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The Most Successful Entrepreneurs You Can Learn From Today

Aside from making important decisions for their businesses, entrepreneurs also develop new ideas. This is because they are constantly looking for new ways to improve their offerings and services. Starting a business from the ground up can be daunting, and requires hard work, good ideas, and perseverance. A great way to gain inspiration is to learn from some of the greatest entrepreneurs. Read on to learn more about some of the most successful entrepreneurs today and what you can learn from them.

Elon Musk

One of the most common mistakes that entrepreneurs make is assuming that they have to focus on one industry or field in order to become successful. Elon Musk argues that instead, they should explore other areas of interest.

One of the most important factors that set entrepreneurs apart from other businesses is their ability to carry over their skills in a single field. This allows them to create new products and services that are applicable to different industries.

Jeff Bezos

One of the most successful entrepreneurs in the US is Jeff Bezos, who founded Amazon. He believes that businesses have to improve their customer service in order to attract and retain the best possible customers. For the eighth straight year, Amazon has been named the best in customer service across the United States.

Despite the number of companies that ignore their unhappy customers, Amazon has been able to improve its customer service by learning from their experiences. This strategy shows that the company takes great care of its customers and is committed to improving its offerings.

Steve Jobs

Throughout his life, Steve Jobs walked a rocky path. He was able to rise to become one of the most successful individuals in the world due to his ability to put his faith in the temporality of life and the importance of working on the legacies people want to leave behind.

He never hid his principles from anyone. He dedicated himself to creating the best possible products that would become the standard for modern technology. After his brief battle with cancer, he concluded his remarkable life with another valuable lesson – no matter how much money you have, the one thing you can’t buy is more time.

Melanie Perkins

One of the most successful entrepreneurs in the world is Mel Perkins, who founded the online design platform Canva. She has been able to raise a total of $1 billion in funding and has over 10 million users globally.

Due to the cultural differences between Australia and the US, it was hard for Mel to raise funds for her company. However, three years later, she was able to overcome these obstacles and secure a series of fundraising rounds that valued her company at over $82 million.

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Smart Ways To Use Your Tax Return This Year

Getting a tax refund is a great time to start planning for the year, but you may also feel the drive to use your refund as a way of treating yourself.

While it’s understandable that you’ll want to buy yourself something nice with all of this extra money, it’s also important to remember that a tax refund is a long-term investment. Over the years, the average taxpayer has received a refund of around $3,000. To help you plan for the future, here are some simple tips on how to spend your tax refund.

Start Investing

One of the most important steps in building wealth is to invest your tax refund. Doing so will allow you to grow and put money into a variety of different financial instruments. For instance, if you receive a tax refund of around $3,000, investing it will allow you to earn an average annual return of 6%.

It’s also important to note that investing your tax refund in each of the next 10 years will allow you to build up a substantial amount of wealth. After 20 years, you’ll have more than $60,000 invested.

Wipe Out Some Debt

Getting carried away by high-interest debt can negatively affect your bottom line. It can also increase your monthly expenses and put a strain on your credit.

One of the best ways to get rid of high-interest debt is to pay off your credit card bill. Doing so can save you thousands of dollars a year in interest.

If the refund doesn’t cover all of your credit card debt, consider using a balance transfer credit card to pay off the remaining balance. If your credit is not good enough, consider a debt consolidation loan.

If you have high-interest debt, start planning on how to pay it off. If your tax situation is the same next year, adjust your current withholding to allow you to use the money to pay down debt.

Build An Emergency Fund

An emergency fund is a type of savings that can be used in the event of a job loss, medical emergency, or sudden financial setback. It should have a minimum of three to six months worth of expenses.

Getting a tax refund can also help you build an emergency fund. One of the best ways to use this money is by opening a high-yield savings account. Some of the online banks that offer this type of account include Capital One, Marcus, and Ally.

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The Basics of Financing a Business

Buying a business is an investment that takes time, money, and research. There are many different financing options available to purchase a business, but these can have profound tax implications for you, unlike personal investment decisions.

What is Business Financing?

When you buy a business, you can choose from several different forms of financing. Call it cash, call it debt, call it equity. “financing” covers everything from a handshake agreement to a mortgage.

Debt Financing.

It is called debt financing because it does the businesses you buy or sell indebted to you. It is a contractual agreement outlining whom, when, and how much of the loan must be repaid. In other words, it’s a financial liability. There are many types of debt financing available to businesses

Equity Financing.

This is also called capital investment or risk capital because it involves an exchange of cash for ownership in a business. In other words, it is an investment or a personal liability. You become a part-owner of the business.

Numerous tax concerns must be analyzed when you plan to buy or sell a business. These considerations should be examined before you make your decision for one form of financing over another.

Income Tax Concerns.

There are two taxes to consider for debt financing. First, you must consider the tax ramifications of payments made on loan. The payments can be interest, salaries, or other sums of money owed to you by the business. The second tax concern is that of accrual income and deductions. Your accountant should provide you with detailed financial records and explanations of these concerns before your financing decision is made.

Like most business transactions, debt financing will increase taxable income. This is often described as an increase in “gross income.” Your accountant can calculate your gross income for you.

When you buy a business, you will usually have to pay for some purchase price with cash. The remaining portion of the purchase price will be financed by the seller (or lender) through a loan or line of credit. The loan payments are deductible for tax purposes. The expenses associated with the loan will be added to the business’s expense base, increasing the business’s cash flow.

Mezzanine Capital.

Mezzanine capital financing is a popular form of debt financing used to buy a business. Mezzanine financing is also commonly referred to as “working capital” and “small business loan.” The term mezzanine is borrowed from the world of high finance.

It refers to the middle tier or level in a three-tiered capital structure. Mezzanine financing sits between equity investments and first-tier debt in the capital structure.

Mezzanine financing is a hybrid form of financing that benefits debt and equity capital. Interest paid on mezzanine loans is tax-deductible, similar to the interest payments on traditional debt. The Internal Revenue Service (IRS) is likely to look closely at the loan arrangements between you and your buying or selling business.

Funding From Family and Friends.

Often the best financing option available to you will be from family or friends. This option, however, may come with some significant tax concerns of its own. While the amount of interest paid on loan may be deductible, interest paid on a personal loan is not deductible at all. In addition, the tax rules regarding loans to yourself also apply to loans made by family and friends (unless otherwise exempt). For more information on basics of financing a business visit investopedia.

In conclusion, before deciding on a form of financing, you should weigh the risks involved with each type of financing. There are many ways to finance a business, and you should carefully research your options to make an informed choice.

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A Beginner’s Guide to Mutual Funds

Mutual funds are types of investments that can be very useful for investors. If you’re already investing in things like the stock market and real estate, then you might be looking for something a bit different. There are many reasons why mutual funds might be the perfect next investment choice for you. Read this short beginner’s guide to mutual funds so that you can get the information that you need. 

There Are Usually Minimum Investment Requirements

Typically, mutual funds are going to have minimum investment requirements that you will need to meet. For instance, a mutual fund might have a $4,000 minimum investment, but some might have lower minimum requirements like $2,500. The amount that you will be required to invest at minimum to get started will differ depending on the mutual fund that you’re looking into. It’s always worth considering the terms of the mutual fund before moving forward. 

Mutual Funds Can Be Very Hands-Off

One great thing about mutual funds is that they can be very hands-off investments. You can set it up so that investments will be made automatically. This allows you to just sit back and watch your investment fund work to grow your wealth over time. If you’re looking for an easy type of investment that won’t take up a lot of your time, then mutual funds will be very appealing to you. 

There Are Different Types of Mutual Funds

The first thing that you should know is that there are different types of mutual funds out there that you can choose to invest in. Many of the most popular mutual funds are known as bond funds, and these funds are mostly invested in stocks. Bond funds are also widely utilized, and they are focused primarily on bond investments. Money market funds are also available as a low-risk investment in short-term securities. 

Mutual Funds Work Well with Your IRA

Of course, you need to consider the taxes on your earnings from the mutual fund investment. Knowing this, it’s good to consider using an IRA along with your mutual fund since you can enjoy certain tax advantages. If you wish to keep as much of your profits as possible, then it’s worth setting up an IRA before you go through with mutual fund investment. If you’re serious about investing, then you likely already have an IRA.

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IRS Sees Billions in Crypto Seizures

One of the major issues that have been plaguing cryptocurrency traders and holders is the ever-growing number of government seizures. From Japan to the United States, there have been many instances where law enforcement agencies have seized cryptocurrency holdings – whether it be from individuals or businesses. One agency in particular that has seen a significant amount of success in these endeavors is IRS agents who have made billions by seizing crypto assets. In this post, we will outline 5 potential reasons why IRS sees billions in crypto seizures.

Cracking Down on Illegal Transactions and Money Laundering

One of the main reasons why the IRS is cracking down on what it sees as illegal transactions and money laundering is because most cryptocurrencies were designed to bypass third-party influence, thus making them ideal for criminal activities such as tax evasion and money laundering. When we look at Bitcoin in particular – the most popular cryptocurrency today – it was created in 2008 in order to eliminate the need for any bank or government involvement during transactions.

Lack of Paper Trails

Another motivator behind IRS seizing cryptocurrencies is the absence of a paper trail. Unlike when dealing with fiat currencies (dollars, euros, pounds, etc.), there is no physical proof of your ownership of the cryptocurrency. This means that when you sell or trade your digital currency, there is no seller or buyer information to prove that the transaction actually happened. Essentially, this provides an opportunity for anyone to sell their coins without it being associated with them.

Lack of Transparency

There’s also a lack of transparency involved in Bitcoin transactions. Since Bitcoin was designed for anonymity, it’s virtually impossible to determine the identity of the sender and receiver just by looking at wallets. This makes it extremely tough to prove that cryptocurrency was received illegally or involved in criminal activity.

Fear of Losing Out

Another important aspect is that Bitcoin has become incredibly popular recently, which means there is more and more competition among traders and investors to sell their Bitcoins. This has led some people to avoid reporting their cryptocurrency activity, while others have even resorted to illegal measures in order to avoid losing out on huge profits.

Fear of Doing the Wrong Thing

Finally, another reason why IRS is seeing so much success with seizing cryptocurrencies is that most people don’t know whether they should report their cryptocurrency transactions to the IRS or not. This is one of the main reasons why we’ve seen a significant increase in tax evasion and money laundering recently.

The Future of Cryptocurrency

Even with all these obstacles, there’s no doubt that cryptocurrencies like Bitcoin and Ripple will continue to grow and even replace fiat currencies in the near future. Many European countries such as Sweden and Russia have started embracing digital currency payments, which shows that many governments are willing to explore new technologies like cryptocurrency.

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Improve Your Results with These Investment Tips

Investing money is something that you need to focus on if you want to get good results. You can’t expect to turn a profit if you just make moves without thinking them through. Look at these investment tips that can help you to improve your results over time. You should be able to put yourself in a much better financial position if you follow the advice well. 

Invest in Stocks That You Know

Investing in stocks that you know is generally going to be better than taking a gamble on an unknown entity. If you invest in companies that you know nothing about, then you’ll have no way of knowing whether you’re making a good move. Also, it’s important to know about the types of stocks that you’re investing in. If you have no knowledge of a specific industry, then you might want to learn about it before you start investing money. 

Try to Diversify

Diversifying isn’t just some fancy term that people throw around in the investment world. You should try to diversify your investments so that you can lower the risk of having your investments wiped out. If all of your eggs are in one basket, then a market crash or dip in that area could ruin you financially. Having a diverse portfolio spreads things out so that you won’t be hurt so bad by market problems in a specific area. 

Learn When to Sell a Stock

Knowing when to sell a stock is a skill that you will want to hone over time. Sometimes getting greedy and hanging onto a stock for too long can lead to ample amounts of regret. You don’t want to hang onto a stock so long that it will start to lose value again. If you see a good opportunity to make some money on your investment, then it might be wise to take it. 

Avoid Emotional Attachment

Emotional attachment is something that will hold you back in the investment world. This is true whether you’re investing in stocks or real estate. Don’t let your emotions sway your judgment when you’re trying to make investment decisions. You should invest money based on data and trying to turn a profit rather than being emotionally invested in something.

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Post-PPP Taxes to Understand

The Paycheck Protection Program loans were a top priority for most struggling businesses due to the COVID 19 pandemic. Although these loans were beneficial to small businesses, most business owners find it hard to understand the tax implications. Below is a comprehensive description of the Post-PPP tax obligations.

Paycheck Protection Program Loans

PPP loans were awarded to small business owners to prevent them from going out of business and to retain their employees. Under the PPP program, small and medium business owners received a loan of up to two-and-a-half times the average monthly payroll. This loan had a cup of about $10 million.

The PPP loan intent was to cover the payroll and other business expenses during the COVID 19 pandemic. If properly appropriated on the approved expenditure, these loans are forgivable. However, if not, repayment of the funds will attract low interest and extended repayment periods. Although these funds have been beneficial to most small businesses and their employees, confusion about the tax implications has arisen.

Tax Implications of The PPP loans

Will the businesses that received the Paycheck Protection Program loan have a different tax situation than the previous years? This question was the concern of most business owners. The possibility that the loans would get considered as the taxable expense was another confusing aspect of these funds.

Although the Paycheck Protection Program (PPP) was seen by many as a lifeline, experts warned that the legislation could become a tax-laden time bomb. In May 2020, the IRS issued Notice 2020-32. This notice declared that if PPP loans were not taxable. However, the expenses usually not considered as tax-deductible wouldn’t be deductible. These expenses include utilities and rent.

This declaration threatened to kneecap the most attractive part of the PPP loans. However, Congress came to the rescue when they passed the recent PPP funding through the (C.R.R.S.A.A) Coronavirus Response and Relief Supplemental Appropriation Act. This act reversed the decision of the IRS made on the Notice 2020-32.

The Congress act declared that any forgiven PPP loan would be tax-exempted income. Thanks to this clarification, business owners can now take a Paycheck Protection Program loan and still get the (ERTC) employee retention tax.

This article was originally published on JBowmanAccountant.net

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How to Plan Your Income for Retirement

Planning for retirement is important if you want to cope with life after your days in the office. According to the Employee Benefit Research Institute, 4 out of 10 American workers are saving money for their retirement. Do you want to be part of these smart employees or the lost majority? Here are some of the things you need to know about preparing for retirement.

Setting Financial Goals
Saving is a process that demands commitment. Since retirement is definitely not your only saving goal, you should try striking a balance or prioritizing what is necessary and weighty. For instance, you could comfortably do away with lingering debts and saving for vacations, cars, homes, and lattes.

Saving for Retirement
Retirement involves more than just assessing the amount of saving you need. When planning for retirement, it’s is also important that you pay attention to where you save your money. Find the best investment or saving account. Take time to calculate how much you need to save for retirement as well.

Investing
While saving is simply amassing wealth, investing is the process of multiplying the wealth. Cash is not a great way to store your wealth, and there are thousands of reasons why. Before investing your money in any project, assess the reward-to-risk ratio and the return on investment. Which investments are more diversified, and when do you get in for maximum gains.

What Do You Invest In?
Are you ready to have your retirement saving work for you? Well, if that’s the case, setting up an investment portfolio should not be complicated. Acquaint yourself with principal retirement investment rules. Are you a DIY person, or will you need to hire the services of a financial adviser? If you want to manage your retirement saving yourself, it is recommended that you gather sufficient knowledge on investment strategies. If you will choose to work with a professional, get to know about the related costs.

Building Wealth
Retirement investing is not a phenomenon that occurs in one sitting. It is a process that will change with the dynamics of your employment as you move from one job to another or up the promotion ladder. You will also have to endure changes in the stock markets and meet family obligations. However, that does not necessarily mean that you will have to babysit your retirement investment. There are numerous ways to protect and manage your wealth and savings in the long haul.

This article was originally published on JBowmanAccountant.net

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The Intersection Between Personal Finance and Technology

Technology and personal finance have gone hand in hand for years. From the ATM to mobile banking, there are many ways that technology has helped people manage their finances more efficiently. They can use their smartphone to track expenses, compare prices at different stores, and even deposit checks from the comfort of their home. With so much information and services available online these days, it’s never been easier for people to keep on top of their money. Here are ways in which technology has allowed access, portability, and flexibility in personal finance.

Accessing money

Technology has made it easier than ever to access money. People can get cash from ATMs anywhere, use mobile banking to check account balances and transfer funds, and even deposit checks with a smartphone app. There are also so many websites helping people manage their money online by tracking expenses or finding the best deals on products at different stores.

Automated withdrawal for savings

It can be tough to put some extra money away every month when there are so many other expenses competing for attention. With an automated savings plan, someone can set up automatic withdrawals from your checking account into a separate one where they save money regularly without having to think about it.

Automated bills payments

There are plenty of services that help people pay their bills. They schedule payments to ensure all their bills get paid automatically and on time, without hassle. Services like Venmo and PayPal also allow people to send money over the internet faster than mailing a check or setting up an online bank transfer.

Using a budget to manage spending

People can use a budgeting application to track all of their monthly expenses and income, which will help them get a clear picture of where their money is going. It’s also easier than ever before to automate saving for certain things like vacations or home improvements so that they’re never forgotten about. With these tools at people’s disposal, it is easy enough to keep on top of their finances without having too much stress from looking at the numbers every day.

Technology is all about simplifying life. With technology being incorporated into banking more and more, people can get a lot done from the comfort of their couch. Besides helping people adopt better spending habits, technology is also helping them save money that they would otherwise spend without the help of money management apps and sites.

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California and Tennessee to Receive Tax Relief Following Disasters

California and Tennessee have been plagued by natural disasters in recent weeks. Californians have been affected by massive wildfires, while Tennesseeans have struggled with storm damage. In light of this, the federal government is offering affected citizens some tax relief options.

California wildfire victims residing in the counties of Lassen, Placer, Plumas, or Nevada, have until November 15th, 2021 to file individual and business returns or payments. This includes quarterly tax payments, excise tax returns, and quarterly payroll. November 15th will also serve as the new deadline for those who had received an extension on their 2020 returns.

Penalties on payments that were due between July 14th and July 29th of 2021 will also be forgiven if the payments were made by July 29.

Tennessee residents or business owners who were impacted by storm damage in Houston, Dickson, Humphreys, or Hickman county also qualify for tax relief. Those who had received an extension to their 2020 returns will now have until January 3rd, 2022 to file. That is also the new deadline for the quarterly tax payments that would’ve normally been due in September of 2021.

Penalties on payments that were due between August 21st and September 7th of 2021 will be dropped if the payments were made by September 7th of 2021.

If you’re a victim of the California fires or Tennessee storms and you receive a notice from the IRS that you’re being penalized for late filing or late payment but you believe you qualify for the tax extensions, you can contact the number on the notice. Explain your situation and they’ll be able to help you determine if you are eligible and if you are, they can remove the penalty from your file.

The IRS is making every attempt to automatically identify taxpayers who reside in the areas covered by the disaster extensions. When they identify these people, they apply the filing and payment relief options to their accounts. This means, that if you live in the affected areas mentioned, you shouldn’t need to contact the IRS to receive your tax extension.

If however, you are a victim of the fires or storm damage that lives outside of the mentioned counties, you will need to contact the IRS at (866) 562-5227 to request the tax relief.

This article was originally published on JBowmanAccountant.net

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