Gwinnett CPA Firm on Being Ever Diligent…While Collecting Unpaid Invoices

The Apostle Paul Commands us to be ever diligent as Satan is always seeking for those he might devour. It is by our readiness and putting on the very armor of Christ that we are able to do God’s bidding. When we are addressing collection issues, it is easy to fall into righteous indignation as others fail to live up to their end of the bargain, after we have strived to be Christ-like in the services that we have provided. It at these times, when the devil as the opportunity to gain a foothold and to encourage us to judge others, and to sin in our anger.

Staying Aware. God commands that we are to submit to the Authority of others, even if it hurts. This means that whatever a judge or court rules that we are to submit to the laws of our government, elected officials and authority figures. However, it is prudent to remember that Jesus Christ himself humbled himself in the court of Pontius Pilate submitting to the court’s ruling and ultimately His crucifixion. Though Jesus knew the truth and could have over-thrown the court and its decision at any time, He chose to be submissive and suffered as a result, a gruesome death on a cross. However, He realized, as well we should, that the courts of the earth, though they are to be obeyed, are not the courts of the Heavens. “I care very little if I am judged by you or by any human court; indeed, I do not even judge myself.”  1 Corinthians 4:3

Offering Forgiveness. Though there will be many who will fail you, as Believers we are exhorted to go not only the extra mile to assist others, but to sincerely offer forgiveness, when doing so. We are commanded by scripture to forgive as many as seventy times seven (for you non-math people that is 490 times) in a single day. Luckily no one has yet sinned against me 490 times in a day, my responsibility as a Christian is to always offer the path of forgiveness and peace.

Staying Out of Debt. Staying out of debt, substantially limiting both the amount of debt you acquire and its repayment period are Godly tenants of the Christian-life. All of the precepts in this series we have discussed have included the a Believer’s responsibilities to handling collection issues. Whereas staying out of debt and paying it off ASAP is your best bet to a quieter and more joyful life, for it is far easier to serve God when you are debt-free and not heavily laden with undue concerns and worries. “Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.” Romans 13:8

To read more about John Dillard CPA and his CPA practice, business consulting and IRS representation visit http://www.hiscpa.com/ (All Rights Reserved)

To read about his books A Voice of One, Overcoming Life’s 9/11’s and Charleston Dawn and his speaking ministry visit http://www.john-dillard.com/

Helping Clients with Corporate & Personal Income Taxes, Incorporation Advice, Tax Planning, Virtual CFO, Financing, Business Plans, Back Taxes, Offer in Compromise, Tax Advocacy, Business Acquisitions & Sales, Business Plans, and IRS Representation.

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond

Following Christian Precepts…While Collecting Unpaid Invoices

God guides us, throughout the Bible, to be good stewards of our time, money and resources. To this end, there are many variables to be explored when making collection efforts that I have detailed below of situations and circumstances where we tried to go the extra mile in being a Christian and a Believer on both collection issues and difficult economic times. These principles will do much to guide and direct you as you handle the collections of your business.

-Being Willing to Sit Down With an Arbitrator, a fellow Believer, or their clergy. Just as Jesus deals with us directly through the prompting of the Holy Spirit so are we to be willing to deal directly with others to ensure that open and honest communication, at least on your part, is always maintained. If a debtor is unwilling to resolve the matter in any amicable sensible fashion, then offer to meet with an arbitrator or a fellow Believer or their clergy. Your goal in these conversations should not be to be right, but only just and fair. I have often been willing to walk away from/reduce billings in an effort to keep peace and to live in peace. I always suggest being willing to meet with their pastor in an effort to not have a biased mediator as well as to make others more comfortable. “If your brother sins against you, go and show him his fault, just between the two of you. If he listens to you, you have won your brother over.” Matthew 18:15

-Be Patient. Perhaps there is no greater virtue than patient. Imagine what would happen if God was not patient with us. Though our payment terms and contract specify that checks for all billed monies are due to be paid upon receipt of the invoice, we have frequently granted payment terms over months and even years. Just recently we were involved in a case, where we waited over three years to pursue more stringent collection efforts. Seeking not to judge, lest we be judged, should be of critical moral and strategic importance when pursuing all collection efforts.

-Walk Miles and Miles in Others Shoes. It is only when we really try, and not just do it half-heartedly, that we can begin to help and see others more clearly. One of the cases we were involved in was a client to whom we granted, in advance, the longest payment terms my firm had ever agreed to. I did this to help him out of a very difficult and trying economic time that they were suffering through. To this end, the client returned by favor by:

-Not honoring their initial commitment.

-Not honoring their three plus commitments to mail checks and funds.

-We failed to receive a promised money order, two promised overnight packages, and a separate package that enclosed three checks, to be applied against their balances.

Regardless of their failures, just recently I approached them and sought to see if there were other issues going on in their life or perhaps Spiritual Warfare they are in the middle of that perhaps I might help with or pray for. God does not allow me to judge my Brothers and Sisters in Christ but does require that we constantly to look to the good in others and indeed to consider others better than ourselves.

To read more about John Dillard CPA and his CPA practice, business consulting and IRS representation visit http://www.hiscpa.com/ (All Rights Reserved)

To read about his books A Voice of One, Overcoming Life’s 9/11’s and Charleston Dawn and his speaking ministry visit http://www.john-dillard.com/

Helping Clients with Corporate & Personal Income Taxes, Incorporation Advice, Tax Planning, Virtual CFO, Financing, Business Plans, Back Taxes, Offer in Compromise, Tax Advocacy, Business Acquisitions & Sales, Business Plans, and IRS Representation.

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond

Knowing the Credit Score of Your Georgia Business

Checking your business credit worthiness is not for the meek of heart and can be done without ever leaving the office, calling your bank or logging on to the Internet.  All you need to do is to print out your internal financials and utilize a few basic mathematical calculations and you are well on your way. 

Entrepreneurs often feel they need outside professional advisors and CPA’s, which frequently they do for many of the more complex tax and management issues they face.  However, there are a few key internal management statistics each and every owner should be well apprised of and able to put their hands on at a moments notice.  Ownership of these statistics will set you well ahead of your peers and give you key operating information which when used properly will grant you a competitive edge in the marketplace. 

These statistics are for those who are familiar with most of the basic tenets of a balance sheet and profit and loss.  If you are not, these principles and guidance are easily learned.  As you review these calculations/ratios, stop and apply them and see how your business compares.

A/R (Accounts Receivable) Turnover

This ratio calculates how often your account receivables turn over/are paid by your clients.  Generally, you would want your A/R to turn over approximately twelve times a year, which would mean your average monthly billings are paid within thirty days.  This is calculated by dividing annual sales by A/R equals your turnover ratio.  For example:

     Annual Sales          or         $720*   = A Turnover
Accounts Receivables                $60        Ratio of 12

*Monthly sales of $60K times twelve months

Care should be taken in reviewing/relying upon this calculation to also evaluate the aging of your receivables and to review in detail all substantive account balances over thirty days for any potential collection issues/corrective action required.

Days in Receivable (A/R)

This calculation reveals to its user as to how long receivables are unpaid/what the billing to payment cycle is.  A lower calculation result will signify that receivables are being collected sooner than later.  As with any business, “cash is king” as you cannot be fiscally responsible without cash in the bank.  Days in receivables are calculated by dividing your A/R by your last months/average monthly sales.

       Open A/R Balance              or $90K = 1.5×30 days/month =  45 days in
Last Month/Avg. Monthly Sales       $60K                                  in receivables

Days in A/R is one calculation you will want to be as low as possible and care should be taken to evaluate it in light of:

• Your industry, its norms and trends
• The credit terms you extend to your clients
• Present economic conditions locally, nationally and internationally

Inventory Turnover

If you are more aware of how efficiently/quickly your inventory is turning/selling you will be better apt to ensure that you do not either overstock or run out of your faster moving items.  This calculation can be applied to the total inventory, a particular class or segment of your business and even to individual items to discern the nuances of your inventories and sales ability.  Also, this process can be used to weed out less profitable/marketable lines/items of inventory.  Calculation of your inventory turnover is done by dividing your annual cost of goods sold/purchases by your present inventory, illustrated by the below:

    Annual Purchases          or      $480K       =  Inventory Turnover of
Present Inventory at Cost             $40K          12 times annually

Days in Inventory

A keen knowledge and awareness of how much inventory you have on hand and its marketability is one of the primary indicators of future success/profitability.  This indicator will reveal to you if your inventory levels are too high or too low.  Your industry and suppliers will dictate much of your desired levels so you will want to be sure to gain an adequate understanding of your particular nuances.  However, a general rule of thumb would be to have approximately forty-five days in inventory.  This can be determined by dividing your total inventory by your past months/average monthly sales at costs and then by multiplying it against the number of days in a month, for example:

            Inventory                  or        $80K  x 30 days in a month =
Months of Purchases at Cost               $40K     60 days in inventory

Current Ratio

The current ratio is calculated by taking the total of all of your total current assets and dividing it by the sum of your total current liabilities.  For a typical rule of thumb it is suggested that this ratio should be two or better, as this indicator will foretell your firm’s ability to meet its current obligations as they become due.  To illustrate how to calculate this ratio:

 Current Assets         or         $400K          =       2.0 Current Ratio
Current Liabilities                   $200K

In conjunction with this calculation it would be prudent to also perform the earlier stated ratios/turnovers as they will assist in determining the integrity and soundness of the accounts receivable and inventory balances included in the current assets and liabilities totals.

Acid Ratio

The acid test ratio is a key-determining factor in helping to evaluate a firm’s ability to meet its immediate cash needs.  This calculation is preformed by taking all of your quick assets (cash balances plus all items which can quickly be converted to cash) and dividing it by the firms total liabilities, illustrated by the below:

  Quick Assets                 or         $300K        =   1.5 Acid Ratio
Current Liabilities                         $200K

The acid ratio will most always be less than the current ratio and it reveals a firm’s ability to meet its immediate cash needs. We work with clients each and every day in meaningful and insightful ways to look beyond the numbers to provide significantly meaningful management information.

To read more about John Dillard CPA and his CPA practice, business consulting and IRS representation visit http://www.hiscpa.com/ (All Rights Reserved)  

To read about his books A Voice of One, Overcoming Life’s 9/11’s and Charleston Dawn and his speaking ministry visit http://www.john-dillard.com/

Atlanta CPA on Selecting the Right Mortgage for You and Your Family

Picking the right mortgage for your family is perhaps the most important financial decision you will ever reach. Knowing what to look for and to consider is your best defense to avoiding common mortgaging pitfall, protect your family “nest egg” and to stave off unwelcome financial stress.

-Interest Rate. Mortgage Interest remains perhaps the largest tax deductions for homeowner, regardless of the mortgage and real estate debacle of the last few months and years. Constant monitoring of this expenditure should always be done to ensure that you have a good rate, what your net after tax payments truly are and that the payment period is relevant and appropriate. Many have over the years rushed to refinance when rates fall just a bit, but there are many more variables to consider that just the monthly payment.

-Avoid Surprises. Though mortgage companies might promote that there is no closing cost, these monies are typically added to your mortgage balance, rolling the costs into the loan and making you not only eventually pay these closing costs but the resulting interest on the balance over the next thirty years as well. It at all possible, it is prudent to consider when refinancing to reduce the payment period of your loan thereby working towards paying off the principal balance sooner than later.

-Payment Period. Equally as important is to keep in mind the year you plan to retire so that you might be able to succeed in the goal of retiring debt free. Adjusting to living on a fixed income will be difficult enough without having a fixed monthly mortgage payment, which must also be paid in additional to normal living costs.

-Always “Under-Buy”. Though advertisers will tell you to get it now, pay for it with credit and to buy all you can, nothing could be further from Biblical truth of money and how it was intended to be used. Debt, if at all possible, should be avoided. If it cannot be avoided, such as in the buying of a home, it should be limited. It debt is required a Believe should work diligently to pay it off, while doing everything in their power not to acquire any more. To help ensure that you do not overbuy I suggest you do three things before acquiring any additional substantive need:

-Consult with Biblical truth and CPA’s/l Advisers Who Are Fiscally Conservative.

-Evaluate if you can still safely make the payment if you have a thirty percent reduction in monthly/annual income.  This will ensure that you buy “within your means” and not up to your means. There will be many in your life who will make offers to you that will not be in your best interests and the offering of a credit or  a bank saying “you qualify” is no different.  Being sure that you financial commitments are well below what you can afford is your best bet to short and long-term financial success.  

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales,  Forensic Accounting, Business Valuations and Bookkeeping.  

Atlanta CPA on Home Mortgages…How to Best Avoid Defaulting

Selecting the Right Home Mortgage

With all the different types of mortgages and fund investment strategies it is difficult, if not impossible, for the average investor/home buyer to make a decision about what is the best type of mortgage to pursue: interest only, fixed, variable, or for what term. Care should be given in all financial matters to review a particular households short and long term needs and then ideally balancing as much of these as possible so as to gain as large a financial advantage as possible while not unnecessarily exposing your personal household’s finances. 

With the spirals in the real estate continuing with no apparent end in sight, leveraging or mortgaging real estate still makes financial sense. However, just because someone is willing to give you a loan does not mean that it makes for wise financial sense for your family. Great care and due diligence should be exercised when taking out a loan. Though surely for most if not all of us the first home purchase is one in which we are apt to be the most highly leveraged. Having been fresh out of school and perhaps just starting our careers we do not possess the financial resources to place any substantive amount of down payment. However, for each and every subsequent purchase we should take great care to ensure that our wants do not exceed our ability to pay. Accordingly it is wise to be sure to add a substantive buffer between our monthly expenses and our monthly income as we can always be sure there will be bumps along the way causing minor as well as substantive financial pitfalls along the way. Therefore we should be sure to living well below the standard of living that our income allows us to do so that these downward financial turns which are certain to occur do not unduly affect our ability to keep the financial obligations we incur. Although the loss of a job or a medical illness which occurs over more than just a few months or even years is apt to derail even the best planners, we should be ready to stand up to smaller adversities by ensuring that we keep our debt load low.

Remember “Creative Financing” means that you probably cannot afford it. Although I seldom disagree with a clients decision to buy anything I do often debate the timing as to a certain financial decision so as to not unnecessarily expose your household or business financially. Prudence when agreeing to acquire a property and taking on a debt load will be critical to ensuring long term financial success. Just because a particular lender is willing to give you a loan does not mean that it is a wise decision. I suggest that for all major debt acquisitions such as homes, buildings, and cars that you consult your financial adviser/CPA well before a decision becomes emotional and your desires begin to outweigh your primary concern of protecting the family’s long term financial viability.

John Dillard CPA of His CPA PC  (a Christian CPA firm) is an author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ 

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

(Proudly Serving Alpharetta & Roswell for Over Twenty Years)  

Avoid Troublesome Mortgages…What You Don’t Know Will Hurt You Later

Everywhere you turn lately, you hear a story about someone who lost their home due to their inability to meet their mortgage payments.  Unfortunately, more and more of these horror stories are appearing everyday because of an overeager real estate surge that made it possible for almost anyone to purchase a home with creative financing.  However, once the creativity is taken out of the financing, you are usually left with a home you can’t afford and no good solution to getting rid of it.  HIS CPA P.C. works with potential homeowners in fulfilling their dream of owning a home or refinancing the home they’re in.  We take great care in evaluating a person’s ability to purchase a home and to afford the mortgage payments, not just today, but also 2, 10, and 20 years from now.  Some things that are crucial to consider when looking for a mortgage company and a home to purchase are:

-Don’t get caught in the hype.

-Under purchase – in other words, don’t purchase what you can afford or a little more, purchase less than you can afford and you allow yourself a cushion should something happen.

-Stay away from promises of creative financing.

-Allow for a cushion – you’ve always heard from every financial advisor around that you should always keep at least a few months rent or mortgage payments stashed away in case of emergency, in today’s volatile job market with downsizing and overseas competition, this has never been more critical.

-Expect Problems – this is where the cushion and the under purchase will really come in handy.

-Be careful in the type of mortgage you are agreeing too – a fixed loan is usually better and not subject to a volatile market where as interest only loans dramatically fluctuate and you should be able to maintain a reserve to pay off the balance in full.

John Dillard is an author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (a Christian CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ 

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

Preparing the S Corporation Income Tax Return K-1 A Guide How to Guide to Prepare a K-1

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond

Everywhere you turn lately, you hear a story about someone who lost their home due to their inability to meet their mortgage payments.  Unfortunately, more and more of these horror stories are appearing everyday because of an overeager real estate surge that made it possible for almost anyone to purchase a home with creative financing.  However, once the creativity is taken out of the financing, you are usually left with a home you can’t afford and no good solution to getting rid of it.  HIS CPA P.C. works with potential homeowners in fulfilling their dream of owning a home or refinancing the home they’re in.  We take great care in evaluating a person’s ability to purchase a home and to afford the mortgage payments, not just today, but also 2, 10, and 20 years from now.  Some things that are crucial to consider when looking for a mortgage company and a home to purchase are:

-Don’t get caught in the hype.

-Under purchase – in other words, don’t purchase what you can afford or a little more, purchase less than you can afford and you allow yourself a cushion should something happen.

-Stay away from promises of creative financing.

-Allow for a cushion – you’ve always heard from every financial advisor around that you should always keep at least a few months rent or mortgage payments stashed away in case of emergency, in today’s volatile job market with downsizing and overseas competition, this has never been more critical.

-Expect Problems – this is where the cushion and the under purchase will really come in handy.

-Be careful in the type of mortgage you are agreeing too – a fixed loan is usually better and not subject to a volatile market where as interest only loans dramatically fluctuate and you should be able to maintain a reserve to pay off the balance in full.

Atlanta CPA on Wild Swings in the DOW…Are Our Mortgage Markets Safe?

Recent Uncertainty in the Mortgage Market

In light of tightening of credit the home mortgage industry there is evidence that perhaps loans that were made in the past are no longer going to be accessible to those who do not qualify. In the last several years in response to a good economy and increased competition, loans were extended for which the underwriting requirements were not as strict or severe as they had been in the past. As a result there has beeen a recent shakedown of the good credits from the bad and a day of reckoning/correction in the marketplace.

Interest only loans have been very popular as of late offering the allure of a lower payment as no principal payments are required. But as with all marketing teasers there is always a catch and for mortgage loans there is no exception. If you have substantive other capital available to pay off a loan if need be then a interest loan might be a prudent and wise decision. However, many utilized this option for the purchase of homes which were really beyond their financial means. Remember “Creative Financing Means You Probably Cannot Afford It.” Wise and careful money managment dictates that you should always live below and not up to your standard of living that your income affords you. In this way you will best be able to handle the inevitable financial road bumps which will happen along the way.

It is wise that one acquires an equity line on their home as an additional insurance policy to handle any financial emergencies as well as making these monies potentially deductible.  Mortgage interest continues to be the largest itemizations that one can take when preparing their taxes and equity interest, as long as you meet certain exceptions, will help lower your overall tax bill.

The shakeout in the market/DOW will more than likely continue for an extended period but those in the market should not react but rather respond to the volatilites. Though some/mabye even all of your investments both pre and after tax may have fallen, you should still evaluate your dollars invested in light of other alternative opportunities. Human response being what it is will typically steer us to sell at the lowest possible price out of our fear while reality/intellectually a depressed stock cycle might be providing the highest opportunity for future bargains and increased returns. Though a volatile market necessitates an increased state of awareness and examination of your investment portfolio, it might not necessarily be a time to make any sell decisions. Working with both your CPA and financial advisor through these times will help guide and direct you towards making wise decisions.

John Dillard CPA of His CPA PC  (a Christian CPA firm) is an author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ 

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Payroll Administration, Bookkeeping.

(Proudly Serving Lawrenceville & Snellville for Over Twenty Years)