Tag: cpa

Fun Facts You Didn’t Know About Saving Money

When you’re trying to save money, it sometimes seems impossible. However, there are a few tips and tricks that can help secure success. Below are just a few fun facts about money saving:Saving money

  • Did you know that by watching less television, you might have an easier time saving money? When you avoid TV, you’re less exposed to guilt-inducing ads, and ultimately a high cable or electric bill. Advertising makes so much money because it works. However, advertising isn’t always friendly on your wallet.
  • Many credit card companies will work with you on a rate reduction. Although these deductions aren’t extremely high, you can save up to $150 a year.
  • When we’re stressed, we’re more prone to impulse buys. Going to the gym or participating in any type of exercise isn’t just good for our bodies; it’s great for our wallets too. Exercise reduces stress, which can prevent impulse buys.
  • Delete your credit card numbers from your online accounts. Everyone loves the convenience of 1 click shopping, but by un-synching your account, you might re-consider your purchase, helping you save money.
  • Many people aren’t aware of all the benefits they have at their jobs. Do your research and see what types of benefits you might be overlooking; these could help you save money. If you find yourself spending a lot on entertainment, you might find that your employee offers benefits like free or discounted tickets.

If you’re looking for financial guidance and want to finally reach financial stability, consider choosing the premier CPA in Hawaii, Choose Michael J. Yuda CPA, LLC.

Break Out That Piggy Bank

Does it seem that as each day passes, it feels harder and harder to save money? You desperately try to put away more money, but the amount of money you’re putting away isn’t keeping up with the rising costs of living. Remember your childhood piggy bank? Well the concept of the childhood piggy bank can be used into your adulthood as well, just on a more mature level. Of course, we’re not opposed to be using a piggy bank. Below are a few helpful suggestions that closely mimic the concept of having a piggy bank:

CPA in Hawaii

  • Every time you make a bank deposit, set a certain amount of money to be automatically placed into your savings account. You can do this each week or bi-weekly. The amount you choose is up to you, but you’ll be surprised how much you can really save in a year.
  • Perhaps actually use a piggy bank. You don’t necessarily have to go out and buy a ceramic pig, but collecting and saving coinage can really add up.  Not only does saving loose change regularly sometimes pay off, but it does build great saving habits that you can use in other financial aspects.
  • Putting money into a high yield savings account or a CD is a great way to save money, and even increase the value over the years. Consider these accounts a more advanced piggy bank.
  • Don’t stick to just one method of saving. Having a savings account, CD and even saving pocket change are all great ways to reach financial stability. Quick thinking, smart planning and wise purchases are all extremely important when it comes to saving, however, it’s not always that easy.

We value your financial health, and want to see you reach financial stability. If you’re looking for a CPA in Hawaii who can help you get there, choose Michael J. Yuda, CPA, LLC.

QuickBooks Online ProAdvisor Certification

QuickBooks Online ProAdvisorWhen it comes to handling your finances, you won’t find a better CPA in Hawaii than Michael J. Yuda. We’re proud to announce that Michael J. Yuda, CPA, LLC is a certified QuickBooks Online ProAdvisor. What exactly does this mean?

  • Certified QuickBooks Online ProAdvisors are experts who have gone through extensive testing to become certified by Intuit on a range of QuickBooks products.
  • Certified QuickBooks Online ProAdvisors are better trained to help businesses get the absolute most out of their QuickBooks software. Having this certification ensures that Michael J. Yuda has the skills and knowledge to provide a wide range of services including: QuickBooks setup, training, payroll and consulting as well as other important skills to help your business thrive.
  • Certified QuickBooks Online ProAdvisors have the capabilities to reach more small business users, making finding the perfect CPA easier than ever before.
  • QuickBooks Online ProAdvisors have more tools at their disposable to help you reach financial stability.

Michael J. Yuda, CPA, LLC, has always been a certified QuickBooks ProAdvisor, but with our new certification with QuickBooks Online, we have more tools and resources to help you with your bookkeeping services, monthly, quarterly or annual accounting and so much more. If you’re looking for a QuickBooks Online ProAdvisor in Hawaii, look no further than Michael J. Yuda, CPA, LLC.

Guest Blog Post: Utilize Your Financial Statements to Drive Profit

“Accounting is the language of business”  Warren Buffett

Authored by Chris Vanderzyden

Authored by Chris Vanderzyden

Accounting, financial statements, forecasting, budgeting, taxes…Unless you are an accountant, most small business owners have very little understanding of the finance side of their business, and in order to be successful, it is imperative that you know and understand the language.

According to a recent report from the Small Business Administration, one-third of new businesses fail within two years, and fifty-six percent within the first four years.  I actually thought these stats were pretty good – two-thirds stay in business for two years – not bad at all!  But, how many are profitable?  Only about 40%.

Why the lack of profits and thus the high failure rate?  Incompetence, and one of the primary inadequacies cited is lack of financial knowledge.

I get it; the finance side of business is just not as sexy as the product development, marketing & sales, or whatever is your sweet spot in your business. However, it is critical to your success that you not only understand your financial information, but also utilize the data to make sound management decisions.

Hire a CPA and a bookkeeper to do the dirty work, but do not hide your head in the sand in regards to what your financial picture looks like.  Your ability to read and properly analyze the information will ensure that your business continues to thrive.

Here are a few key points to understanding two of the basic financial statements – the Balance Sheet and Income Statement:

1. Balance Sheet – The balance sheet is a picture of the position of a company at a specific date. It provides the value of assets, liabilities and owner’s equity and provides the information necessary to determine the level of solvency and liquidity of a company.

A key indicator to liquidity is the current ratio: the ratio of current assets to current liabilities. Current asset are those assets that can be converted to cash within the current period such as, accounts receivable. Current liabilities are those liabilities that are expected to be paid off within a current year, accounts payable.

Computed:             Current Assets / Current Liabilities

A 2:1 ratio (twice the assets as liabilities) is a good marker of a healthy small business.

Two additional balance sheet key ratios to consider:

Inventory turnover – the number of times that inventory is replaced in a period.  This provides an indicator of how well the inventory levels are being managed.

Computed: Cost of Goods Sold (CGS found on the income statement) / Average Inventory in a Given Period

* Is your rate good? How is it trending compare to previous periods? Compare your turnover rate to your successful competitors.

Receivable turnover – is a measurement of how many times a business collects its receivable in a period or how efficient their collection process is.  The goal is to collect receivables as quickly as possible, so the higher the ratio the better.

Computed:      Credit Sales / Average Accounts Receivable

2. Income Statement – Displays all revenue sources and expenses for a given period of time.  Three key analytics:

Gross Profit Margin = Sales – CGS / Revenue

Analyze – are you making a profit on the products you are selling?

Operating Profit Margin = Revenue – operating expenses (day-to-day expenses)/revenue

This will indicate how efficient your company is operating.

Net Profit Margin = Net income/revenue

This is the income derived from every dollar of revenue.

VICTORY TIP FOR THE WEEK:

Your financial statements are your greatest tools to identify weaknesses in your business.  It will alert you as to when trouble is brewing and allow you to be proactive in resolving issues.  Is there a problem in your inventory control?  Do you need to tighten your cash management procedures?  Is your pricing out of whack?  Are your operating expenses eschewed?

Don’t hide your head in the sand—carefully and consistently analyze your financial statements, and watch the trends as you compare period-to-period.  Your efforts will guide you to make better management decisions that will positively impact your bottom line.  Trust me – it pays to fall in love with the language of numbers!

 

* This post was originally written and posted on ChrisVanderzyden.com– thanks to Chris Vanderzyden for sharing with us! We’re so excited for you to share this with our readers! Follow her blog for more amazing posts. 

Maintaining a Healthy Relationship with Your CPA

Having a positive relationship with your accountant is the best way to help your financial stability. Having regular contact with them is essential to ensure everything is in order. It’s important to try and maintain a good relationship with your accountant, as they can be a crucial component to your personal financial health, as well as the health of your business. The following tips will help you build and maintain a healthy relationship with your accountant:

  • Keep agreed records and deadlines
  • If there are any changes to your business or personal finances, make them known immediately
  • Discuss major issues with your accountant, such as tax implications, salary, dividends, etc.
  • Always pay your accountant on time
  • Don’t be afraid to ask questions
  • If your accountant isn’t adapting to the needs of your growing business, don’t be afraid to speak up
  • Allow your accountant to focus their energy on helping you succeed, not avoiding IRS penalties. An accountant is there to help you stay on track and ensure you’re finances are in order

The major secret to maximizing the relationship with your accountant is to always keep open communication with them throughout the year. If you’re looking for a CPA in Hawaii, you can trust Michael J. Yuda, CPA, LLC.

Start Your Emergency Fund Today!

CPA in Hawaii

Do you have an emergency fund? If you don’t currently have an emergency fund that you regularly contribute to, perhaps it’s time to reconsider this idea. Financial health is sometimes a major burden and stressor in our lives, and when a financial emergency develops, we are often stuck without a safety net. From emergency hospital visits to car troubles, there are a lot of things in our normal lives that can dip into our finances without warning. Starting an adequately funded emergency fund is a great way to be financially safe in the event that an expensive emergency occurs.

With a high number of jobs disappearing and people out of work, starting an emergency fund is a great safety net. A good starting point is saving up to 3 months of expenses to help secure your financial future in the event of a financial catastrophe. If you want to take it one step further, consider setting aside six months of money in your emergency fund especially if you think your job is in jeopardy. Below are a few other tips on how to start an emergency fund:

  • Set a number that is doable and possible! It’s important to factor in your normal spend when deciding on the best amount to save each month.
  • Make an emergency fund a long-term goal.
  • Factor saving into your expenses. Make your emergency fund a priority as you would a bill.
  • Make your money hard to get to! Look for an interest bearing account with minimum balance or fees. The harder it is to get to your emergency fund, the less likely it is that you will spend it for non-emergencies.

If you’re looking for financial guidance and more in-depth information on starting an emergency fund, contact the premier CPA in Hawaii, choose Michael J. Yuda CPA, LLC.

Climb Out of Debt

Poor financial decisions can add up and wreak havoc on your life. Piling debt can be crushing to your emotional well being, and could get you in a lot of financial trouble. If you’ve found yourself in debt, it probably feels as if you’ll never be able to rid yourself of this burden, but there are plenty of ways you can help your situation and even become debt-free:

Climb out of debt

  • Make cutbacks: Nobody loves the idea of making cut backs, but cutting money from certain aspects of your life can help you take care of debt a little more. Working on a budget when money gets tight may sound like a daunting and awful task, but it might also have you realize where your money is going, and potentially improve your financial health for the long term.
  • Seek help: If you’ve found yourself in a tough spot financially, perhaps seeking out a CPA could help teach you fiscal responsibility and get your finances in order. A CPA may not actually get you out of debt, but can help set you down the path to a more sound financial life, and help you know how to handle your money so you can stay out of similar situations. Consider seeking out help before making any drastic decisions, such as claiming bankruptcy. There are many professionals out there who can help give you advice, before contacting lenders.
  • Prioritize Your Debt: Study the consequences of missing certain payments. It’s not the best choice to only pay the largest debt with the biggest interest rate first. Read over any lending agreements and statements, to get a picture of which debts should be a top priority, and which can wait.
  • Avoid Pay Day Loans: Burying yourself in more debt in order to pay off existing debt is a recipe for financial destruction. Stay away from pay day loans, loan sharks, and any situation which makes you feel like you’re solving one problem and creating another.

If you’re looking for a CPA in Hawaii, consider contacting Michael J. Yuda CPA, LLC! Your path to financial stability begins with proper assessment and the best guidance from the very best CPA in Hawaii.

 

ALOHA!

CPA: The Nucleus of the Business World

Would you believe that being a CPA might be one of the most important jobs today? It’s no secret that the world is always getting more and more complicated, and financial concerns are the driving backbone of these complications. Over the last few decades, CPA’s have been responsible for handling many major issues for the government and even some of the world’s biggest corporations and organizations. A CPA knows the inner workings of the companies and clients they work for, and can effectively create and analyze financial information to see where a company or client is and where they need to go. A CPA is almost like a financial James Bond, always on top of the situation and an expert in the field.  Without CPA’s, the business world would crumble.

Without CPA’s, the business world would crumble.

Many businesses rely on a CPA to help guide them with investments, budget and even decide on expanding a company or waiting until more fiscally strong. It’s undeniable that a CPA may be one of the most important components of any business. Regardless of whether you’re part of a giant corporation, or just a small start-up company, it’s essential to hire a CPA that will help make important and often crucial decisions involving your finances. Skimping accounting can affect an entire business sector, and cause major problems. Finances and accounting are crucial to the success and stability of the business world, and a CPA is the nucleus of any business, as they can help control a businesses’ growth much like a cell.

Aloha!

More Amazing Facts About Hawaii

CPA in Hawaii Fun Facts! 

Being a CPA in Hawaii has its advantages! Being able to enjoy the beautiful Hawaiian Islands on a daily basis is a dream come true. It seems that some people know very little about Hawaii besides what they see on TV, but Hawaii is a state that is rich with history and wonderment. Here are some more amazing facts about Hawaii:

  • Honulu is the nations 11th largest metropolitan area.
  • Hawaii is home to the world’s tallest mountain. When measured from its base at the ocean floor, Mauna Kea is the world’s tallest mountain.
  • There are 5 navigable rivers in Hawaii: Waialua, Waimea, Hanape’pe, Lumahai and Hanalei.
  • The Island of Maui is home to the world’s largest dormant volcano, Haleakala Crater.
  • The world’s most active volcano, the Kilauea volcano, is the most active volcano in the world.
  • Hawaii is the world’s leading producing of macadamia nuts.
  • From east to west, Hawaii is the widest state.
  • Honolulu is around 1,500 miles long.
  • Hawaii is the 42nd most populous state.
  • Hawaii is the only state in the entire United States that has continuously growing borders. The regular eruption of Mt. Kilauea is the contributing force behind the states growing borders.

Aloha!

What to Look for In a CPA for Small Business

For many small-business owners, it’s a good idea to have an active accountant that can give advice  from the very beginning of your business. However, not all accountants are equal! Choosing the right accountant for your business can be a very daunting and stressful task if you don’t exactly know what to look for. When looking for a CPA or accountant it’s important to take the following into consideration:

Small Business CPA Hawaii

  • Ask yourself whether the person communicates well.
  • Can this person be contacted easily in case of an emergency?
  • Ask basic questions about small business book keeping practices to test the candidate’s knowledge of the topic.
  • Find a CPA that understands entreprenual spirit and doesn’t speak negatively about small business.
  • Find a CPA that doesn’t only speak in jargon. If you can’t understand anything  your CPA says, your relationship is doomed.
  • Choose CPA that feels like a partner and understands your entreprenual dream.

 

It’s extremely crucial to hire a CPA that is kind, knowledgable, helpful and flexible.  If you’re looking for a reliable CPA in Hawaii, consider Michael J. Yuda CPA, LLC. Michael J. Yuda can answer any questions you might have about accounting, tax preparation, business consulting, and QuickBooks. This Honolulu CPA firm is here to answer any of your questions, just simply contact us here.

Aloha!