Blockchain is a term that has been bantered about quite a bit when referring to the future of accounting technology. While its impacts are primarily long term in nature, let’s take a brief look to see what everyone is talking about.
Blockchain is a technology that can store transactions. Some people have referred to it as a digital ledger. Unlike your current accounting books, transactions recorded using blockchain technology are public. This digital spreadsheet of transactions or records is copied across thousands of servers so that there is no single point of failure. It’s a decentralized, distributed, and public digital ledger. The blockchain ledgers are updated constantly as new records are added. They are also reconciled constantly. Once added, the records cannot be altered retroactively. This feature has many implications for auditing in that many records won’t need to be validated the old-fashioned way because blockchain is self-auditing. Auditors will still need to validate the non-digital components of a transaction such as physical inventory counts. Prior to 2016, blockchain was originally referred to as block chain, where the blocks are the list of records or transactions. While the records are public, they are protected through cryptography. Each block includes cryptographic code from the previous block that keeps the entire chain of data safe and verified. Blockchain is then a way for two parties to safely record their transaction permanently and with verification. While bitcoin is the most common current use of blockchain technology, many developers are working on new applications. Development started heavily in 2017, so it remains to be seen which applications will take off and which will die. Blockchain’s uses in the future will be many:
Blockchain in the future may eliminate the double-entry bookkeeping system that we have now. Instead of each person keeping their own set of records, companies will write their transactions into a public blockchain ledger. This will reduce the cost of bookkeeping in the long term. But for this to happen, much development must be done to standardize and optimize the financial system. Many accounting professionals are working today toward that goal, which is many years away. For now, the biggest implication to realize for a blockchain future is that personal reputation will become incredibly important. Blockchain systems eliminate the intermediary so that you are doing business with other people in a peer-to-peer environment. Identity protection as well as reputation will become essential. Blockchain is also likely to take off first in countries where there is a lot of corruption and/or corporations are not trusted. Blockchain may not impact your life today, but it’s something to watch on the horizon.
This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
Automate Your Emails
If you’re sending a lot of the same emails to clients, you may be able to add them to email list management software like Constant Contact or MailChimp. Then you can automate a series of emails using the autoresponder function. Another way to automate your emails is to set up inbox rules so that certain emails are automatically filed into the folders you’ve set up. For example, if you get a monthly email for a recurring bill payment, you could send it straight to your bills folder if you don’t want to read it. This will save time in the morning when you sort through the pile of email that’s sent overnight. Set a Timer Make a habit of checking your email only once or twice in the day. Plan those times on your calendar and set a timer to stop if you need to. This employs time batching, one of the most productive ideas in time management. It’s unproductive to stop and read each email exactly as it comes into your box, so setting times restructures the way you work with email for the better. Create Draft Email Answers for Your Ten Most Frequently Asked Questions Do you get a lot of the same questions over and over again in your email? Don’t start from scratch each time you craft an answer. Start with a draft of a previous answer, make it generic, and save it in your drafts folder. When you get that question again, copy and paste the draft and customize it as necessary. Repeat this for your top ten (or twenty) most-asked questions or emails that you send. You’ll shave minutes off each email reply from now on. Learn the Email Software You’re Using Sure, everyone pretty much knows how to send, reply to, and forward emails. Most even know how to add attachments. But what else do you know and use on a regular basis? If you are tech-savvy, then simply spend some time reviewing your email settings and functions. There may be some you discover that will make your day. If you don’t feel very comfortable with all things technical, then sign up for a formal course, preferably in person, where you have a real human teacher that can answer all your questions. It will be a day well spent. Set Up Folders Folders, labels, or categories in your email software are all good ways to segment email so that it can be processed in a particular order. Your folders might be by priority, client, service type, or something else. In any case, it’s easier on your brain to answer all questions from one client or topic at a time than it is to ping-pong back and forth. Use folders when you are complete with an email but want to save it for future reference. That way, your inbox will stay cleaner and emptier. Use the Search Function Using the search function liberally in your email software when you need to find an old email will help you save tons of time. Get a New Email Address if Your Current Email Address is Too Spammy You may be losing the spam battle with email addresses that have been used for more than a few years or that have been hacked. If so, the best solution might just be to switch to a new email. Choose a good email address in the first place by staying away from email addresses that hackers can guess, like webmaster@yourdomain.com, sales@yourdomain.com, or info@yourdomain.com. Instead use service@yourdomain.com or a version of your first and last names. Try these email productivity tips to help you spend less time on email while still getting the job done.
Easy mileage tracking? That's hard to believe.
One of the biggest deduction challenges can be proper mileage tracking. But the benefits can pay off - depending on your situation, you may be able to take deductions for business, medical and/or charitable purposes. One way to simplify your mileage tracking is to use a mileage tracking app, such as MileIQ. (Check our our Resources page for a discount on an annual unlimited drive subscription with MileIQ.) The new tax law changes have affected the ability for some to take advantage of the mileage deduction. For a quick overview of changes, check out this blog post. It's that time of the year again - the nominees for the Top 100 ProAdvisor and ProAdvisor of the Year have been posted and voting has opened. Only 200 ProAdvisors are selected after a detailed vetting process to be included in the final stage.
We are excited to announce that for the second year in a row, Abby Hart, the owner of Hart & Associates, has reached the top 200 list. Please help her reach the Top 100! To vote for her as a Top 100 ProAdvisor, please use the link below. Nominees are listed in alphabetical order by the last name, so you will need to scroll down a bit to find her name. Top 100 Voting Site Thank you for all the support you have provided us this last year. We look forward to serving your business needs over the course of this next year.
Shaping up your finances in 2018 may seem like a big goal, perhaps even too daunting. But if you take one small step at a time, these small steps will add up. Below are suggestions.
Shift Out of Automatic
Have you established automatic bill pay at your bank or service provider, or automatic charges to your credit card?
Take the Urgency Out of Emergency Sure, you know that having an account with enough funds specifically earmarked for emergencies is a good idea. But the amount you need to save seems overwhelming. The good news is you don’t have to immediately fund six months of living expenses.
Give Yourself Credit Maybe you intend to pay off your credit card debt. But do you have a plan? Knowing where you stand is the first step in getting to where you want to be.
Retire Your Excuses Does your employer offer a retirement plan? If so, you may be leaving money on the table.
Small steps can lead to big improvements in your financial well-being. Contact us for assistance in implementing a plan to reach your goals.
This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
Tax fraud is an increasing danger for all of us. Protect yourself through knowledge!
Today's tax scam tip: Phishing. Phishing is defined as: the fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers. Remember that the IRS will never initiate contact or request personally identifiable or private information via email. Neither will reputable financial institutions, such as banks or credit unions. If you receive such an email and have any question on it's legitimacy, contact your local IRS office or financial institution directly, using a phone number obtained through the IRS.gov or financial institution's website. Never use a phone number or click a link provided in the questionable email. For any questions regarding your tax situation or tax preparation needs, please give us a call or schedule a complimentary consultation. We're here to help!
Tax fraud is an increasing danger for all of us. Protect yourself through knowledge!
Today's tax scam tip: Beware of phone calls from the IRS. The IRS communicates through written, snail-mail correspondence and will not phone you to demand an immediate payment. If you have questions or concerns related to written or phone communications purporting to be from the IRS, do the following:
For any questions regarding your tax situation or tax preparation needs, please give us a call or schedule a complimentary consultation. We're here to help!
Tax fraud is an increasing danger for all of us. Protect yourself through knowledge!
Today's tax scam tip: Beware of emails claiming to be from a tax preparer (even a name or company you recognize and use) that requests you respond and provide personal identity-related information. Such requests might be to confirm your social security number, bank account numbers, address, etc. If you receive such an email, do not directly respond to the email. A reputable tax firm will not request such email through channels such as non-secured, unencrypted email. Call your tax preparer directly to notify them you received such an email and delete the email. For any questions regarding your tax situation or tax preparation needs, please give us a call or schedule a complimentary consultation. We're here to help! It’s the time of year to update mileage rates for business, medical and charitable purposes. The new rates for 2018 are highlighted below.
For additional details related to the mileage rate and automobile expenses, please read the official IRS notice (2018-3): https://www.irs.gov/pub/irs-drop/n-18-03.pdf. Tax time is probably not your favorite time of year, especially if you have to pay the government your hard-earned dollars. Here are five tips on how we can make it just a bit less painful. Have patience. Practicing patience will go a long way when you’re dealing with taxes. Keep in mind that for tax professionals, the months of January through April are as crowded and hectic as a shopping mall in December. Parking is scarce, the sales clerks are doing the best they can, and customers are all trying to shop for presents, party items, and decorations in a very compressed time period. Be patient with yourself as well. You have the skills to manage your business and do well at your career, but it may not be at organizing paperwork or dealing with numbers. That’s where we can help. The tax stack. Set aside a permanent place on your desk to be the tax stack. When you receive something in the mail that is tax-related, place it in the tax stack. You’ll save valuable time later not having to look for documents you need. For a paperless environment, create a folder named Taxes on your computer or in your cloud storage for tax items. Within that folder, create a folder for the tax year, such as 2017 for the year just ended. At your leisure, scan or take a cell phone picture of the paper documents in the tax stack and place the digital file in the Tax folder. Now you’ll have everything in one place and you’ll be so organized that your tax accountant will be surprised! Catch up. If your books or records are behind for 2017, get them caught up now to beat the rush. If you wait until the week before your tax deadline, you’ll probably need to file an extension. Keep in mind that an extension only grants a paperwork extension; it doesn’t delay any tax payments that are due. If you wait too late, you’ll have the stress of waiting until the last minute, the stress of paying estimated taxes, and the stress of waiting until your return is finally filed. Early bird. Connect with us or your tax professional early to agree on what services will be offered and to get your documents turned in as soon as you receive them. Getting your things in early will mean less waiting time for preparation and filing. Wouldn’t it be great to be able to say that you’re done with your taxes in February? Your stress will be less, and your energy can be redirected to new projects. Avoid a large tax payment. The worst thing about tax time might just be writing a big check, possibly with penalties, to the government in April. Instead, plan and spread out your payments for next year by adjusting your payroll withholding or making quarterly estimated tax payments. Spreading your tax payment throughout the year will have you writing a smaller check, if any, in April. Try these five tips for tax time, and you’ll have more energy for other, more important things in your business. If you need assistance getting organized for tax time, please contact us. We would be happy to assist you. The information presented is of a general nature and should not be acted upon without further details and/or professional guidance. For assistance in identifying and utilizing all the tax deductions to which you are entitled, please contact your CPA or tax preparer.
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