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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. 

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 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.

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.

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.  

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.

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.

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.

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.

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.

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.

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. 

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.

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.

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.

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!

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.

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.

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. 

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.

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.

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.