Tips

Summer is usually considered to be a time for fun and relaxation. For those who are lucky enough to get the summer months off, it can also be a time to add to job skills, credentials or even the household coffers. For that, a summer job can’t be beat. Whether it’s a casual part-time job for your child or a foray into a new field where you can test the waters for a possible career change, summer jobs are full of potential

Why Summer Jobs Matter

While summer employment is often seen as just a way to earn money during a break from school, it also teaches essential life skills. Time management, communication, customer service and problem-solving all tend to improve through real-world work experience. For high school and college students, it’s also a chance to build a resume, explore career interests, and begin forming professional networks.

From a financial standpoint, summer jobs provide an early opportunity to learn about budgeting, saving and taxes. These first lessons in personal finance can influence long-term habits, especially when reinforced with good guidance from parents or financial professionals.

Summer Job Ideas

There’s a wide range of summer work available, depending on location, age, skills and interests. Some of the most common categories include:

Retail and hospitality - Positions in grocery stores, coffee shops, restaurants, and hotels are often seasonal and offer flexible schedules.

Outdoor work - Lifeguards, camp counselors, landscaping assistants, and park employees are in demand when the weather warms up.

Internships - Paid internships provide industry-specific experience and are ideal for college students or recent graduates looking to gain experience in their field.

Gig and freelance work - Babysitting, pet sitting, tutoring, or freelance digital services (like writing or graphic design) offer flexible and often self-directed opportunities.

Small business help - Many local businesses hire summer workers for clerical tasks, inventory, delivery support, or customer service roles.

No matter the job, what matters most is leveraging the experience to develop useful skills and apply smart money management practices.

Tax Considerations for Summer Workers

Many people assume that summer jobs don’t trigger tax issues since the income is relatively low. However, taxes still apply in many cases. Your CPA can help with this.

For employees earning wages, employers are generally required to withhold federal (and sometimes state) income taxes, along with Social Security and Medicare (FICA) taxes. Even if earnings are below the IRS’s filing threshold, a tax return may be necessary to receive a refund of any overpaid taxes.

Some summer workers are considered independent contractors rather than employees—especially in the gig economy. This includes work like babysitting, pet care, lawn services, and freelance gigs. These workers don’t have taxes withheld from their pay, and they may be responsible for both income tax and self-employment tax (which includes both the employer and employee portions of Social Security and Medicare).

For young workers or their families, a CPA can offer valuable guidance on tax filing, withholding adjustments and record-keeping for gig income.

Using Earnings Wisely: Save, Spend, or Invest

Summer earnings often go toward short-term goals like spending money, travel or saving for college. But they can also offer a unique opportunity to start building long-term financial security.

One of the most effective strategies is to open a Roth IRA for a teen or young adult with earned income. Contributions are made with after-tax dollars, and the money grows tax-free. Roth IRAs are ideal for young workers in low tax brackets, since the tax benefit of deferring income is minimal—but the tax-free growth can be substantial over time.

Parents or grandparents can even gift money to match the student’s contribution, helping to build savings without reducing the child’s sense of ownership. The only requirement is that contributions cannot exceed the amount of earned income for the year.

Building a Resume and Skills

While financial rewards are a key motivation, summer jobs can also serve as a launching pad for future opportunities. Encouraging students to keep a record of their responsibilities, accomplishments and skills used and skills learned can help them build a strong resume for future employment or college applications.

Some jobs also offer the chance to develop technical skills or earn certifications, like CPR training for lifeguards or food handling certificates in hospitality. Extras like these not only build confidence but also demonstrate initiative and professionalism to future employers.

For college students, internships often lead to job offers or provide a competitive edge in the job market. Paid internships are especially valuable, offering both income and experience in a student’s chosen field. Even unpaid internships may be worthwhile if the experience is highly relevant and other financial resources are available.

Making the Most of the Experience

Summer jobs provide a concentrated window of time for learning, earning, and growing. Whether someone is earning their first paycheck or exploring their career interests, the key is to approach the experience with intention.

A few ways to maximize the opportunity:

Encourage saving part of every paycheck, no matter how small the amount.

Track income and expenses to build budgeting skills.

Ask questions on the job to learn more about the business or industry.

Explore whether employers offer mentorship, advancement opportunities, or educational support.

Keep records of all income for tax time—whether through pay stubs or a personal log.

Parents and guardians play a key role in supporting good financial habits. CPAs can assist by providing tools, answering questions, and offering financial check-ins that help turn temporary jobs into long-term advantages.

A summer job is more than just seasonal work—it’s a chance to develop practical skills, gain independence, and learn about managing money. From understanding tax responsibilities to opening a Roth IRA, summer earnings can become a stepping stone to stronger financial literacy and lifelong habits.

For individuals and families, working with a CPA can provide essential insight on how to handle taxes, set up savings plans, and make smart decisions with earned income. With the right guidance, a summer job becomes more than just a paycheck. It can be the start of a lifetime of success.

by Kate Supino

Life insurance is a critical component of financial planning, providing a safety net for loved ones in case of an unexpected loss. While purchasing a policy is an essential first step, it’s equally important to review your life insurance periodically. Life is dynamic and, as circumstances change, your coverage needs will naturally evolve.

Major Life Events

During a person’s lifetime, there will be major life events that warrant another look at life insurance policies. These include:

Marriage or Divorce

When a person marries, another person becomes emotionally or financially dependent; often both. With marriage also comes shared future goals that usually include financial goals such as paying off a mortgage, sending kids to college, paying for parents’ assisted care into old age and more. This added responsibility means you should increase life insurance coverage accordingly.

Divorce is another important life event where life insurance should be evaluated. You may want to change beneficiaries, decrease coverage amounts or even cash out policies if their primary goal was to benefit a person who is no longer a spouse.

Having a Child

A child is an added financial responsibility as well as a joy. Over their time in your care, a child will cost an estimated cost of about $17,000 per year for a middle class family. But this estimate doesn’t account for unusual circumstances, such as caring for a child with a medical or mental disability, substance abuse problems, or even such things as expensive interests that may require specialized training or equipment. If the main breadwinner in the home is suddenly unable to bring in finances, this will have a major impact on the quality of life, stability and future challenges of any children in the home. Every time a child is added to the household, whether it’s an adoption or natural birth, life insurance needs should be reassessed. 

Buying a Home

Buying a home means taking on the responsibility of paying a mortgage for years to come, in many cases. Even if the home is paid outright, there will be large expenses in the future, such as replacing the roof, repairing a foundation, replacing the HVAC and more. A substantial life insurance policy will help to ensure that your loved ones are able to keep and maintain the home that they live in, which increases their stability, safety and peace of mind. 

Career Changes

Just as major life events warrant scrutinizing your life insurance needs, so too, do changes in your career.

Income Changes

Are you making more or less than before? While a decrease in income doesn’t mean you should decrease your life insurance coverage, positive income changes certainly do. This is because now you may be upscaling your family’s quality of life, and you want to leave them in a similar position should anything happen to you. Even if you’re the sort who chooses to live on your old salary and invest the extra, an increase in life insurance helps to ensure that your family keeps those investment options open. A final note: Even if life insurance feels less affordable after a decrease in income, try to retain the policy, since premiums usually increase as you age, and signing on with a policy after your income goes back up will cost more. Also, a temporary reduction in income shouldn’t lead to a permanent change to your future financial plan, or why you bought life insurance to begin with.

Milestones in Financial Planning

Financial growth or setbacks can also affect your life insurance requirements, so pay attention to your policies during these milestones.

Debt Accumulation

If you’ve taken on significant debt, such as credit card debt, student loans or business loans, your life insurance should cover these liabilities, since your family may be saddled with them after your demise. This is certainly the case if credit cards are in both your name and your spouse’s name.

Investment Growth

As your investments grow and you build wealth, your life insurance needs may decrease. However, if you rely on life insurance as part of your estate planning strategy, it’s best not to alter your plan. Your CPA can work with you to help determine smart financial moves.

Aging and Health

As you advance in years, one or more of your beneficiaries may have passed on before you, in which case you should review your life insurance policy. Another possibility is that your beneficiary is financially sound in their own life—such as an independent adult child with their own family. However, if it’s important to you to pass on the financial gift of a life insurance policy payout, there’s no reason not to stick with your original plan.

Health Changes

A significant change in your health status might make it more challenging to secure new coverage, so reviewing your policy while you’re still healthy and insurable is essential. One good thing to know is that some policies may include options to convert term life insurance to whole life coverage if your health deteriorates.

Approaching Retirement

As you get closer to retiring, your financial situation is obviously going to change. Living on a fixed income means cutting back, and this is a smart time to review your life insurance policy to ensure it still aligns with your retirement budget and long-term estate planning needs. Many people find it helpful to confer with family members to determine what may be needed into retirement and after you pass on.

Other Triggers

Changes in personal circumstances aren’t the only times when you should review life insurance needs. There are also other triggers that bring about a need for such reviews. These include:

Policy Expiration

Do you have a term life policy? If so, there’s an expiration date, as well as premium increases the older you get. Use these deadlines as opportune times to take a second look at your policy. You may want to consider converting it to a whole life policy or make other changes.

Economic and Market Changes

Broader economic factors can also influence your life insurance needs.

Inflation

Over time, inflation reduces the purchasing power of your life insurance payout. If you’re already retired, you probably are already aware of how higher prices can gouge your savings. Periodic reviews of your life insurance policy work to ensure the payout you leave behind keeps reasonable pace with rising costs. This is particularly true if you happened to purchase your policy many years prior.

Interest Rates

Low-interest-rate environments can impact the performance of cash-value life insurance policies. Monitoring your policy’s performance helps you address any gaps in expected versus actual returns.

Life insurance isn’t a one-and-done purchase. Regular reviews ensure your policy evolves with your life circumstances, financial goals, and market conditions. By staying proactive, you can provide lasting security for your loved ones and achieve peace of mind knowing that your coverage meets your needs.

by Kate Supino

As a responsible head of the family, you’re likely always on the lookout for ways to secure your family’s financial security. Estate planning is the foundation of endeavors such as this. By putting into place instruments like wills, trusts and other plans, you have the power to help ensure the stability and financial resources of your loved ones a long time after you’re no longer able to manage these things yourself. 

One powerful tool that may not be on your radar is a family foundation. This type of instrument is used by many of the world’s wealthiest families, and can be a very effective estate planning tool. But the surprising part you may not be aware of is that you don’t have to be a multimillionaire in order to avail yourself of the possible benefits you can get from setting up a family foundation. 

What is a Family Foundation?

A family foundation is a private foundation that serves as both a philanthropic tool and an estate planning strategy. Funded by a single family, it allows individuals to support charitable causes while reducing estate taxes and preserving wealth for future generations. Assets donated to the foundation are tax-deductible, and the family retains control over how funds are distributed, ensuring their philanthropic goals are met. By involving multiple generations in its governance, a family foundation can also strengthen family bonds and values. It offers a structured way to leave a legacy while creating financial benefits for the family and supporting meaningful causes.

Benefits of Setting up a Family Foundation

Setting up a family foundation offers numerous benefits for individuals seeking to combine philanthropy with effective estate planning. It allows families to create a legacy, reduce tax burdens, and engage future generations in charitable giving.

Tax Savings - Donations to a family foundation are tax-deductible, reducing income and estate taxes.

Legacy Building - Families can support causes aligned with their values, leaving a lasting impact.

Generational Involvement - Foundations encourage younger generations to participate in philanthropic decision-making, plus it can bring older family members together in meaningful ways.

Control and Flexibility - Families maintain control over how funds are distributed. 

With these advantages, a family foundation serves as a powerful tool for giving back while protecting wealth.

Regulations For Family Foundations 

If you want to set up a family foundation, you should know that, although the funds are within the family’s control, there are regulations that need to be followed. Your CPA can assist in keeping any foundation you create in compliance. Family foundations are subject to regulations designed to ensure transparency and proper use of funds. These rules typically include filing annual tax returns, adhering to strict reporting requirements, and distributing a minimum percentage of the foundation’s assets to charitable causes each year. Furthermore, foundations must avoid conflicts of interest, ensuring all transactions benefit the foundation’s mission rather than personal interests. While specifics vary, most family foundations are required to follow guidelines on governance, investments and grant-making. Staying compliant with these regulations is crucial for maintaining tax-exempt status and ensuring the foundation operates ethically and effectively.

How to Set up a Family Foundation

Setting up a family foundation involves several steps:

• Determine which family members will run it

• Define your mission by clearly articulating your philanthropic and estate planning goals

• Choose a structure, such as a trust or nonprofit corporation

• Obtain an Employer Identification Number (EIN) from the IRS

• Apply for 501(c)(3) tax-exempt status

• Establish a formal board of directors

• Put administrative practices in place

• Develop grantmaking guidelines

• Fund your foundation

This is just a broad brushstroke of tasks to set up a family foundation. There are many, many details to be accomplished in addition to these. To help you, enlist the help of a qualified CPA. They will guide you through legal and financial complexities, ensure compliance with regulations and help you and your family members to navigate the complexities of tax laws and reporting requirements.

Responsibilities of Running a Family Foundation

Running a family foundation involves significant responsibilities, requiring careful management and compliance with regulations. Foundation leaders must establish a clear mission aligned with the family's philanthropic goals. They oversee the development of grantmaking strategies, ensuring funds are allocated to programs and organizations that reflect the foundation’s purpose.

Day-to-day operations include managing financial assets, maintaining records, and preparing annual reports to meet legal and tax obligations. Decision-making often involves engaging family members to foster collaboration while balancing diverse opinions. Foundation leaders must also monitor grant recipients to ensure funds are used appropriately, tracking the impact of contributions over time.

Another thing to take into consideration is that compliance with IRS regulations, such as adhering to payout requirements and avoiding conflicts of interest, is crucial. Failing to file proper paperwork, missing deadlines and mismanagement of funds can land family members in hot water. Finally, effective communication with stakeholders, including grantees and the community, further enhances the foundation's reputation and effectiveness, making its philanthropic efforts sustainable and impactful.

Should You Set up a Family Foundation?

In order for your potential family foundation to be successful in the long-term, you need to have one or several members of the family who are willing to shoulder the responsibilities. This will help to make sure that the financial aspects are run according to your wishes and the wishes of all the family members, as well as ensuring government compliance. 

From there, you would have to evaluate the possible benefits of a family foundation against the costs of operating it. Weighing these two carefully will help to determine if it’s worth implementing as an estate planning tool. Remember that the financial benefits aren’t the only benefits. Family foundations help to carry on your legacy far into the future.

If you’re looking for more and better ways to ensure the continuance of your legacy and the financial stability of your family for generations to come, you may want to consider setting up a family foundation. Just be sure that you have the ongoing commitment of family members, since there are considerable requirements, including time, effort and the taking on of legal responsibilities. Contact your CPA today to learn more.

by Kate Supino

Being named as the executor of an estate is a great compliment and a serious responsibility. It signifies that the person who appointed you both trusts you and thinks highly of your abilities to carry out their wishes. However you came by this appointment, it’s very important that you fully understand your role and the steps involved. A CPA can help to guide your hand as you navigate through the financial and legal complexities involved in being an executor of an estate. Following is information about what your role means, and what your duties may entail.

What is an Executor of an Estate?

An executor of an estate is a person who executes the stipulations outlined in a person’s will or estate planning document. But that’s not all that’s required of an executor. There are certain legal matters that also need to be taken care of, such as paying debts, ensuring that final tax returns are filed and, of course, distributing assets to the named beneficiaries. Local, state and Federal laws must be adhered to in all matters pertaining to the execution of an estate. Note that an estate does not necessarily—or usually—involve a huge estate with grounds and a mansion. The same term is used to describe the liquid, real and other holdings of a person who has passed away. So an estate can consist of a bank account, a house, physical belongings, digital assets, etc.  Anything that the deceased person owned and left behind is the estate, basically. Finally, you should know that the tasks of being an executor of an estate can take several months or even years to complete, depending on the complexity of the estate. This is why it’s so beneficial to hire a CPA for assistance. Of course, the fees to hire the CPA would come out of the estate; the executor does not need to personally pay for such services.

Requirements of the Executor of an Estate

There are multiple duties of an executor and, make no mistake, a great number of hours need to be dedicated to these tasks. There are papers to be gone through, papers and receipts to be organized, asset access to be arranged, professionals to be contacted and more. It can be exhausting and overwhelming for a person not accustomed to all this red tape to have to go through it. Again, a CPA can be an enormous asset during this time. Specifically, here are some of the many duties of an executor:

Filing the Will and Starting Probate

Depending upon the state where the situation occurs, probate may be a part of the process. This process officially begins the administration of the estate and allows the executor to act on behalf of the deceased. If there’s no will, the estate goes through intestacy, where the state determines how the assets are distributed.

Depending on the estate’s complexity and state laws, probate can be a relatively straightforward process or a lengthy one involving court proceedings. CPAs who work with executors can offer significant value here by assisting in gathering financial documents, such as bank statements, investments, and outstanding debts, that will be essential for probate proceedings.

Identifying and Managing Assets

This includes identifying real estate, bank accounts, retirement funds, stocks, and personal belongings. The executor may also be responsible for securing and managing these assets until they can be distributed. For instance, real estate may need to be maintained or sold, and the executor must manage this process. If the deceased owned a business, this could involve complicated decisions about continuation, sale or liquidation.

Paying Debts and Taxes

The executor must notify creditors and pay any outstanding bills, including mortgages, loans, and medical expenses. Before distributing any assets to beneficiaries, debts must be settled, which can involve negotiating with creditors or liquidating certain assets to cover the estate’s obligations.

CPAs play a vital role here by helping executors prioritize payments, create an estate account, and ensure that all financial obligations are met. Additionally, the executor is responsible for filing the deceased’s final income tax return, as well as any estate taxes if applicable. Depending on the estate's value, federal or state estate taxes may be required, which can significantly impact the distribution of assets.

Distributing Assets

After debts and taxes are paid, the executor can begin distributing the remaining assets to beneficiaries as outlined in the will or, in the absence of a will, as directed by the court. This can involve transferring funds, changing property titles, and managing any disputes between beneficiaries.

Closing the Estate

Once all debts are paid, and assets have been distributed, the executor must formally close the estate. This typically involves filing a final accounting with the probate court, detailing all payments and distributions made. Once approved, the executor is released from their duties. Ensuring that the final accounting is accurate and compliant with legal standards is critical. This often requires a thorough review of all transactions and the preparation of necessary financial reports. In this regard, the help of a CPA is essential.

Serving as an executor is a significant legal and financial responsibility. Executors must navigate probate, manage assets, pay debts, and file taxes, all while adhering to the deceased’s wishes and legal requirements. For CPAs, supporting clients in this role involves providing critical advice on tax planning, asset management, and compliance with estate laws. By staying informed about the latest tax rules and probate procedures, CPAs can ensure that executors fulfill their duties effectively, helping to simplify the process during an emotionally challenging time.

by Kate Supino

Running a home-based business comes with a ton of benefits, not the least of which is working for yourself. But just because you’ve successfully gotten rid of your morning commute doesn’t mean you lack other challenges specific to working from home. One of the most challenging aspects is managing finances. While you’re creating your service or product and marketing your wares, who’s watching the books? Most experts agree that a CPA is not only valuable but necessary for home-based business owners. From reducing tax liabilities and handling payroll taxes to providing business advice and conducting audits, a CPA can put your home-based business in a stronger financial position.

Help Your Business Reduce Tax Liabilities

Operating a home-based business creates many tax benefits, but only if you know how to take advantage of them. These benefits can greatly offset tax liabilities. Some are obvious, like being able to deduct a portion of your home mortgage or rent. But others are less obvious to non-professionals. With just a few business changes, you might be able to avail of additional tax benefits that you were never aware of. As a tax expert, your CPA stays up-to-date on all the new tax laws and benefits; knowledge that they can use to benefit their clients. Having your CPA offer advice and strategies to maximize benefits and minimize taxes is a big reason why you need a CPA for your home-based business.

Keep Tax-related Records

Successful home-based business owners are very organized; they have to be. And keeping accurate and organized tax records throughout the year is essential for ensuring compliance with tax laws and for making the tax filing process easier. But tax records are notoriously challenging to keep track of, especially when one owner is wearing all the hats. It can also be confusing as to what papers are important and which can be tossed. In the end, you can easily end up with a huge pile of “to be filed” papers that looks more like a heap of jumbled mess than important tax records. A CPA can maintain all your tax-related records, ensuring that everything is properly documented and stored in case of an audit or tax query. This includes tracking receipts, invoices, and other business expenses, as well as managing depreciation schedules, payroll records and mileage logs.

File Taxes

No one looks forward to filing taxes, especially home-based business owners. It’s a daunting task that most people avoid until the last minute. But missing deadlines, filing incorrect forms, or failing to pay taxes owed can result in penalties, fines, or even audits. A CPA is qualified to handle all of your business’s tax filings, ensuring that everything is done correctly and on time. The urgency of having a CPA as a home-based business owner is made more apparent, since the IRS takes a much harder look at home-based businesses than they used to. You definitely want to have all your i’s dotted and t’s crossed in order to avoid an audit.

Provide Business Advice

You may have started your home-based business all on your own, but it’s hard to sustain that business and grow it all by yourself. As the business grows, you’ll need more and more professional advice, particularly if you ever want to involve shareholders, a Board of Directors, change your business entity, apply for a business line of credit, bring on investors and more. CPAs can also help you develop financial forecasts, which are essential for business planning. By projecting your future income and expenses, a CPA can help you prepare for growth, manage cash flow and identify potential financial challenges before they become serious issues that can jeopardize your business.

Act as a Business Partner

Being the sole owner is a lonely affair. You alone are responsible for all the business decisions. If you make a wrong decision, you can’t blame anyone else. And frankly, you’re likely to make a few wrong decisions, since you can’t possibly know everything you need to know in advance. So unless you have a crystal ball in the closet, chances are you’ll do at least one thing that you wish you hadn’t, like max out your credit card, offer too-broad payment terms to a client, or forget to make collection calls. Having a CPA on board means you have someone knowledgeable to bounce ideas off of, similarly to a business partner. And, even though they aren’t actually your business partner, it can feel like you’re not alone anymore. 

Handle Payroll Taxes

Managing payroll taxes is another area where a CPA can make life easier for home-based business owners. Payroll taxes involve more than just deducting income taxes from your employees' wages. You also need to calculate and pay Social Security, Medicare, unemployment taxes, and possibly other local taxes, depending on where your home-based business is located. Remember, as an employer, you're responsible for making regular payroll tax deposits and filing quarterly and annual payroll tax reports. A CPA can handle all aspects of payroll tax management, from calculating withholdings to filing the necessary paperwork with the IRS and state agencies. This not only ensures compliance but also frees up your time to focus on other parts of your business.

While it’s not mandatory for every home-based business to hire a CPA, the benefits of having one can significantly impact the success and growth of your business. From reducing tax liabilities and ensuring compliance with tax regulations to providing valuable business advice and handling payroll taxes, a CPA can save you time, money, and stress. If your home-based business could benefit from any of the services mentioned above, hiring a CPA might be one of the smartest decisions you make for your business’s long-term financial health.

by Kate Supino

Today, many workers are being offered the opportunity to work remotely instead of going into an office every day to work. This is seen as a benefit, and many workers do take advantage of it. But before you accept, it’s worth taking a closer look at both the pros and cons of this arrangement. 

Autonomy

When you work at home, there’s no boss looking over your shoulder, making sure you’re working on the tasks you’ve been assigned. There are no co-workers making sure you’re putting in your full 8 hours so you don’t “get away” with anything they can’t get away with. For people who are more productive alone, this is a nice benefit.

The flip side of this is loneliness. Even people who aren’t particularly social may feel that working home alone leads to a sense of isolation over time. They may miss the chatter of others working around them, or even the feedback that a boss may offer over the course of a workday.

Commute

If you previously had a long commute to work, working from home can feel great. You no longer have to sit in traffic, on a bus or a train for that long ride into the office. The lack of having to commute gives you more hours to yourself each day, which is a definite benefit.

But commuting has its benefits, too. Many commuters find that this alone time to and from work gives them a breather, or allows them to enjoy time reading a book or catching up on the news. Even those who commute by driving often enjoy the alone time in the car to reflect on things or strategize certain work-related situations.

Flexibility

When you work from home, you gain a great deal of flexibility. You can get up and go to the kitchen to get a snack whenever you want. You can throw a load of laundry in the wash, or sneak out for a quick 15-minute walk for exercise, fresh air and sunshine. Most remote workers highly value this benefit.

But the same flexibility that you have by working from home can be problematic, too. You might find that you snack a little too much, or you get distracted by those side tasks around the house, and your actual work falls behind. Unless you’re a highly disciplined individual, flexibility might end up being a challenge to overcome, rather than a benefit.

Expenses

Working from home means that you’ll have a home office, and a home office equals tax deductions. Your CPA can help you to calculate exactly how many deductions you may be entitled to. They can be significant, so you don’t want to miss out on any of them. You might also save money by not having to spend so much on a business wardrobe.

The tax deductions you get from working at home could be offset a little, since you’ll be using more energy resources. You’ll be operating things like a computer, peripherals, etc., so your energy use will go up, too. You might even need to buy more food, since you’ll be making all your meals at home. Still, in this category, the savings and deductions win out over any little extra expenses you may incur by working from home.

Distractions

At work, you may have had to contend with a chatty coworker who feels compelled to regale you with all her life’s details or all the office gossip. This is a common complaint that office workers have, and there’s no easy way to stop someone who’s essentially just being overly-friendly in a work environment. So being able to avoid this by working at home is a great feature.

But distractions at home can be worse. Younger children may not have the capacity to grasp that even though mom or dad is at home, they can’t get attention from them all day long. It may be even harder to tell your kids not to bother you than it was to tell your co-worker you need to get back to work. Also, friends and family members who aren’t work-minded may need to be taught how to respect your work boundaries. This is all navigable, but it’s a common challenge that remote workers have to deal with.

There are also some straight cons to working at home, too:

Blurred Boundaries

Working from home can make it difficult to separate work from personal life, leading to a lack of boundaries. When your home becomes your office, it’s easy to find yourself working longer hours or constantly checking emails, even during personal time. This blurring of boundaries can result in burnout, as employees struggle to disconnect from work and relax.

Lack of Access to Resources and Support

In an office environment, employees have immediate access to resources such as office supplies, high-speed internet, and IT support. Working from home may require individuals to provide their own equipment, which can be costly and may not be as reliable as the resources available in an office. Additionally, remote workers may find it more challenging to receive timely support from managers or colleagues, especially when dealing with technical issues or urgent tasks.

Feeling Professional

In an office environment, you’re forced to groom and dress in an appropriate manner for doing business. At home, remote workers often brag about being able to work in their pajamas. But there’s something inherently negative about this. Dressing for work gives you a certain feeling of being professional and accomplished, whereas you may begin to have doubts about your abilities if you never change out of your pajamas. 

Both working from home and working in an office have their pros and cons, and the best choice depends on individual preferences, job requirements, and company policies. While working from home offers flexibility, cost savings, and increased productivity, it also presents challenges such as isolation and blurred boundaries. If you’re given the option, it’s worth at least trying to work from home. If it doesn’t work, talk to your boss about switching back to working in the office.

by Kate Supino

As a loving parent, one of the best things you can do for your kids is to teach them about money. If you can give them the gift of financial literacy, you’ll be giving them something they can use their entire lives, and even pass on to their own children. Conversations about money are rarely easy, so here are some tips to help.

Start While They’re Young

As soon as your child is able to verbally communicate with you, you can begin teaching the basic concepts of money. It can be as simple as playing “store” with your child, letting them be the cashier with a toy cash register and toy food or other items around the house. This shows them the give and take that happens with commerce. 

Gift your child a cute piggy bank so they can deposit coins they get from relatives and friends. Help them learn how to count coins, and note how the number of their coins is increasing over time. This helps to teach about saving. 

Little things like this help to bring about an awareness about money and how it works in everyday life.

Consider Giving Your Child an Allowance

Until they turn 16, your child won’t be able to earn a paycheck. But that’s a little late to teach about money, considering that they’ll turn 18 in just two years. Instead, when your child is in elementary school, you could start giving them a small allowance to manage. This allows them to practice making decisions about how to use their money, whether it’s saving for something special or spending on small treats. By the time they reach middle and high school, you can discuss more advanced topics such as earning money, banking, credit and the impact of financial decisions on their future.

Support Their Business Ideas

If your child seems to have a creative knack for coming up with business ideas, be as supportive as possible. If they want you to buy them a shovel so they can go around to neighbors’ houses and shovel driveways, tell them it’s an investment in their business and you expect to get your money back, plus a few dollars of interest. If they want to “invent” a product, sit down with them and help them plan it out, including coming up with a plan for how much it would cost to make it and how much profit there might be. 

Use Everyday Experiences as Teaching Opportunities

Everyday activities present numerous opportunities to teach your kids about money. Grocery shopping, for instance, is a great way to introduce concepts like budgeting, comparison shopping, and the difference between needs and wants.

Involve your children in the shopping process by giving them a budget for a specific item or letting them help you compare prices. You can explain why you choose certain products over others, such as opting for a generic brand to save money,  buying in bulk to reduce costs or paying extra for value, for an item that will last longer. These practical experiences help your children understand the value of money in real life, and how to make informed financial decisions.

Introduce the Basics of Credit and Debt

As your child approaches their teenage years and reaches the legal age to get a job with a paycheck, it’s important to introduce the concepts of credit and debt. Explain how credit cards work, the importance of paying off balances in full, and the potential dangers of accumulating debt. Discuss how interest works and how borrowing money can lead to paying back more than the original amount borrowed. You can also talk about the importance of maintaining a good credit score and how it affects their ability to borrow money in the future, such as for a car loan or mortgage. Teaching these concepts early on can help your children avoid common financial pitfalls and develop a responsible approach to credit and debt management.

Be Honest About Money

It’s understandable if you don’t wish to share the details of your household finances. You also don’t want to burden your kids with financial worries. But it’s helpful to be honest about money, too. If it’s getting near the end of the month and you need to curb spending so you have the mortgage payment, you can share that you can’t afford certain things at this time. Explain about cash flow, and how proper budgeting can ensure there is plenty of money for essentials, but not always money for indulgences. This is also a good opportunity to explain that not every family has the same financial resources, but that’s okay. That’s what capitalism is about, and some people earn more, while some people earn less. 

Discuss Money and Power

Money gives a person the freedom to have more power over their own lives to make choices. But make sure you also explain that just because a person has more money than someone else, that doesn’t make them better or smarter than others. It simply means they have more money. As your child gets older, they’ll form their own opinions about money and power, but you want to ensure that they don’t attach emotional feelings to money. It’s simply a vehicle for commerce, and not something to love or hate. This will help to ensure that your child develops a healthy attitude toward money, using it to reach financial goals.

Talking to your child about money is a crucial part of their education. By starting early, using everyday experiences as teaching moments, and being open and honest about finances, you can help your child to develop the skills they need to manage money wisely their entire life.

by Kate Supino

When you think of a CPA, you might be like many people and view them through the lens of tax return preparation and tax compliance management. But the role and capabilities of Certified Public Accountants extends much further. These licensed financial professionals can be an indispensable business ally, fueling your company’s growth while you focus on overseeing its operations. Here are just some of the ways that CPAs add value to your business.

Financial Analysis and Reporting

CPAs have a tremendous advantage in that they see every single money transaction that takes place within your business, down to the last penny. Combined with their training and experience, this offers them a unique perspective, where they can see the big picture in relation to the smaller financial moves your company makes.

What this boils down to is their ability to provide in-depth and insightful financial analysis to help you guide your business’s growth. Not only will you get the standard financial reports like P&L statements, cash flow reports, etc. You can also get expert analysis of financial statements, which you and your CPA and financial team can use to identify trends, measure performance against benchmarks, and highlight areas that require attention. This detailed financial insight allows businesses to make data-driven decisions that enhance efficiency, improve profitability, and foster growth.

Cash Flow Management

Maintaining positive cash flow is one of the most important factors in running a successful business. CPAs are trained to keep an eye on cash flow at all times, even when it seems like a torrent of water gushing through a river canyon. In fact, these are the times when the CPA is looking ahead, making sure that the flow isn’t going to dry up. In so doing, CPAs are able to develop strategies to keep that river of cash flowing, such as helping business owners to manage receivables and payables, sourcing and securing lines of credit and assisting in planning for seasonal fluctuations. With a CPA’s guidance, businesses can maintain healthy cash flow and avoid cash droughts.

Risk Management

Every sized business faces a variety of risks, whether they’re risks from the inside (shoplifting, employee theft, legal liabilities, etc.) or risks from the outside (competition, supply shortages, market fluctuations, etc.). Some risks are assumed on purpose, like taking on a business loan, entering new markets, launching a new product, etc. Whatever the source of the risk, CPAs are trained to be able to assess the risk, much like an insurance risk analyst comes up with the data behind premium determinations.

CPAs play a vital role in risk management by identifying potential financial risks and developing strategies to mitigate them. They conduct risk assessments, implement internal controls and ensure compliance with regulatory requirements. By proactively managing risks, CPAs help businesses protect their assets, maintain financial stability and create a solid foundation for growth.

Business Valuation

Business valuation is a highly complex calculation with multiple factors playing into the final number. CPAs are up to the task. When conducting a business valuation, a CPA employs a systematic approach that includes several specific steps and methods to arrive at an accurate and comprehensive valuation that stands up to third-party scrutiny. This information is vital for negotiating deals, securing financing and planning for the future. Even if you have no intention at the moment of approaching investors, having an up-to-date business valuation is still important, as it can help you to do things like secure business credit or track your business’s record of growth over the years.

Budgeting and Forecasting

Effective budgeting and forecasting are key components of successful business planning. CPAs assist businesses with creating realistic budgets and accurate financial forecasts. They analyze historical data, market trends, and economic indicators to project future performance. This enables businesses to set achievable goals, allocate resources effectively, and prepare for potential challenges. With robust budgeting and forecasting, businesses can navigate uncertainty and pursue growth with confidence.

Fundraising and Capital Management

At some point in your business, you’re going to be looking for funds for growth. Whether it’s for a working capital loan application, a business grant application or something similar, CPAs can help. They help prepare financial statements, business plans, and presentations that may attract investors and lenders and appeal to the interests of those lenders and investors. CPAs also advise on the optimal capital structure, balancing debt and equity to support growth while managing risk. With their expertise in fundraising and capital management, CPAs enable businesses to secure the resources needed for growth initiatives.

Enhancing Profitability

Profits help a business to grow by providing the necessary funds to pay for needed equipment, materials and more. It can be said that ultimately, business growth is driven by profitability, although there are other factors that have important roles. CPAs help businesses enhance profitability by identifying cost-saving opportunities, improving operational efficiency, and maximizing revenue. They conduct detailed financial analysis to uncover inefficiencies and recommend strategies for improvement. Whether it's reducing overhead costs, optimizing pricing strategies, or increasing sales, CPAs provide actionable insights that boost profitability and drive growth.

Performance Measurement

It’s essential for business owners and other stakeholders to consistently measure performance in order to keep steering the business in the right direction. This task is time-consuming, and many factors play into it. CPAs assist with performance management by developing KPIs (key performance indicators) and other metrics that reflect how a business is performing on various fronts. The results can be used to help guide the business toward future goals.

As you can see, CPAs aren’t just there at tax time, waiting to sign off on your returns. They can perform important functions that are vital to the success and growth of your business. They provide critical insights, strategic planning, and financial expertise that help businesses navigate complexities, seize opportunities, and achieve sustainable success. For more information about ways your CPA can assist your business growth ambitions, contact us today.

by Kate Supino

Good credit is one of the keys to financial success. Many people suffer from some financial stress over the course of their lives. They may go through periods where debt gets the better of them, unable to pay bills on time or without sufficient income to meet minimum payments. One of the solutions available is a credit repair company, advertised heavily. Credit repair companies claim to be able to get a person’s credit back on track by raising scores. If you’re suffering from less than ideal credit, you may be tempted to hire a credit repair company. But there’s a cost associated with this service. Is this the right choice for you, or should you try other means?

What Does Credit Repair Involve?

Credit repair involves identifying and disputing errors on your credit report, negotiating with creditors and taking steps to improve your overall credit profile. Errors can include incorrect personal information, outdated accounts, duplicate accounts, and inaccurate account statuses (such as a payment reported as late when it was on time). Ultimately, improving your credit score may also involve developing better financial habits and ensuring that your credit report reflects your responsible behavior. You may be inspired to keep the momentum going by paying more attention to credit matters. 

What Exactly Do Credit Repair Companies Do?

In general, credit repair companies are independent businesses that offer to help you improve your credit score by:

• Reviewing your credit reports from the major credit bureaus (Experian, Equifax, and TransUnion).

• Identifying errors or inaccuracies that may be negatively impacting your credit score.

• Disputing these errors with the credit bureaus on your behalf.

• Negotiating with creditors to remove negative items or settle debts.

• Providing advice and resources to help you build better credit habits.

Benefits of Hiring a Credit Repair Company

There are definite benefits to hiring a credit repair company. When deciding, you should weigh these benefits against the cost of hiring them.

Expertise and Experience

Credit repair companies typically have experience dealing with various credit issues. They understand the intricacies of credit reports and the dispute process, which can be beneficial if you're unfamiliar with how to navigate these systems.

Time-Saving

Disputing errors on your credit report can be a time-consuming process. It involves writing dispute letters, keeping track of correspondence, and following up with credit bureaus and creditors. A credit repair company can handle these tasks, freeing up your time for other responsibilities.

Professional Negotiation

Credit repair companies often have established relationships with creditors and are skilled in negotiating the removal of negative items. Their expertise can sometimes result in more favorable outcomes than you might achieve on your own.

Tailored Strategies

A good credit repair company will develop a personalized plan based on your specific credit situation. They can offer targeted advice and strategies to help you achieve your credit goals more efficiently.

Reasons Not to Hire a Credit Repair Company

On the other hand, there are plenty of drawbacks to hiring a credit repair company. They include:

Cost

Credit repair services are not free, and they aren’t cheap. Companies typically charge an initial setup fee and a monthly fee thereafter. These costs can add up, especially if your credit issues are complex and require several months to resolve. You may be better off taking that money and putting it toward some of your credit card bills.

No Guarantees

While credit repair companies can help improve your credit, they cannot guarantee specific results. The success of their efforts depends on various factors, including the nature of the inaccuracies on your credit report and the willingness of creditors to negotiate. You won’t get a refund if they’re largely unsuccessful.

Potential for Scams

The credit repair industry is unfortunately rife with scams. Some companies make false promises, such as guaranteeing to remove all negative items or offering to create a new credit identity. It's essential to thoroughly research any credit repair company before signing up for their services. Even then, you could get the short end of the stick.

Alternative to Hiring a Credit Repair Company

You should know that a credit repair company has no more power than you do, although they have more experience and expertise, as mentioned above. You could do everything that a credit repair company can do. But it would require a great deal of reading, research and work on your part. If you decide to go it alone, here’s what’s involved: 

Obtain Your Credit Reports - You’re entitled to a free copy of your credit report from each of the three major credit bureaus once a year through AnnualCreditReport.com.

Review for Errors - Carefully review your credit reports for any inaccuracies or outdated information.

Write Dispute Letters - Draft dispute letters for each error, explaining why the information is incorrect and providing supporting documentation.

Send Disputes - Send your dispute letters to the credit bureaus. They are required to investigate your claims within 30 days.

Follow Up - Monitor the status of your disputes and follow up as necessary. The credit bureaus will notify you of the results of their investigations within 30 days.

Another alternative to hiring a credit repair company is to wait it out. Negative credit drops off your report after seven years, automatically. This isn’t ideal, but it is an option. In the meantime, you could work on improving your credit worthiness score by paying bills on time, living within your means and avoiding getting into more debt.

Deciding whether to hire a credit repair company depends on your specific needs, budget, and comfort level with handling credit disputes yourself. While these companies can offer expertise and save you time, they come with costs and no guarantees. Alternatively, you can try DIY credit repair, credit counseling, or even financial coaching, all of which can help you achieve better results for your credit in the future. For more information about managing your money wisely, consult a CPA. 

by Kate Supino