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The Tweet Worth $2.9 Million! -Understanding the world of NFTs

NFTs are digital assets that sometimes sell for millions of dollars. Twitter co-founder Jack Dorsey sold his first-ever Tweet as an NFT for $2.9 million!
But is there any substance behind the hype? And what does it mean for you?

Understanding NFTs
NFTs offer a blockchain-created certificate of authenticity for any digital asset. This asset can be a piece of music, a token for a popular game, or a piece of digital art. To understand an NFT, consider its components:
Non-Fungible...Where cryptocurrency like a Bitcoin is designed to be readily tradable (fungible), non-fungible is just the opposite. There is one and only one of it.
Token...In this case the non-fungible identification is attached to a specific digital asset or token
Therefore, each NFT is unique and can readily solve the problem of users creating multiple copies of a digital asset.

Why NFTs are popular
Traditional artists rely on auction houses and galleries to sell their work. These galleries and auction houses authenticate the work as original. Now artists can sell digital works at the same prices as rare works of art by using NFTs to do the authentication work for them.

Why some NFTs are so expensive
Just like physical collectibles, there’s a market for NFTs. Current NFT buyers tend to be tech workers and entrepreneurs who understand the intricacies of purchasing digital goods.

Here’s what you need to know about getting involved with NFTs:
• Large cash outlay not necessary to invest. There are multiple NFT marketplaces where you can get involved as a buyer without getting into 5- and 6-figure bidding battles. Some of the more popular marketplaces are Opensea, Rarible, SuperRare and Nifty Gateway.
• Beware of fees to create NFTs. If you want to create your own NFT, you’ll likely spend hundreds of dollars in various fees to make your own tokens. If you end up selling your tokens, you may be able to cover the cost of these initial fees.
• Do your research. Since NFTs are so new, there isn’t a lot of history to judge its performance. As with any investment, you could either make a fortune, lose everything you invested, or end up somewhere in between. And these digital assets are treated just like other property, so you would pay capital gains taxes if you sold an NFT at a profit.
• NFTs require power. NFTs use blockchain technology. Blockchain technology requires power. Lots of it. There is growing concern on the energy usage for this new digital marketplace and whether it is sustainable.

Because NFTs are becoming so popular, so fast, many experts are leery of what the world of NFTs will look like in the future. Regulation is currently lacking, and legal precedence is unclear. While blockchain technology can verify your purchase, does owning the NFT of something really mean you own the asset? Will NFTs stand up in court? These are some of the questions being asked without concrete answers.

#NFT #BlockChain #DigitalAsset
... See MoreSee Less

The Tweet Worth $2.9 Million! -Understanding the world of NFTs

NFTs are digital assets that sometimes sell for millions of dollars. Twitter co-founder Jack Dorsey sold his first-ever Tweet as an NFT for $2.9 million!
But is there any substance behind the hype? And what does it mean for you?

Understanding NFTs
NFTs offer a blockchain-created certificate of authenticity for any digital asset. This asset can be a piece of music, a token for a popular game, or a piece of digital art. To understand an NFT, consider its components:
Non-Fungible...Where cryptocurrency like a Bitcoin is designed to be readily tradable (fungible), non-fungible is just the opposite. There is one and only one of it.
Token...In this case the non-fungible identification is attached to a specific digital asset or token
Therefore, each NFT is unique and can readily solve the problem of users creating multiple copies of a digital asset.

Why NFTs are popular
Traditional artists rely on auction houses and galleries to sell their work. These galleries and auction houses authenticate the work as original. Now artists can sell digital works at the same prices as rare works of art by using NFTs to do the authentication work for them.

Why some NFTs are so expensive
Just like physical collectibles, there’s a market for NFTs. Current NFT buyers tend to be tech workers and entrepreneurs who understand the intricacies of purchasing digital goods.

Here’s what you need to know about getting involved with NFTs:
• Large cash outlay not necessary to invest. There are multiple NFT marketplaces where you can get involved as a buyer without getting into 5- and 6-figure bidding battles. Some of the more popular marketplaces are Opensea, Rarible, SuperRare and Nifty Gateway.
• Beware of fees to create NFTs. If you want to create your own NFT, you’ll likely spend hundreds of dollars in various fees to make your own tokens. If you end up selling your tokens, you may be able to cover the cost of these initial fees. 
• Do your research. Since NFTs are so new, there isn’t a lot of history to judge its performance. As with any investment, you could either make a fortune, lose everything you invested, or end up somewhere in between. And these digital assets are treated just like other property, so you would pay capital gains taxes if you sold an NFT at a profit.
• NFTs require power. NFTs use blockchain technology. Blockchain technology requires power. Lots of it. There is growing concern on the energy usage for this new digital marketplace and whether it is sustainable.

Because NFTs are becoming so popular, so fast, many experts are leery of what the world of NFTs will look like in the future. Regulation is currently lacking, and legal precedence is unclear. While blockchain technology can verify your purchase, does owning the NFT of something really mean you own the asset? Will NFTs stand up in court? These are some of the questions being asked without concrete answers.

#NFT #BlockChain #DigitalAsset

Tips For Dealing With Common Accounts Payable Problems
The accounts payable process is typically very labor-intensive for many small business owners.

Here are some of the most encountered accounts payable problems and several solutions to consider.
• Double payment. A vendor sends you an invoice for $100. Your company promptly pays this vendor $100, but a short time later another payment for $100 goes out to the vendor. Sometimes this can be the fault of the vendor sending an invoice in different ways.
• Vanishing invoices. Your company could get an invoice from a vendor and have that invoice get misplaced, or the invoice accidentally gets destroyed before ever making it into your A/P system.
• Sending payment prior to delivery. There are sometimes benefits to paying an invoice as soon as possible. However, if your company pays an invoice before a shipment arrives, that could lead to an awkward conversation with your vendor if any of the shipment arrives with damaged or missing items.
• Matching errors. A manual investigation is often required if a discrepancy is discovered between purchase orders, invoices and other documents. This often happens when multiple invoices are paid with one check, and the breakout of the invoices does not fit on the check stub or other payment documentation.

What you can do
• Update your internal controls. Have your A/P team help update internal processes and document how invoices should be handled.
• Have one inbox for A/P. All e-mails with invoices should go to one inbox. This will help reduce the chances that an invoice will be received or paid twice.
• Limit access to cash accounts. It’s more important than ever for someone without authorization to your company’s cash accounts to review bank reconciliations. Not only will this help to potentially uncover erroneous payments, but it could also help to uncover potential fraud that is occurring in your company.
• Track key performance indicators. Create a report each month of all unpaid invoices and another report that shows payments made. Explore bank security features to identify duplicate payments and allows you to control checks that are confirmed for payment. Use your accounting software help identify duplicate dollar amounts and duplicate invoice numbers.
• Be cautious with ACH. Giving a vendor automatic access to your firm's checking account needs to be tightly controlled. Explore ways to ensure you are reviewing these auto payments on a timely basis and that you are receiving supporting invoicing of these payments.

Please call if you have any questions about improving your business’s accounts payable process
#AccountsPayable #Invoices #ProcessSolutions
... See MoreSee Less

Tips For Dealing With Common Accounts Payable Problems
The accounts payable process is typically very labor-intensive for many small business owners. 

Here are some of the most encountered accounts payable problems and several solutions to consider.
• Double payment. A vendor sends you an invoice for $100. Your company promptly pays this vendor $100, but a short time later another payment for $100 goes out to the vendor. Sometimes this can be the fault of the vendor sending an invoice in different ways.
• Vanishing invoices. Your company could get an invoice from a vendor and have that invoice get misplaced, or the invoice accidentally gets destroyed before ever making it into your A/P system. 
• Sending payment prior to delivery. There are sometimes benefits to paying an invoice as soon as possible. However, if your company pays an invoice before a shipment arrives, that could lead to an awkward conversation with your vendor if any of the shipment arrives with damaged or missing items.
• Matching errors. A manual investigation is often required if a discrepancy is discovered between purchase orders, invoices and other documents. This often happens when multiple invoices are paid with one check, and the breakout of the invoices does not fit on the check stub or other payment documentation.

What you can do
• Update your internal controls. Have your A/P team help update internal processes and document how invoices should be handled.
• Have one inbox for A/P. All e-mails with invoices should go to one inbox. This will help reduce the chances that an invoice will be received or paid twice.
• Limit access to cash accounts. It’s more important than ever for someone without authorization to your company’s cash accounts to review bank reconciliations. Not only will this help to potentially uncover erroneous payments, but it could also help to uncover potential fraud that is occurring in your company.
• Track key performance indicators. Create a report each month of all unpaid invoices and another report that shows payments made. Explore bank security features to identify duplicate payments and allows you to control checks that are confirmed for payment. Use your accounting software help identify duplicate dollar amounts and duplicate invoice numbers.
• Be cautious with ACH. Giving a vendor automatic access to your firms checking account needs to be tightly controlled. Explore ways to ensure you are reviewing these auto payments on a timely basis and that you are receiving supporting invoicing of these payments.

Please call if you have any questions about improving your business’s accounts payable process
#AccountsPayable #Invoices #ProcessSolutions

This Bank Secret Can Be Yours
Every banker knows that the majority of the money they make on a loan is made in the first few years of the loan. By understanding this fact, you can greatly reduce the amount you pay when buying your house, paying off your student loan, or buying a car. Here is what you need to know:

Your payment never changes
When you obtain a loan, the components of that loan are interest, the number of years to repay the loan, the amount borrowed, and the monthly payment. Assuming a fixed rate note, the payment never changes.
Each payment has two parts
What does change every month is what is inside each payment. Every loan payment has two parts. One is a payment that reduces the amount of money you owe, called principal. The other part of the payment is for the bank, called interest expense.
So while your monthly payment never changes, the amount used to reduce the loan each month varies DRAMATICALLY.
Use the knowledge to your advantage
For new loans
• Only sign up for loans that allow you to make pre-payments without penalty
• When borrowing money, keep some of your cash in reserve. Try to reserve a minimum of 10 to 20 percent of the amount borrowed.
• Immediately after getting the loan, consider using the excess cash as a pre-payment on the note. By doing this you can dramatically reduce the interest expense over the life of the note, all while keeping your payment constant.
For existing loans
• Create and look at your loan’s amortization table. This table shows how much of each payment is used to pay down the loan balance and how much goes to your lender as interest.
• Pay more to you than the bank. Aggressively prepay down any loan until more of each payment goes to you versus the bank.
• Find your sweet spot. After hitting the crossover point, next consider the efficiency of each prepayment and determine when you consider your prepayment ineffective.

When you make a prepayment on a loan, reduce the loan balance by your prepayment, then look at the amortization table. See how many payments are eliminated with your prepayment and add up all the interest you save. You will be amazed by the result.

#Saving #Loans #Interest
... See MoreSee Less

This Bank Secret Can Be Yours
Every banker knows that the majority of the money they make on a loan is made in the first few years of the loan. By understanding this fact, you can greatly reduce the amount you pay when buying your house, paying off your student loan, or buying a car. Here is what you need to know:

Your payment never changes
When you obtain a loan, the components of that loan are interest, the number of years to repay the loan, the amount borrowed, and the monthly payment. Assuming a fixed rate note, the payment never changes. 
Each payment has two parts
What does change every month is what is inside each payment. Every loan payment has two parts. One is a payment that reduces the amount of money you owe, called principal. The other part of the payment is for the bank, called interest expense.
So while your monthly payment never changes, the amount used to reduce the loan each month varies DRAMATICALLY.
 Use the knowledge to your advantage
For new loans
• Only sign up for loans that allow you to make pre-payments without penalty
• When borrowing money, keep some of your cash in reserve. Try to reserve a minimum of 10 to 20 percent of the amount borrowed. 
• Immediately after getting the loan, consider using the excess cash as a pre-payment on the note. By doing this you can dramatically reduce the interest expense over the life of the note, all while keeping your payment constant.
For existing loans
• Create and look at your loan’s amortization table. This table shows how much of each payment is used to pay down the loan balance and how much goes to your lender as interest. 
• Pay more to you than the bank. Aggressively prepay down any loan until more of each payment goes to you versus the bank.
• Find your sweet spot. After hitting the crossover point, next consider the efficiency of each prepayment and determine when you consider your prepayment ineffective. 

When you make a prepayment on a loan, reduce the loan balance by your prepayment, then look at the amortization table. See how many payments are eliminated with your prepayment and add up all the interest you save. You will be amazed by the result.

#Saving #Loans #Interest

IRS Warns of Identity Theft Signs
With identity thieves continuing to target the tax community, the IRS is urging you to learn the new signs of identity theft so you can react quickly to limit any damage.

Here are some of the common signs of identity theft according to the IRS:
• In early 2022, you receive a refund before filing your 2021 tax return.
• You receive a tax transcript you didn’t request from the IRS.
• A notice that someone created an IRS online account without your consent.
• You find out that more than one tax return was filed using your Social Security Number.
• You receive tax documents from an employer you do not know.
• Unexplained withdrawals on bank statements.
• Mysterious credit card charges.
• Your credit report shows accounts you didn’t open.
• You are billed for services you didn’t use or receive calls about phantom debts.

If you discover that you’re a victim of identity theft, consider taking the following action:
• Notify creditors and banks. Most credit card companies offer protections to cardholders affected by ID theft.
• Place a fraud alert on your credit report.
• Report the theft to the Federal Trade Commission (FTC). Visit identitytheft.gov or call 877-438-4338.
• Please call if you suspect any tax-related identity theft. If any of the previously mentioned signs of tax-related identity theft have happened to you, please call to schedule an appointment to discuss next steps.

#IdentityTheft #IRS #Safeguard
... See MoreSee Less

IRS Warns of Identity Theft Signs
With identity thieves continuing to target the tax community, the IRS is urging you to learn the new signs of identity theft so you can react quickly to limit any damage.

Here are some of the common signs of identity theft according to the IRS:
• In early 2022, you receive a refund before filing your 2021 tax return.
• You receive a tax transcript you didn’t request from the IRS.
• A notice that someone created an IRS online account without your consent.
• You find out that more than one tax return was filed using your Social Security Number.
• You receive tax documents from an employer you do not know.
• Unexplained withdrawals on bank statements.
• Mysterious credit card charges.
• Your credit report shows accounts you didn’t open.
• You are billed for services you didn’t use or receive calls about phantom debts.

If you discover that you’re a victim of identity theft, consider taking the following action:
• Notify creditors and banks. Most credit card companies offer protections to cardholders affected by ID theft. 
• Place a fraud alert on your credit report. 
• Report the theft to the Federal Trade Commission (FTC). Visit identitytheft.gov or call 877-438-4338. 
• Please call if you suspect any tax-related identity theft. If any of the previously mentioned signs of tax-related identity theft have happened to you, please call to schedule an appointment to discuss next steps.

#IdentityTheft #IRS #Safeguard

It's BACK! Inflation is Among Us.

Recent high inflation rates are driving up the price for almost everything and eroding the value of your money.

Possible causes of this Inflation
While the root causes of inflation are not always easy to identify, the premise is simple – prices are going up for goods and services. This is often because demand is higher than supply. Here are some of the basic drivers of today's inflation.

• The demand-pull situation. Demand for a product increases but the supply remains the same. This situation is rampant during the pandemic, as we all see runs on things like toilet paper and hand sanitizer. And now we are seeing pent-up demand being released, as some of the pandemic restrictions are eased.

• The cost-push situation. Demand stays constant but supply is reduced. An example of this is a lower-yield crop season when a major drought hits a region. Consumers still want their dinner salads, but lettuce is sparse. So retailers charge more to cover their increased costs.

• Factoring in the money supply. The more money there is available to spend (high money supply), the more the demand on all goods and services goes up. This is being manifested in wage increases as employers are having a hard time filling jobs and is also the result of many of the government spending programs during the pandemic.

Ideas to protect yourself during high inflation
• Alternative savings that is NOT cash. Get your money to work for you by considering:
o Low risk, dividend-paying stocks
o CDs, bonds and other investments with various maturities to prepare for higher rates
o Direct lending vehicles through vetted, respected facilitators
o Investing directly in property, small businesses or other tangible assets
o Invest in yourself to learn a new trade or skill

• Lock in fixed rates on debt. Inflation can be your friend if you have a low interest, fixed-rate loan. Borrowing money at a low fixed interest rate, while the underlying property value increases with inflation, can be a strategy to consider.
• Delay large expenditures. Do your part to reduce demand by postponing large purchases.

It’s impossible to avoid the effects of high inflation altogether, but with some smart investing and the will-power to temporarily curb spending, you can reduce inflation’s impact on your personal bottom line.

#Savings #MoneyMatters #Tips
... See MoreSee Less

Its BACK! Inflation is Among Us.

Recent high inflation rates are driving up the price for almost everything and eroding the value of your money. 

Possible causes of this Inflation
While the root causes of inflation are not always easy to identify, the premise is simple – prices are going up for goods and services. This is often because demand is higher than supply. Here are some of the basic drivers of todays inflation.

• The demand-pull situation. Demand for a product increases but the supply remains the same.  This situation is rampant during the pandemic, as we all see runs on things like toilet paper and hand sanitizer. And now we are seeing pent-up demand being released, as some of the pandemic restrictions are eased.
 
• The cost-push situation. Demand stays constant but supply is reduced. An example of this is a lower-yield crop season when a major drought hits a region. Consumers still want their dinner salads, but lettuce is sparse. So retailers charge more to cover their increased costs.

• Factoring in the money supply. The more money there is available to spend (high money supply), the more the demand on all goods and services goes up. This is being manifested in wage increases as employers are having a hard time filling jobs and is also the result of many of the government spending programs during the pandemic.

Ideas to protect yourself during high inflation
• Alternative savings that is NOT cash.  Get your money to work for you by considering:
o Low risk, dividend-paying stocks
o CDs, bonds and other investments with various maturities to prepare for higher rates
o Direct lending vehicles through vetted, respected facilitators
o Investing directly in property, small businesses or other tangible assets
o Invest in yourself to learn a new trade or skill

• Lock in fixed rates on debt. Inflation can be your friend if you have a low interest, fixed-rate loan. Borrowing money at a low fixed interest rate, while the underlying property value increases with inflation, can be a strategy to consider.
• Delay large expenditures. Do your part to reduce demand by postponing large purchases.

It’s impossible to avoid the effects of high inflation altogether, but with some smart investing and the will-power to temporarily curb spending, you can reduce inflation’s impact on your personal bottom line.

#Savings #MoneyMatters #Tips

Give Your Business an End-of-Summer Check-up

As summer winds down, your business’s financial statements may be due for a quick check-up. Here are several review suggestions to help determine the health of your business prior to year end.

• Balance sheet reconciliations. Reconcile each asset and liability account every quarter. A well-supported balance sheet can guide decisions about cash reserves, debt financing, inventory management, receivables, payables, and property.
• Debt service coverage. Do you have enough cash to adequately handle principal and interest payments? Calculate your cash flow to ensure you can handle both current and future monthly loan payments.
• Projected revenue. Take a look at your income statements and see how your revenue has performed so far this year versus what you thought your revenue was going to be.
• Projected expenses. Put a stop to disappearing cash by conducting a variance analysis of your expenses. Take the amount of money actually spent so far in 2021 in each of your major expense accounts and compare it to your spending forecast. Then create an updated forecast for the balance of the year.

A review of your financial statements now will help you be prepared if you need to navigate an obstacle or capitalize on potential opportunities to expand your business.
Please call if you have any questions on how to dig deeper in your analysis of your business’s financial statements.
#Taxes #Financials #Checkup
... See MoreSee Less

Give Your Business an End-of-Summer Check-up

As summer winds down, your business’s financial statements may be due for a quick check-up. Here are several review suggestions to help determine the health of your business prior to year end.

• Balance sheet reconciliations. Reconcile each asset and liability account every quarter. A well-supported balance sheet can guide decisions about cash reserves, debt financing, inventory management, receivables, payables, and property.
• Debt service coverage. Do you have enough cash to adequately handle principal and interest payments? Calculate your cash flow to ensure you can handle both current and future monthly loan payments.
• Projected revenue. Take a look at your income statements and see how your revenue has performed so far this year versus what you thought your revenue was going to be. 
• Projected expenses. Put a stop to disappearing cash by conducting a variance analysis of your expenses. Take the amount of money actually spent so far in 2021 in each of your major expense accounts and compare it to your spending forecast. Then create an updated forecast for the balance of the year.

A review of your financial statements now will help you be prepared if you need to navigate an obstacle or capitalize on potential opportunities to expand your business.
Please call if you have any questions on how to dig deeper in your analysis of your business’s financial statements.
#Taxes #Financials #Checkup

newsletterStay Informed & Up-To-Date

Each month, we will give you tips and useful information to help you protect your finances, begin planning on ways to save for your future, or how to begin preparing your taxes. Our goal is to help you get the information you need for a financially savvy today and tomorrow. So sign up for our monthly client newsletter today to stay up-to-date with news from our office and to receive special offers from our team.

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