A lot of folks find themselves wondering, “How often do I need to balance my checkbook?” This can be a difficult question to answer because many factors determine how often you need to tend to this basic financial chore.

This question is also difficult to answer because everyone’s check-writing habits are different. The following tips and hints can be useful in helping you to determine how sporadically you should be balancing your checkbook.

How Frequently Do You Write Checks?

Ask yourself how often you write out checks. If you are someone who has to write a lot of checks on a regular basis, you will need to balance your checkbook every day or every other day. It is easy to lose track of your account balance if you do not balance your checkbook on a regular basis.

For Those That Write Few Checks

Determine the amounts that you write checks for. If you write a few checks for larger amounts, you may have an easier time keeping track of your account balance and may not need to stress about balancing your checkbook.

The Importance of Keeping Up With Your Checkbook

You should at least balance your checkbook once a week no matter how often you write checks or how much they are for. You do not want to face fees and penalties because you forgot to balance your checkbook.

When it all boils down to it, the question “How often do I need to balance my checkbook?” really can only be answered on an individual basis. It can be different for everyone. One thing that is certain is you should always be aware of how much money is in your checking account. Paying overdraft charges can quickly deplete your funds.

These charges can add up to a large amount quickly. If you do not feel that you have the time to balance your checkbook, count on TalkLocal to connect you with accountants and other professionals that can lend a helping hand.

When you’re finally ready to put up money for a new car, you’re immediately approached with a choice.  Should you buy or lease a car?  Usually, most people would purchase a car, since at the end of the lease, you’ll have nothing to show for all of the money you put in. However, buying and leasing the car isn’t simply just a money decision.  Buying vs. leasing a car has many advantages and disadvantages that you’ll want to weigh before making your choice.

What to consider

When thinking about this question, you should first make a list of your priorities with your car to figure out what type of financing or lease you would like to take.  Is owning the newest car on the block a high priority or are long term savings more important to you?  Do you want to have ownership of your car and be free from car payments, even if you’ll be paying higher monthly costs initially?  There are always trade-offs to consider when choosing to buy and lease a car.

Buying vs. Leasing a Car

Now that you know your priority, you can finally make a decision.  If you are buying the vehicle, that means you’ll be paying to own the car you’re driving off of the lot.  It doesn’t matter how often you drive the car, you’ll always own the car at the end of the payments and, as such, buying a car is an investment in it of itself.  However, this does mean you’ll have higher monthly payments than leasing, and you’ll also have to pay for major repairs down the road when your car gets older.

If you choose to lease the vehicle, you are paying to use the car rather than to own it.  You can lease a car with a very low down payment, low monthly payments, and no risk of maintenance costs, which also means that you can invest your money elsewhere.  You’ll even be able to return your car every 3 years for another new leased car under warranty.  The downside to leasing, however, is that you’ll never actually end up owning a car at the end of the payments and you may even have to pay additional fees if you drive your car above a certain mileage limit.

Lifestyle Choices

It really comes down to how you want to live and how you want to achieve that lifestyle with your money.  Buying vs. leasing a car should always fall in line with your lifestyle priorities.  If you have any financial concerns, you can always discuss this choice with an accountant.  Try using TalkLocal.  It can connect you to the highest quality local accountants in just minutes!

Many small businesses are forming a Limited Liability Company (LLC) because it is a flexible form of enterprise in terms of management and contracting. Some advantages for members include controlling how the company is taxed, and being protected from debts and lawsuits of the LLC.  The process of setting up a Limited Liability Company is simple and can be finished in an hour. To form a Limited Liability Company, just follow these steps:

1.  Go to your state’s Secretary of State office.

2.  Ask for a copy of your state’s LLC Articles of Organization form. While you are there, ask about state regulations regarding notices in the newspaper and business names.

3.  Select a business name. There are restrictions on words like “Corporation”, “City”, and “Insurance” among others, so check your state’s prohibited words. You cannot use the same name as another LLC in the state and your business name must end with an LLC designator such as “Limited Liability Company” or “LLC”.

4.  Complete the LLC Articles of Organization form. The form includes basic information such as the purpose of the business and the names of the members. You are not yet required to specify more  complicated information such as ownership distribution and management structure.

5.  Submit the LLC Articles of Organization form.

6.  Pay the filing fee, which ranges from $40 to $900. Along with the filing fee, you must also pay an annual fee at that time. Contact a local accountant for the amount of the annual fee.

Designate a Registered Agent

A registered agent is the person who receives important information on behalf of the LLC. The registered agent must be available at the legal address of the LLC (cannot be a post office box) during all normal business hours. Make sure your registered agent complies to these requirements and researches other responsibilities, or else your LLC will face legal consequences.

Remember to follow up with tasks unique to your state, such as posting a notice in your local newspaper if necessary.​ You are now finished with the legal requirements, but it is highly recommended to follow up with an LLC Operating Agreement if the LLC has multiple members.

Create an Operating Agreement​

The purpose of the Operating Agreement is to outline basic rights and responsibilities of the members. If a dispute ever occurs, an Operating Agreement can quickly resolve any discrepancies. You can find free templates of operating agreements online.​

Additional Help

UCA cash flow or Uniform Credit Analysis cash flow, is one method used to determine the ability of a company to repay a loan. Some would say UCA cash flow analysis is a more accurate, practical and easily understandable method to determine this ability, versus methods such as EBITDA (earnings before interest, taxes, depreciation and amortization), or net income plus depreciation. We provide a simplified definition of UCA cash flow.

Here is a simplified example of how UCA cash flow looks at a company’s financial situation:

1. Total Income from Product or Service Sales
minus Inventory, Production or Service Costs
= Gross Cash Profit

2. Gross Cash Profit
minus Operating Expenses
= Cash After Operations

3. Cash After Operations
plus/minus Other Income or Disbursements, and Taxes
= Net Cash After Operations

It is this Net Cash After Operations figure which represents monies that are available to service a debt. This is the bottom line. While it is not the only factor a lender looks at in judging a company’s ability to repay a loan, it is a key factor.

UCA cash flow analysis eliminates issues such as non-cash expenses for equipment depreciation, or inflated cash flow based on extending the time to pay vendors.

It also provides a more real-world picture of a company’s financial health and can give a lender a better idea of how a company manages its money and why it needs to borrow money – is it to increase inventory, production or services, or is it to cover operating expenses?

Additional Help

An accountant can help you further understand the definition of UCA cash flow, how it applies to your situation, and help you put a UCA cash flow analysis together. If you don’t already have an accountant that you trust, you should use TalkLocal to find an accountant. We will connect you with up to three high quality professionals in just minutes!

A Limited Liability Company is a business structure that allows the members to have a limited personal liability for all the debts and actions of the company.  Each state has specific requirements to form Limited Liability Companies, but businesses like banks and insurance companies, for example, cannot be categorized as LLC’s.

Form Limited Liability Company

When trying to form a Limited Liability Company (LLC), a person must file articles of organization with the secretary of state.  This is just a short form that asks for the names of the owners/members, the contract and the filing fee.  Another document that you should include that is not required is an operating agreement that details out the arrangement, ownership percentages, roles, rights, and responsibilities.

An LLC is usually easy to file for, so you should not need a lawyer.  The state requirements to form are usually self explanatory, but you should take the time to clearly read and go over every form and contract you sign.

Advantages of Limited Liability Companies

1)     Pass-through taxation

2)     Less liability

3)     Decreased paperwork

4)     Multiple owners

5)     Profits/losses pass directly through owners’ personal income tax return

Disadvantages of Limited Liability Companies

1)     Earnings subject to self-employment tax

2)     Cannot take advantage of incentive stock options/engage in tax free reorganizations

3)     Lack of uniformity between different states

Additional Help

If you cannot seem to figure out how to file for a Limited Liability Company you should try to seek professional help.  Use TalkLocal to be put in contact with reliable local accountants or attorneys within minutes.  Simply input the problem you are having along with your availability and TalkLocal will do the rest of the work.  We will connect you with up to three professionals who will be available to help you when you need them.

All companies that are publicly traded are required to release a financial audit report to guarantee the accuracy of their financial statement. There are very specific guidelines for financial audit reports that you must follow. This article will help you learn how to prepare a financial audit report.

How to Prepare a Financial Audit Report

A financial audit report should be written like a business letter — clear and without excess flowery language. You must always use the standard format for a financial audit report, which is as follows:

1. Introduction

2. Responsibilities of Directors and Auditors

3. Basis of Opinion and the Opinion

Beginning of a Financial Audit Report

The title of your financial audit report should always be “Independent Auditor’s Report.”

In your heading, you should make sure to include the following:

– the name of your company

– the name of the author of the report

– the address of your company

Write an address to the shareholders and board of directors of your company. Although you want to make sure that it is directed towards all audiences, you should treat your readers as if they are intelligent and knowledgable about how the stock market works.

Introduction of a Financial Audit Report

All financial audit reports should have an introduction that contains the name of the corporation and year to which the audit pertains. The introduction should also make it clear to the readers where responsibility lies. It is the company’s responsibility to provide financial statements for the audit firm, and it is the audit firm’s responsibility to give their opinion based off of the financial statements provided by the company.

Basis of Opinion in a Financial Audit Report

The next portion should describe the basis of opinion. It should also be in a business style — descriptive, but without unnecessary flowery language. Make the reader knows that the audit was in accordance with Generally Accepted Audit Standards (GAAS). Also, make sure to include every type of information that was examined as part of the audit, as well as how the audit was conducted. The purpose of this paragraph is for the reader to feel your opinion is trustworthy and accurate.

Opinion Portion of a Financial Audit Report

The final portion of the financial audit report is the actual opinion. Your opinion should be clearly stated in the first sentence of this portion. It is important that this portion is very clear and you do not want to confuse the reader with convoluted business language.

Additional Help

If you need assistance in preparing your financial audit report, you can contact an accountant. With the help of TalkLocal, you can be on the phone in minutes with up to three high quality accountants in your area that are available when you are.

Getting your tax refund is a great feeling.  You pay thousands of dollars to the government, so when you receive a little bit of that back, in return it brightens your day.  But what happens when your tax refund is incorrect?  If it’s more than what you thought you were getting it can be amazing, but when its lower than what you expected, you feel disheartened.  So how do you correct the mistake?

Possible Reasons Your Tax Refund is Incorrect:

1)     You owed a debt and part of your refund was used to pay it.

2)     You made a mistake when preparing your tax return.

3)     The IRS made a mistake.

The most annoying thing about tax refunds is that the IRS does not assume any responsibility for the taxpayer or their errors.  You should make sure that everything on your forms is correct and double check for accuracy before signing and submitting your taxes.

What You Can Do if Your Tax Refund is Incorrect

If there is a problem with your tax refund then there are a few steps to take.  You can wait and see if you get a letter in two weeks.  The refunds you receive come in a lot faster than the letter that explains why your return was adjusted.  If there was a change the IRS will send this letter explaining their actions.

If you want to talk to someone about your incorrect tax return you can all try calling 1-800-829-1040.

– When prompted press 2, and 2 again.

– You will be asked to type in your social security number and then you can press 1 two times to confirm that you entered it in correctly.

– Listen to the prompts, but do not take any actions.

– You can then just wait to be connected to a real life person.  This process should take about 30 minutes but it is one of the only ways to get in contact with someone.

In the case that you cannot connect to someone in this manner you could also go online or on the phone and pretend that you want to pay your account.  This will ensure that someone will be in touch to talk to you almost immediately because they are looking to make money.

Check the IRS’s website and go to the option about “where’s my refund” to see information about any delays or corrections on  expected refunds.

Further Help

If you cannot seem to figure out what is wrong with your tax return you should seek professional help.  Use TalkLocal to be put in contact with reliable local businesses within minutes.  Simply input your problem and availability and TalkLocal will do the rest.  Almost immediately you will be connected to tax company or accounting firm who can help you out.

There are many benefits to having a personal accountant. A personal accountant can easily recoup the cost of their work. But how much is a personal accountant worth? That’s a good question, and the answer really depends on the complexity of your financial situation, how much work you require to be done, how good you are at keeping records.

How Much is a Personal Accountant?

A proper CPA accountant that does your business and personal taxes can cost you as little as $100 to as much as $5000 a year depending on what services they provide. Good accountants do much more than crunch numbers; they ideally should be providing financial guidance and advice, and should be helping you save money in various avenues.

So how do you know if you should hire an accountant? Well first off, if tax, money, and percentages aren’t your thing, getting an accountant is definitely recommended. Second, if there is a lot of money flowing through your business, having an accountant is generally a good idea since their job is to save you money by finding legal loopholes, taking advantage of new tax laws, etc.

Generally, the best way for you to decide whether an accountant can help you is to call a few different accountants, explain your situation, and ask them what they can do for you. Ask them how much they charge, and if it seems like they can save you more money than you are paying them, hire them. If you want to be assured of high-quality service, make sure you hire a CPA (certified public accountant). Licensed CPAs have passed a rigorous exam and likely have extensive knowledge of tax laws.

Additional Help

If you need help finding a competent and reliable personal accountant or CPA, consider using TalkLocal to find a tax specialist for you. TalkLocal is a free service that will connect you with top-quality, accounting companies in your neighborhood within minutes. Just enter in your specific problem, location and availability, and up to three companies will call YOU directly, saving you the time and stress of finding one yourself.

Can I Claim My Child as a Dependent?

Claiming a child as a dependent has many related tax benefits, including a personal exemption for each dependent. The Internal Revenue Service (IRS) provides this personal exemption based on the actual costs that have been incurred. Other benefits include a reduction of taxable income and additional tax reductions. A taxpayer may claim someone as a dependent if a specified relationship exists – the most common being that of a parent and child. A foster child or a stepchild may also be claimed as a dependent. There are a few restrictions though.

Restrictions to Claiming a Child as a Dependent

1. To claim a child as a dependent, they must be under 19 years of age for the years where they are claimed as dependents on the tax return. However, this number gets extended to 24 if the child is a full-time student for at least 5 months out of the year. A student is an individual who physically attends a university or institution. A student who takes classes online does not qualify for this.

2. The dependent must live with the parent for at least half of the tax year. Even if you are away from your home due to illness, business, vacation, education, or military service, your child is still deemed as living with you during this time. Similarly, even if the residency requirement is not met, a noncustodial parent may claim a dependent if this parent makes child support payments to the custodial parent. However, the custodial parent must first agree in writing to not also claim the child as a dependent.

3. The degree of financial support is also a requirement – a child who does not provide more than half of its own financial support and does not file a tax return may be deemed a dependent. If he or she pays for more than half of their financial support, they are not eligible to be claimed as a dependent.

Additional Help

Having a child can be expensive. Fortunately, our government recognizes the sacrifices that parents make (at least monetarily). Claiming a child as a dependent has some benefits, as well as requirements that mean these benefits don’t reach every person. If you are unsure as to whether your child can be claimed as a dependent, feel free to find professional help on the matter. If you need help finding a competent and reliable personal accountant or CPA, consider using TalkLocal to find a tax specialist for you. TalkLocal is a free service that will connect you with top-quality accounting companies in your area within minutes. Just enter in your specific problem, location and availability, and up to three companies will call YOU directly, saving you the time and stress of finding one yourself.

Hiring an accountant to do your taxes has innumerable benefits, ranging from saving you time and money to providing financial and legal counseling. Hiring an accountant is generally not too expensive (fees range from roughly $25 to $300 per hour), and the money your accountant can save you is almost always worth the fee. Here are are few reasons you may want to hire an accountant.

Should I Hire an Accountant to do My Taxes?

1. If taxes, money, and percentages aren’t things you like dealing with, hiring an accountant is definitely recommended.

2. If you own a business, you probably spend all of your time working in your area of expertise and not in keeping up with tax law and regulations. You can count on your accountant to be an expert in his or her field, even as you are an expert in your field. Without an accountant to help you structure your business finances, you may miss out on the opportunity to save quite a bit on your tax bill.

3. If you are going through a major life change, such as getting married or divorced, buying a new house, having children, preparing to retire, etc, you should probably hire an accountant to do your taxes. All of these scenarios give you the opportunity to save on taxes, if you know the right questions to ask and the correct records to keep.

4. Hire an accountant if you plan on making investments in the stock market, real estate, or other areas in which you may be unfamiliar with tax law. Without knowing about special tax breaks and incentives, you may well pass up potentially large tax savings.

5. Another benefit to having an accountant is the extensive business network that your accountant is part of. An accountant typically serves clients in a wide range of industries and can be a great source of networking for both you and your business. Networking can enhance business growth as well as provide you with useful contacts in a variety of fields.

Additional Help

If you need help finding a reliable personal accountant or CPA, consider using TalkLocal to find a tax specialist for you. TalkLocal is a free service that will connect you with top-quality, accounting companies in your neighborhood within minutes. Just enter in your specific problem, location and availability, and up to three companies will call you directly within minutes!