Financial Tips

Summer and saving don’t usually go hand in hand. Most people are thinking about vacations, barbecues, and long weekends—not budgets or the winter months ahead. But the truth is, summer is actually a great time to take a few financial steps that could make life easier later. With fewer year-end obligations and more time to review your habits, you can set yourself up for a stronger finish to the year.

Small moves now can turn into peace of mind when expenses start to stack up around the holidays. Here’s how to use this season to your advantage.

Rethink Your Weekly Spending Habits

Warm weather tends to come with extra spending—patio dinners, weekend getaways, and impulse buys. It adds up fast. Take a closer look at your weekly spending. Are there expenses that don’t really add much value? Maybe a few skipped deliveries or takeout meals could turn into automatic savings.

Set a realistic cap for your “fun money” each week. Anything left over? Move it straight to savings. You won’t feel the pinch, but you will notice the difference when winter rolls around and your bills stack up.

Use Seasonal Income Wisely

For some people, summer means extra income. Maybe you pick up extra hours, get a bonus, or have a seasonal side hustle. Whatever the case, it’s tempting to treat that money as spending cash—but try something different this year.

Send at least a portion of any extra earnings straight to savings. You can even open a separate account just for winter expenses or emergencies. Separating it keeps it safe—and helps you avoid dipping into it when it’s not truly needed.

Revisit Subscriptions and Monthly Charges

This is the time of year when you might realize you’re still paying for that digital subscription you haven’t used since March—or a gym membership that’s gone untouched. Comb through your bank or credit card statements and see what’s still charging you each month.

Cutting even one or two services can free up $20 to $50 or more. Don’t let that money disappear. Redirect it to a savings account or set it aside for a specific purpose like holiday shopping or winter heating bills.

Watch for Energy Savings Opportunities

Air conditioning can drive up summer utility bills, but many households still end up spending less on energy during these months compared to winter. Take advantage of that window. If your electric bill is a little lower than usual, bank the difference.

This is also a good time to invest in energy-efficient upgrades. Weather stripping, smart thermostats, or even blackout curtains can lower your bills now and in the colder months to come.

Plan for the Holidays Before They Sneak Up

The holidays might feel far off, but they come with their own financial weight. If you wait until November to start preparing, you’ll likely reach for your credit card. That’s why summer is a smart time to plan ahead.

Start a simple holiday fund now. Decide how much you’d like to spend on gifts, travel, or hosting. Then divide that number by the weeks left before December. Saving even a little each week adds up fast—and takes pressure off your winter budget.

Double-Check Estimated Tax Payments

If you’re self-employed or make income from investments, you’re likely making estimated tax payments throughout the year. Summer is a good time to review where you stand. If your income has changed recently—up or down—you may need to adjust your quarterly payment amounts.

Failing to adjust now could mean overpaying or facing an unexpected tax bill next spring. A quick check-in with your CPA can help you fine-tune your numbers and avoid surprises.

Look at Retirement Contributions

If you have a 401(k), IRA, or other retirement plan, summer is a smart time to review your contribution levels. Could you increase your monthly contribution even slightly? If your cash flow is more relaxed during the summer, this might be the time to bump it up.

For business owners, it’s also worth considering whether your current retirement plan still fits your needs—or if a different type of plan would offer more flexibility or tax advantages before the year ends.

Review Insurance Before the Busy Season

Fall often brings open enrollment for health insurance and other benefits. Rather than waiting until deadlines loom, use the summer to review what coverage you already have—and what gaps might exist.

Look at your health insurance, disability coverage, life insurance, and even home or auto policies. Changes in your family, your job, or your income could all be reasons to adjust coverage. Knowing where things stand ahead of time gives you space to make smart, not rushed, decisions.

Think Ahead for Business Expenses

If you run a small business, summer can offer a little breathing room before the holiday rush. That makes it the perfect time to evaluate your budget and make forward-thinking purchases. Equipment, supplies, training—spending strategically now may qualify for tax deductions and also help smooth your cash flow later.

You might also want to look at your invoicing habits, vendor contracts, and marketing plans. Tightening up operations during this quieter stretch can pay off when things get busier in the fall.

Start Organizing Financial Documents

One overlooked summer task? Getting your financial paperwork in order. Whether it’s organizing receipts, updating expense trackers, or digitizing documents, summer is a great time to do it—before end-of-year deadlines hit.

Clearer records not only help with tax prep, but they can also reveal spending habits or patterns that need adjustment. And if you’re ever applying for a loan, grant, or assistance program, having your paperwork ready puts you in a stronger position.

Small Changes, Big Results

Most of these steps aren’t huge undertakings. But added together, they can make a noticeable impact on how financially prepared you feel going into winter. The key is to be intentional. Pick two or three ideas that feel doable right now, and put them into action.

Even if all you do is start a holiday fund or cancel a couple of unused subscriptions, you’re moving in the right direction. That momentum builds, and by the time colder months hit, you’ll be glad you started when you did.

And if you’re unsure where to begin or how your current plan is shaping up, your CPA is a great place to start. A short check-in now can help you map out the rest of the year with confidence.

by Kate Supino

When the economy starts showing signs of strain—whether it’s inflation, layoffs, or a volatile stock market—it’s natural to feel anxious about your financial future. Fear-based decisions rarely lead to long-term stability, but there are smart, practical steps you can take now to help shield yourself from potential disruptions. Below are several money moves to consider if you’re feeling uneasy about what lies ahead. Each of them is grounded in long-term financial health—not reactionary cuts or panic pivots.

1. Reevaluate Your Cash Flow and Emergency Savings

The first place to start is your day-to-day finances. Economic downturns often affect income, job security, or household spending habits. Now is the time to revisit your monthly budget and ensure your income and expenses are still in balance. Look for places where you can reasonably reduce spending without sacrificing essentials.

More importantly, check on your emergency fund. A healthy cushion of three to six months of living expenses is considered ideal. If you’re self-employed, in a commission-based role, or in an industry vulnerable to recession, you may want to aim for closer to six months—or more.

2. Avoid Major Lifestyle Inflation

If your income has remained stable—or even increased—during this period of uncertainty, it can be tempting to upgrade your lifestyle. Maybe it’s a new car, higher rent, or an expensive subscription you once thought was unnecessary. But when the economic forecast is shaky, restraint matters.

Instead of letting higher earnings drift into day-to-day spending, use that extra money to build up reserves, pay off high-interest debt, or contribute more toward retirement. Lifestyle inflation can be one of the most damaging financial habits, especially when the economy takes a turn and fixed expenses are suddenly harder to meet.

3. Diversify Your Income Streams

One of the more proactive money moves you can make during economic downturns is to explore ways to diversify your income. That doesn’t always mean launching a business or becoming a freelancer overnight, but it could mean identifying how your existing skills translate into side opportunities.

Teaching, consulting, selling digital products, or even part-time seasonal work can offer an additional layer of income security. For business owners, diversification might mean exploring new offerings or expanding into related markets. The key is to start thinking now about how you can create multiple income paths, rather than relying on one vulnerable source.

4. Review Your Investment Strategy, Don’t Abandon It

Economic fear often sends people rushing to cash out investments. While this instinct is understandable, it can have lasting consequences. Timing the market is nearly impossible, and selling during a dip can lock in losses that would have otherwise recovered over time.

Instead, revisit your investment mix. Are your risk levels still appropriate for your age, income needs, and goals? Are you overexposed to any one sector or asset class? In times of volatility, rebalancing your portfolio—not liquidating it—might be the right move.

A CPA who understands your overall financial goals can work alongside your financial advisor to determine whether your tax strategies and investment allocations still serve your long-term objectives.

5. Strengthen Retirement Contributions if You Can

It might seem counterintuitive to contribute more to retirement during uncertain times, but it’s often one of the smartest long-term decisions. When markets dip, you’re buying shares at a lower cost—which positions your portfolio for greater potential growth later.

If you’ve reduced your spending or redirected bonus income, consider allocating more to your 401(k) or IRA. Even small increases in contributions can add up, especially when paired with employer matches or tax-advantaged growth.

For high-income earners, now is a good time to evaluate backdoor Roth contributions, SEP-IRA options (for the self-employed), or health savings accounts (HSAs) as additional tax-efficient vehicles.

6. Plan for Tax Efficiency, Not Just Tax Filing

Economic downturns often coincide with tax law changes—sometimes temporary, sometimes not. Waiting until tax season to think about your liabilities is often too late to make meaningful adjustments.

Instead, work with your CPA to explore tax moves that may benefit you right now. These might include loss harvesting (for investments that have dropped), accelerating or deferring income, maximizing above-the-line deductions, or setting up the right business entity if you’ve started side work.

Proactive tax planning ensures you’re not leaving money on the table and that you're in a strong position whether the economy rebounds quickly or takes its time to stabilize.

7. Keep Financial Documents and Digital Accounts Organized

In chaotic financial times, organization matters. If you’re laid off or face a significant life event, having your financial documents in order can make transitions smoother. This includes everything from bank accounts and investment login details to insurance policies, estate plans, and tax returns.

Make sure your spouse or trusted family member knows how to access key documents if needed. Organizing your digital footprint now reduces stress later and gives you a clearer picture of where things stand.

8. Talk to Someone Before You React

When the economy feels shaky, so do our emotions. But financial decisions made in fear rarely stand the test of time. Whether you’re worried about layoffs, inflation, or market swings, talking to a qualified professional can help put your concerns in perspective.

Your CPA can offer insights into how the economy affects your specific situation—not just national trends. They can help you weigh trade-offs, avoid costly errors, and craft a plan that reflects both the challenges and opportunities ahead.

Economic uncertainty is never comfortable—but it doesn’t have to be destabilizing. By taking measured, thoughtful action, you can put yourself in a stronger financial position, no matter how the headlines shift. The most resilient plans are the ones built not just for growth, but for adaptability. If you’re unsure where to begin, start with one conversation—with a CPA who understands both your numbers and your long-term goals. Because financial peace of mind isn’t about knowing what will happen—it’s about being ready for whatever does.

by Kate Supino

Cryptocurrency has shifted from fringe curiosity to a mainstream investment class. From Bitcoin to Ethereum—and now thousands of altcoins—digital assets continue to attract attention from seasoned investors and curious first-timers alike. But alongside the headlines of overnight gains and decentralized dreams is a murkier, more complicated reality.

As CPAs, we’ve seen the other side of crypto: confused taxpayers, audit red flags, and reporting headaches. While the technology itself might be revolutionary, the IRS isn’t cutting any corners when it comes to compliance. If you’re dabbling—or diving headfirst—into the world of crypto investing, understanding the potential pitfalls can help you avoid costly mistakes later.

Crypto Is Taxable—Whether You Realize It or Not

Many new investors make the assumption that crypto is treated differently than traditional assets. After all, there’s no monthly statement, and no W-2 waiting in January. But from the IRS’s perspective, digital currencies are property. That means every time you sell, trade, or use cryptocurrency to purchase goods or services, you’ve created a taxable event.

Bought Ethereum in 2021 and used it to pay for a new laptop in 2023? That counts. Swapped Bitcoin for Litecoin? Also a taxable event. Even gifting or receiving crypto in certain amounts may need to be reported. The burden of tracking and reporting falls squarely on the investor.

Recordkeeping Is Easier to Ignore Than It Is to Rebuild

Unlike brokerage firms that generate detailed year-end summaries, most crypto exchanges do not automatically provide consolidated 1099 forms—or if they do, the information may be incomplete. That puts the responsibility of recordkeeping directly on the investor’s shoulders.

To properly report crypto gains and losses, you need to track the cost basis (what you paid), the date of purchase, the date of sale, and the fair market value at the time of each transaction. Multiply that by dozens—or hundreds—of trades, and things get messy fast. Third-party software can help consolidate records, but only if you link your wallets and exchanges early and consistently.

If you're mining, staking, receiving airdrops, or using DeFi protocols, the complexity multiplies. Each type of transaction has its own reporting nuances, and failing to separate them correctly can trigger underreporting issues during tax season.

The Myth of Anonymity Is a Dangerous One

Many crypto investors believe that blockchain transactions are anonymous and untraceable. While it’s true that your name isn’t directly attached to your wallet address, the idea that the IRS can’t connect the dots is a risky assumption.

Over the last few years, the IRS has significantly stepped up its efforts to enforce crypto compliance. They’ve issued subpoenas to major exchanges, launched data mining efforts, and now include a digital asset disclosure checkbox on the very first page of Form 1040. Failing to check that box—or checking it falsely—can raise immediate red flags.

With blockchain records being public and permanent, the issue isn’t whether the IRS can find you—it’s when they decide to.

Wash Sales Don’t Apply… Yet

In traditional investing, wash sale rules prevent investors from claiming a capital loss if they sell a security at a loss and then repurchase it within 30 days. These rules do not currently apply to crypto because digital assets aren’t classified as “securities” under current tax code.

That said, Congress has proposed expanding the wash sale rule to include digital assets, and there’s every indication the IRS is watching closely. What’s legal this tax year might not be next. Planning with the assumption that loopholes will eventually close is the wisest approach.

Don’t Assume Short-Term Gains Are No Big Deal

Smart crypto investing doesn’t mean avoiding taxes. It means understanding them—and planning accordingly. When your strategy is sound on both the financial and tax side, you’re not just chasing gains—you’re building a foundation for long-term success.

Many crypto traders—especially during market surges—flip coins rapidly to capitalize on price swings. What they often don’t account for is that any asset held for less than a year before selling is subject to short-term capital gains tax. This means your profits are taxed at ordinary income rates, which could push you into a higher tax bracket.

Business Transactions Using Crypto Add Another Layer

If you accept crypto as payment for business services or goods, the IRS treats that as ordinary income, not a capital gain. The fair market value of the crypto at the time you received it must be included in your gross income.

This means small business owners who accept cryptocurrency need to track not only the value at receipt, but also the gain or loss when they later sell or exchange it. It creates a two-step reporting obligation: once for income, and once for capital gains or losses. Without clear records, it’s easy to miss one—or both—of those steps.

Work With a CPA Who Knows the Terrain

Crypto tax guidance is still evolving, and the IRS hasn’t released comprehensive rules for every use case. If you’re working with a CPA who isn’t familiar with digital asset taxation, you may end up with misclassified income, missed forms (such as 8949 or Schedule D), or unnecessary audit exposure.

Experienced CPAs stay current on guidance from the IRS, FINCEN, and tax courts. They also know how to deal with gray areas—like staking rewards or wrapped tokens—where regulations are still being interpreted. When in doubt, the best defense is clear documentation and professional advice rooted in real-world crypto knowledge.

Don’t Let Opportunity Turn Into Regret

Crypto investing holds enormous potential, but it also demands responsibility. In a space where the rules aren’t always obvious, and the paper trail isn’t neatly provided, mistakes are easy to make—and hard to unwind.

The best time to organize your records, evaluate your transactions, and create a clear tax strategy is before tax season arrives. Whether you’re just getting started or you’ve already made a dozen trades this year, a conversation with a knowledgeable CPA can go a long way.

by Kate Supino

Online funding management systems have made it popular and convenient for entrepreneurs to ask for and collect startup funds from family and friends. Hundreds of now successful young businesses got their early boost from benevolent relatives and friends. Whether startups choose to use sites like Kickstarter and GoFundMe, or whether owners approach family and friends in person, it’s become commonplace and even acceptable to solicit friends and families for money to bootstrap a business.

There are significant risks associated with asking for and taking money from these sources, however. The potential hazards are both personal and business-related, and any attempt to do so should be undertaken with caution. It’s a good idea to consult with your CPA for some of the steps mentioned below. In the meantime, here are some of the pros and cons related to asking friends and family to help fund your startup, as well as some considerations to bear in mind.

You Place Your Personal Relationships at Risk

Startups are inherently risky business. In many cases, when funding is still to be obtained for prototyping and testing the market, proof of concept hasn’t yet occurred. As an entrepreneur and business-minded person, you’ve likely already done a ton of research, and you understand that the business is a venture, not a guarantee. 

But your relatives and friends, who may not be business-savvy themselves, probably don’t fully realize the risk they’re taking by investing in your startup. You can tell them. You can sit down with them with stories and pen and paper and emphasize how they might never see that money again. But their motivation for wanting to give you the money could get in the way of their fully realizing that risk. They may be motivated by the idea that they could make a profit, by their love for you, or by their trust in you that you are clever and you know what you’re doing. These are all things that will a) prevent them from looking at the risk objectively, and b) make their loss ten times harder to bear if worse comes to worst.

When or if the day comes that you have to tell them their money’s gone, they may not remember the warnings you gave them. They may find it very hard to swallow that they made the decision of their own volition and their investment was a request, not a demand. They might not remember all that. However, they will clearly remember you taking their money, and they will clearly remember you not giving it back. That makes for some very awkward family gatherings—for the rest of your life.

Again, we’re talking about the worst case scenario here, if your startup doesn’t succeed. This isn’t to say that you have any worse chances than anyone else for your startup to succeed; these are just possibilities that you should think about before asking friends and family members for funding.

You Don’t Know Where The Money’s Coming From

When you get a bank loan or an investment from a venture capitalist, you have some idea that the money is coming from some kind of fund or source that's been set aside to give loans and assume a certain level of risk.

When you get money from friends and family, you don’t know where the money’s actually coming from. If you did know, you might think twice before asking your mom or uncle or best friend for money to gamble on your business idea. 

For all you know, that money could be coming from dad’s retirement account, which he emptied out because you’re his son and can do no wrong. Your best friend might have secretly liquidated his kid’s college fund to give you for your startup.

Even if you dare ask where the money’s coming from, chances are you’ll get a smile and a pat on the shoulder and a “Don’t worry about it.” 

That’s not good enough. There’s a reason why financial managers set up boundaries for people who want to invest in the stock market. They don’t want naïve investors mortgaging their house and going broke, and neither should you.

The Right Way to Get Friends and Family Funding

Of course, with shows like Shark Tank hyping up the generosity of friends and family who support entrepreneurs, you’re probably going to be tempted to do it anyway. If so, here is the right way to get friends and family funding without jeopardizing so much. 

Set Limits

Make a cap for any single investor who is not a professional investor. For instance, don’t allow any one person to invest more than $1000. This helps to prevent magnanimous donations from friends and family who may not be able to truly afford it.  

Make it Official 

Make every contribution official, whether it’s $25 or $500. Making it official means signing paperwork, which you should either have a lawyer to write up, or get docs online. Everyone should have a record of any funds they provided for your startup, as well as details about interest, repayment, etc.

Provide a Written Prospectus

When you take the time once to prepare a written prospectus, you can just hand this out to anyone who is thinking of investing in your startup. (Provide digital versions if you use an online funding site.)

A written prospectus ensures that everyone gets the same information, and shows that you were open and forthcoming regarding the business details and the risks involved.

If you have a startup and you’re thinking of going the friends and family funding route, consider not doing so. Before you risk your personal relationships, make sure you explore all other avenues. As an entrepreneur, you should be able to think creatively about finding alternative means to fund your startup. And as always, talk to your CPA before starting any new business.

by Kate Supino

Spring cleaning isn’t just for your home—it’s also a great opportunity to tidy up your financial records. Whether you’re an a person who’s just looking to take a more organized approach to managing your own personal finances or you’re a business person charged with tracking financial records, maintaining organized records can help you prepare for tax season, identify financial opportunities and reduce the anxiety of not knowing what’s going on, money-wise. Here are some essential tips to help you declutter, organize and optimize your financial records.

Assess What You Have

Start by gathering all your financial documents in one place. This includes tax returns, bank statements, credit card statements, loan documents, investment records and any other financial paperwork. If you’re managing business finances, add invoices, receipts, payroll records and accounting reports to the mix. Once you have everything together, sort through your records to identify what you need to keep, what can be archived, and what should be discarded. 

Be careful here, though. One of the most common things CPAs see is people tossing financial records too soon. One of the things CPAs do as part of their job is to help ensure that deductions can be backed up, i.e., there’s a paper trail. For this step, don’t purge any records or files until your CPA gives you the go-ahead.

Know What to Keep and for How Long

The IRS and financial experts recommend keeping certain documents for specific periods. Here’s a general guide:

Tax Returns and Supporting Documents: Keep for at least seven years. The IRS can audit returns for up to three years, but if substantial errors are found, they can go back six years or more.

Bank and Credit Card Statements: Keep for one to three years, depending on their relevance for tax reporting or dispute resolution.

Investment and Retirement Account Records: Hold onto annual statements permanently and keep monthly or quarterly statements for a year.

Loan and Mortgage Documents: Retain until the loan is paid off. Once settled, keep the final payoff statement.

Property and Vehicle Records: Keep as long as you own the asset, plus a few years for tax purposes.

Business Records: For business owners, tax-related documents, payroll records, and financial statements should generally be kept for at least seven years.

Digitize and Back Up Important Documents

Paper clutter can be overwhelming, and physical records are vulnerable to loss, damage, or theft. Consider digitizing key financial documents using a scanner or secure mobile apps. Store digital copies in a secure cloud-based service or an external hard drive with encryption. Regular backups ensure that even if you lose physical copies, you still have access to critical information.

Securely Dispose of Unnecessary Documents

Once you’ve determined which documents are no longer needed, dispose of them securely. Shred any paperwork containing personal or financial information to prevent identity theft. For digital records, use secure deletion methods to ensure that sensitive data cannot be recovered.

Organize Your Financial Records

A structured filing system makes it easier to access financial information when needed. Organize both physical and digital records using a consistent labeling system. For physical files, use folders or filing cabinets with categories such as taxes, banking, insurance, investments, and loans. For digital storage, create folders with clear names and use date-based subfolders for easy reference.

Review and Update Your Budget

Spring cleaning your financial records is a perfect time to review your budget and make necessary adjustments. Look at your income and expenses to see if your spending habits align with your financial goals. Identify areas where you can cut costs, reallocate funds, or increase savings. If you’re a business owner, evaluate your financial statements to ensure profitability and cost efficiency.

Check Your Credit Reports

A well-organized financial routine should include monitoring your credit. Obtain a free credit report from each of the major credit bureaus—Experian, Equifax and TransUnion—through AnnualCreditReport.com. Review the reports for any errors, fraudulent activity, or outdated information. Disputing inaccuracies can improve your credit score and protect you from identity theft. You can also get a free report if you’ve been turned down for credit within the past 30 days.

Reevaluate Your Subscriptions and Automatic Payments

Over time, it’s easy to accumulate unnecessary subscriptions, memberships, and auto-payments. Review your bank and credit card statements to identify recurring charges that may make money trickle out of your bank account into a cascading waterfall. Cancel services you no longer use or need to cut down on wasteful spending.

Audit Your Investments and Retirement Accounts

If you have investment portfolios or retirement accounts, take this time to review their performance. Ensure that your investment strategy aligns with your financial goals and risk tolerance. If necessary, rebalance your portfolio or consult with a financial advisor to make adjustments.

Update Your Estate Planning Documents

Review and update important estate planning documents, including your will, power of attorney, and beneficiary designations. Ensuring these documents reflect your current wishes can help avoid complications for your family in the future.

Review Tax Withholding and Deductions

If your financial situation has changed—such as getting married, having a child, or starting a new job—you may need to adjust your tax withholding. Use the IRS withholding calculator to determine the appropriate withholding amount and update your W-4 with your employer if necessary.

Maintain a Routine Financial Checkup

Finally, make financial organization a year-round habit. Schedule quarterly or monthly financial checkups with your CPA to review records, update documents, and track progress toward financial goals. Regular maintenance prevents the need for a massive cleanup next spring.

Spring cleaning your financial records not only improves organization but also enhances financial well-being. By decluttering paperwork, securing digital records, and reviewing key financial aspects, you set yourself up for a smoother tax season and a stronger financial future.

by Kate Supino

If your business has clients that are likely to want to pay with crypto, should you allow it? Since cryptocurrency first hit the currency market, it has caused excitement, disappointment and finally relegation. Even governments around the world are now adopting cryptocurrency as an official form of currency. But is it right for your business? After all, there are inherent volatilities in a currency that is non-regulated and controlled by an admittedly complex system that few truly understand. Before jumping headlong into accepting crypto for payment in your business, there are pros and cons to consider.

Benefits of Accepting Crypto For Payment in Your Business

There are several potential benefits to accepting cryptocurrency as a form of payment in your business. For businesses that embrace innovation and want to expand their payment options, crypto may provide an advantage in specific markets.

1. Expanding Your Customer Base

Accepting cryptocurrency opens your business to a broader, global customer base. Many cryptocurrency users prefer businesses that accept digital currency because it offers them flexibility and the ability to make quick, anonymous transactions. By accepting crypto, your business could appeal to tech-savvy customers or international clients who may find traditional currency exchanges too expensive or cumbersome.

Certain industries—like technology, gaming, or e-commerce—have seen strong demand for cryptocurrency payments. If your business operates in one of these sectors, accepting crypto could be a competitive advantage. If all that’s relevant to your business, it may be worth considering. But if you operate a smaller, local business, the fact that you accept cryptocurrency may be almost meaningless.

2. Lower Transaction Fees

Traditional payment processors, like credit card companies, typically charge transaction fees ranging from 2% to 4%. These fees can add up quickly, especially for small businesses or companies that process large volumes of transactions. Cryptocurrency payments, by contrast, tend to have lower transaction fees because they bypass traditional banking networks. However, the exact fee structure depends on the type of cryptocurrency and the payment processor or exchange you use. Some blockchains, like Bitcoin’s, may incur higher fees when the network is congested, while others like Litecoin or Bitcoin Cash offer cheaper and faster transactions. If transaction fees are taking a huge bite out of your profits, this could be a significant benefit.

3. Faster Transactions

Cryptocurrency transactions can be faster than traditional banking processes, often allowing you to take possession immediately upon confirmation of the transaction. While credit card payments may take a few days to clear and international transfers can be delayed by banking regulations, cryptocurrency transactions generally settle within minutes or hours, regardless of where the customer is located. This speed can be particularly advantageous for businesses that deal with large international orders or those that need faster cash flow without waiting for funds to clear through banks.

4. Protection Against Chargebacks

One of the unique features of cryptocurrency is that transactions are irreversible once confirmed on the blockchain. This eliminates the risk of chargebacks, which can be a problem with credit card payments. A chargeback occurs when a customer disputes a charge and the payment is reversed, often leaving the business to shoulder the financial loss. With crypto, the payment is final, and disputes over transactions must be handled directly between the business and the customer.

Risks of Accepting Cryptocurrency

Despite its benefits, there are significant risks associated with accepting cryptocurrency for business payments that cannot be ignored. These risks stem primarily from regulatory issues, price volatility, and the complexities of integrating crypto into standard accounting practices.

1. Price Volatility

Perhaps the most significant risk of accepting cryptocurrency is its price volatility. The value of cryptocurrencies like Bitcoin and Ethereum can fluctuate wildly in a short amount of time. A customer might pay you in Bitcoin when it’s worth $40,000 per coin, but by the time you convert it to cash, the value could have dropped to $35,000 or lower, even if you do the conversion within hours of receiving payment. For businesses that operate with thin profit margins, this volatility can make accepting cryptocurrency risky.

2. Regulatory Uncertainty

Cryptocurrency is still a relatively new technology, and many countries have not yet fully established how to regulate it. Tax authorities may have specific requirements for reporting cryptocurrency income, and these rules can change quickly. In the U.S., the IRS treats cryptocurrency as property, meaning businesses must track the value of the currency at the time of the transaction and report any gains or losses when converting it to cash. CPAs can help businesses navigate these regulatory requirements, ensuring proper compliance and minimizing the risk of penalties. However, the lack of clear regulations in some countries can make accepting cryptocurrency more complicated than traditional payment methods.

3. Integration With Existing Systems

Many businesses have established systems for accepting and processing traditional payments. Integrating cryptocurrency into these systems may require significant changes, particularly when it comes to accounting and reporting. For example, cryptocurrency transactions must be recorded as property exchanges, and businesses will need to track the value of each crypto payment in real-time.

4. Security Concerns

Cryptocurrency wallets and exchanges can be vulnerable to hacking, and unlike traditional bank accounts, there’s often no recourse if funds are stolen. Businesses that accept cryptocurrency must ensure they have strong cybersecurity measures in place to protect against potential theft. This might involve using secure wallets, two-factor authentication, and partnering with reputable payment processors that offer crypto support.

5. IRS Attention

Cryptocurrency is still relatively new, so if you want to get the IRS’s attention, accepting it for payment is a great way to do it. You can be doing everything aboveboard, but since crypto is the favored currency for some nefarious organizations, it still raises red flags with regulatory authorities like the IRS. If you decide to accept crypto, just be sure to keep perfect records and work with a reputable CPA.

Whether you’re a small business looking to diversify or a tech company eager to attract crypto enthusiasts, understanding the pros and cons of cryptocurrency payments is key to making the right decision for your business.

by Kate Supino

With financial scams on the rise, it’s imperative to be on guard against all forms of potential financial threats. Unfortunately, some of the most vulnerable people may be your loved ones, especially elderly parents. This segment of the population is less likely to be savvy about scams involving money and about ways to prevent being a victim. Protecting your parents from financial scams is possible, though, with a few simple steps.

Keep Abreast of Trending Scams

In order to keep your parents from being victims, you need to keep abreast about the latest scams yourself. Stay informed by reading relevant articles online, especially those published by authority sites. For instance, the Consumer Financial Protection Bureau is an official website of the U.S. government. They are a verifiable source of reliable information about fraud and scams. Visit this site often to learn about the most recent trends in all kinds of financial scams. Other possible sources of reliable information regarding money scams include your bank or credit union, AARP, The National Council on Aging and certain financial sites such as Money and Investopedia. The more information you equip yourself with, the better you’ll be able to protect your parents.

Common Financial Scams to be Aware Of

This collection of common financial scams to be aware of will be incomplete, because new scams are always surfacing. It seems like scammers spend a lot of time devising new ways to cheat people out of their hard-earned money. Still, this list can form a basis from which you can begin to learn more about money scams.

Phishing 

Phishing is the term used when emails, texts or telephone calls are used to trick people into giving their personal financial information. For instance an email might pop up on your parents’ phone telling them that their social security number has been leaked. They might be tricked into clicking on a link, where they then need to enter their SSN. These messages often appear genuine and urgent, prompting quick action from unsuspecting older folks.

To Prevent: Teach parents never to give out personal information to callers or emailers unless they themselves initiated the call.

Timeshare Fraud

Recently, it’s been discovered that a massive timeshare fraud scheme has been used to steal millions of dollars from unsuspecting Americans. As older people are more likely to fall for this real estate scam, this is a good one to be aware of to protect your parents. In this scam, timeshare owners are offered a chance to sell their timeshare, but with a catch. A hefty “tax levy” would have to be paid first. In fact, that fee goes to Mexican cartels, and the timeshare is never sold.

To Prevent: Educate your parents about this new scam. If your parents are eager to sell their timeshare, find legitimate companies that will help sell the timeshare on behalf of your parents. 

Investment Fraud

Older folks seeking lucrative investment opportunities may fall prey to investment fraud. In this scenario, a “too good to be true” investment with little risk is the lure. In reality, the investment never pays out, and by the time the victims figure it out, it’s too late to recoup their losses.

To Prevent: Ask parents to loop you in on any new investments. Take the time to investigate investments thoroughly, together with your parents.

Grandparent Scams

In this particularly mean scam, a caller pretends to be a grandchild in distress, needing immediate financial help. The grandparent sends a money order or a gift card and, of course, loses out on all that money.

To Prevent: Give your children and your parents a secret word. Let your parents know to always ask for that secret word if anyone calls pretending to be a grandchild in distress. 

Sweepstakes and Lottery Scams

With this scam, victims are told that they’ve come into a great deal of money by winning a lottery or sweepstakes. One famous sweepstakes in particular is often cited. To claim the prize, the victim usually needs to pay a fee or disclose personal data.

To Prevent: Remind parents that no reputable lottery or sweepstakes organization would ask for a fee in order to collect winnings. Encourage parents to contact you if they do receive such a notification, so that you can investigate its authenticity.

Tech Support Scams

Scammers may pose as tech support representatives, claiming that the victim's computer is infected with a virus. This usually happens with a scam popup on the computer. They then ask for remote access to the computer or demand payment for fake repair services. Older folks might feel embarrassed about “breaking” their computer and pay money without telling anyone.

To Prevent: Work with parents online, helping them to successfully navigate their way on the web. Let parents know that they can’t break their computer, and also teach them how to spot the differences between a legitimate website and a fake popup urging them to click.

If Parents do Fall Victim

If, despite everyone’s best efforts, your parents do fall victim to a financial scam, take action immediately. Don’t wait until “Monday” or “tomorrow morning.” Contact the banks, credit unions, investment companies and other relevant institutions where your parents have their money. Call credit card companies, cancel cards and have new ones mailed out, after verifying the correct mailing address. Next, contact your local police department. They may not handle the complaint directly, but they will be able to tell you which agency you need to notify, based on the nature of the scam. 

Your parents spent their young lives taking care of you. Now it’s time to return the favor by watching your parents’ backs and protecting them from the clever financial scams sweeping the world. The more you and your parents discuss this risk, the better you can work together to keep them safe. For more information about safeguarding your parents’ financial future, get in touch with a CPA. 

by Kate Supino

Annuities aren’t such a modern concept as you might think. Although many people are just now hearing about annuities, they’ve been around as far back as the Roman Empire. Citizens of Rome would make a lump sum payment into what they called an “annua” fund. They would then receive a payment each year until death. In the Middle Ages, annuities were used to raise money to pay for wars. In the U.S., the Presbyterian Church used annuities starting in 1720 to fund retirement accounts for ministers and their family. As of 1812, annuities became available to the general public. All goes to show that annuities are a proven asset, which is one of the reasons why they are so lauded today. But are they as good as their reputation?

Benefits of Fixed Annuities

Each type of annuity carries with it unique benefits. You’ll want to decide on the type of annuity you get by evaluating your needs and expectations. One of the most popular kinds of annuities are fixed annuities. These have a wide range of benefits that makes them appealing to people of all economic classes. Some—but not all—of the benefits listed here are also available with other annuity types.

Tax-deferred

Earnings on fixed annuities are tax-deferred, meaning you don’t pay taxes until you begin receiving payments. If you think you’ll be in a lower tax bracket by that time, this is an especially huge benefit.

Money is Safe From Creditors

No matter what kind of financial situation you find yourself in, your creditors can’t get to your annuity. In fact, your money is private from both creditors and lawsuits.

Your Heirs Can Benefit, Too

After your death, your fixed annuity can pay benefits to your heirs. free from the constraints of probate court. Your money will pass directly to your named beneficiary/ This cannot be contested by anyone, either.

Isn’t Included in Student Loan Applications
You aren’t required to include fixed annuity assets on your child’s student loan application, which can make the difference between qualifying and not qualifying.

Note that each state may have different rules regarding annuities, so it’s imperative to consult with your CPA regarding these benefits and benefits of other types of annuities.

Who Can Get an Annuity?

Everyone can get an annuity. There’s no accreditation needed as there is for some other large investment vehicles. You don’t need to have reserve funds in your bank account, or have a history showing that you’re a sophisticated investor. As long as you have the up front cash payment to deposit, you can set up an annuity.

Just know that once you hand over that money, you’ll be liable for surrender costs and other possible fees if you take your money out sooner than the contract terms allow. Therefore, the money you put in should be considered separate from other money and investments you have. This isn’t something you can change your mind about later without significant financial penalties.

Different Kinds of Annuities

Finally, another important thing to know is that not all annuities are the same. Annuities come in various forms, each with unique features and purposes. Here's a brief overview of the different types of annuities:

Fixed Annuities - These annuities provide a guaranteed fixed payment amount over a specified period or for the lifetime of the annuitant. The insurer guarantees both the principal and a fixed rate of interest. They are considered low risk and offer a stable, predictable income stream, making them suitable for risk-averse investors.

Variable Annuities - Unlike fixed annuities, the payments from variable annuities fluctuate based on the performance of investments chosen by the annuitant. These investments often include stocks, bonds, and money market funds. While they offer the potential for bigger returns compared to fixed annuities, they also come with higher risk due to their reliance on market performance.

Indexed Annuities - These are a type of fixed annuity, but their return is tied to a specific market index, like the S&P 500. Your returns are based on the performance of the index, although there's typically a maximum return amount, and a guarantee against loss of principal. They offer a balance between the chance for larger returns and the security of a guaranteed minimum return.

Immediate Annuities - These start paying out income almost immediately after a lump sum is invested. They are often used by retirees who need a steady income stream right away. The payout can be structured to last for a specific period or for the lifetime of the annuitant.

Deferred Annuities - With deferred annuities, the payout begins at a future date, often upon retirement. Contributions are made either as a lump sum or through a series of payments. The money invested grows tax-deferred until it is withdrawn.

Lifetime Annuities - These guarantee income for the lifetime of the annuitant, regardless of how long they live. This removes the risk of outliving one's savings. The downside is that if the annuitant dies early, the remaining value of the annuity may not be passed on to heirs, depending on the contract terms.

Fixed-Indexed Annuities - A hybrid of fixed and indexed annuities, these offer a base rate of return, plus potential additional interest based on the performance of a market index.

Joint and Survivor Annuities - Joint and survivor annuities continue to provide payments for as long as either you or your spouse is living. The payment amount may decrease after the first spouse's death, depending on the contract terms.

As you can see, there are lots of different variations on annuities, and this may not even be a complete list. Financial institutions often create proprietary or hybrid annuities that are tailored to their customers’ needs. Be sure to consult with your CPA before moving ahead with an annuity.

There are very few drawbacks to annuities. As long as you’re aware of early withdrawal penalties, this is an asset worth considering. But, as with other investments, be sure to consult with your CPA before making any moves.

by Kate Supino

By now, you may have already given up on some of your New Year’s resolutions. Making huge changes all at once is often too much to sustain. Experts have said that small changes, made consistently over longer periods of time, can be just as transformative—and easier to maintain—than trying to force yourself to change overnight. Of all your New Year’s resolutions, financial resolutions could be the most important for your long-term security. Whether or not the following resolutions made it onto your list, here are eight financial moves worth making in 2024.

1. Track Spending

Many people can relate to the disappointing experience of wondering where all the money went. One minute they’re looking at a huge direct deposit from their employer in their bank account, and the next, it all seems to have dwindled away until there’s hardly anything left. 

Tracking your spending gives you insight into where all the money is going, as well as your own spending habits. Use an app that categorizes each expense, keep receipts or use a money management software on your computer; whatever works for you. Knowing where the money is going gives you power to control it.

2. Build Your Emergency Fund

Think of an emergency fund differently than a regular savings account. Your savings account helps you save for long-term goals, whereas an emergency fund will get you through those big surprise expenses that no one wants to think about. You need both. Use your emergency fund to pay for things like:

• car repair bill

• furnace repair/replacement

• food, rent and utilities if you become sick and unable to work

• emergency dentist visit

• emergency veterinarian visit

Strive to accumulate an amount equal to one month’s salary, but keep contributing to your emergency fund even after this goal is reached.

3. Ask For a Raise

Increasing your income will help you to achieve all of your financial goals in 2024, plus help you to maximize your earning potential. If you’ve gone a long time without a pay increase, had scope creep, where your job responsibilities are slowly growing in number, or are simply underpaid in the market, it’s time to ask for a raise. For backup, visit Glassdoor, where you can see what your colleagues make in your same position or job title. Prepare for your meeting by making a list of all your job accomplishments, which prove your value to the company.

4. Pay Down Debt

Tackling debt is crucial for financial freedom. Start by listing all your debts, along with their interest rates and balances. Adopt a strategy: either the snowball method, where you pay off smaller debts first for quick wins, or the avalanche method, targeting debts with the highest interest rates. Consider consolidating debts into a single loan with a lower interest rate, making payments more manageable. Always pay more than the minimum to reduce interest accrual. Finally, cut back on non-essential expenses to allocate more funds towards debt repayment. Consistently reviewing and adjusting your strategy will keep you on track towards a mostly debt-free life.

5. Improve Your Credit Score

Enhancing your credit score is a pivotal financial goal that can jumpstart financial success throughout the year. Start by regularly checking your credit reports for errors and disputing any inaccuracies. Timely payment of bills is essential; set reminders or automate payments to avoid late fees and marks on your credit report. Reduce your credit utilization ratio by paying down credit card balances and keeping them well below the credit limits. Avoid opening new credit lines unnecessarily, as each inquiry can temporarily lower your score. If you have a thin credit file, consider a secured credit card or becoming an authorized user on a responsible person's account. Regular monitoring and responsible credit habits will gradually improve your credit score.

6. Educate Yourself

Financial literacy is something that many parents fail to teach their children. Still, there are plenty of free and paid resources available for you to educate yourself on areas where you may be lacking information. Your CPA is a valuable resource, who can explain the tax aspects of your financial dealings. The more you know about making, saving and investing, the better financial decisions you’ll make for yourself and your family. Make a point of either enrolling in an online course, reading finance-related books or watching instructional videos at least once a week.

7. Stop Paying Fees

Warren Buffet is notorious for penny-pinching. Do you think he’d pay petty fees without complaining? He once refused to do a deal when a potential partner quietly increased the share price by a few pennies. From bank fees to ATM fees, to small charges just for moving your money, stop letting money trickle through your fingers. With a little planning and foresight, you won’t have to pay extra just for paying a bill with a credit card instead of a debit card, or for buying gas with a card instead of cash. You could save all that money and stash it away in your emergency fund instead.

8. Start a Small Business

Turn a hobby or other interest into a small business and reap the rewards of dozens of business tax deductions. You could get credit for having a home office, using your personal car for work and using your cell phone for business phone calls. Your CPA will help you to learn how to set up a small business so you can maximize your tax savings while increasing your revenue streams. And who knows? There’s always the chance that your small business could grow into something where you can eventually work entirely for yourself someday!

Making and keeping these New Year’s resolutions is more than a one-time commitment. Done well, they can help you to achieve a lifetime of financial well-being and self-empowerment. And you don’t even have to do it alone. Your CPA doesn’t just crunch numbers; they can offer personalized advice, help you navigate through complex financial decisions, and develop strategies tailored to your unique financial goals. 

by Kate Supino

Inflation is a mystery for many. Unless you’re an economist, this economic phenomenon is elusive and mysterious. It’s also something that we have no control over. Yet, it wields an undeniable, powerful force over your finances. Because of this, it pays to try to understand what inflation is and its impact on your money.

What is Inflation?

Technically speaking, inflation is defined as the rate at which prices inflate and purchasing power declines. There’s a direct link between the two. When prices of goods and services go up, the value of your dollar goes down. To put it into simple language, if you have $10 and apples cost a dollar each, you can buy ten apples. When the price of apples inflates to $1.50, you can only buy six apples. The price went up, so your purchasing power went down. Think of it like a seesaw.

Inflation and the Economy

With inflation, it’s not just your personal finances that are affected. Sure, you can’t buy as many apples, but the dollar in general has less value in the market, and that holds true for all areas of the market, from the local fruit stand, to U.S. government purchases from foreign governments.

And, when the dollar falls in value, that means that other currencies are stronger than they were in relationship to the dollar. Someone using another currency, like euros, can buy more of an item that’s selling in U.S. dollars, because their currency value has become a little bit higher compared to our dollar.

So inflation in the U.S. impacts not just you and your household apple supply, but the entire world. That’s very overwhelming to think about, especially since there’s nothing you can personally do to control inflation.

Inflation and Your Investments

Inflation doesn’t just lower your purchasing power. It also hits home with your investments. A simple example would be a household with $1,000 in a savings account earning a modest 1% in interest. After a year, your $1,000 in savings will have grown to $1,010. But when inflation is at 2%, you lose 2% of your purchasing power. So even though you now have $1,010, it’s only worth $990. You actually lost value!

It gets worse. Inflation is cumulative. Over a period of ten years, with 2% inflation each year, the costs of goods and services will go up by about 22%, leaving you with that much less purchasing power.

How to Protect Your Finances Against Inflation

Hopefully, now you can see why you can’t just ignore inflation and how it impacts your money. And, while you can’t do anything to “cure” inflation, there are things you can do to mitigate its negative effects on your finances. Before making any major financial decisions, consult with your adviser of choice.

Consider Inflation-indexed Securities

Treasury Inflation-Protected Securities (TIPS) are inflation-indexed bonds. This means that they give you a fixed rate of return, but the principal value of the bond is adjusted for inflation, so you get some added protection. TIPS are available for purchase online at TreasuryDirect or through brokerage firms.

Avoid Getting Caught up in Purchasing Contracts

There are some home purchase programs where you can rent a property now, and then when you’re ready to buy a year or so later, you can purchase the property at its market value. In exchange for this “first right to purchase,” you pay a slightly higher rent rate than market value. But when the year comes for you to buy, odds are extremely high that the house price will have risen. So all you’re getting out of the deal is the “chance” to pay higher rent than you should have paid for an entire year. No matter what, you’ll have to pay more for the house at a later date. You would have been better off paying lower rent elsewhere and investing your accrued down payment money in something like TIPS bonds or another smart investment vehicle.

Keep Debt Low

With declining purchase power comes a reduced ability to repay debt. High levels of debt will be crippling in high inflation scenarios, especially if the debt interest rate is fixed. Keep your debt exposure to a minimum in order to help ensure your financial security when inflation rises.

Buy Now

If you’re planning on making major purchases that you can readily afford to buy now with cash, it might be smart to buy now before prices go up. Examples include a new roof on the house or a new addition on your home, since construction materials are some of the first to go up when inflation rises. Other examples include large home appliances like furnaces and water heaters. Remember, only consider this strategy if you can afford to pay cash.

Reduce Frivolous Spending

As much as possible, curb spending on non-essentials when inflation is high. You’ll end up paying more for things that won’t hold their value, or waste money that you may need for essentials like shelter, food, clothing or transportation. The government hopes you’ll consume more in order to boost the economy and keep inflation in check, but leave that up to wealthier folks who aren’t having to look for quarters in the couch at the end of the month. The economy will be just fine without you buying a new plasma screen this month.

When inflation is especially bad and you’re having to tighten your purse strings, it’s a good idea to check in with your CPA. Your CPA can help you to identify ways to better manage cash flow, find hidden tax deductions and advise on your financial moves in a difficult economic climate.

by Kate Supino