Year: 2021

3 Tips To Save For Vacation Without Touching Your Savings

With this weather, it’s normal to find yourself occasionally daydreaming of sandy beaches and drinks with little umbrellas. It’s time to start today to make that dream a reality, without digging in to your existing savings. Follow these tips below and soon you’ll be digging your toes in the sand relaxing your cares away.

Form a Budget

If you’ve already decided where you’d like to go on vacation, when you will go, and for how long, establishing a budget is easy. You can go about forming your budget in two ways: First, research via the internet to find the best flight fares, hotel packages, transportation, restaurants and other expenses. Then plug those numbers into a vacation budget planning form that will help organize and calculate your expenses. Second, form a budget by outlining your vacation destination, travel dates and the estimated amount you’ll have to spend. Then, have a travel agent find you the best deals based on the vacation packages they have available.

Look for Ways to Save

We’re all familiar with the traditional ways of saving money for vacation, such as having a change jar or piggy bank, or opening a savings account with a local bank. Those ideas still work and may be useful in helping you save for your vacation. But in today’s world there are even better means of helping you reach your savings goal. First among the modern savings tools you can use to help you are the many smartphone apps that automatically transfer a set dollar amount – at pre-determined times – from your checking account into an account for your vacation. In addition to saving money from your paycheck each month, you can create sources of additional income by selling household items and collectibles online on sites such as eBay or Etsy or Amazon.

Also, consider what you can give up to go toward the expenses. Making coffee at home can save $20-$50 per week. Packing lunch instead of eating out during the workday can save $50-$100 per week. It won’t be easy at first, but these funds can easily make up the difference between a basic vacation and a luxury vacation.

Make Your Goal Tangible

While your spring or summer vacation may only seem like a dream until you actually leave for the trip, there are things you can do to make it tangible now. Print off some color pictures of your vacation destination and hang them up where you’ll see them daily. Additionally, you may consider purchasing a few small items that you will need for your trip, such as sandals or a bathing suit. Put these items out where you’ll see them regularly to remind you of why you’re saving.

The professionals at Donohoo Accounting Services have even more ways to help you save. Contact us today to schedule your free consultation or call 513-528-3982. And don’t forget to check us out on Facebook, Twitter and LinkedIn for our latest updates!

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7 Habits Of Successful People

We all have areas in which we can improve, so why not borrow a few habits from highly successful entrepreneurs when possible? Researchers have found that successful people have certain routines or habits they carry out daily that help to make them successful. Check out these seven habits to see which ones you’re already doing and which you might seek to imitate!

Read Every Day

From helping improve your memory and analytical skills to reducing stress and expanding your knowledge, taking time to read every day offers a wide range of benefits that help us on the path to success. Whether it’s the classic American novel or industry-specific publications, reading for as little as 15 minutes a day has far-reaching benefits.

Plan Your Communications

How often throughout the day do you check your email or social media accounts? If you’re like most people, you check or reply each time you hear a ding or a buzz. The problem is, those interruptions keep you from finishing what’s most important. The habit of successful people is to have particular times to respond to non-urgent communications, such as in the morning, for an hour in the afternoon or before bed.

Schedule, Don’t List

When you have something specific to accomplish, such as returning a call, writing it down is a good idea. However, putting it on a to-do list is not as helpful as you think. The better choice of successful people is to schedule that return phone call on your calendar for a specific time and date. Then, it won’t be brushed to the wayside in favor of something else. It becomes a commitment.

Let Go of Control

Many people who’ve worked just about any kind of job have encountered micro-managers: those who not only give an assignment but also provide specific instructions on how to do the job and then supervise — and slow down — your work. Micro-management leads to wasted time and energy, so be sure to remember your past work experience as an entrepreneur. Giving up control over details will free you to go on to the next thing with vim and vigor. That’s why successful people don’t micro-manage.

Deal With It

When a document comes to you for your signature or for your review, taking care of it in the moment saves you future time. That’s why successful people have the habit of dealing with important things right away. They know that time is a commodity that can’t be replaced, so they create time in the future by dealing with the key items first.

Do It Again

Successful people have routines, especially related to how they start their day. Why? Because when you know what to expect, you’re free of anxiety, which is a time-waster. Also, having a morning routine sets you up for success by eliminating anything that would throw you off course and give you an excuse for getting up on the wrong side of the bed.

Keep Your Values

Among the many activities and events that successful people plan, they don’t forget their values and incorporate more than simply business impact into what’s most important to them. That’s why successful people plan according to their values, making sure that each bucket – e.g., business, family, lifestyle – is given focus and attention each week.

What’s most important to you? If it’s meeting your financial goals, you can count on the experts at Donohoo Accounting Services to help you every step of the way. Call us today for a free consultation at 513-528-3982. And don’t forget to check us out on Facebook, Twitter or LinkedIn for our latest tips and updates!

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Tips To Get The Most Tax Deductions For Your Business

What could be difficult about filing your business’s 2019 income tax return? Plenty. Not to worry though, Donohoo Accounting Services is here to help! Every business has unique needs and you’ll need an experienced professional to help find all your deductions, but here are some tips about the three kinds of records your accountant will definitely need.

Income/Earnings Records

Because most businesses use electronic means to capture every transaction of the sale of goods or services, income records should be easy – though perhaps voluminous – to collect. Be sure to review your business’s income records, however, to look for any obvious errors such as missing information. Complete income records should include:

  • The gross amount of each individual sale,
  • Any returns or discounts credited against your business’s income,
  • Interest earned from business bank accounts (from your year-end bank statement or Form 1099-INT) and,
  • Any other income from non-sales sources.

Documentation of Expenses

Perhaps the most documentation required for your business tax filing falls into the category of expenses. You must account for more than a dozen different kinds of expenses on your tax form. These include all employee wages, rent or lease payments (including vehicle leases), insurance, travel, office supplies, and advertising and communications (such as telephone, fax and Internet).

Additionally, within these expense categories, there are sub-categories. Be sure to consult with a tax professional for a complete list of expense categories to be sure you don’t overlook any potential deductions.

Inventory Details

If your business maintains a physical inventory of goods, you will need to have documentation of your inventory totals at the beginning and end of the year along with its dollar value. As well, be sure you also have records of any inventory purchased over the course of the year. Remember to account for any inventory items that were used for business or personal needs, and the value of any supplies or materials on-hand that were purchased to operate the business.

For businesses that track inventory electronically, these records should be easy to access. But again, remember to check – and correct – any errors or irregularities between your inventory records and your actual physical inventory.

Additionally, some forms of taxable business income now have a lower rate, thanks to a new deduction for qualified business income (QBI) worth up to 20 percent. Be sure to check out the details in our blog.

The professionals at Donohoo Accounting Services have been helping small businesses file annual tax returns for more than 20 years. For a free consultation, call Donohoo Accounting today at 513-528-3982. Check us out on Facebook, Twitter and LinkedIn for our latest updates and tips!

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5 Tips to Lower Your Tax Bill

As tax season approaches, it’s important to make sure you’re getting the most on your return. If you think you’re paying too much on your taxes it may be because you may not be taking advantage of the available tax credits and deductions. Because your taxes are based on your taxable income rather than your gross income, there’s plenty of ways to use standard deductions or “write-offs” to pay less taxes. These 5 tips can help you reduce your bill and get the most on your refund this tax season.

Claim the Right Credits

Claiming tax credits is one of the best ways to help lower your tax bill and there’s a number of options available to claim. The IRS offers a number of credits for individuals and families ranging from credits for dependents, earned income and savings, housing, as well as healthcare and education. Finding the right credits and taking advantage of them helps you reduce what you pay and maximize your return.

Check Your Deductions

Unlike a tax credit which is a dollar-for-dollar reduction of your tax bill, a tax deduction reduces the amount of tax you are liable for, lowering your taxable income. The money you spent contributing to healthcare savings accounts or an individual retirement account can be deducted from your taxable income. There are also specialized deductions, including deductions for self-employed individuals and teachers for out of pocket expenses on supplies.

Contribute to Your Retirement Fund

One of the easiest ways to reduce your tax bill is with contributions to your individual retirement account or IRA. Individuals can contribute up to $6,000 to their retirement account per year. Any money you add is considered a pre-tax contribution, which can be deducted from your taxable income, helping to lower your tax bill. Additionally, most IRAs are tax-deferred, which means you won’t have to worry about paying taxes on them until you’re ready to withdraw the funds.

Donate to Charity

Volunteering and giving to charities are more than just a way to give back to your community. In addition to monetary donations, clothing, toys, books and other goods are considered charitable deductions that can go towards reducing your tax bill. And while your time spent volunteering isn’t eligible for a deduction, certain expenses are including purchasing supplies and travel costs.

Invest in a 529 Plan

If you have children, investing in their education not only benefits them, but your contributions can help lower your tax bill. Current 529 college savings plans are one of the easiest ways to save money for college and in many states, you can deduct your contributions off your taxable income. While these deductions aren’t allowed on federal income returns, they can be applied to your state income taxes.

The best way to lower your tax bill this season is with the help from knowledgeable professionals. For the last 20 years, Donohoo Accounting Service has been helping businesses and individuals in the greater Cincinnati area find the most deductions and maximize their tax returns. Contact us today or call us at 513-528-3982 for a free consultation. Check us out on Facebook, Twitter or LinkedIn for our latest updates!

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