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Did you know the IRS can penalize you for a variety of reasons? For instance, you can receive a tax penalty for not having health insurance, for filing what the IRS deems a frivolous tax return, and for a variety of retirement account inactions or actions.  However, most taxpayers usually encounter 3 common offenses:

- Not paying what is owed

- Not filing an income tax return, at all

- Not paying enough tax through the year

If you don’t file a return or an extension by the April deadline then the penalty for not filing will start the very next day.  The penalty will continue to grow at 5% per month of any tax balance that is due.  The 5% penalty applies to any portion of the month and is not pro-rated. 

However, the penalty does max out at 25% of your unpaid taxes.  Still, 25% is a pretty hefty fee to pay.

A lot of taxpayers will avoid filing their return if they can’t afford to pay their tax liability.  That’s not smart.  The IRS considers not filing your return a more serious offense. 

Those unpaid liabilities have a penalty, too.  Even if you file your return or an extension, but do not pay what you owe in full then you’ll face a penalty of 0.5% of the amount due.  Again, it’s added every month that your tax bill is not paid in full.  It can grow until it reaches 25% of your tax liability.

Taxes are collected on a pay-as-you-earn system.  So if you do not pay enough in as you earn it then will be hit with an underpayment penalty.  Most Americans comply with this by having income tax withheld from their paychecks.  But if you’re an independent contractor or have a side job to your regular employment then you’re responsible for covering the additional taxes due.

To avoid underpaying your taxes you can pay an estimated tax amount throughout the year.

If you have questions on avoiding the 3 common tax penalties, give us a call at 573-686-3053.

Did you know someone is posing as the IRS to target taxpayers?  They call and say that are with the IRS and are needing more information or payment.

They sound convincing, but do not give any confidential information or payment over the phone.  It could be someone trying to scam you out of your money and confidential information.

The scammers will try to put pressure on those on the other end of the phone.  They will threaten to send the police to your home for failure to pay or revoke your driver’s license.

Do not be fooled!  Even the caller ID will say they are the IRS, but they aren’t!  The caller ID may even show a local number.

If the IRS needs information, they will contact you by mail.  The IRS will never make a phone call their first point of contact with someone.  If you receive any notices, letters or statements from the IRS, it’s best to bring them to your tax professional.                                                  

If you receive any calls from someone claiming to be from the IRS and need payment, please be cautious.  Call your tax professional before giving any credit card or payment information to the IRS over the phone.

If you’re recently divorced or are going through a divorce then there are a few tax implications you should be aware of.  Divorce can cause tax issues if you are unprepared at tax time.  However, talking to a tax professional during the proceedings can help relieve any future stress. 

When going through a divorce, it’s best to talk to your tax expert.   If you and your spouse have joint liabilities – such as a home mortgage, car loan, a business or credit cards then you need to make decisions now on how those will be handled.  Also, taking into consideration joint assets like an IRA, savings account or home can be important when going through a dissolution of marriage. 

Give us a call at 573-686-3053 to talk to a tax professional.  We can help you through the divorce proceedings to make sure you’re on track for your taxes. 

We want to offer this service to you and to any of your loved ones who might need helping keeping up with paying bills or hate the frustration bill paying causes.  We know life can get hectic and sometimes it's easy to forget to send in that payment on time.  We hate to think of a company taking more of your money due to a late fee.  That’s why we have created a way to take care of that headache for you.

If you’re interested or know someone who could benefit in setting up our Accounts Payable Service, give us a call at 573-686-3053 and we’ll be happy to setup a time with Megan to get it arranged.

As always, we love being able to reduce your stress by taking care of one more financial pain for you.  If you have any questions, feel free to give our team a call.

It can be difficult to know what you can and cannot claim on your tax return if you have a home business.  There are some expenses that are often overlooked on tax returns, but hiring a tax professional can help you not miss any deductions.  Here are some of the deductions you could be claiming:

Books and publications – these of course have to be specific to your business and can’t be general publications; however, the cost can be deducted.

Education – again, any education has to be specific to your industry and your present job then the expenses are deductible.  Now, if you are wanting to take classed to add a new service then that costs may not be deductible.

Business insurance – you can claim the cost as a deduction on your tax return

Professional memberships – again, the memberships have to be directly related to your profession.  If they do, then you can deduct your membership dues and any fees.

Uniforms – You can deduct the cost of any items purchased for a uniform or required safety clothing.

If you have any questions on which expenses can and cannot be deducted, please contact your tax professional.  Don’t have one?  Give us a call at 573-686-3053, we’d love the opportunity to help you.

Here are some great tips on how to repair your credit score.  Even if you're just starting out and may not have had a chance to build your credit, these tips can be useful.

ONE: Keep amounts you owe low.  By maintaining either no balance or a low balance then that can have a positive impact on your credit score. 

TWO: Make Your Payments.  Don’t skip payments and try to be on time each month.  By being delinquent or missing payments you can do some serious damage to your score. 

THREE: Don’t open too many accounts in a short period of time.  New accounts will lower your credit score.  And new accounts on a rapid basis can make you appear too risky.

It’s time for some housekeeping for your tax records.  A big myth is to keep every single piece of paper that comes your way just in case.  Tax and organizational experts say that’s not necessarily correct.

What do you need to hang onto?

Keep records that will help identify income sources, track expenses, determine the value of property, prepared tax returns and their supporting documents. 

A good rule of thumb is to hold onto records for 3 years after filing your return.  That is typically when a chance of an audit from the IRS will pass; however, if the IRS suspects you underreported income by 25% or more then they can go back 6 years.

Most recommendations are for taxpayers to hold onto their tax documents for about 6-10 years.

If you use something to claim a deduction then hold onto it; however, if you don’t use it then shred it.  For example, some taxpayers are unable to deduct their medical expenses.

Some items will eventually sell, such as specific assets.  Pension plans, homeownership, stocks and more are such assets.  Tax professional recommend hold onto those records for 3 years after you dispose of the asset.

Once you know which records to keep, and which not to keep then it’s time to pick a system.  Any system will work, just find one that you like best.  It doesn’t matter if it’s a filing cabinet, cardboard box, or computer program.  Find a record-keeping system you’re comfortable with it and use it.

Did you know you should report any gambling winnings on your income tax return? If you have winnings over a specific dollar amount then you will be required to claim those amounts. The IRS wants to know just you lucky you are at poker, blackjack, slot machines, horse racing, and more. The institution must get your Social Security Number and let the IRS know you came into some extra money during the year. 

If your winnings are large enough then it might be smart to pay an estimated tax before December 31st.

What if your winnings weren't large enough to trigger a W-2G filing? Well at that point, it's up to the taxpayer to be responsible to report the winnings.

Remember, you may be able to deduct any losses your faced during the tax year, too.  If you have any questions give us a call at 573-686-3053.

Mastering your cash is an essential part of your financial situation.  To become successful with your money, you need to understand your cash flow.  The purpose of this is to ensure you are living within your means and saving for the future.

Here are the steps to come a cash flow master:

1) Calculate your total monthly income.  Make sure you don’t leave anything out – employment income, second job income, gifts, etc.

2) Calculate your total monthly expenses. 

Break your expenses into fixed, variable and savings.

- Fixed expenses are items that will be there every month.  These items are necessities.  They will probably not be the same amount each month, but you will always have them from month-to-month.  Such as rent, mortgage, car payment, utilities, etc.

- Variable expenses are items that are not essential to living, but make life a little more enjoyable.  These can be eating out, hobbies, entertainment, etc.

- Savings.  I recommend treating savings like a fixed expense.  You should pay yourself before any of your variable expenses each month.  By putting money into savings you will help create your cash cushion for those rainy days.

3) Subtract your expenses from your income.  Once you have done this, you will notice one of three things:

- Break-even: you do not have any extra income or have too many expenses each month – nice work!  This is your goal!

- Surplus: You are making more money then what you need for your expenses.  Look into increasing your savings goal or paying off any debt.

- Deficit – You are spending more than you are making.  You need to cut out some expenses or try to make more money.

I recommend tracking your expenses to get a good idea of just how much you are spending.  It’s important to be clear and honest with your cash flow statements.  Track spending for 90 days to get a good idea.  Expenses are those that you spend cash for, transfer money, swipe a debit card or credit card or write a check for.  Make sure you keep a notebook handy to track everything. 

Once you have tracked for 90 days you can compare to your list from #2 – your expenses.  Make sure you haven’t overlooked anything.

If you have questions on how to create an accurate cash flow statement, give us a call at 573-686-3053.  We’re here to help you.

We’ve talked about how money is a tool to help you.  Money can help us achieve our goals and reach our dreams.  But you have to handle your money correctly.  The more confident you are in handling your money, the better off you will be at making the important decisions.

We understand how busy you are and only have limited time to focus on your financial situation.  It’s important to make sure you’re finances are in order and are working for you – not against you.  We can help you.

We are a full-service financial planning and account firm.  We help our clients to leverage their money so it will work for them.  It’s your money and your life.  So we need to help you create a plan to utilize your money.  When you want to talk one of our financial planners, we will give you our undivided attention.  We want to make sure we understand your goals and dreams. 

We’re here to help you along your financial journey.  We specialize in working with families and business owners to take control of their finances and create a working plan.  Let us help you.

Give us a call at 573-686-3053 to schedule a meeting with one of our financial planners. 

It’s easy to get caught up in the hustle and bustle of life.  We have every intention to focus on our finances, but then work, family and life happens.  As you become more established in your career or business, you should realize the foundation for your financial life. 

Here are three financial steps that you cannot ignore.  Often, these simple steps are overlooked for too long.  Don’t make that mistake!

Build Your Cash Cushion.  Everyone should have a little bit of savings for a rainy day.  You never know what life can throw your way.  A cash cushion can help with the unpredicted emergencies.  If you lose your job and it takes a month or two to find a new one, then with a cash cushion you will still be able to provide for your family.

Protect Yourself.  There are many ways you can protect from life’s unpredictable ways.  Insurance is usually something we are not crazy about paying for, but it’s the glue that can hold us together during unexpected events.  Make sure you review your insurance needs on a regular basis to identify any gaps or confirm that you’re on the right track.  Here’s some common types to review:

• Life insurance
• Disability insurance
• Health insurance
• Auto insurance
• Home/Renters insurance
• Long-term care insurance
• Umbrella insurance
• Business insurance

Understand Your Tax Strategies.  Hiring a tax professional is an important step in your tax story.  No one enjoys paying taxes, but it has to be done.  Make sure you understand your current tax situation and have someone on your team who’s willing to help you better your tax strategies.  

If you need help, give us a call at 686-3053.

We like to wish you a very Happy New Year.  It seems like just yesterday we were starting 2017 and now we’re getting ready to roll into 2018.  It doesn’t seem possible! 

At Denton & Associates, we would like to thank you, our clients, for an amazing year.  We know we have you to thank for our successes and great memories of this year.  We’re looking forward to another great year and would love the opportunity to serve you.  Our goal is to help our clients minimize taxes and maximize wealth.  Thank you for allowing us to join you on your journey.

Now that 2017 is coming to an end, it’s the perfect time to start thinking and planning for next year.  By setting your goals now then you can have a plan to work towards and a focus for your business.  The end of the year is a great time to ask yourself these questions:

How did this year go?

What was my break even point?

How many customers do I need to make a profit?

How am I attracting new customers?

Planning also means taking stock of where you currently are.  Determine what you current numbers, profit, sales and etc. are and then starting planning for how you can increase or stay the same for next year.  

It’s that time of year again – time to start preparing for your taxes.  Today, we wanted to share some easy tips to help you organize your tax records.  By having organized receipts and records, you can cut down on the stress and time it takes to prepare your return. 

Here’s what you need:

STEP ONE: Have a designated space for your tax records.  By having a specific area in your office you’re your tax receipts and records, then you can avoid the last minute scramble. 

STEP TWO: Organize your files.  Determine what categories will work best for you, but here are some to go off of:

Bank Statements

Taxes Paid

Income

Invoices

Contractors

Advertising

Auto

Depreciation

Donations

Medical

Travel

Utilities

STEP THREE: Gather physical documentation of the above categories and any other categories that fit your business.  Make sure to sort them correctly and on time.  Don’t put off organizing until the end of the year.  Do it as you receive your receipts and invoices. 

STEP FOUR: Keep your previous tax returns for seven years.  You can claim a loss for certain investments for up to 7 years.  Please note, if the IRS suspects fraud there is no limit to how far back they can audit you.

STEP FIVE: Safeguard your information.  If you keep paper records, then you need to place them in a safe, locked and fireproof cabinet.

STEP SIX: Work with an accountant throughout the year to help you maintain your business’ financials.  

We’re excited to invite you to our annual Holiday Open House.  It will be happening on December 12 from 11am – 1pm.  Join us for lunch, drinks and giveaways.  It’s going to be a jolly day filled with holiday spirit.  So mark your calendars.  If you have any questions, please email Meredith at [email protected].

Now that we’re in full swing of holiday shopping, there are steps to prevent gift card fraud.  Gift cards have become a popular method of gift giving within recent years, which means fraud is on the rise.  There is nothing wrong with purchasing and giving gift cards, but there is a major step you can take to prevent fraud. 

Most gift cards have an identification number and a PIN.  The identification number is typically displayed on the front or on the back of the card, similar to a credit card’s identification number.  The PIN is hidden under a silver plated coating that can be easily scratched off. 

At the point of purchase, the identification number is scanned or swiped to be activated.  The card can be used for in-person purchases or online transactions.  Online the identification number and PIN have to be entered in.  This is where a possibility for fraud starts.

A person wanting to commit fraud can steal the unpurchased cards from a store and take them home.  Once home or outside of the store, they can write down the identification numbers and scratch off the coating to obtain the PINs.  Then they take the cards back into the store to be sold.  They then check online on a regular basis to determine if the cards have been activated.  Once activated they can then use the information they wrote down to go online shopping.

The biggest tip we have to help prevent gift card fraud is to ensure the coating covering the PIN has not been scratched off prior to purchase.  If it has been scratched off and the PIN is revealed then do not purchase it.

Now that we’re getting close to Thanksgiving and the holiday season our budget could probably use a little help.  The holidays can have a bad effect on your otherwise healthy budget.  Not only do you have gifts to purchase, travel plans to make, but you may also have a few dinners that you’re hosting.  Dinners can be costly for those that try to do it on their own.  A great idea to cut down the cost and increase your savings is by having a potluck.

Don’t try to do everything on your own.  Ask family and friends to bring a dish.  You can have each person responsible for a separate dish so that it completes a family-sized meal.  By splitting the responsibility not only are you letting go of some holiday stress, but you’re also decreasing the financial strain hosting a dinner can put on you.

You can divide the dinner into categories: main dish, vegetable side dish, bread, other side dish, appetizer, dessert, drinks, etc.  Then everyone is responsible for that category.  You can also decide on the dishes themselves and then ask everyone to volunteer to make one.

Don’t forget the paper products – napkins, forks, glasses, and plates.  This can be added for someone to take care of, too. 

Now that we’re getting closer to the end of the year, it’s time to start thinking of tax planning.  Especially for small businesses, year-end tax planning can play a vital role in your overall year.  Here are some items to add when meeting with your tax planner:

Discuss the current year.  You need to know as a business owner if there was a profit this year, if so how much. 

Assess the family’s role in the business.  Are you planning on handing over the reins to a new family member this next year? Is your family involved in the running of the business?

Is the ownership structure changing? If you’re bringing in a new partner or a partner is leaving then considerations need to be made on the entity of the business.

Your accountant should be able to discuss your current tax situation with you before the end of the calendar year.  If any changes need to be made then you will need time to implement them before December 31^st.

Happy Halloween

Can you believe it’s already the end of October? Halloween is upon us.  It’s time for ghouls, ghosts and boos! We look forward to Halloween each year here at the office.  Usually we dress up the Friday before.  We want to take time to wish a Spooktacular Halloween with family and friends.  May your night be ghostly!

It can be difficult to know what you can and cannot claim on your tax return if you have a home business.  There are some expenses that are often overlooked on tax returns, but hiring a tax professional can help you not miss any deductions.  Here are some of the deductions you could be claiming:

Books and publications – these of course have to be specific to your business and can’t be general publications; however, the cost can be deducted.

Education – again, any education has to be specific to your industry and your present job then the expenses are deductible.  Now, if you are wanting to take classed to add a new service then that costs may not be deductible.

Business insurance – you can claim the cost as a deduction on your tax return

Professional memberships – again, the memberships have to be directly related to your profession.  If they do, then you can deduct your membership dues and any fees.

Uniforms – You can deduct the cost of any items purchased for a uniform or required safety clothing.

If you have any questions on which expenses can and cannot be deducted, please contact your tax professional.  Don’t have one?  Give us a call at 573-686-3053, we’d love the opportunity to help you.

It’s no secret that return customers are the best.  And the best way to keep your customers coming back for more is exceptional customer service.  Majority of customers who stopped buying from a particular business did so due to poor customer service, which can give off the impression that they aren’t cared about.  As a business owner, you want customers not only coming back, but giving rave reviews about you.  Customer service is key and the best way to keep those customers loyal is by communicating with them on a regular basis.  You want to remind your customers that you exist and you’re here to help them with their needs.

Here are some great ways to stay connected to your customers:

Newsletters – you can send a monthly or quarterly newsletter to your customers.  Newsletters are easy to put together and can be sent my either regular mail or by e-mail.  It’s a simple way to stay in touch.

Thank you notes – after a purchase, pop a thank you note in the mail.  Make sure you hand write it to give it the extra attention.

Thank them for referrals – there are so many businesses that never thank current customers for referrals.  That’s a shame.  Take the time to send a handwritten thank you note.  Remember they took the time to recommend you, the least you can do is thank them.

Have contests – there are so many different ways to host a contest. You can offer a grand prize, a gift certificate or a night out on the town.  Customers can be entered for every purchase they make that month, for any referrals they send your way, or for reviewing your business online.

Remember their needs – if you get a new product or service in then reach out to them if you think they can benefit.  Most customers would love the opportunity to find a solution to a problem, so help them get there.

Here are some great tips on how to repair your credit score.  Even if you’re just starting out and may not have had a chance to build your credit, these tips can be useful.

ONE: Keep amounts you owe low.  By maintaining either no balance or a low balance then that can have a positive impact on your credit score. 

TWO: Make Your Payments.  Don’t skip payments and try to be on time each month.  By being delinquent or missing payments you can do some serious damage to your score. 

THREE: Don’t open too many accounts in a short period of time.  New accounts will lower your credit score.  And new accounts on a rapid basis can make you appear too risky.

Are you in the process of hiring an accountant?  If so, then there are a few key questions you should be asking.  Remember, you’re hiring an accountant for a purpose – prepare your tax return, bookkeeping, tax planning and so on.  It’s your right to have your questions answered.  Here’s what you should be asking:

How long have you been an accountant?

What time of services do you provide?

What are your hours?

What is your policy on returning questions and phone calls?

What are your fees and how are they calculated?

What continuing education programs do you attend or does your staff attend?

Can you provide me a list of references?

A majority of these questions apply whether you’re an individual or a small business owner.

Your accountant can be a vital piece to your business.  By forming a relationship with them then you will be able to understand your financials better.  A lot of owners only see their tax guy during tax season, and that’s a mistake.  You should be talking with your accountant throughout the year.  Learning what’s working and not working.  Your accountant can help you pinpoint areas of your business that need help or what’s working well. 

Here are a few key areas you may be missing out on by not having a relationship with your accountant:

One: Tax Planning.  Tax planning is a great strategic tool that you should be using.  Tax planning can help prepare you for any tax liability that will be due so you do not have any surprises.  If done properly and before the end of the tax year, you may be able to relieve some of that tax liability.

Two: Budgeting.  Your accountant can help you develop an effective budget.  That way you can save and help plan for the future.

Three: Assist in making large decisions.  Your accountant can help you in making investment, sales and other large transaction decisions.  That way you can make sure it’s in your best interest financially.

Four: Keep record.  Your accountant can help you track your sales, expenses, and other important information so you may see how your business is doing throughout the year.

Every tax season and throughout the year, we are asked that question over and over again.  The IRS isn’t happy with anyone that misses the deadline for filing their tax return (or extension).  Here’s what you need to know:

If you’re entitled to a refund then there will be no interest and penalties.  The IRS only applies interest and penalties to those that owe money.  However, if you wait over three years then you will lose any chance of a refund. 

If you owe the IRS then you will be charged a penalty of 5% of the balance due per month it’s late. 

If you don’t pay on time then you will also be charged a failure to pay penalty of 0.5% a month on top of the penalty stated above.

Filing an extension may buy you a little more time, but it will not eliminate the failure to pay penalty.  Therefore, when you file an extension it’s important to pay an estimate.

If you can prove an explanation that is reasonable as to why your tax return was late or payment was late then the IRS may remove the penalties due.

As a small business owner, you probably have hundreds of thoughts and reminders run through your mind all day.  Some are major and others are minor.  It’s vital to keep a running list of things to do nearby.  That way you won’t forget and are able to keep track of what’s most important.  A recent poll showed the three top worries for small business owners:

ONE: Taxes.  It’s important to have a tax professional in your corner.  As a small business owner you’re under pressure by the ever-changing tax laws and regulations.  By utilizing tax planning, you can avoid being unprepared during tax time.

TWO: Regulations. Many individuals are unaware of changing and new regulations; however, as a small business owner it’s your job to know. 

THREE: Poor Sales.  Consumers are unsure of how the economy will be in the future, so it’s effecting small business owners’ sales amounts. 

Do you have to hire anyone for your business or for your employer?  It can be stressful.  How do you know if this person will work out?  Are they reliable, honest, and trustworthy?  Will they work hard?

It’s tough to know.  Most hiring managers make the mistake of hiring the first qualified applicant they come across.  This can lead to the misconception that there is no good employees to be found.  There is a process you should follow when hiring someone new.

Step One: Have the applicant fully complete an application.  Make sure your application covers the basic information: employment history, knowledge, skills, and reasons for leaving a previous job.  Also, have the applicant answer open-ended questions such as: name a situation that involved teamwork, how do you feel about being critique, what are your thoughts on customer service issues, and so on.  Make sure you receive written permission to contact any former employer.

Step Two: Ask your applicants to call in during a specific time before meeting in person.  By asking for a quick phone interview you can test their skills on the phone and their ability to follow directions. 

Step Three: Do your due diligence.  Run a background check, a drug screen and make sure to call their references. 

Step Four: Do face-to-face interviews with those that passed the previous steps.  Have open-ended questions ready that can really show you how they will handle specific situations. 

Step Five: Hire the most qualified applicant on a 90-day probation period. 

It’s time to end it.  End your unhealthy relationship with your debt. 

Think about the amount of money you could have to put towards retirement, your children’s future, your dream home, and so much more if you didn’t have those monthly payments to credit card companies, car payments, and store credit cards.

You could have an extra $1,000 or more a month in discretionary income if you just didn’t have any debt.  So how do you go about breaking up with your debt?

It’s simple, stop spending money you don’t have.  Sure, a car loan and mortgage is understandable.  Even college loans are common these days.  But there is no need to have a credit card balance or store card balance. 

Credit card companies make everything sound so amazing

“No interest for the first 18 months.”

“Receive 20% off today’s purchase by using your store card.”

It’s hard to say no. But you must resist the temptation to get into deeper debt.

Here are some great tips to help you get out of your debt:

Call your credit card company and ask them to freeze your interest rate.  By freezing your interest rate you’ll be able to avoid any increases, but you won’t be able to use your card anymore.  Now, not all credit card companies will do this, but it’s worth a shot.

Lower your credit card limit.  Did you know you can call your credit card company to lower your limit?  It’s true!  By lowering your limit you won’t be able to spend as much, which can help teach you discipline. 

Leave your card at home.  If you can, you should leave your credit card at home to avoid the temptation of easily swiping it.  Now, if you’re traveling then you may want to pack your card with you in case of an emergency. 

Start putting extra income towards your monthly payments.  Paying more than the minimum amount each month can help you pay off debt a lot faster.  Remember – the more you’re able to put towards your debt the less amount of interest you’re going to pay.

It can be difficult to talk money and financials with the one you love.  There are differing opinions to consider and feelings to take into account.  However, talking with your spouse about money can be one of the most important conversations you have.  A lot of couples fight over money and it’s a fight that can be avoided. 

Before getting upset or starting a fight, try to this tip to work things out.  It’s important to realize that you don’t exactly know where the other person is coming from.  Spending habits are hard to change, but with open communication and no judgment, couples can work together. 

Want to know our number one tip for talking money?

Place yourself in the other person’s shoes.

It’s hard to do, but it’s worth it.  By discussing why you spend and how you feel during the conversation then your spouse can develop a deeper understanding.  Not everyone thinks alike, which means the reasons we spend money the way we do differs. 

Try having money talks on a regular basis to avoid any issues.

Today, I want to share a few tips on how to quickly build your savings account.  First, I like to treat my main savings account as an emergency fund.  I only dip into in case of an emergency and it must be a real emergency.  I also try to keep a minimum balance of $1,000 in the account at all times.  That way if something unplanned arises, I’m prepared.  However, building your savings account to that $1,000 mark or past it can be hard.  There are a few things you can do that can really help you.

ONE: setup an automatic transfer from your checking account into your savings account on payday.  This way you will never actually miss the money that you put away because it’s not in your account for very long.

SECOND: establish a portion of each paycheck to be automatically transferred into a savings account.  A lot of employers utilize automatic deposit for employees.  And they may allow for your check to be deposited into more than one account.  If so, use this option.  It’s a great way to force discipline.

THREE: Create a savings account at another bank.  This one will be hard to establish a transfer for, but you can avoid the temptation of transferring money out of your savings.  A lot of people find it difficult to say no when something comes up.  A trip out of town for the weekend is not a good reason to transfer money from your savings account.  By having a separate banking account at another bank then you can make it harder on yourself to take money out.

Liquidity is a simple way of saying the company’s ability to pay bills.  Typically it means paying bills from cash or other assets that can be turned into cash easily and quickly. The quick ratio is an indicator of a company’s liquidity. 

The quick ratio is a financial ratio, sometimes referred the acid test ratio.  It compares the total amount of cash, marketable securities and accounts receivable to the total amount of current liabilities.  

A balance sheet reports the dollar amounts of your business’ assets, liabilities and equity as of a specified date.

Assets include cash, inventory, investments, land, accounts receivable, buildings, equipment, goodwill and other intangible assets.  Generally assets will be reported at costs or lower due to depreciation. 

Liabilities include debts and other obligations of the company.  These might look like loan amounts, accounts payable, warranty obligations and taxes due.

Equity or stockholder’s equity reports the amount of assets that are from the owners.

In the end, the balance sheet allows a company to determine the amount of working capital.

It’s important to keep up with current online best practices to protect your online banking access.  Here are the recommendations for those who use ACH (Automated Clearing House) for electronic transactions and wire transfers. 

ONE: Setup a dollar limit at your bank for all ACH and wire transfers

TWO: Require a second approval for all ACH and wire transfers before being processed

THREE: Require a second token number or code to be entered before sending an ACH or wire transfer

FOUR: Create templates for common ACH and wire transfer transactions

FIVE: Dedicate a computer to be used specifically for online banking and is not used to access email or other websites

SIX: Monitor your account activity throughout the day

If you have any questions to make sure your online banking is secure give your bank a call or call us at 573-686-3053.

Goodwill is an intangible asset that arises when a buyer acquires an existing business.  Goodwill does not include any assets that are easily identifiable or are capable of being transferred or sold from the entity.  Goodwill is recorded when a company purchases another company and the price is greater than the fair market value less than the liabilities assumed. 

Outside of accounting, goodwill refers to the value that has developed as a result of outstanding customer service, management skills, teamwork and other intangible qualities.

If you have any questions or need help, give us a call at 573-686-3053.

Here are some great tips on preventing identity theft.  Make sure you protect yourself.

- Do not give your personal information over the phone

- Do not send personal information via e-mail

- Be wary of telephone solicitors who want to send someone to your home

- Be cautious of those mailings that offer a one-in-a-lifetime opportunity

- Choose passwords and PINs that are not obvious

- Maintain security software on your computer

- Consistently shred any unwanted or outdated personal information documents

- Never leave credit cards, bank statements or personal information lying around your home or out for others to easily take

We would like to wish you a Happy Fourth of July celebration.  May your day be filled with laughter, making memories, and time spent together.  Our office will be closed Tuesday, July 4^th in observance of the holiday.  We will re-open Wednesday, the 5^th.  Happy 4^th!

Do you know the steps to take if you suspect fraud in your business?  Maybe you’ve spotted some behavior or changes in an employee that don’t seem to fit.  There are steps you can take if you suspect fraud within your organization.

ONE: Hire experts such as an accountant or forensic accountant to analyze your books.  They can help uncover any abnormalities within your transactions or operations.  If you aren’t sure who to hire, then speak with your accountant to see if they can help you or recommend a forensic accountant that can.

TWO: Realize that legal action may be the next step.  After you review the evidence that shows internal fraud, then litigation may be the next step you take.  Consult with your accountant and attorney on taking your case to trial.

THREE: Build in protection to prevent fraud from happening.  You need to employ a checks and balances system where someone else is reviewing employees’ reports.  Also, it’s important to encourage employees to report any suspicious behavior.  You can setup a tip hotline or other method to receive information.  Implement a corporate policy that outlines the action plan to report suspicions.

One of the most common concerns with divorce is financial survival.  A big mistakes most divorcing couples make is by not being fully away of their finances and how divorce impacts them.  For couples facing divorce it’s important to take inventory of your financial situation, gather copies of financial documents, bank accounts, retirement accounts, debts, etc. before any legal proceedings begin.

Most divorce attorneys will require a financial gathering questionnaire so that any property, income, debts, and assets can be split properly between the parties.  Here is a checklist to consider when gathering information:

- Income information, which can come from a recent tax return or payroll stubs

- Retirement plans, including: 401Ks, IRAs, Thrift Savings Plans, 403Bs, etc.

- Account balances of any pension plans, profit-sharing plans or employee stock options

- Statements of any other investment or brokerage accounts

- Insurance Policies

- Contents of any safety deposit boxes

- Bank accounts, including: checking, savings, money market accounts, certificate of deposits (CDs)

- Any loan balances – mortgage, automobile, personal, school

- Any credit card balances

- Appraisals of any assets owned

- List of all you and your spouse’s personal property that was acquired before and during the marriage

- List of any inheritance received

We’ve learned that a lot of people like to put off planning for their death.  It’s not a fun subject and can sometimes cause great stress on those involved.  However, it’s important to realize you already have an Estate Plan in place whether you like it or not.  The state you reside in as a standard flow of your assets if you die without a Will or Trust in place.  Remember, the way the state directs your assets may not be what you want or desire. 

By creating your Estate Plan now then you can avoid losing control over your assets.  Here are some of the common Estate Planning mistakes we see.

ONE: not establishing the Estate Plan you want.  It’s vital to make sure your important assets are passed down to the loved ones and charities you want.

TWO: Forgetting to update your Estate Plan.  When you have children, grandchildren or remarry it’s important to update your Will or Trust.  A periodic review of your Estate Planning documents can ensure your wishes are still up-to-date.

THREE: Forgetting to make gifts that can help reduce your estate tax.  By talking with your tax preparer you should be able to plan gifts that can help reduce your tax liability. 

FOUR: Selecting the wrong person to handle your estate.  Choosing an Executor is a difficult choice for most people.  Who you place in charge can have a serious impact on your estate. 

FIVE: Putting it off.  By thinking you can take care of your Estate Plan another time is a big mistake.  Putting it off doesn’t make it go away.  Sometimes the realization comes too late, such as when there is an unexpected death or disability.  To avoid the stress of not having your Estate Plan established, go ahead and take care of it as soon as possible.

If you need help with your Estate Plan, give us a call at 573-686-3053.  Dairel is a Board Certified Trust Specialist and can help you make the most of your tax planning.

A buy-sell agreement is sometimes known as a buyout agreement.  It is a legal document that binds co-owners of a business on how to handle the situation if one owner dies, is forced to leave the business or chooses to leave the business.

Think of it as a prenuptial agreement between business owners.  The contents and arrangements are agreed upon by the owners if something should happen.  Some buy-sell agreements are funded by insurance policies in case of death of an owner. 

Buy-Sell Agreements contain the co-owners involved in the agreement, what specific events will trigger a buyout, the price to be paid, the date the owners came into agreement, and signatures.  There are more considerations that need to be made and it’s important to discuss those with your attorney and your accountant.  

A promissory note is a written and signed promise to pay a stated amount of money by a specified date or on demand.  The promissory note is to be paid by a specified person and it could involve a loan from a bank, a loan from a relative, or a replacement for an account payable.  It is sometimes referred to as a note payable.

The face amount of the promissory note is the written amount of money owed. The face amount will be recorded in the borrower's general ledger with a credit to their liability account Notes Payable. The lender will record the face amount with a debit to its asset account Notes Receivable.

A promissory note could specify an interest rate due on the borrowed amount.  If the promissory note specifies an interest rate, which has been agreed to by both parties then it’s used to accrue interest expense and interest payable on the books of the borrower. The lender will accrue interest income and interest receivable.  If the promissory note does not specify any interest then it should be assumed the face amount includes some interest.

The terms of the note include the face amount, the interest rate (if stated), the date, terms of repayment and the maturity date.  Sometimes the note will also include the lender’s rights in the event of default.

What exactly is a digital asset?  Well a digital asset is anything that exists online and comes with the right to use.  Such as images, multimedia files, online accounts, etc.

Here’s what to do with your digital property before you pass away

ONE: Make a list of all your digital assets, online accounts, etc. and how to access each of them.  These can include: email accounts, social media accounts, domain names, photo storage accounts, copyrighted materials, etc.

TWO: Decide what you want done with each account after you’ve passed away.  If you have any digital assets that have a monetary value then you need to instruct the executor of your estate on how to handle these assets.  Think of specific account features, such as credit card points, reward points, and so on.  Should these accounts be immediately shut down or shut down after it is redeemed?

THREE: You need to name a digital executor.  You need to be aware that in most states a Digital Executor is not a legally binding designation, but if it is known then your Executor of your Estate can name that person to handle your wishes as you laid them out.

FOUR: Make sure you store your digital assets’ information in a secure location, but also make sure it’s accessible.  

As a small business owner it's important to know just how you're doing.  We help business owners every day know just how healthy their business is doing, because sometimes the numbers can be misunderstood.  For instance, a business’ revenues are reported on the top line of its income statement, while its earnings are reported on the bottom line (or near the bottom) of the income statement.

Revenues are the gross amounts earned from selling goods or providing services during a certain period. In other words, revenues are the total amounts earned before deducting cost of goods sold, any expenses, and losses the business received.

Earnings are the amounts earned after deducting the cost of goods sold, expenses and losses. It is often presented as net income. 

If you need help determining your business' earning, give us a call.  Our knowledgeable team can help.  Call us at 573-686-3053.

In a simple term, accounts payable is money owed to creditors.  Accounts payable may refer to:

The accounting department that is responsible for processing invoices and other bills for goods and services that a company received.

The title of the account containing the amounts owed for invoices and other bills that have been approved but not yet paid.

Amounts owed, which do not involve a promissory note. If a promissory note is involved, the account Notes Payable will be used instead of Accounts Payable.

If you have any questions or would like to sit down with one of our Certified Public Accountants to discuss how we can help you, give us a call at 573-686-3053.

Payroll accounting applies to any business owner and involves recordkeeping of employees' compensation information, which includes:

Salaries, gross wages, commissions, bonuses, and any income earned by employees

Withholding of any payroll taxes, which include federal income taxes, Social Security, Medicare, and state income taxes, if applicable

Withholding for the employees' portion of health insurance premiums, contributions to savings plans, garnishments, etc.

Employer's expense for Social Security, Medicare, state and federal unemployment taxes

Employer's portion of benefits offered to employees.  Such as health, vision, and dental insurance, paid holidays, pension and savings plan contributions, vacation and sick days, workers’ compensation insurance, etc.

If you have any questions on payroll accounting or would like assistance, please give our office a call at 573-686-3053.

Tax season is over and you may be grateful to have another year to think about it again.  But you shouldn’t put off planning until it’s too late.  Go ahead and get organized for the 2017 tax year.  Make sure you keep records, retain any receipts, and keep any income sources and expense records.  If you start the year off right then you can eliminate any stress at the end of the year.  If you need help knowing which records are important and should be kept, just give us a call at 573-686-3053.  We’ll be happy to help!

Congratulations to our clients, Debbie and Herschel W. for winning our grandprize!  They were the lucky winners of our GoPro giveaway during this past tax season.  We hope you enjoy your new GoPro and all of those accessories!  

We hold a referral giveaway during tax season each year.  Every time a client refers a new client our way, they are entered into our annual grand prize drawing.  The giveaways starts December 1st each year and ends the week before the tax deadline.  The winner is announced during our Tax Day Lunch. 

We wanted to to thank all of our clients for a successful tax season.  We’ve been able to help our clients and help new clients throughout the first few months of 2017.  We know we would not be where we are today without you.  

Congrats again Debbie and Herschel!  We appreciate your business!

To stay up-to-date on our other giveways we're having this year, follow us on Facebook.

We’re excited to be hosting our third annual Tax Day Luncheon on Friday, April 14^th from 11:00 – 1:00.  Come join us to celebrate another successful tax season.  We’ll be having lunch and we’ll be giving away door prizes.  It’s going to be a great time!  Don’t miss it!

Do you know your tax guy’s background?  Do they have the education, experience and qualification you want in someone preparing your tax return?  At our office we have two Certified Public Accountants that prepare and review every single return.  We take pride in knowing the latest tax law changes, utilize cutting edge software and spend time getting to know our clients. 

We’re also an Endorsed Local Provider for Dave Ramsey on tax and accounting services.  Which means we’ve made the cut to be one of Dave’s trusted advisors.  We don’t take that title lightly and work hard to earn the trust of our clients every day.

Not every office feels the same way we do.  That’s what makes us different.  Give us a call today to have a tax expert help you with this year’s income tax return.  Call us at 573-686-3053.

Can you believe March is almost over? Tax Season is in full swing over here at Denton & Associates.  We’ve been busying preparing tax returns and helping clients with their tax needs.  Have you started preparing your tax return?  This year's deadline is Tuesday, April 18th. We're only 21 days away from the deadline.  Stop putting off your return.  Give us a call to get your appointment scheduled with one of our Certified Public Accountants. Call us at 573-686-3053.

It’s time for some housekeeping for your tax records.  A big myth is to keep every single piece of paper that comes your way just in case.  Tax and organizational experts say that’s not necessarily correct.

What do you need to hang onto?

Keep records that will help identify income sources, track expenses, determine the value of property, prepared tax returns and their supporting documents. 

A good rule of thumb is to hold onto records for 3 years after filing your return.  That is typically when a chance of an audit from the IRS will pass; however, if the IRS suspects you underreported income by 25% or more then they can go back 6 years.

Most recommendations are for taxpayers to hold onto their tax documents for about 6-10 years.

If you use something to claim a deduction then hold onto it; however, if you don’t use it then shred it.  For example, some taxpayers are unable to deduct their medical expenses.

Some items will eventually sell, such as specific assets.  Pension plans, homeownership, stocks and more are such assets.  Tax professional recommend hold onto those records for 3 years after you dispose of the asset.

Once you know which records to keep, and which not to keep then it’s time to pick a system.  Any system will work, just find one that you like best.  It doesn’t matter if it’s a filing cabinet, cardboard box, or computer program.  Find a record-keeping system you’re comfortable with it and use it.

Did you know you should report any gambling winnings on your income tax return?  If you have winnings over a specific dollar amount then you will be required to claim those amounts on your tax return.  The IRS wants to know just how lucky you are at poker, blackjack, slot machines, horse races and more.  The institution must get your Social Security Number and let the IRS know you came into some extra money during the year. If your winnings are large enough then it might be smart to pay an estimated tax.

What if your winnings weren’t large enough to trigger a W-2G filing?  Well at that point, it’s up to the taxpayer to be responsible to report the winnings to the IRS.

Remember, if you itemize your deductions then you may be able to deduct any gambling losses you faced during the year.  If you have any questions, give us a call at 573-686-3053.

Watch our very own Megan Valenzuela, CPA on Business Today for Fox23.  She's talking about what to bring to your tax appointment and the importance of bookkeeping for the small business owner.

Did you know the IRS can penalize you for a variety of reasons? For instance, you can receive a tax penalty for not having health insurance, for filing what the IRS deems a frivolous tax return, and for a variety of retirement account inactions or actions.  However, most taxpayers usually encounter 3 common offenses:

- Not paying what is owed

- Not filing an income tax return, at all

- Not paying enough tax through the year

If you don’t file a return or an extension by the April deadline then the penalty for not filing will start the very next day.  The penalty will continue to grow at 5% per month of any tax balance that is due.  The 5% penalty applies to any portion of the month and is not pro-rated.  

However, the penalty does max out at 25% of your unpaid taxes.  Still, 25% is a pretty hefty fee to pay.

A lot of taxpayers will avoid filing their return if they can’t afford to pay their tax liability.  That’s not smart.  The IRS considers not filing your return a more serious offense. 

Those unpaid liabilities have a penalty, too.  Even if you file your return or an extension, but do not pay what you owe in full then you’ll face a penalty of 0.5% of the amount due.  Again, it’s added every month that your tax bill is not paid in full.  It can grow until it reaches 25% of your tax liability.

Taxes are collected on a pay-as-you-earn system.  So if you do not pay enough in as you earn it then will be hit with an underpayment penalty.  Most Americans comply with this by having income tax withheld from their paychecks.  But if you’re an independent contractor or have a side job to your regular employment then you’re responsible for covering the additional taxes due.

To avoid underpaying your taxes you can pay an estimated tax amount throughout the year.

If you have questions on avoiding the 3 common tax penalties, give us a call at 573-686-3053.

Using the correct filing status is important for your tax return.  The marital status is used to determine which requirements you need, your standard deduction and eligibility for certain credits and other deductions.  The IRS has five filing statuses:

Single – unmarried, legally divorced or separated according to State law

Married Filing Jointly – couples who are legally married or if your spouse died during the year and you did not remarry

Married Filing Separately – married couples who elect to file their own separate returns.

Head of Household – unmarried or surviving spouses who have paid more than half the cost of maintaining the home for you a qualifying person

Qualifying Widow (Surviving Spouse) with Dependent Child – applies if spouse died during the previous years and you have a dependent child, you have not remarried, and you meet other conditions

Each filing status will impact your income tax return.  If you are unsure of which status to use, please contact one of our tax professionals at 573-686-3053.

Let’s be honest, going through an audit is pretty costly – to your pocket book and your time.  Here are our 7 triggers to avoid that can cause an audit by the IRS:

1) Using too many round numbers on your tax return

2) Inflating home office deductions

3) Too many losses on your Schedule C

4) Claiming Head of Household when you’re actually married

5) Failing to include income from a W2, 1099 or other form

6) Claiming the Earned Income Tax Credit when you’re not eligible

7) Disproportionately claiming high charitable deductions

At Denton & Associates we recommend having a CPA or tax professional help you file your income tax return.  Our CPAs, Dairel and Megan can make sure everything is on track and accurate on your return.  Give us a call at 573-686-3053 to schedule a meeting.

Did you know someone is posing as the IRS to target taxpayers?  They call and say that are with the IRS and are needing more information or payment. 

They sound convincing, but do not give any confidential information or payment over the phone.  It could be someone trying to scam you out of your money and confidential information.

The scammers will try to put pressure on those on the other end of the phone.  They will threaten to send the police to your home for failure to pay or revoke your driver’s license.

Do not be fooled!  Even the caller ID will say they are the IRS, but they aren’t!  The caller ID may even show a local number.

If the IRS needs information, they will contact you by mail.  The IRS will never make a phone call their first point of contact with someone.  If you receive any notices, letters or statements from the IRS, it’s best to bring them to your tax professional. 

If you receive any calls from someone claiming to be from the IRS and need payment, please be cautious.  Call your tax professional before giving any credit card or payment information to the IRS over the phone.

If you’re recently divorced or are going through a divorce then there are a few tax implications you should be aware of.  Divorce can cause tax issues if you are unprepared at tax time.  However, talking to a tax professional during the proceedings can help relieve any future stress. 

When going through a divorce, it’s best to talk to your tax expert.   If you and your spouse have joint liabilities – such as a home mortgage, car loan, a business or credit cards then you need to make decisions now on how those will be handled.  Also, taking into consideration joint assets like an IRA, savings account or home can be important when going through a dissolution of marriage. 

Give us a call at 573-686-3053 to talk to a tax professional.  We can help you through the divorce proceedings to make sure you’re on track for your taxes. 

What will your family do if something should happen to you?  Do you have a plan to help replace your income if you can no longer work? 

You need to think about it.  Really think.  Will your family be able to pay the mortgage, keep the electricity on, and put food on the table if all of a sudden you’re down to one income, or no income?  Will your children still be able to attend college, debt-free if you’re no longer there to financially support them?

If your family depends on your income to survive then life insurance is a necessity.  If you should die, life insurance replaces your income and if you should become disabled due to an illness or accident and can no longer work the same or bring in the same amount of income, disability insurance provides income. 

Another reason to have life insurance is to help with any debts that you may have when you pass away.  A lot of Americans have a mortgage, credit card debt, personal loans, and car loans.  Being prepared with life insurance will help cover living expenses, including mortgages, car loans, and credit card debt. 

Having the right type and the right amount of insurance can bring peace of mind.

Insurance is one of those things that we hope we never need, but are sure thankful to have it.  If you would like to sit down to look at your situation to make sure you have enough coverage then give us a call at 573-686-3053.  

Some facts from the IRS about tax fraud:

- In 2015 the IRS reported 2.7 million taxpayers had identities stolen in the previous year.*

- In 2011 the IRS paid identity thieves 5.2 billion dollars.* 

- Advances in technology have helped stop the payment of fraudulent money, and between 2011 and 2014 the IRS has stopped $63 billion worth of fraudulent tax refunds.*

Here’s what you need to know to protect yourself this year:  Thieves steal your personal information before you even receive your W-2 from your employer.  Thieves will then file a fake income tax return on your behalf before you get a chance to file a legitimate return.  The thieves then sit back and collect the refund check.  It seems to happen fairly fast, and with the IRS trying to issue refund checks within three weeks of receiving your return there really isn’t much time to catch the fraud.

Want to know the best way you can deter tax refund fraud?  File early, and file electronically!  The IRS will reject any tax returns with your Social Security Number that are filed after yours is received.   By filing early and electronically you are ensuring your tax return is processed before any fraudulent ones can be received.

Have questions about how to prevent identity theft tax refund fraud for you?  Give me a call at 573-686-3053 and I’ll be happy to sit down with you.

                                                                                                                              *Source: http://money.cnn.com/2015/06/02/technology/irs-hackers/

If you’ve been following along the past few weeks then you know we’ve discussed what bookkeeping is and answered who needs bookkeeping.  Today we wanted to answer why you need bookkeeping for your business. 

Remember bookkeeping is the recording, storing and retrieving of day-to-day financial transactions for your business.  It helps organize your business, keeps you in compliance with State laws and allows you to see in-depth of how your business is doing.

So why do you need bookkeeping?

Well if you’re interest in reducing the risk of an IRS audit, then bookkeeping is the first step and most important step in this reduction.  Bookkeeping allows you to track your profits by organizing your finances in a way where you can understand where your profits and expenses are coming from.  You’ll be able to visualize reports for your company – actually getting to see how money is being allocated, including a profit-loss ratio. 

Tax savings are a huge benefit to proper bookkeeping.  By streamlining the process you will be able to provide correct, error-free reports to your accountant.  In addition, you’ll be able to final separate your business from your personal expenses by organizing your books.

Certified Bookkeepers can help you do all of this.  With one phone call you can sit down with one of our CPAs and one of our Certified Bookkeepers to get started organizing your business’ records.  Give us a call at 573-686-3053 to get your appointment scheduled.

Last week we share what bookkeeping is and how it can help your business stay in compliance with State laws.  This week we’re answering the question, “Who needs bookkeeping?”

It’s a question we get all the time from our business owners and it applies to a variety of business owners.  We have come up with a list of questions that we like to ask business owners to see if they need bookkeeping.

Are you fearful of an audit from the IRS who typically operates on “guilty until proven innocent?”

Are you an owner that wants to ensure honest and clear records are being kept?

Are you worried about possible internal theft?

Are you afraid of paying more in taxes than you should due to missed deductible expenses?

Are you wanting to improve your business’ cash flow issues?

Are you concerned with timely and accurate filing of payroll tax, sales tax and use tax?

Are you wanting to avoid the year-end scramble and tax time stress?

If you answered yes to any of these questions, then you need bookkeeping for your business.  Give us a call at 573-686-3053 to sit down with either of our CPAs, Dairel or Megan to discuss how we can help you.  Next week we’ll talk about why you need bookkeeping and how to find the best team for you.

Here at Denton & Associates we believe that your financials are the heartbeat of your company.  So to make sure you have a strong and healthy heartbeat, you need to be handling your bookkeeping properly.  A lot of new business owners aren’t always sure what bookkeeping is, who needs it and why you need it.  That’s where we come in.  We like to educate our clients to help them understand the benefits of bookkeeping and why it’s important to have a professional help you.

Today, we want to share with you what bookkeeping is.  Stay tuned to next week’s post where we will go more in depth who needs bookkeeping.

What exactly is bookkeeping?

Bookkeeping is the recording, storing and retrieving of day-to-day financial transactions for your business.  It helps provide financial reports and statements, monitors accounts receivable and records receipts from customers.  Bookkeeping also simplifies paying invoices from suppliers on time and records depreciation for your business.  In addition, bookkeeping processes employee payroll and payroll taxes to help keep your business legal. 

Bookkeeping is vital to your business’ success.  It computes and files all sales and use taxes for business owners on a monthly, quarterly or annual basis to ensure compliance with State laws.

Who needs bookkeeping?  Well look for next week’s post and we’ll share what type of business owner actually needs bookkeeping.  If you have any questions before then or would like to sit down with one of our CPAs, give us a call at 573-686-3053.

The holiday season is upon us.  Many of us find ourselves with too long of to-do lists, family get-togethers to plan and finding ourselves short on time to get it all done.  However, the holiday season is also a busy time for giving to charity. With charity gift giving, there are factors you should keep in mind.

-  It’s important that any charitable gifts must be received by December 31^st to count on your 2016 tax return. 

-  All donations must be made to a qualified charity.  If you are unsure if your charity is qualified, then you can use Select Check, which is a searchable online tool available through the IRS to ensure your charity of choice is qualified.

-   Any contributions made through a credit card are deductible for 2016 if made prior to the end of the year, even if the credit card statement is paid in 2017.

-  If possible, get a receipt for all donations made whether money or household items.

Rules for Charitable Contributions of Clothing and Household Items

Household items include furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to charity generally must be in good used condition or better to be tax-deductible. Donors must get a written receipt or acknowledgement from the charity for gifts worth $250 or more. It must include a description of the items contributed.

Rules for Monetary Donations

Documentation must show charity’s name, the date of the contribution and the amount. Bank records will count as documentation, and they include canceled checks and statements.

Money donations cash, check, electronic funds transfer, credit card and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.

Taxpayer must receive a receipt or acknowledgment for any donation that is $250 or more. However, one statement containing all of the required information may meet both requirements.

If you have any questions on charity gift giving, please give us a call at 573-686-3053.

If you’ve decided to hire a tax expert, like a CPA this coming year then there are a few items you need to be prepared for:

1) Bring Your W-2s – if you’ve received your W-2s from your current or former employer, please bring them with you.

2) Bring your 1099s – again, if you’ve received any 1099s then please bring those along too.

3) 1098 form – bring any information on your mortgage interest because no homeowner wants to miss an interest deduction on their tax return.

4) Bring a copy of last year’s return – it’s important for your CPA to get a full picture.  So we recommend bringing your prior year’s return to the appointment. 

5) Any other tax forms or information – if you have any other tax information that is important to filing your return, please bring it with you.

If you have any questions about what to bring to your tax preparing appointment, please give us a call at 573-686-3053.

The holiday season is fast approaching.  This time of year is notorious for feeling stressed over money.  We have gifts, holiday travel, celebrations, dinners, time off work, and so much more creeping in on us.  It’s no wonder so many people feel like their overwhelmed as they head into the holiday season.

But it doesn’t have to be this way.

We do not have to let money control us.  You can choose how you deal with your money.  What if you decided to hire a financial planner to help you create a realistic and do-able financial plan for 2016? 

It would be a wonderful tool to have on your side.  Being able to budget your money so the stress of taxes, holidays and bill paying doesn’t cause panic attacks. 

Denton & Associates is a full-service accounting and financial planning firm.  We love working with business owners and families of all ages.  We enjoy helping people who want to learn how to manage their money in a whole new way.  We work with you to create a comprehensive financial plan that will actually work for you – to help you achieve your dreams and goals.

Let us help you.  Give us a call at 573-686-3053 to schedule your meeting with our knowledgeable staff.  Let’s finish 2015 and start the New Year with clarity about our money.  

I believe that our money is a tool for us to use to better our lives.  So we can live the dream we’ve always had, retire comfortably, provide for our family and have less stress.  But to be able to fully use our money to our benefit, we need to know where we are on our financial journey.  Knowing where you are also means being honest about our debt.

Facing our debt situation can be intimidating and overwhelming, but avoiding it doesn’t help.  Ignoring our situation only makes it worse.  We need to take inventory of our debt, list out everything – how much we owe, who we owe and the interest on each.  Then we can create a plan of action to tackle our debt.

Here are the steps you need to take to be honest about your debt:

ONE: Write out all of your debts on a piece of paper or in an Excel spreadsheet.  Here’s the info to include: who the debt is owed to, the amount owed, minimum monthly payment, interest rate, due date.

TWO: Prioritize your debt.  Take a look at your list.  Are there any debts that could be easily knocked out?  If so, make it a plan to pay them off within a month or two. 

You need to rank the rest of your debt in order so you can focus on one at a time.  When you have too many irons in the fire it can be overwhelming.  So you need to break it down debt-by-debt.  Work on paying one off and then move to the next.

THREE: Make sure you’re paying something.  It’s important to not ignore your debt.  You need to take care of the most important or high-priority ones first, but that doesn’t mean ignoring others. 

FOUR: Ask for a lower interest rate.  If you have a good history of making payments on time then you might be able to ask for a lower interest rate. 

Getting out of debt can make you feel free.  No more ties to credit card companies, no more monthly loan payments need to be made and so on.  The most important step in getting out of debt is deciding to do something.  Then you need to follow-through.

If you need help with your debt-reduction strategy, give us a call.  I’m here for you.  Give us a call at 573-686-3053 to schedule a time for us to get together.

It’s important to be prepared for a rainy day because no one can predict the future.  We would all love a crystal ball to see when our hot water heater was going to break or when the car isn’t going to start on a cold morning, but that’s not possible. 

Since we can’t predict the future, we need to be prepared for the possibilities that could be thrown our way.

You should open a savings account that is your designated emergency fund.  Used only for emergencies. 

How much should you save in your emergency fund? 

That’s a tough question.  We recommend starting with $1,000.  The end goal is to have 9-12 months of living expenses saved in your emergency fund.  The best way to figure that number is to add up all your necessities for one month: utilities, groceries, house payment, car payment, insurance costs, etc. and multiply it by 12 or how many months you want to save for. 

You should you have more than 12 months of expenses saved? 

Every person and every family is different.  No one is a like, which means their financial situations differ.  You should really talk to your accountant or financial advisor before making this decision. 

If you would like help coming up with your emergency fund savings plan, give us a call at 573-686-3053.

Protect Yourself from Tax Fraud

Tax fraud is becoming more and more prevalent.  In 2013 the IRS reported that 5.2 billion dollars were dispersed to identity thieves, according to the Government Accountability Office.  The thieves filed fraudulent tax returns for unsuspecting individuals, and the IRS did not catch it until well after the refund check had been cashed. 

The full extent of the fraud issue is hard to comprehend, but it is an issue that you need to be aware of. 

Identity thieves steal your personal information, such as your Social Security Number, before you even receive your W-2 or 1099.  Thieves will then quickly file a fake income tax return on your behalf.  Then they collect the refund.  The IRS typically tries to issue refund checks within three weeks, which doesn’t really give much time to catch identity thieves.

Here’s how to protect yourself for tax fraud:

File early, and file electronically!  The IRS will reject any tax returns with your Social Security Number that are filed after yours is received.   By filing early and electronically you are taking the necessary steps to make sure your tax return is processed before any fraudulent ones can be received.

Have questions about how to prevent identity theft tax refund fraud for you?  Give me a call at 573-686-3053 and I’ll be happy to sit down with you.

Have You Received an IRS Notice?

A notice from the IRS are sent out for a variety of reasons, but please do not panic.  If you receive a notice from the IRS, please give us a call.   We are happy to take a look at the notice or letter and answer any questions that you may have about it.  We’ll help you take care of it so you don’t receive notices in the future. 

Please give us a call and we’ll be happy to help.  Call us at 573-686-3053.

Are Tips Taxable Income?

If you receive compensation through tips then there are some key issues to take note of:

• Tips are treated as taxable income.  They are subject to federal income, Social Security and Medicare taxes. Also, the value of non-cash tips are considered income.

• Tips need to be included on your tax return.  You must include in your gross income all cash tips you receive from customers, tips added to credit cards or debit card purchases and your share of any tips you receive from a splitting agreement.

• Keep a daily log of your tip income.  It’s best to keep a running log of any tips you receive.  The IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer should be used.

• Report tips to your employer.  Typically the minimum that needs to be reported is $20 or more in one month.  So if you receive $20 or more in one calendar month then you need to be reporting that income to your employer.  Your employer is required to withhold the correct federal tax, Social Security tax and Medicare tax.

• State income tax.  Tip income might be taxable by your state.  It’s best to talk to your tax preparer to make sure you’re on track.

If you have any questions about your tips, then give us a call at 573-686-3053.

7 Common Triggers for an Audit by the IRS

Going through an audit from the IRS is not fun and it can be costly.  There are ways to avoid running the risk of getting audited.  Here’s are 7 triggers that are common:

1. Claim Earned Income Tax Credit when you’re not eligible

2. Inflating Home Office Deductions

3. Claim Head of Household when you’re actually married

4. Failing to include income, like a W2, 1099 or other form

5. Using Too Many Round Numbers

6. Too Many Losses on your Schedule C

7. Claiming High Charitable Deductions Disproportionately

At Denton & Associates we recommend having a tax professional like a CPA assist you with filing your tax return.  We can help you make sure everything is on track.  Give us a call at 573-686-3053 to schedule a meeting with one of our CPAs.

Trying to By a New Home?

Home buying can be stressful whether it’s your first home or your second home.  There are many different criteria to take into consideration before even looking at homes.  Here are few steps you should do first:

1. Decide on a budget.  If you’re not sure how much house you can afford then I would recommend talking to your accountant.  He can help you look over your budget and get you started.

2.  

3. Start saving for the down payment.  It’s recommended to put down at least 20% of the purchase price to avoid paying private mortgage insurance (PMI).  Start with creating a monthly budget to see how much you can put back each month towards your goal. 

4.  

5. Determine when you would like to move.  By setting a target date, this will help you stick to your savings goal.

6.  

7. Talk to the bank.  You will need to complete an application for a mortgage once you have an idea of a home, but by talking to the bank early you may be able to find how much you qualify for. 

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If you have any questions on the home-buying process, please give us a call at 573-686-3053.

It’s Never Too Early To Be Thinking About Taxes

Around here, we don’t believe in it ever being too early to start thinking about this year’s taxes.  Especially for business owners and farmers.  We would recommend giving your tax professional a call if you have a question.  It’s easier to plan ahead then it is to fix a mistake. 

Give one of our tax experts a call at 573-686-3053 to see if that equipment purchase or business move is tax-smart.

Do You Need Life Insurance?

Do you know how your family will provide for itself, financially, if you’re gone?  What will happen if they no longer receive your paycheck or retirement money? 

Think about it.

Will your wife or husband be able to pay the mortgage payments, will they be able to afford electricity or even put food on the table?  What would happen if your family was down to only one income?

If your loved ones depend on you for financial support then you should take a look at life insurance and disability insurance.  Having the right type of insurance is imperative when you have young children or when you provide majority of the household income. 

Another benefit of having the right type of insurance and the right amount is to have peace of mind once you’re gone.  Your loved ones will not have to worry about final costs or bills if you have insurance in place.

Everyone hopes that nothing bad or life-altering will happen.  But it’s best to be prepared.  We can help.  Give us a call at 573-686-3053 to schedule a meeting with Dairel to see what type of insurance would best fit your needs and to get a plan in place.

Be cautious of an IRS Phone Scam

Did you know someone is posing as the IRS to target the elderly?  They call and say that are with the IRS and are needing more information or payment. 

They sound convincing, but do not give any confidential information or payment over the phone.  It could be someone trying to scam you out of your money.

The scammers will try to put pressure on those on the other end of the phone.  They will threaten to send the police to your home for failure to pay or revoke your driver’s license.

Do not be fooled!  Even the caller ID will say they are the IRS, but they aren’t!

If the IRS needs any information from you, then they will typically contact you by mail first.  The IRS will hardly ever call someone, unless you have an audit ongoing.  If you receive any letters or statements from the IRS that you are not expecting, it’s best to bring them to your tax professional. 

If you receive any calls from someone claiming to be from the IRS and need payment, please me cautious.  Call your tax professional first to be sure before handing over any credit card or payment information.  

Is Your Beneficiary Information Up-To-Date?

Do you know who you have listed as a beneficiary on your 401K, retirement accounts, life insurance, or bank accounts?  It’s important to keep that information as up-to-date as possible.

Designating someone as a beneficiary on your account says you want that person to inherit that specific account’s worth.

I have a Will that lists someone different then on the individual account, what will happen?

Well your designation on the specific account will inherit it, regardless of what your Last Will and Testament states. 

This is a big deal for those that have been remarried and haven’t got around to updating your beneficiary information.  Changing your Last Will and Testament will not update your beneficiary information for your retirement accounts, insurance policies or bank accounts.

Also, there are tax implications you need to consider.  You should talk to a tax professional who has experience in estate planning to make sure you’re on the right track.  Dairel can help you, give him a call at 573-686-3053 today.

Do Want to Help Your Grandchildren with the Cost of College?

One question we get asked quite a bit from our clients that have grandchildren is “how can I help them with college? It’s so expensive?” 

Well, we can help you create a plan that your grand kids can benefit from – no matter their age!  We’ve helped clients with education accounts for newborns, for those grandchildren that are already in school to getting ready to head off to college.  It’s never too late to do something, but it’s easier the earlier you start.

There are three main ways to help your grandchildren with college costs:

1. Gifts: You can make an outright cash gift your grandchild each year.  However, there is a limit on the amount you can give that is set by the IRS.  To avoid the gift tax liability, give us a call to see what that amount is because it’s subject to change. 

2.  

3. Direct Payments: You can make direct payment to the college or university.  Now, these payments are only for education costs.  They do not cover dorm fees, meals, or book.  Making direct payments might avoid the gift tax limit, but you should be sure to ask your tax professional to be on the safe side.

4.  

5. Education Accounts: You could setup a Coverdell education savings account or a Section 529 plan for your grandchild.  These plans offer tax-free growth of the amount you contribute.  Age, income and contributions limits apply so you will need to talk to your financial professional for more information.

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To discuss any of these options or to find the one that best fits your needs and wants, please give us a call at 573-686-3053.  We’ll be happy to take a look and create the best plan for you.

Just Married? Find Out What Tax Forms and Changes You Need to Know

Were you just married or know someone getting married?  Well, the IRS has a form for that.  Actually, several forms.  Let Denton & Associates help you make the process simpler!

We are in the middle of wedding season and there will be quite a few couples walking down the aisle.  Just remember as you’re getting married or attending weddings that there is a form for that!

Name change? Change in tax withholding? Address change?  There are forms for all of those!

If either party is changing their name then you will need to file for a new Social Security Card.  The name on your Social Security card will need to match your tax return. 

The paperwork you filled out when you started your job will need to be re-done.  Your combined income will change after you say “I do,” which may change your tax bracket.  However, there might be a benefit to filing “married filing jointly” or “married filing separately.”

You need to talk to a tax professional to get a plan that’s best for you and your new spouse. Give us a call at 573-686-3053 to discuss what options are best for you!

Divorce and Your Taxes

Divorce can play a role in causing a list of tax problems for you.  Some problems might be smaller than others.  However, talking to a tax professional during the proceedings can help. 

When going through a divorce, I can advise you and help plan for several issues.  If you and your spouse have joint liabilities – such as a mortgage, car loan or credit cards this can play a role in the decisions you need to make now.  Also, taking into consideration joint assets like an IRA, savings account or home can be important when going through a dissolution. 

Give us a call at 573-686-3053 to talk to a tax professional.  We can help you through the divorce proceedings to make sure you’re on track for your taxes.

Why should you use a Certified Public Accountant to file your tax return?  Why can’t you just file your own return or use one of those discounted places? 

You may think avoiding paying a professional will end up saving you money, but that’s not always the case.  The answer is in the numbers – the dollars you will end up with in your wallet.

The difference in a return prepared and filed by a tax professional compared to filing it yourself can be hundreds.  Dave Ramsey, a financial educator, motivational speaker, and author has conducted research on the topic.  According to a survey conducted by his company, the Lampo Group, Inc. they found the difference between a self-filed return and a return filed by a tax professional was between $347 to $841.

That’s a lot of money.

That difference is one that more than pays for itself by hiring a professional.  Dave Ramsey recommends America’s Tax Professionals through the Endorsed Local Provider (ELP) Program.  As one of his ELPs, we are proud to offer our expertise and knowledge to our clients. 

Give us a call at 573-686-3053 to see what a difference a tax professional can make!

Our Summer Hours Are Starting

Starting May 27^th we will be beginning our summer hours here at Denton & Associates.  We will be open Monday through Thursday from 7:00 am until 6:00 pm.  Our office will be closed on Fridays through the rest of the summer.  If you need assistance from anyone, please feel free to give us a call at 573-686-3053.  Thank you.  

Starting A Small Business

Do you need help getting your small business off the ground?  There are a few things you might need to consider first.

What kind of business do you want?  There are several types of business entities out there: sole proprietorship, partnership, limited liability company (LLC), corporation, and S corporation.  The kind of business entity you choose will determine how you need to file your taxes.

Our Certified Public Accountants can help you determine the best entity for your small business.  We can answer your tax questions to make your startup less overwhelming. 

Most businesses need to get an Employer Identification Number (EIN), which is like a Social Security Number for your business and is used as an identifier for tax purposes. 

Also, it’s essential to keep accurate records and financials to track your business expenses and prepare your tax returns.  Our staff of CPAs and bookkeepers can help you find a system that works best.  We have access to an account software that will allow you to track your expenses and income for financial statements, cash flow statements and tax return preparation.

For any questions, please give us a call at 573-686-3053.  We would be happy to schedule a meeting to answer any of your business tax questions.

How Bad Is It If I Can’t Pay My Tax Bill?

The problem of not paying your tax bill can be minimal if you decide to do something about it or it could be detrimental if you ignore it.

The IRS offers alternatives if you cannot pay your taxes when our file your return.  However, you just have to do something.  Here are some of the alternatives the IRS offers:

• An extension – you can ask for up to 120 days to pay your bill
• Payment plan – there are installment agreements, depending on your situation.  These agreements range from simple that can be setup online to more complicated ones requiring you to submit documentation of your financial situation
• Currently not collectible status – by proving your financial hardship, which tells the IRS you cannot pay right now then the IRS will not ask you to pay until your circumstances improve
• Offer in compromise (OIC) – a settlement of unpaid taxes for less than what is actually owed, but you have to qualify.  OIC is commonly used when taxpayers have few or no assets, and have trouble paying for their living expenses.

If you need help deciding on an alternative and need assistance contacting the IRS, then give us a call at 573-686-3053.  Owing taxes and not being able to pay isn’t ideal, but dealing with it can really help negate a bad situation.

Did you forget to include some information this year’s tax return?  Or do you need to provide a correct number? 

Give us a call.  We can let you know what your best course of option would be.  Is it do nothing or do you need to file an amended return?  Only a tax expert can give you the best advice.

In some cases, the best option is to do nothing.  The IRS will eventually send you a notice requesting the missing information or form. 

In other instances, the best course is to file an amended return with the correct income or deduction amount. 

Let us help.  Give one of our tax experts a call at 573-686-3053 to discuss which option is best for you.

Saving money should be everyone’s game.  Everybody wants to save money, right? 

Right.

But implementing money saving tactics can be a bit tricky and overwhelming. 

That’s where we come in.  We’ve compiled our top 10 money saving tips to take the stress of it off your shoulders.  Today, we’re sharing you our first 5 money saving tips. 

Tip 1 - Pay Yourself First.

I recommend starting with your savings.  Setup an automatic transfer from your checking account to a designated savings account.  I would establish the automatic transfer for the day your paycheck hits your checking account, that way you will never miss it.  Your savings will start building on its own without you having to take time each month.

Tip 2 - Actually Fill Out Cash-Back Rebates

How many times do you go to the store and receive a rebate for something you purchased?  Probably more often then you realize.  Rebates are available on a lot of different products, especially big-ticket items.  However, they can be on smaller ones, too.  Recently, I purchase anti-freeze and was offered a $1 back for every 2 gallons I purchased.  Make it a habit to fill out the forms and send them in as soon as possible.

Tip 3 - Eat At Home More Often

You can save so much money just by eating at home more.  I recommend taking time to find great recipes and creating delicious meals.  It will help cooking at home seem more appealing.

Tip 4 - Cut Back on Cable

Take a look at your cable bill or satellite bill.  See if there is a lesser program that you could easily switch to for less money.  For the most part, most families don’t watch 300 channels on a regular basis.  Typically, you find a group of channels you like and stick to those.  Most companies offer smaller lineups with the channels you like that are at a cheaper rate.

Tip 5 - Pay Your Credit Card Balances in Full Every Month

Save yourself the interest fee by paying off your balance each month.  Most credit card companies do not charge interest as long as you pay within the month.  You can avoid the high interest rate.  

It’s important to not lose focus on your financial journey.  Each person has different goals they are trying to reach – planning for a comfortable retirement, being able to pay for your children’s college expenses, expanding your business’ empire, and so many more.  You have to stay focused on your end goal and create workable smaller goals along the way. 

Know what’s most important to you and your spouse then we can create a plan together to achieve it.  I have access to a great tool that will help us and you see how you’re doing reaching your goals.  I feel that it’s important to have a plan that allows you to chart your progress. 

I realize it’s impossible to predict your future down to every moment, which is why your plan should allow for flexibility to make changes due to unexpected life events.  Utilizing a unique tool for planning, I have the ability to assist in:

- Prioritizing your life goals,

- Monitoring your progress along those goals, and

- Making revisions when necessary.

Through a conversation about your financial goals, we can visual whether or not you are on track to reach those goals, regardless of the economy.  Please feel free to call me at 573-686-3053 to schedule a time to talk about setting up a clear plan for you.

Then you have to work at it.  You have to save, spend smarter and then you’ll actually have fun managing your money. 

Let’s be honest, to have more money then you need to have your finances in order.  You need to develop the right money mindset, create attainable financial goals, build a cash cushion, and pay off your debts. 

Want to know where to start?

You need to create a budget.  And stick to it!

One of my top tricks for creating a realistic budget that you can easily use is to carry it with you.  I recommend using tools that can be accessed from anywhere.  I personally use Google Sheets for our family budget.

Google Sheets is a great tool because you can use it on a desktop computer, laptop, smartphone, or tablet.  So no matter where you are, you can pull it out and look at it.  This will really help you stay on track. 

Google Sheets acts and functions very similarly to Microsoft Excel.  So if you’re familiar with Excel then you should be able to utilize Google Sheets without any problems. 

Having a budget that you can take with you is vital to stay on top of your money.  You will be able to track your spending as its happening, just like a check register!  The best part, no more guessing whether or not you have room in your budget for eating out or that last-moment splurge at the store.  You will know for a fact if it’s in the budget. 

If you need help getting your budget started, please give me a call at 573-686-3053.  I’ll be happy to sit down with you and take a look at your monthly income and expenses.  You have to start somewhere and it’s best to not put it off for too long.  

“I don’t have enough _____.”

Sound familiar?

We always can find something that we need more of.  More discipline when it comes to working out and eating right.  More money so we can do more.  More talent so we can become a world famous singer or actor. 

However, we have to stay present and aware of our blessings because it’s so easy to fall into the “not enough” mindset. 

When comes to our money, watching our negative thoughts on having enough is most important.  Whether you’re rich, poor or in the middle.  The way you see your financial well-being comes from the inside. 

To help you erase this scarcity mindset, we’ve come up with a quick exercise:

- write out three things you’re grateful for in this moment

- set your intentions each and every day

- make sure you’re saving some for a rainy day

- surround yourself with positive, up-beat people and avoid the negative ones

- don’t spend more than you make

Jordan is our newest staff member to join our team.  He came to us in June 2015.  He is the first person to greet our clients as they walk in the door at the office and usually the first person they reach when our clients call in.  Jordan assists, Meredith our Marketing Director in all of our client touches. 

Jordan lives in Poplar Bluff and is working towards a degree in Business Administration.  He enjoys playing golf, fishing and watching the St. Louis Cardinals. 

Meredith spent lots of time during summer break at the office.  She would follow her dad around pretending to be just like him.  I guess, after growing a little older she decided to join the family business.  Meredith joined Denton & Associates in the summer of 2014 as the Marketing Director.  She has since passed the Series 6 and 65 exams and is a licensed financial advisor.  Meredith is currently studying for the Certified Financial Planner® designation. 

Meredith enjoys learning every facet of Denton & Associates and prides herself on being available to all of our clients.  She earned her Bachelor of Science degree in Marketing and her Master of Business Administration from Missouri State University. 

Meredith resides in Poplar Bluff with her husband, Justin and their three dogs: Maggie, Tiny and Bud.  Meredith and Justin are excited to be expecting their first child, a son, in early May.   She enjoys traveling, taking the boat out on the lake during the summer, and spending time with family and friends. 

Tammy moved to the Poplar Bluff Area back in the summer of 2005 with her twin sons, Branden and Tristen.  She joined Denton & Associates a few months after getting settled in town and has never looked back. 

Tammy is our lead bookkeeper, earning her Certified Bookkeeper designation in 2007 and her Payroll Certification in 2015.  Tammy is our go-to person for many of our business owners.  She handles their payroll needs, prepares financial statements and helps prepare their sales tax and payroll tax payments. 

When she’s not in the office you can find her spending her time with the Wappapello Lady Eagles, volunteering to help local families in need.  She enjoys spending time at the lake, family cookouts, camping, fishing and reading.  

In the second part of our meet-the-staff series, we’d like to introduce you to Jill.  She has been with Denton & Associates for over 24 years and is the glue that keeps this place together. 

Jill and her husband, Curt enjoy traveling across the country together.  Their goal is to visit all of the major baseball stadiums in the nation.  They have visited many together and are slowly crossing them off their list one-by-one.  Jill also has one son, Jordan who currently works for Denton & Associates at the Front Desk.  This office really is family ran and operated!

Jill and her team has dominated the Park Department Volleyball league for several years and have no desire to give up their title.  You can usually catch her during the week cheering on her team and coaching them to another victory. 

Jill earned Associate of Arts in Business from Three Rivers College and she earned her Bachelor of Science in Finance from LaSalle University.  She also holds the designations of Certified Fund Specialist and Registered Paraplanner.  

As we’re beginning another tax season here at Denton and Associates, we want to take the time for you to get to know us.  We’re going to be doing a little “Meet the Staff” series here on our blog.  For a quick get-to-know-us, check out the About tab at the top of the page. 

Let’s start our series off with introducing our leader, Dairel L. Denton, Jr.

Dairel has lived in the Poplar Bluff area for most of his life.  He graduated from Poplar Bluff High School in the mid-1970s and attended Southeast Missouri State University where he earned his Bachelor of Science degree in Business Administration.  While attending college, he met Genise.  They’ve been married for over 36 years and have two children, Melissa and Meredith. 

Dairel loves bragging on his two girls – Melissa is an attorney living in the St. Louis area and Meredith is following in her dad’s footsteps to become a Certified Public Accountant and Certified Financial Planner®. 

Dairel and his wife share their home with two dogs, Zella and Cotton.  Dairel likes to only claim Zella has his and is adamant on telling others that Cotton is Genise’s dog.  But don’t let him fool you, he’s just as sweet and caring to Cotton as he is to Zella.

Dairel enjoys traveling to tropical locations with his wife.  He has visited the Caribbean several times and always finds something else to love when he goes.  He loves trying new places to snorkel and enjoys spending time on the beach reading a good book. 

Recently, Dairel was named as an Endorsed Local Provider from Dave Ramsey for his expertise in tax services.  He is proud of earning that designation and is happy to serve Poplar Bluff and the surrounding areas to bring Dave’s teachings to others.

Dairel is a Certified Public Accountant and Certified Financial Planner®.  He is happy to help you, your family and your business reach their goals.  Feel free to give him a call with an financial planning or tax related question.  He loves being able to assist his clients through life and help them reach their business and retirement goals.

Goals are a great thing to have.  Professionally and personally.  I have many of them that fit both categories, and I’m constantly working at achieving them. 

Many goals that we see are long-term, big-picture types.  You know the ones – saving for retirement, buying a home, saving for your kids’ college education, and so on.  It’s easy to get overwhelmed with the overall goals because there are so many big ones.  It’s stressful to think about everything you have to do, how much you need to save and how long you have to do it.

So here’s my recommendation: Break up your big-picture goals into bite-sized ones.  Create yearly, monthly, weekly or daily goals to achieve.  Here’s the kicker – make sure those small goals line up with your life goals.  By focusing on smaller, more quickly attained goals then you will create the momentum you need to move forward. 

Let’s face it, it’s all about moving forward in life.  We want to accomplish more and do more for our kids then we ever thought possible.  Try not to get overwhelmed with the long-term goals, but set your sights for smaller ones. 

If you need help trying to prioritize and set goals that best fit you, then give us a call at 573-686-3053.  We’ll be happy to help.

Money can be a great thing.  It helps you keep your heat on in the winter and your AC in the summer.  It fills your grocery cart with food for your family and your gas tank to get around.  However, it’s easy to let your money control you. 

Your financial situation can become all-encompassing if you let it.  There are tips that I’d like to pass on to you that will help you become the boss of your money. 

1) Budget your money.  I am a firm believer that everyone should have a budget.  Having a money-guide will help prevent you from overspending.  You’ll be able to put some away for a rainy day and prepare for your long-term goals. 

2) Have a weekly money date.  Each week you need to sit down with your check register, bank account and your budget.  See where you stand for the week.  Do you need to cut back?  Can you a little more into savings then you thought?  If you aren’t present with your money then you’ll miss out on opportunities.

3) Build your support team.  It’s imperative to surround yourself with people that want to see you succeed. Pull your spouse in or someone that’s important to you.  Make sure they have the same mindset you do when it comes to money.

These are some of the great steps you can take starting today to really get control over your money.  If you need help, please give us a call at 573-686-3053.

Curious about what makes up your credit score? Well there are five factors to consider and understand.  By understanding these then you will be better equipped to increase your credit score.

The higher the credit score you have then the more appealing you are to lenders.  If you’re looking at purchasing a new car, buying a home or opening a credit card then you’re going to want a good credit score.  There are five factors that go into your credit score and it’s important to understand so you can have a healthy credit score.  

One way to check your credit score is by going to annualcreditreport.com.  They have the three credit bureaus listed to look at your credit report.  From there you will pay a nominal fee to see your credit score.  

1) Payment history – making your payments on time and never missing a payment contributes to about 35% of your credit score.

2) Total amounts owed – how much balance you carry against the total credit limit, which is called the debt utilization ratio.  This contributes to about 30% of your credit score.

3) Length of history – how long that particular credit has been open.  So if you opened a credit card when you were 20 and still have that same card open at the age of 40 then you’d have 20 years of credit history with that one lender.  It’s seen as a good thing because you will appear as a loyal client and trustworthy borrower.  When you close an account you are basically ending that history with a longstanding borrower.

4) New credit – when you go to apply for a new loan then this appears as a credit inquiry and accounts for 10% of your credit score.  So by continually apply for loans or credit cards that could have a negative effect on your credit score.

5) Types of credit you currently have – student loans, mortgage, car loans, personal loans, store credit, etc. This equates to about 10% of your credit score.

Now that you know the five factors that go into your credit score, it’s important to know where you should keep your credit score.  Your credit score can range between 300-850.  Ideally, you want to be 760 or greater.  

As the holiday season is upon us, we find ourselves reflecting on 2015.  It's been quite a memorable year for Denton & Associates!  We would like to wish you and your family a very Merry Christmas.  We hope your holiday is filled with laughter and joy.

Three Easy Tips to Improve Your Credit Score

If you want to buy a new car, a new home, apply for a credit card then you will need your credit score to be in good shape.  Basically, your credit score is your ranking on what type of borrower you are – are you safe for the lender or are they taking quite a risk by lending you money? 

You credit score is also known as FICO and is calculated from your credit report.  Your credit score can range anywhere between 300 to 850 points.  The higher the score, the more appealing you are to lend money to.  Not only does a lower score make you appear more of a risk, but it will also affect your interest rate on any loan. 

Want to improve your score to look more appealing?

Here are three easy tips to improve your credit score:

1) Check your credit report regularly to see what your score is and what is being reported.  Many individuals only check their scores when they are looking at taking out a new car loan or mortgage.  That’s not the time to find out your score is not where you thought it was. 

I recommend putting a reminder in your calendar to check your report at least once a year.  By adding an alert then you are sure to not forget. 

Make sure you actually look through the report when you get it.  Look it over for any errors to make sure it’s accurate.  When you’re done, file it with your important financial documents for the year. 

2) Make sure you pay your bills on time.  One way to do this is to establish automatic payments.  That way you never miss a payment for your utilities, student loan, car payments, mortgage, etc...  The weight of making your payments on time adds up to about 35% of your credit score.  So make sure you aren’t missing any of them. 

By setting up auto-draft on your bills you will eliminate the worry of having late payments.  You won’t have to depend on the post office to deliver your check on time, no more trying to count mail days to make sure it’s sent on time. 

If you’ve had missed payments in the past then make sure everything is setup on auto-pay so you can build up your payment history of being on time. 

3) Work on decreasing the total amount of debt you have.  By eliminating your debt that will greatly improve your credit score. 

Another huge factor in calculating your credit score is the debt utilization ratio.  The debt utilization ratio is the balance amount divided by the total available credit.  So if you have a credit card with a $3,000 balance and the credit limit is $5,000 that means you have a debt utilization ratio of 60%.  The ratio you want to strive to be under is 30%.  So you need to work on paying down debt so that you’re total debt balance is only 30% of the total available credit. 

The debt utilization ratio accounts for about 30% of your credit score, which is a pretty large chunk.  Make sure you’re working on paying down your debt.  One way to work on quickly paying down your debt is to make extra debt payments each month. 

Hopefully, you’ll be able to implement these three easy tips on increasing your credit score.  If you have any questions, please give us a call at 573-686-3053.

As we count our blessings this Thanksgiving, we realize just how lucky we are to have clients like we do.  Thank you for making this year a great success.  We hope your day is filled with joy, laughter and yummy food.  We wish you a very happy Thanksgiving and a joyful holiday season.

When becoming more financially sound you need to know where you stand.  Shopping malls have the store directories that look like a big map of the entire complex.  There are three steps to working those maps: 1) know where you currently are 2) know where you want to go and 3) map out a route.  Typically, the first thing you do is look for the giant red star on the map that states “You are here.”  Then you find the store you want to go to, map out the quickest route, and start walking. 

You may know where you want to go, but you can’t map out a proper plan without finding where you currently are at. 

There are several ways to help you determine your giant red star on your life’s map.  Take a hard look at your financials, your bills, you savings, and your current retirement planning.  By seeing where you stand then you’ll be better equipped to create a roadmap.

We can help you create the best roadmap to reach your goals.  Give us a call at 573-686-3053 to schedule a meeting with our financial professionals to talk about your roadmap.  

The next step in becoming more financially sound is mastering your cash flow.  We’re not only talking about the money that is coming in, but also the money that is going out.  The most financially successful people are on top of every aspect of their money. 

They know what comes in, what goes out and how much is being saved.  How do they know where every dollar is going?  By using a budget. 

A budget is a simple tool that can really help you become the master of your finances.  I recommend to everyone to use a budget for their monthly expenses.  It helps you see where your money is coming from and where it’s going.  You can really stay on top of the mindless spending by tracking every dollar. 

A lot of people cringe at the thought of having a budget, but I’m here to tell you that it’s one of the most beneficial tools to help you become more financially sound.  A budget doesn’t have to be too complicated.  It can be as simple or as complex as you want it to be. 

The main components of a budget are:

• Know when and how much income is coming in

• Track expenses – bills, paying towards debt, grocery shopping, gas purchases, and any other purchases made

• Amounts going towards savings, retirement planning and other goals

If you need help getting started on your family’s budget, then give us a call.  We’d be happy to sit down with you and take a look at your cash flow to help you master your budget.  Call us at 573-686-3053 and we’ll be happy to schedule time to talk to you about your finances to make sure you’re on track.  

A goal is “something that you are trying to do or achieve,” according to the Merriam-Webster dictionary.  What are you working towards?  What are you trying to achieve?  Those simple questions need to be asked.  If you’re married, then it should be asked to you and your spouse.  Make sure you’re on the same page and know what’s important to one another. 

Here are a few questions you can ask you and your significant other to get the ball rolling:

When do you see yourself retiring?

Do you want to retire debt-free (and you should want that!)?

Do you want to help our children and grandchildren with their college expenses?

Am I concerned about how much money we’ll have in retirement?

Answering these quick questions and anything else that comes to mind can really help narrow down your goal.  Also, it’s okay to have more than one goal to be working towards.  You just have to set a priority and get to work. 

If you know what you’re working towards or what you’re trying to achieve it will make everything much easier.  Knowing that you would like to retire at the age of 60 means you will have to get started earlier in life saving for retirement.  But by talking about your goals now, there is time to get them done. 

I’m happy to sit down with you to talk about your goals and to make sure you’re on the right track.  Give me a call at 573-686-3053 to schedule a time with me.  Having a plan is the best way to reach your goals.  Let me help you create the best plan for you. 

Today, I’m talking about building your support group.  This is the fifth step in the 8 steps to becoming more financially sound series.  Last time we talked about developing tax strategies to help you.  This week, I want to share the importance of having a support group.

When you’re trying to make financial strides to better yourself, pay down debt, save for retirement or saving for a home it’s important to surround yourself with people that understand. 

Talk with your spouse.  Make sure you both are on the same page and want the same things.  Working hard on paying down debt while having a spouse not understand can be difficult.

Let your close friends know what’s going on.  It’s important to let those close to you know so they can cheer you on.  

Get a financial expert.  Make sure you have a financial expert that is there for you.  Having someone that will listen to you and understands your goals is vital.  Make sure you talk with your financial expert and let them know what you are wanting to accomplish.  The two of you can develop a plan to help you reach your goals. 

If you would like to sit down and talk about your goals to create a plan, give me a call at 573-686-3053.  I’d be happy to have a conversation.

I’m back to talk about Step Four from the 8 Steps To Becoming More Financially Sound series.   Today, I’d like to talk about the importance of tax strategies. 

Benjamin Franklin’s famous quote, “In this world nothing can be said to be certain, except death and taxes.”  Every citizen has to be taxes to the federal government.  For individuals that deadline to file your personal tax return is April 15^th each year.  There are certain steps you can take prior to the end of the taxable year to help you.  The taxable year for most individuals is on December 31^st. 

There are certain steps you can take before December 31^st to help your tax situation.  A few strategies available are charitable contributions, tax-deductible IRA contributions or purchasing equipment.  Each strategy depends on your personal circumstances.  You might be able to take advantage of multiple strategies, too.

Keep in mind there are more strategies available.  I recommend talking with your tax professional before making any decision.  If you don’t have a tax professional, give me a call at 573-686-3053.  I’d be happy to sit down to discuss your situation.  

I've been sharing our 8 Steps To Becoming More Financially Sound with you.  Today, I’d like to talk about investing in your future.  You should start thinking about retirement and college planning early.  Investing your money in the right vehicles can really help you reach your long-term goals.

By having your money in an interest-bearing account you possibly could earn more money than just having it sit in a savings account.  You should be familiar with the different types of investments available.  Each one is different and provides their own specific benefits.  It’s important to be matched to the best one for you. 

There are different types of investment accounts available, here are a few:

401(k) through your employer

Majority of employers offer a retirement plan for their employees.  These plans are typically a 401(k).  Many employers will match a portion of your contributions.  If you don’t participate, it’s like passing on free money.  For example, an employer may match 3% of your pay if you put in 3%.  So it’s like saving 6% of your income for only half the cost.

401(k) plans offer tax-deferred earnings.  That simply means you start paying less in taxes because your contribution comes out of your paycheck before any income taxes are deducted.  Therefore your taxable income is less, which helps to lower your tax bill.

Most offer a variety of investment vehicles to choose from inside the plan.  Which gives you more control over the level of risk you want to take.

Mutual Funds

Mutual Funds give investors a piece of the bigger pie.  They help investors with asset diversification, which involves the mixing of differing investments within one portfolio.  Diversification helps investors manage their level of risk. 

Economies of Scale, which is similar to bulk pricing.  Mutual Funds are able to take advantage of their buying size by offering reduced transaction costs for investors.  Reduced costs make it easier for individual investors to get more bang for their buck.

Stocks

Stocks are a form of ownership that the investor has in an organization.  Many people like the idea of owning a piece of a certain company, like Disney or Pepsi.  Stocks can also pay a dividend to their investors, which is related to the company’s performance. 

Stock prices can vary dramatically if the company is in a decline or incline.  There is no guarantee of value and if the company goes under there is no guarantee of payment. 

Bonds

Bonds are a form of debt with which the investor is the lender.  They are a loan made between investors and organizations, which will repay the loan amount on a premium.   If for any reason a company should go bankrupt, bonds are repaid to the extent of the company’s capital. 

Individual Retirement Account (IRA)

The IRA accounts are unique.  There are two different types, Traditional and ROTH.  Contributions made to a Traditional IRA can be deductible on your individual tax return if your adjusted gross income falls below certain limits.   While contributions made to a ROTH are not tax deductible, their qualified distributions can be tax-free. 

It’s important to talk with your financial planner about which investments are best for you.  If you don’t have a financial planner, give me a call at 573-686-3053.  I think it’s best to sit down with a financial expert to have a conversations.  You and I can discuss what you want your money to do. From there we can create the best financial plan for you.

Not too long ago we shared the 8 Steps To Becoming More Financially Sound.  These are key steps you and your family can take to build a successful foundation for your finances.  Today, I want to share with you on how to protect yourself and your family.  

Do you know how your family will provide for itself and if something should happen to you?  Think about it.  Really think.  Will your family be able to pay the mortgage, keep the electricity on, and put food on the table if all of a sudden you’re down to one income, or no income?

If your loved ones depend on you for their financial support then life insurance is a must.  Life insurance replaces your income if you should die.  Disability insurance provides income if you should suffer a disability illness or accident and can no longer work the same or bring in the same amount of income.  Having insurance is especially important for parents of young children.

Another reason to have life insurance is to help with any debts that you may leave behind.  Let’s face it, majority of people have a mortgage, credit card debt, personal loans, and car loans at one point in our lives.  Being prepared with life insurance will help cover every day living expenses, including mortgage payments, car loan payments, and credit card debt. 

Having the right type and the right amount of insurance can bring peace of mind.

We all hope nothing ever happens and we never need insurance, but we’ll be so thankful if we have it and need it.  If you would like to sit down to look at your situation to make sure you have enough coverage then give us a call at 573-686-3053.  We look at the whole picture to make sure you don’t have too much insurance or too little to take care of the ones you love.

To read more on the 8 Steps check out our post on building an emergency fund here: http://bit.ly/1K7mhCx.

If you own or manage your own business, you're probably busy monitoring operations and dealing with everyday problems. But there are a few things that you should make time to do every year. These are important for your long-term business and personal success.

1. Review your business insurance coverage.

Don't just automatically write a check to renew your insurance policies when they come due. Instead, you should sit down with your insurance agent every year. Review your business operations, focusing on any changes. Discuss types of risk that could arise. Ask about new developments in business insurance. Use your agent's expertise to identify risk areas and suggest suitable coverage.

2. Review your business tax strategy.

A month or so after you've filed your tax return, make an appointment with your tax advisor. Go over your return together and identify opportunities for tax savings. Question everything, starting with whether you're using the right form of business entity. Ask about recent changes in the tax code and how they might benefit your business. Make your advisor a "partner" in your business strategy.

3. Update succession planning for your business.

Review your succession planning annually. You should have a specific plan for each key manager position, including yourself. Be prepared for a short-term absence or a permanent vacancy. Your plan might mean promoting from within or recruiting externally. But an up-to-date plan can be invaluable if you have an unexpected vacancy.

4. Review your business banking relationships.

Annually, you should go over your cash balances and banking relationships with your controller or CFO. Then both of you should meet with your banker. Ask about new products or services that could help your company. Address any service concerns or problems you might have had. Look for ways to reduce idle cash, boost interest earned, and improve cash flows.

5. Review and update your personal estate planning.

If you're a business owner, your company is likely to be a significant part of your estate. A good estate plan is essential if you hope to pass a business on to your heirs. But your company, your personal circumstances, and the tax laws are continually changing. You should meet with your estate planner annually to make sure your plans are current.

Let us and your attorney assist you with the reviews and planning necessary to your business's long-term success. Give our office a call at 573-686-3053, we'd  be happy to make sure you and your business are on the right track.

Getting a letter or notice from the IRS can be upsetting, confusing, and unnecessary. The IRS sends taxpayers notices to request payment for taxes, to notify them of a change to their account, or to request additional information. Attention to the following details will reduce the likelihood that you will become pen pals with the IRS.

Never send a payment to the IRS without designating what it is for. Otherwise the IRS may apply it in any manner they want. Every payment should include your name, your taxpayer identification number (social security number), the type of tax you are paying, and the period the tax payment is for.

Make sure the name and social security number on your tax return agree with the Social Security Administration's records. If you change your surname, notify the Social Security Administration and request a new social security card.

Don't claim a tax exemption for your child unless you are entitled to do so. Special rules apply to divorced parents. If both parents claim the child as a dependent, both returns will be subject to further IRS review.

Respond promptly to any notice you receive from the IRS, even if you think the notice is incorrect. If the IRS doesn't hear from you within the time specified on their notice, you may lose the right to protest any changes made to your return.

Send a change of address form (Form 8822) to the IRS when your address changes. If you fail to provide the IRS with your current mailing address, you may not receive a refund check or a notice if there are problems or adjustments to your return. And even if the IRS can't find you, penalties and interest will continue to accumulate on any tax due.

Send your income tax return and any other correspondence to the IRS by certified mail, return receipt requested. The receipt provides evidence that you filed on time. That proof will be valuable in the event the IRS or Postal Service loses your paperwork and the IRS threatens to assess late-filing and late-payment penalties.

If you have any questions or need clarification on any letters your receive, give us a call at 573-686-3053.

Are mutual funds part of your portfolio? As you begin your mid-summer investment review in preparation for year-end, think about how your funds can affect your federal income taxes.

Here are two things to consider:

Dividend income. The dividends you receive from mutual funds held in nonretirement accounts are included in the calculation of net investment income. When your 2015 modified adjusted gross income exceeds $250,000 ($200,000 when you're single), a portion of your net investment income will be taxed at a rate of 3.8% over and above your ordinary tax liability.

Planning tip. The tax form the mutual fund company sends you at the beginning of 2016 may classify some dividends as "qualified" – meaning they meet the requirements for a lower tax rate. However, you have to own the mutual fund shares for more than 60 days to get the lower rate on your federal return.

Capital gains. Mutual funds generally distribute short-term and long-term capital gains from in-fund sales to shareholders. Even if you reinvest the distributions in additional shares instead of opting for cash, the gain remains taxable to you.

Short-term distributions, for sales of fund investments held one year or less, are taxable at your ordinary income tax rate. The tax rate for long-term capital gains may be as high as 20%, depending on your adjusted gross income.

You might also have a capital gain or loss when you sell shares of a mutual fund. That's true even if you "exchange" one fund for another and receive no proceeds.

Planning tip. You have options for calculating the cost of mutual fund shares you sell during the year. Remember to include reinvested distributions in your basis.

Please call our office at 573-686-3053 for more information. We're happy to help you manage your investments with an eye toward tax savings.

If you do volunteer work for a charitable organization and have not kept track of your out-of-pocket expenses, you might be passing up an excellent opportunity to lower your tax bill. To qualify, your unreimbursed expenses must relate directly to the charity, and you must itemize your deductions on your tax return. Here is a brief rundown of some possible deductions.

* Volunteers may deduct the cost of phone calls, postage stamps, supplies, and other out-of-pocket costs incurred in their volunteer work. For volunteers who are required to wear a uniform, the cost of buying and cleaning uniforms is deductible if they are unsuitable for everyday wear.

* The cost of your time, no matter how valuable it may be, is not deductible. That's true even if you would normally be paid for the type of service you contribute. For instance, accountants who perform free consulting for charities can't deduct what they would normally charge for their services.

* Using your car in connection with volunteer work can earn you a deduction. The standard mileage rate for volunteers who use their own cars is 14 cents per mile. Alternatively, you may deduct your actual unreimbursed expenses for gas and oil - but not maintenance, depreciation, or insurance. Either way you choose, related parking fees and tolls are deductible as well.

* If you travel overnight for charitable purposes, your expenses are deductible as long as they are reasonable in amount and not connected with personal activities or any element of recreation.

* Special rules apply to conventions. Travel and other out-of-pocket expenses related to attendance at a convention for volunteers are deductible only if you have been chosen as a delegate to represent the organization.

Finally, just remember that it is up to you, the volunteer, to substantiate your deductions. If you take these deductions, you should be prepared to show the IRS the connection between the costs claimed and the charitable work performed.  If you have any questions about deducting your charitable work, be sure to call your CPA.  Don't have a CPA?  Give us a call at 573-686-3053 and one of our CPAs will be happy to talk with you.

How much money did you save last year? If you didn't save at least 10% of your earnings, you didn't save enough. If your savings in 2013 fell short, the only solution is to take charge of your financial future right now and start saving more money.

Saving money doesn't have to be hard work. In fact, many successful savers have found simple ways to cut spending and increase their savings. Here are some tips to help you get started and stay on track.

* Set goals. To give your savings purpose, set specific financial goals. For example, it's advisable to have an emergency fund of approximately six months' worth of living expenses to cover any cash outlays that may catch you by surprise. Nothing can derail your financial plans faster than a series of mishaps that force you to take drastic financial measures. Other saving goals may include a college savings fund, vacation fund, or a fund for major purchases.

* Treat your savings as your most important monthly bill. Write a check to savings first, or have your savings automatically deducted from your checking account or paycheck.

* Tax-deferred retirement accounts offer a smart way for you to save money for retirement. If your employer offers a 401(k) or SIMPLE retirement plan, contribute the maximum amount allowed. If your employer offers no plan, contribute to an individual retirement account (IRA). The money you contribute to a retirement account can reduce your taxable income and grow tax-free until withdrawn.

* Another way to maximize savings is to track your expenses for a few months. This is a great way to spot unnecessary or wasteful spending; it doesn't take much work to see potential cutbacks.

* When it comes to saving, think "control." For example, control the use of your credit cards. The amount you pay each month in finance charges could go to savings instead. Also, control the use of your ATM card. Get in the habit of giving yourself a regular cash allowance, and try to live with it.

You should be saving at least 10% of your earnings. Seem impossible? If you took a new job at 10% less pay, you would get by. For help in setting financial goals and developing a savings plan, call me at 573-686-3053.

The death of a spouse can be a devastating experience, both emotionally and financially. As the survivor, you'll have to make important decisions while you're in what could be the most vulnerable and distracted stage of your life. The suggestions that follow might at least help ease your financial stress.

* Don't make major decisions right away. Put off selling your house, moving in with your grown children, giving everything away, liquidating your investments, or buying new financial products.

* Get professional help. You'll need an attorney to help interpret and explain the will and/or applicable law and implement the estate settlement; your accountant to provide financial advice and prepare the necessary tax documents; one or more insurance brokers to help with filing and collecting death benefits; and a funeral director, who in addition to the obvious services, can obtain needed copies of the death certificate.

* Gather and review any applicable documents, such as the decedent's social security card and statements, insurance policies, loan and lease agreements, your spouse's birth certificate, the death certificate, investment paperwork, mortgage statements and agreements, deeds, retirement plans and related statements, credit cards and credit card statements, employment and/or partnership agreements, divorce agreements, funeral directives and/or contracts, safe deposit box information, and tax returns. (You'll need a dozen or more copies of the death certificate to provide to insurance companies, government agencies, creditors, credit card agencies, banks, and a host of others.)

* Determine who must be paid, and when. You'll need to notify your spouse's creditors (including joint creditors) and continue paying for mortgages, car loans, credit cards, utilities, and insurance premiums not specific to your spouse. Notify health insurance companies (including Medicare) that you'll no longer be paying your spouse's premiums, and cancel your spouse's memberships and subscriptions.

* Alert the credit card agencies (Experian, Equifax, and TransUnion). Request addition of a "deceased notice" and a "do not issue credit" statement to the decedent's file. Order credit reports, which will provide a complete record of your spouse's open credit cards.

* Determine what payments are due to you, such as insurance proceeds, social security or veteran's benefits, and pension payouts. File claims where needed.

* Maintain your joint checking account to facilitate the deposit of incoming checks payable to your spouse.

Finally, call us at 573-686-3053 as soon as you can. We're always ready to advise and assist you, before or after life's tragic events.

Whew! The rush is over once your personal income tax return is done for another year - or so you thought, right up until the moment you discover information you forgot to include.

Now what?

The action you take depends on the type of information you forgot. For instance, say you reported all your income on the return you mailed to the IRS. But now you realize you neglected to attach a copy of your wage statement.

In this case, doing nothing is the best option. You'll eventually get a notice from the IRS requesting the missing form.

Other mistakes, such as omitting income or deductions, or deciding you're eligible for a credit you didn't claim may require amending your return.

To do this, you'll need to complete Form 1040X. Explain any changes and mail the form to the IRS after your original return has been processed. At present, e-filing isn't available for Form 1040X, so you'll have to use a paper return, even if you submitted the original electronically.

As a general rule, Form 1040X has no set due date. But if the information you left off increases the amount of tax you owe, filing promptly can help reduce interest and penalties.

When the correction results in less tax, you'll need to file before the time for claiming your refund expires (usually three years from the due date of the original return).

Please contact me at 573-686-3053 if you find additional information after filing your federal and state tax returns. I'll be glad to help you make any necessary changes.

Welcome to Megan's Corner.  Each month we discuss tax and accounting topics that might be of interest to you.  This month we're talking about helping your grandchildren with the expense of college.

Are you a grandparent who wants to help pay for a grandchild's college education? You'll find several ways to do this, each with its own limitations and tax consequences.

GIFTS. The simplest way is to make an outright cash gift to your grandchild each year. In 2014, you can give up to $14,000 without any gift tax liability. If your spouse joins in the gift, you can jointly give each grandchild up to $28,000 each year.

DIRECT PAYMENTS. You can give unlimited amounts without gift tax consequences if you make the payments directly to a qualified education institution on behalf of your grandchild. Payments can only be for tuition, not for dorm fees, meals, books, etc.

EDUCATION ACCOUNTS. You could set up a Coverdell education savings account or a Section 529 plan for your grandchild. These plans offer tax-free growth of amounts you contribute to them. Age, income, and contribution limits apply, however.

To discuss the options best suited to your circumstances, contact me at the office at 573-686-3053 or by e-mail at [email protected].  I would be happy to take a look with you and create a plan that will fit your needs.