The Blog Of TL Wall Accounting

Archive for September, 2014

Operating At A Loss Even When You’re Making Money

Whether you’re a small or large business, sometimes your business runs at a loss. Many times that’s the sign of growing pains and potential long term problems with a business, and it pays to have an accountant helping you figure things out.

However, there are times when your business might actually be making pretty good money and you might think your business isn’t running at a loss and yet it really is. Those are the times when it’s even more important to have an accountant helping you along the way because it could end up saving you lots of money when it comes to taxes, including not owing anything at all, and only your accountant will understand all the nuances.

For instance, if your business runs at a loss in one year the IRS allows a carryover into the next year. If you run your business at a loss multiple years in a row, you get to apply it to future years as long as your revenue and income doesn’t overly supersede your expenses.

You may also incur a lot of expenses in your business even if you’re making pretty good money. If you’re some kind of corporation and the expenses are high enough you might find yourself officially running at a loss, even if things are looking up. If you’re traveling and paying your own expenses you can pretty much write everything off, even if you might not get 100% credit for it, such as for meals.

It’s a very complicated business trying to figure it all out and there’s no reason to try to take it upon yourself. That’s what accountants live for, helping other businesses find ways of protecting their businesses and themselves. The little bit of money you’ll pay your accountants could save you thousands on the back end.

4 Ways To Save Money The Old Fashioned Way

While we spend a lot of time advocating that people find ways to save money by budgeting, we don’t spend much time talking about ways to shave off a dollar here and there so that you can put that money either into savings, paying down outstanding bills, or investing. There are some common sense things people can do that may not always be popular, but are sound and still allows people to enjoy their lives nicely.

Here are 4 suggestions that won’t change your life all that much but will save you some money:

1. Buy some store brand items as groceries. We all like name brand products because we’re comfortable with them. We see the commercials and think we know everything we need to know about that. However, a major truth is that almost all store brand products are packaged by companies that also package things for name brands. So, often you’re getting the same thing you’d get from a name you know.

For instance, frozen vegetables are exactly the same if they’re not enhanced with things like extra butter, salt or things like rice and pasta. A box of frozen vegetables that might cost you $1.59 from a name brand may cost you as little as 79 cents at some stores. Store bread often provides at least a dollar’s difference and pretty much tastes the same, and stores can offer a lot more flavors at the reduced rate. Buying enough things like this could cut your food budget in half, and many stores offer extra discounts if you have their card.

2. With clothes, it’s not the designer as much as the outfit. The president’s wife was known as just a sharp dresser until she let the news out that she bought most of her clothes from Target, which cost way less than designer clothes. Often you’ll see after major awards shows how some stores will put together outfits that look just like what you saw on TV for thousands of dollars less.

Every person has their own flare and design and can impress others with their sense of style without paying hundreds for clothes that don’t offer anything more than the tag on the back. If you’re buying things such as shoes because your feet hurt then paying more money makes sense. Otherwise, going broke for a brand name doesn’t do you any favors.

3. Far be it from us to ask you to be sneaky, but why the heck are you paying $15 to go to the movies and then buying popcorn, candy and soda at the concession stand for another $15, if you’re lucky? There’s nothing you can do about the price to see a movie but taking your own snacks by buying them in bulk at the store first or even just buying a couple of candy bars can save you a lot of money.

Bottled water also travels pretty easily. I know it’s hard if you’re a guy taking water everywhere with you but even if you can’t find a date you can buy some treats up front and maybe only buy a bottle of water or a drink if necessary and still save a lot of money.

4. If you have a dollar store in your area you need to check it out at least a few times. What you’ll find is that there are a lot of things they sell that are big name products you’ll recognize, and they’re all only a dollar. Things like dish washing detergent, paper plates, things for parties, some canned foods and even candy, especially for holidays like Halloween, and bring you great savings. You might have to have cash for those purchases but is that really such an inconvenience when you can go home with so many things and save literally 300% or more on your shopping experience?