm to do the same!

One important thing to consider when selecting asset and investment management firms is longevity. But the number of years in business alone won't suffice -- it is crucial to go for those with a dependable succession plan in place. Think of it as an assurance that they can continue taking care of your wealth management needs well into the foreseeable future.

Access to Resources

For your investment to grow, choose a firm that has access to a wide variety of products, services, and financial management options. While it’s true that most firms offer flexibility in terms of investment opportunities, some may have limited access to certain investment vehicles due to the size of the assets that they manage.

Thus, large scale investment firms may be more capable of leveraging their assets to address certain issues, negotiate fees, and formulate more sophisticated solutions to your investment needs.

Performance and Reputation

In the end, it all boils down to one thing – results. This is, perhaps, the most crucial box you'll have to tick. Before making your final decision, find out as much as you can and assess if the firm you’re about to choose has consistently delivered commendable results over time.

Spare some time and energy for research and get to know the firm a little beyond the surface level. You can ask your friends and colleagues for opinion or consult the internet for reviews and recommendations. Remember: your money and the future of your finances are at stake here.

Lastly, look for wealth managers you can work closely and comfortably with – someone you won’t hesitate to approach for inquiries or when you want things to be handled differently.

More often than not, people choose a wealth management firm on the basis of price. But you know what? Cheaper isn’t always better. What you need to look for is value.

The guide, on How to Make Money from eSports, also labels the United States as the highest-earning country and Dota 2 the highest-paying game.

Aimed at both talented gamers and those who have an interest in eSports, content included uses historical data and cutting-edge insight to offer realistic guidance to those who dream of being the next MVP (Most Valuable Player).

Jesse “JerAx” Vainikka, from Finland made short of $2,500,00 last year, topping the five highest-earning players in 2018:

1. Jesse “JerAx” Vainikka ($2,290,632)
2. Johan “N0tail” Sundstein ($2,282,717)
3. Sébastien “7CKNGMAD” Debs ($2,280,217)
4. Topias “Topson” Taavitsainen ($2,249,842)
5. Anathan “ana” Phan ($2,249,136)

2019 is set to be particularly profitable, with the highest-earner predicted to pocket $3,292,966 in winnings.

Top tips to being the best include:

• The qualities most appropriate for streaming and competing.
• Step by step guide on how to become a streamer or pro-league player.
• How to monetise channels.
• An overview of affiliate marketing.
• How to find your niche (as a streamer or player).
• How to get noticed and rise from a gamer to a pro-league player.

2018 proved to be a successful year for the top five highest-earning eSports players, who each took home an average of $2,270,509.

With prediction data, the average winnings of the top five players are set to rise by 39.6% from $2,270,509 in 2018 to $3,169,957 in 2019.

The highest-paying game in 2018 was Dota 2, which awarded a staggering $41,395,452 in prize winnings. Further success is apparent for Dota 2, which is forecasted as the highest-paying game for the next five years.