When someone thinks of an accountant, they imagine a guy in a button up shirt with a calculator. They imagine someone that sits around all day long crunching numbers and preparing taxes long-form. While it is true that most accountants are numbers guys (or gals), it is not true that an accountant loves to sit and crunch numbers. So what does your accountant in Billings, Montana say is the most satisfying part of the job?

Job Satisfaction

Being unhappy at your job is almost synonymous with working in America. After all, nearly everyone complains about their job. The hours are too long, the boss is too strict, the co-workers are stupid, the office is dirty… the list can go on and on (almost always topped off with “I’m overworked and underpaid”). Fortunately, many people do love their job. And that can be for a variety of reasons.

A recent survey talked with accountants and finance professionals to find out what part of their job brought them the most satisfaction. The number one most enjoyable part of an accountant’s job? Solving problems. With 41% of those surveyed saying they love solving problems, it is clear to see that your accountant in Billings, Montana is not just a number cruncher. Although with 22% saying that their work with numbers is the most satisfying part of the job, it’s still a big part of the job.

How is an Accountant a Problem Solver?

One of the reasons that problem solving came up so high on the list was simply because it is a huge category. It can encompass quite a few different issues. Some that your accountant in Billings, Montana likes to work on are:

Tax Preparation – Let’s face it, a huge chunk of the work an accountant does is prepare your taxes. This is the number crunching portion.

Online Payroll – If you run a business and you have employees, then you need payroll services. Solving this problem, and making your business run more efficiently, is one of the best aspects of the job.

Business Consulting – This is a pretty broad category. It starts with setting up the business, determining structure, filing paperwork, finalizing roles, etc. But it goes long beyond the beginning, and business consulting can last throughout the life of your business.

Budgeting and Bookkeeping – If you run a business, you don’t want to be bogged down in the details. Here at A+ Accounting we make sure to take away those details so you can focus on growing your business.

There are so many more areas that your accountant can help you with. It all depends on what services you need, and where your business needs a little boost. If there is something that you don’t want to have to worry about any longer, then chances are we can take care of it.

Practical Taxes

We are a full service accounting firm in Billings, Montana. If you have any accounting needs, don’t hesitate to pick up the phone to see how we can help. Schedule a time to chat by calling 406-894-2050.

Most of us know the importance of a budget. We know we should watch our spending, track where our dollars go, and we know that when we do it properly it is easier to save money. But too often budgets get ignored, and we forget about trying to keep track anyway. So how do we make a budget that we know we will actually keep? It’s a whole lot easier than you think; your accountant in Billings, Montana explains how it can be done.

 

 

 

 

 

Two Different Budget Systems

There are two primary forms of budgeting, each one has its merits, and each one will help different people.

The Cash Envelope Budgeting System – This is Dave Ramsey’s favorite way to budget. The reason is that it’s highly controlled, and it works well. It’s hard to cheat this budget, so for those who want more structure, this is the way to go.

First, you must understand all of your bills. There are some that fluctuate, like utilities, but for the most part they are all pretty set bills. These should be set up to come out of your account automatically. For those who want to use the envelope method, you withdraw the cash needed to pay each bill, and you put it in an envelope. So you will have a dozen envelopes each marked with different items such as “cell phone bill” or “gas bill.”

Next you set up your savings and investments to come out of your account automatically. This should be seen as another bill, and not as something you do if you have the money left over. If you need more structure, you can make a “savings and investment” envelope as well. But there is little need to put money in an envelope if it is immediately going to go into your savings or investment accounts.

Now for the fun stuff. Let’s suppose you like to buy new clothes. You have an envelope that says “new clothes” on it, and every month you put a portion of your budget into that envelope. If you are planning a vacation, you make a vacation envelope. If you like to eat out, you have an eating out envelope. And so on and so forth.

The idea behind the envelope system is that when the envelope is empty, then you can’t spend any more on yourself. So if you give yourself $100 to eat out each month, if you deplete your eating out envelope, you can’t rob other envelopes.

There is another method for those who don’t need quite so much structure.

The Automatic Budgeting System – Rather than take the time to build the envelope system, and rather than keep that much cash on hand, many people choose an automated system. This one is very simple.

You have a good idea of how much you will make every month. Schedule your bills, savings, and investments around your paydays. This means that when you are paid a few days later a portion of that money goes to paying for your mortgage, some to your utilities, some to your savings and investments, and others to wherever else you might owe money. This is all built to go on behind your back. You don’t have to think about it at all.

The way this system works is that shortly after everything has come out, you will have the leftovers in your checking account. Obviously you will want to keep a few hundred in there to make sure you have a buffer, but for the most part that is all spending money. You can spend it on new clothes, travel, eating out, or whatever else you want. All of your needs have been met, so this is what you use to play with.

The automatic budgeting system is much easier than playing with envelopes, it allows for more freedom, and it still takes care of all your living expenses.

Your Accountant in Billings, Montana Can Help

When it comes time to prepare your taxes, an accountant can often get you a bigger refund than if you try to go it alone. This means that your savings and investments have a bigger buffer early in the year, and you can dedicate more to other areas of your life.

Practical Taxes can help you prepare your taxes, consult with you on all of your business needs, set up payroll services for your business and much more. We are a full service accounting firm in Billings, Montana; if you have a question or want to set up an appointment to get started, just give us a call at 406-894-2050.

When it comes to buying a house, you have a lot of different choices. There are so many types of home loans out there, that it can be difficult to choose the right one. Now, the best thing to do is to speak with a loan officer, they are the ones that will figure out what type of loan fits your budget and needs perfectly. If you want to do a little research before you go in to talk with them, then keep reading as your accountant in Billings, Montana explains the varying home loans.

 

 

 

Do You Want a Fixed or Adjustable Rate Home Loan?

No matter what style of mortgage you choose, you will have to decide if you want a fixed rate mortgage, or an adjustable rate mortgage. Here’s the difference between the two.

Fixed Rate – A fixed rate mortgage is exactly that. When you sign on the dotted line, you are locked into an interest rate that won’t change until you refinance or pay it off. These are the most popular types of loans and they come almost always in 15 and 30 year options.

Adjustable Rate – An adjustable rate mortgage (ARM), on the other hand, has interest rates that adjust periodically. Generally speaking they are fixed for a few years, and then readjust after that. For instance, a 5/1 ARM is a mortgage that is fixed for the first 5 years, and then adjusts every year thereafter based on the current interest rates.

Your particular financial situation will determine which is best for you.

Do you Want a Government-Insured or a Conventional Home Loan?

After deciding term and interest structure, you need to decide which type of loan you want. There are a lot of qualifying factors, which if you don’t meet those, then you have to go with a conventional home loan.

Conventional Loan – Basically this is just a home loan. It’s not government insured in any way.

Government Insured FHA Loan – The Federal Housing Administration (FHA) is an insurance program through the Department of Housing and Urban Development (HUD). Most people will qualify for this type of loan, even if they are not first-time home buyers. These loans help people get into houses even when they can’t meet the 20% down rule. The caveat, unless you put 20% down, you have to pay that pesky Private Mortgage Insurance.

Government Insured VA Loan – The Department of Veterans Affairs (VA) wants to make sure they take care of those who have served our country. Since many people returning from deployment don’t have the savings needed to put money down on a house, the VA loan allows for financing of up to 100% of the loan.

Government Insured USDA/RHS Loan – The US Department of Agriculture (USDA) has teamed up with the Rural Housing Service (RHS) to help those who live in rural areas that need homes. These are catered to those who have a low or modest income and don’t qualify for a conventional loan. These eligibility requirements are strict.

Do You Want a Jumbo or a Conforming Home Loan?

The final choice in loans is dependent on how big of a loan you are looking for. While most people are not going to need a jumbo loan, there are quite a few out there.

Conforming Loan – A conforming loan is simply one that conforms to the guidelines of Fannie Mae or Freddie Mac. Most of the guidelines have to do with the size of the loan; for many areas, like here in Billings, Montana, the loan must be under $417,000 in order to be conforming. That number adjusts periodically to account for inflation, and it varies depending on where you live in the country.

Jumbo Loan – A jumbo loan is simply one that is bigger than the limits imposed by Fannie and Freddie. These types of loans represent a larger risk to the issuer, so those obtaining them need to prove themselves worthy. That means a good high income, a great credit score, and a sizeable down payment.

Who knew that getting a home loan would have so many options? Fortunately, most people don’t need to worry about the majority of this. In fact, after speaking with your mortgage lender, you will likely only need to decide if you want a 15 year fixed rate, 30 year fixed rate, or adjustable rate mortgage.

When you do get your home loan, keep in mind that you can write off the interest that you pay on it. For 2015, you can deduct up to $1,000,000 off your taxes. Most people will never come close to hitting that mark. As your accountant in Billings, Montana, I can help you determine exactly what can be deducted and what cannot.

Practical Taxes is a full service accounting firm here in Billings, Montana. We don’t do home loans or initiate mortgages, but we do know the tax implications behind them. If you have recently bought a house, and you are worried about your tax situation, then we are here to help.

Identity theft is becoming much more common. With the internet controlling the vast majority of our lives, it is easy for unscrupulous people to steal someone’s credit card number and rack up a bunch of charges. While that is one form of identity theft, there are actually a number of other ways that people can have their identity stolen. So who is the most at risk? Your accountant in Billings, Montana will tell you the answer to that.

 

Versions of Identity Theft

Before we address who is the most at risk of having their identity stolen, we should look at what the different versions of identity entail. They range from the simple that don’t really harm you (other than your reputation perhaps) to the more complex that can have lasting effects.

Impersonation Identity Theft– Believe it or not, using a fake name on your social media account is a form of identity theft. Now if you come up with the name Johnny McAwesomesauce, nobody is going to care. But if you use the name John Smith, and then use pictures of someone with that same name, you are committing identity theft.

Driver’s License Identity Theft – Here is one that takes a little more cunning. It’s not exactly a crime of opportunity, but something planned out well in advance. Suppose you lose your driver’s license and someone finds it. They can sell it to someone that looks enough like you to pass as you. Now if that person is pulled over, arrested, or otherwise gets in trouble, they just give the officer your name and you now have a criminal record.

Social Security Identity Theft – Too often people are careless with their Social Security Number. Once a criminal has that, they can do a lot of damage to your identity. With a Social Security Number, and just a little more information, they can take out a loan in your name, get a passport, apply for credit cards, and a lot of other things that can have long term effects.

Medical Identity Theft – Medical identity theft is the fastest growing form of identity theft, even with the Affordable Care Act in place. The criminal steals your identity, and makes claims against your medical insurance. You end up with the bill; they end up with the treatment. To make matters worse, your medical record is now all screwed up.

Juvenile Identity Theft – For the parents out there, when was the last time you checked your child’s credit score? Likely never because what child has a credit score? Those who have had their identity stolen do. If your child’s identity is stolen, the thief can apply for loans, create documents, and commit a lot of other crimes and most people won’t even catch on until their child turns 18.

So Who is at the Most Risk for Identity Theft?

Now that we have covered the basics, who is at the most risk? The answer is everyone. No matter if you live your life completely offline, you are still at risk of having your identity stolen. No matter how careful you are, you can have your identity stolen.

Do you have a social media account? Then you are likely putting yourself at risk of impersonation identity theft. If you have a driver’s license, you are at risk of driver’s license identity theft. You have a Social Security Number (if you live in the states) so you are at risk of having that stolen, and everyone has been to a hospital at some point in time. As we see above, even children aren’t safe.

But there is good news. Legal Shield will protect you from those who are looking to steal your identity. You may think you’re covered because your credit card has fraud protection, but that only makes it so you’re not liable for the monetary side of things. It doesn’t actually protect your identity.

Your accountant in Billings, Montana also represents Legal Shield. For a low monthly rate you can have 24/7 access to an attorney, and make sure your identity is protected. Call us today at 406-894-2050 to learn more.

Practical Taxes is a full service accounting firm in Billings, Montana. Right now we are in the heart of tax season so things are pretty crazy around here! But we can still handle all of your accounting needs from payroll services, to tax preparation, to Legal Shield inquiries.

Many people dream of becoming business owners. They want the freedom that comes with being their own boss, the idea that the sky is the limit appeals to them, and they want to do something that they love. The problem is that most people fail to plan accordingly, and most small businesses fail within a few years of starting. Before you take the plunge, and risk failing right off the bat, read these three overlooked costs of starting a business. Then you will want to talk with an accountant in Billings, Montana to make sure that you have everything else in order.

Licenses, Insurances, Registrations, and More

Not all businesses are created the same. Some, by their very nature, have more liability than others. For instance, if you start a business that provides home décor and organizational tips then you are not going to have as much liability as a business that provides physical therapy or roof installation.

Even though not all businesses are created equal, there are some things they all have to do. For instance every business needs to file with the state and the city where they are conducting business. These fees are not expensive, but if you fail to do so then you can end up paying a severe penalty.

Like failing to register your business, failing to maintain the proper insurances can lead to penalties as well. If you don’t have liability insurance and surety bonds in place, and you try to do work on someone else’s house, you could end up in a lot of trouble.

Business consulting services provided by Practical Taxes can help you get everything in place before you start your business.

Employee Costs and Payroll Services

Many businesses can be run without employees. However, there are others that simply need personnel to keep them going. If you are starting a business, you will not only need to find those employees, but you may also need to run background checks on them. Once they are hired, there is a lot of bookkeeping that goes into making sure they are paid on time. It may be tempting to try to do all of this work yourself, but in the long run it is more efficient to enlist the services of an accountant in Billings, Montana.

A+ Accounting & Consulting provides payroll services and online payroll services for those located anywhere in the country.

Self-Employment Taxes

When you work for someone else, and you are on their payroll, they are responsible for paying half of your FICA taxes (about 7.65%) and you are responsible for the other half. When you work for yourself, you pay the entire amount of FICA taxes. This additional 7.65% in taxes are often called the self-employment taxes. Now there is a bit more to it than just tacking on an additional 7.65%, but the bottom line is that your tax bill may end up being quite a bit higher than you realize.

Practical Taxes is a full service accounting firm in Billings, Montana and can help with all of your tax issues that pop up.

Enlisting the Help of Practical Taxes

Starting a business is no small task. Most businesses that are started on a whim don’t last very long. Those that take the time to prepare, plan, and enlist the services of outside professionals tend to fare better. If you are looking to start a business, begin your journey by consulting with an accountant in Billings, Montana.

Practical Taxes can help with payroll services, online payroll services, business consulting, tax preparation and more.