Blog

  • Don’t Think Your Company Needs Forensic Accounting, Think Again

    November 15, 2017

     Company fraud or theft can happen without you even realizing. Fraud can mean a number of things including embezzlement, employee diversion of cash, improper use of cash from the company, etc. Even though you know you’re not guilty of committing fraud, hiring a forensic accountant could make or break your company down the road.

    What is forensic accounting?

    Forensic accountants analyze and interpret complex financial situations. These accountants are often hired in legal situations to aid in the lawsuit.

    Fraud can happen when you least expect it. Whether you’re a thriving company or ending a partnership, fraud exists. It could be a shareholder that was responsible for managing accounts and started to spend company money for personal use. When you and your partner split and dissolve the company, you’re going to need to know where all money went to.

    Even with your current business, fraud can be present. It’s smart to hire a forensic accountant to be another set of eyes on all money going out as well as coming in. You don’t want to be punished for something that could have been avoided had you had someone looking at all transactions.

    The problem with most businesses is that they don’t want to admit there could be a problem such as fraud or theft occurring inside their own walls. Simple forensic accounting begins by auditing financial records and risk areas are presented then.

    Even if fraud or theft isn’t occurring quite yet, forensic accountants can find potential risks that could lead to a problem later on. Even if you don’t think your company needs forensic accounting, you do.

    Here at BIG, we specialize in auditing financial records, company methods and employee structures to prevent potentially dangerous activity.


  • 6 Financial Tips for Young Adults

    October 30, 2017

     

    Being a young adult is hard. Transitioning to being financially independent is even more difficult. Here are some financial tips that young adults need to follow in order to be financially set for years to come.

    1. Self control

    Credit cards are great for emergency purposes and those “must have” items. But the bill that comes at the end of the month isn’t so great. Even though impulsively buying those clothes or furniture seems like a good idea, waiting to spend that kind of money once you can pay off the bill right away is an even better idea.

    1. Take control of your financial future

    As a young adult, it’s easy to take other’s advice on your personal finances. However, they often don’t truly know your financial situation. Take some time to read a financial planning book or meet with a financial planner. This way you will be ready for anything that is thrown at you.

    1. Know where your money goes

    Whether you are right out of college or in your mid to late 20s, it is crucial to not outspend your income. Making a monthly budget is the easiest way to know exactly where every dollar is going.

    1. Emergency fund

    Most young adults have moved out on their own and start their career. With that being said, emergencies happen and you have to be able to take care of those financially. Once you have your bills sorted out, create a savings account that is only for emergencies. Not only will you be able to access this money in case of emergency, but you will gain interest.

    1. Save for retirement

    It is never too early to start saving for your future. The earlier you begin saving, the more money you will have to live off of when it comes time to retire. Whether you take advantage of your company’s retirement benefit program or save on your own, it’s important to start saving early.

    1. Taxes

    Fully understanding income taxes can be difficult especially as a young adult. When you’re offered a salary at your job, being able to calculate how much of that will go to taxes and how much you will actually receive is important.


  • 5 Tips For Launching a Start Up

    October 15, 2017

     

    Starting a new business can be hard. From setting up business bank accounts to managing your cash flow, it can be tough to get a new business up and running. Follow these five tips when starting your next business.

    1. Cash flow

    Many startups fail because they run out of money. It’s important to know where every single dollar is coming from and going to.

    1. Monitor spending

    Hiring a full time accountant isn’t ideal for a new business. Use accounting software to track your spending in the early stages to ensure you have a steady cash flow as well as accurately fill out your tax documents.

    1. Limit fixed expenses early on

    Keep your business expense low especially in the early stages. Refrain from spending money on high rent and meals. Instead, use the money to help your business grow.

    1. Time is money

    There are only 24 hours in a day. As a new business, any time during the workday spent not working, is time and money wasted. Plan out your day and make sure to allocate enough time to get certain things done. This way, you spend your workday focusing on making money rather than wasting it.

    1. Create financial goals

    Creating realistic and measureable goals are key to startup success. Create daily, weekly and even monthly revenue goals will allow you to track your growth and make changes accordingly to ensure continued growth.

    No matter the business, following these basic financial tips will help your startup stay afloat.


  • Top 5 401(k) Mistakes You're Making and How to Fix Them

    September 29, 2017

    Retirement planning is more than just participating in your company’s retirement plan. You have to take an active role to achieve your goal. Here are five retirement planning mistakes you could be making and how to fix them.


    1. Turning Down Money

    About 1 in 4 participants don’t take advantage of their employer's maximum match. It’s can be due to confusing policy choices, but be sure you are pocketing the maximum match from your employer. Also, a typical plan should include a 6 percent contribution from your salary. Most auto-enrollment programs default employee’s contribution to 3 percent.


    The fix: Even with auto-enrollment, it’s important to check that you are contributing enough of your salary to achieve the maximum match.


        2.  Contributing Too Little

             Studies have shown that you should save around 15 percent of your earnings to have the income you will need upon retiring. Most people are only saving up to 6 percent and even with a matching program from employers, it is still not enough.


    The fix: Increase your contribution rate by at least one percent every year if not more. Contributing up to 15 percent is key to a steady retirement fund.


       3.   Turning down the Roth 401(k)

             Half of employers now offer a Roth 401(k) but less than 10 percent of people take advantage of it.


    The fix: Focus on the payoff of a Roth 401(k) even though your contributions are made with after-tax dollars.


        4.  Poor Allocation Strategy

             Most people are either too conservative or gamble with no awareness of the downside.


    The fix: Most retirement plans offer tools to help you sort through allocation decisions. Try to create an age-appropriate mix of stocks and bonds as well. With all of these allocation decisions, be sure to benchmark it using your expected retirement date.


        5. Staying in an Expensive Plan

            When you leave a company, you have the option to move your money out of that retirement fund. A good test to see if you should find another option is whether or not the plan’s investment options charge an above-average annual expense ratios which could easily be found online.


    The fix: If the fees on your current 401(k) are high, it’s time to figure out your next move. Before transferring money into a new plan, check to be sure that the options are low cost. Another option is to move your money directly into an IRA account.


    These are very common 401(k) mistakes but following these tips will jumpstart your retirement planning success.


  • Seniors Need To Watch Out For These Costly Retirement Scams

    September 15, 2017

     Retirement planning is extremely important, but some people lose all of their money from scammers. The monetary cost of financial elder abuse has been estimated to be from $3 to $36 billion. While that’s a large range, the numbers tell a frightening story. What are the scams, big and small, that seniors need to be wary of?


    1. Pump and Dump Investment – telemarketers often call seniors to sell them shares of a new company which sound too good to be true (trust us, it is). Once the share prices shoot up, the marketers dump their shares and collect their “hard earned” money, leaving seniors with a boat load of worthless stock.
    The best way to avoid this scam is to either do independent research on the Internet from trusted sources like Yahoo Finance or work with a licensed professional.


    2. Medicare Open-Enrollment – Every fall, right before Medicare Open Enrollment begins, scammers who claim to represent the Centers for Medicare and Medicaid Services call unsuspecting seniors about new Medicare identification cards. The ploy works by having the seniors give their bank account info and their social security numbers.
    This is why it’s important to never respond to phone calls asking for sensitive personal information! In addition, Medicare does not call, e-mail, or visit anyone asking for that kind of information.


    3. Anti-Aging – perhaps not as potentially disastrous as the above two scams, bogus anti-aging products can still put a serious dent in senior financials. "Anti-aging quackery and hucksterism are pervasive on the Internet and in clinics advertising anti-aging treatments," writes Thomas Perls, MD, MPH, of the New England Centenarian Study, Boston Medical Center.

    You can typically spot a bogus anti-aging product by the excessive use of testimonials and “scientific” evidence, and absurd claims that they have helped thousands of people, even though you’ve never heard of them.
    Remember, don’t believe everything you read. Now more than ever, false information is floating around, and people will use it to take your money! We help seniors find legitimate means of growing their savings and do the often difficult task of sorting the bad from the good.

  • 5 Ways Your Business Can Prepare for the Fourth Quarter

    August 31, 2017

     
    As summer comes to a close, the fourth quarter is upon us. Often times, businesses stress out about how to successfully close out the year. There are many things businesses of all sizes can do to prepare for the fourth quarter.

    1. Prepare Your Marketing Campaign and Promotions

    The fourth quarter is the perfect time to try and clear out your inventory and increase revenue. Using your social media channels to share holiday specials or new promotions will gain you both exposure and potentially more sales. Also, use your social media to drive customers to your website. There, you can gain insight about your customers, encourage them to purchase your product or service and simply increase brand awareness. Ensuring your marketing campaign is top notch will help you in this upcoming quarter.


    2. Take Advantage of the Holiday Season

    The holiday’s round out the fourth quarter and for many companies, this is where the most money is made. For small businesses, take this time to highlight what makes small businesses better for holiday shopping. For all of the large businesses, use the holidays as a big push for your products that are being discontinued. There will always be people taking big holiday shopping trips so use this season to really sell your product or service. Providing customers with great deals or promotions never hurts either.


    3. Review All of Your Expenses

    During this time, review all of your business's expenses. This could range from mileage to employee spending. Decide which ones were necessary and which ones could be cut back in the next year. This is the time to cut costs so expense evaluation will make you more prepared going forward.


    4. Set Company Goals

    Before the fourth quarter begins, set your company goals for the end of the year and the upcoming year. This includes revenue. How much do you want your company or business to make in the next year? These goals could also include benchmarks. How many customers would you like to gain or what’s your ideal ROI? Once you have these goals set, decided what steps you need to take as an organization to reach those goals. Discussing all of these things will help you get ready for what’s to come.


    5. Train Your Employees

    This busy time of the year can be stressful for employees. Take time before the last quarter begins to train your team members on new strategies, give them insight on what is to come and be sure to give them the necessary tools to close out the year strong.

    The fourth quarter can be the most crucial time of the year. Following these steps with make sure your company is ready to take on the last quarter head on.

  • The importance of Retirement Planning

    August 15, 2017

     Early last month, The Plan Sponsor Council of America (PSCA) released results of a survey that intended to get people’s thoughts on a new tax preference for retirement savings plans.

    So what does this mean?

    This new plan would include reducing or eliminating pre-tax contributions to raise tax revenues and offset losses in tax receipts from lowering marginal income tax rates.

    The survey found that more than 90 percent of respondents indicated that they agree that eliminating or reducing pre-tax contributions to retirement savings plans is a bad idea.

    These proposals could impact millions of Americans that participate in tax-qualified retirement savings programs.

    Strategic retirement planning is important and it’s never too early to start. Here at BIG, we can help you prepare for your future as well as for tax reforms. Looking ahead at future expenses is the first step to preparing for retirement. This will allow you to be ready for whatever expenses are to come and not let the cost of retirement or reforms get in your way.

    Most importantly, you can work with us to create strategies to not only preserve but help grow your retirement balances while determining your spending amounts.

    Tax reforms can come and go but your retirement savings should stay the same. Work with us now and we can ensure a successful financial future.

  • 3 Things Every Successful Startup Does

    July 26, 2017

     Whether you’re already in the trenches fighting to launch your dream company or contemplating quitting your job to start your own venture, it’s important to remember you don’t need to reinvent the wheel. While your idea may be revolutionary, the keys to success are universal. Every successful startup does the following very well.

    1. Timing

    Ever heard of “shareyourworld.com”? We didn’t think so. It was the first video hosting service, which even came before YouTube. While the idea was obviously amazing, the timing wasn’t right and the website never became a household name. Just because you have a great idea, doesn’t mean it will change the world. It’s important to pick the best moment to begin.

    2. Budget

    Before you spend a dime on your company, you need to have a clean and detailed budget, and stick to it. Even if you have funding, you don’t want to waste any money on unnecessary expenses, as you may need cash down the road to avert an unforeseen crisis. Keeping your business financially sound requires self-discipline and expertise from either you, or someone you can trust.

    3. Flexibility

    Speaking of unforeseen crises, it’s imperative for startups and their founders to be flexible. While having a strong belief in yourself and your plans is crucial, most likely not everything about your plan is perfect, whether it’s something as specific as your branding or possibly even your entire business structure. So be willing to change if the evidence points to you adapting! After all, it worked for Steve Jobs and Pixar.

    These aren’t the only things that matter when it comes to success in the business world, but every great company has mastered the above. We recognize doing so isn’t easy! To learn more, keep devouring information and seek guidance from the right places.

  • Tax Season Is Not The Busy Season

    July 18, 2017


    What Now?


    April 15th, the date which keeps tax accountants awake at night, has come and gone. But with that sigh of relief, an unfamiliar sense of dread can come; the question, “what do I do now?” may come to mind. Well, the answer is plenty.


    Advising


    Accountants do quite a bit more than taxes. Like here at BIG, accountants can help companies and individuals determine and reach their financial goals. Corporations need their financial data analyzed so they can make savvy business decisions, and individuals need help either bolstering their retirement accounts or growing other areas.


    Extension


    Did you really think tax season was over? People love to procrastinate, and are willing to file an extension if it means they can continue to delay work. While obviously the amount of extension work is substantially less than the normal filing period, it is still work that needs to be done by someone.


    Workshops And Seminars


    A lot of accountants are introverted and try to steer clear of the limelight, but this is an excellent way to create additional revenue. People like Tony Robbins have achieved great success because the general public is hungry to learn more about finances, especially from people with credentials like CPAs. With that said, tutoring people on a software program like Excel is something even the most shy of accountants is capable of.
    The end of tax season definitely calls for celebration. But don’t rest on your laurels for too long! There’s a lot of people out there who need financial help, and accountants are some of the most qualified experts to dispense advice.

  • How You Can Start Saving For Retirement Today

    June 29, 2017

     Whether you’re in your 20s and haven’t even thought about retirement yet, or in your 50s and dream of retirement every day, it’s important to either start or continue saving. A mix of universal retirement advice with some little known tricks can be used to boost your savings for what are supposed to be your most relaxing years.


    Invest Aggressively – a high percentage of your portfolio should be in stocks, especially if you are younger since you have more time to endure the ups and downs of the market. But don’t invest in individual stocks. Instead, select mutual funds or exchange-traded stocks in order to add some needed diversity to your portfolio.


    Sign Up for a 401(k) – this advice is not just for our clients in their 20s; many baby boomers do not take advantage of what is essentially free money! If your workplace has a 401(k), you need to participate. Most employers will match your contributions. In addition, any money you deposit into the account will not be taxed now, so less of your income will be taxed. Use a 401(k) calculator to plan accordingly.


    No 401(k)? No Problem – if your workplace doesn’t have a matching 401(k), then open a Roth IRA. Roth IRAs are funded with money that has already been taxed from your normal paycheck. However, when you withdraw and use the money in retirement, it will be tax-free. A tip from the wise is to have money from your paycheck automatically deposited into your Roth IRA.


    Don’t let current expenses be an excuse to keep you from saving for retirement! A little financial planning now will save you a lifetime of regret.

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