Experience

What is the Big Deal with Financial Planning?

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In today’s uncertain economic times, financial planning has become critical in order to meet life’s financial goals, including retirement. A thorough analysis of the current financial picture will help point the direction toward meeting those goals and will help avoid excess spending. This includes maintaining a rainy day fund, not relying on social security and calculating the amount of the nest egg. As a Reno CPA, I thought I would take some time to talk about the importance of financial planning.

What is Financial Planning?

Financial planning means analyzing the current financial picture, determining what the long-term goals are and then devising strategies to reach those goals. Strategies can include a variety of things, including automatic deposits into savings accounts, investments in stocks or real estate, or even insurance plans. The key is to make sure those plans are flexible. Not only can goals change, but so can strategies as your situation changes. Marriage, kids and a home all have a way of changing our priorities.

The Here and Now

However, financial planning is not just about the future; it’s about the present. Because this type of planning requires a full analysis of the family’s current financial picture, they know their exact net worth, income, and expenses. As a result, they are better able to manage spending and can avoid living paycheck to paycheck. They will also avoid being caught unaware by massive debt. An important bonus considering the average American carries a credit card debt of around $16,000.

Expect the Unexpected

A major component of any financial plan is a rainy day fund. This is a separate savings account that is set aside for emergencies only and usually contains at least three to six months of expenses. The reality is that no one is safe from unexpected illnesses, accidents or unemployment. Insurance, while another important part of the plan, may not cover everything and may not be easily accessed. In fact, some studies have shown that families without such a backup are far more likely to accumulate debt during a disaster.

Retirement Numbers

Retiring some day? Well, don’t count on social security. Not only is the age being increased to 67 for those born after 1959, but it may not be there. The reserves held in trust to fund social security are expected to be exhausted in 2037. After that income tax will only be able to pay 75 percent of expected benefits. Medicare isn’t any better and is expected to remain solvent only until 2029. As a result, Americans had better get busy with financial planning if they want to have a nice retirement.

How Much Is Enough?

The answer to this really depends on a person’s standard of living and the goals he or she has. However, some experts suggest that people should expect to spend about four percent of their savings each year. That means if expenses are approximately $60,000 per year, they should have a targeted retirement fund of 1.5 million. Sadly, most Americans are not even close. Those between the ages of 65 and 75 have an average of around $56,000. That means they get to spend roughly $2,200 a year.

These numbers suggest one thing – Americans need to get busy financial planning! Analyzing their current financial picture will help them avoid being buried under a mountain of debt and will help keep them on the road to a wonderful retirement, even when disaster strikes. Plus, a failing social security system will not blindside them and leave them penniless. As a Reno CPA, I am here to tell you that financial planning is the smart and responsible thing to do.

Reno’s Best CPA,

Tim Nelson

What is the Big Deal with Financial Planning?encpaswp2016-09-22T21:21:29-07:00

BestCPAReno.com Showcased At Reno-Tahoe Wordcamp 2011

Our website, BestCPAReno.com was showcased at the Reno-Tahoe Wordcamp 2011. An excerpt from the press release is below, to read the complete press release for Evans Nelson & Company CPAs, CLICK HERE.

“BestCPAReno.com, which is a WordPress site featuring the Thesis Theme demonstrates the customizationavailable to WordPress users. Evans Nelson & Company CPAs are able to promote their business througharticles, blogs, and videos. They provide financial resources and links and offer a free tax organizer. All ofwhich is possible by the use of a website designed in WordPress.”

Reno’s Best CPA,

Tim Nelson

BestCPAReno.com Showcased At Reno-Tahoe Wordcamp 2011encpaswp2016-09-22T18:22:27-07:00

Reno’s Best CPA Featured in NSBDC E-Newsletter

I sat down with Chuck McCumber of the Nevada Small Business Development Center (NSBDC) and talked taxes. The interview was featured in the NSBDC’s monthly e-newsletter. Here is one quote from our conversation:

“It’s also one of the best times,” said Tim Nelson, “because when the economy is down it stirs people to be more creative, entrepreneurial.”

To read the rest of the interview CLICK HERE.

Reno’s Best CPA,

Tim Nelson

Reno’s Best CPA Featured in NSBDC E-Newsletterencpaswp2016-09-22T18:09:02-07:00

A CPA In Reno Explains How Getting Married Changes Your Tax Situation

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So your big day has come and gone, now what? You have made it through the chaos of the wedding and I am sure taxes are not on your mind, but it is important to understand how getting married can change your tax situation. A married couple should take some time to sit down with their CPA in Reno to discuss how their tax situation will change now that they are married.

Don’t Forget The Little Things

After the marriage, there is usually a move. Whether it is one part of the couple moving in with the other or the couple moving into a new place, a new home means a new address. It is important to remember to update your employer, the post office and even the IRS of your address change. You want to make sure that all of your tax information will arrive at the proper address.

Another thing that commonly happens after marriage is the changing of a last name. Whether a spouse changes their last name to the other’s or adds a hyphen between the names, it is important to remember to notify your employer, the post office, the IRS and, well, everybody. The last thing you want come tax season is confusion over who you are.

Filing Jointly

After getting married, the couple usually files their taxes jointly. By filing a joint tax return, the couple doubles the limitations and deductions that you otherwise would get if you filed two single returns. However, there are certain differences in the tax code where the “marriage penalty” comes into play.

This is a situation where filing jointly causes higher tax than you would pay if you filed two single returns, even though the taxable income is the same. This has largely been eliminated for the lower income tax brackets through 2010, but would apply once you reach a taxable income of $137,300 (in 2010) or higher. For example, assume that a married couple earned $120,000 for one spouse and $100,000 for the other, then the tax as a married couple would be $44,607.50. If they each filed single, the total tax would be $43,782.50, or $825 less than joint filing. The “penalty” increases with the amount of taxable income earned as the couple.

When In Doubt Ask For Advice

After getting married, you do not need the added stress of taxes on your plate. If you are concerned that you may have missed something or just want clarification on how you should file as a couple, you should contact a CPA in Reno. Depending on your tax situation, the CPA will be able to tell you the best way to file. The CPA in Reno will also be able to talk you through the name change and address change process. They may not be able to help you with the actual steps, but they will able to remind you of anything you may have missed.

Reno’s Best CPA,

Tim Nelson

A CPA In Reno Explains How Getting Married Changes Your Tax Situationencpaswp2016-09-22T17:32:13-07:00

IRS Wants Money, a Reno CPA Can Help

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Whether it’s back taxes, money owed following an audit, or taxes due from the current year, owing money to the IRS can have devastating repercussions if left unpaid. The IRS has the right to place levies and liens against your property to insure tax repayment. This could lead to seizure of your home, automobile, or bank account with serious effects on your credit. When the IRS wants money, there are several options available. There are many ways a Reno CPA can help.

Notice of Tax Due

When an individual doesn’t pay the total tax amount due to the IRS by the annual filing date, they will receive a “Notice of Tax Due” letter. Within a few months, the debt will be in collections status and penalty fees will continue to add up. It is important to act quickly when you owe taxes to the IRS. A person who doesn’t agree with the amount stated has the right to ask for an assessment by an IRS manager. Copies of bank statements, receipts, and other finance related records will be needed for the hearing. Many taxpayers choose to hire a CPA to represent them at this point.

Finding a Qualified CPA

Retaining the services of a Certified Public Accountant can be very beneficial when you owe tax money to the IRS. Not all CPAs are qualified to represent taxpayers during the IRS collection process so it’s important to choose the right one. Beware of tax debt relief scams that may end up costing you even more money in the long run. Look for a CPA that specializes in working with the IRS on the taxpayer’s behalf. Read client reviews and look into their previous case history if possible before deciding to hire a professional. The right Reno CPA can offer sound advice and get the best IRS payment deal possible.

What to Expect from a Reno CPA

The first thing a CPA will do is discuss the available options. An “offer in compromise” is usually the best strategy. This allows the taxpayer to make a settlement with the IRS and pay less than the total tax amount. The CPA will help you decide on the best plan of action and will make sure it is executed correctly. He or she may file necessary paperwork with the IRS and will represent you in meetings with IRS agents. The CPA will also assist with appeals, hearings, or audits that may be required to help lower the tax amount you must pay.

The IRS can be brutal when it comes to collecting taxes that are owed. Doing nothing when you owe money to the IRS can lead to wage garnishments, frozen bank accounts, and the loss of your home. There are several options available to pay back the tax money owed to the IRS. A qualified Reno CPA can help you make the best decision and can even reduce the amount you owe. Hiring a Reno CPA also brings peace of mind. It’s easier to be confident when there’s a knowledgeable, experienced professional working for you.

IRS Wants Money, a Reno CPA Can Helpencpaswp2016-09-22T16:53:01-07:00

Elections & Tax Law Changes

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I often hear people say “Tax laws are constantly changing! How can I protect my business? How can I even keep up with how it will impact my bottom line?”

One of the constants in life is change…and you can be sure there will be constant tax law changes as well! How can you keep up with them all? What kind of impact does an election year have on tax laws?

A Reno CPA or certified public accountant is a huge help to individuals and businesses when dealing with tax law changes. After all, it’s our business to know the information that can help you pay the least amount of taxes and use all the tax advantages in the IRS tax code.

We understand how difficult it can be with all the constant IRS tax code and tax law changes, but at Evans Nelson CPAs, we keep up with tax law changes. Certified Public Accountants are required by law to complete a certain number of Continuing Education classes and seminars. At Evans Nelson, every one of our CPAs goes well beyond those minimum requirements, along with other research to stay informed. It’s our business to advise you and you deserve far more than just minimum requirements.

Whether it’s proposed changes investments in capital equipment–can it be all deducted in the first year–to health insurance deductions, to changes in business taxes, or personal write offs, tax law changes can affect when and how you may want to take certain actions. We help guide you with sound advice based on information from the IRS and our experience and understanding of how these tax law changes will affect your individual circumstances.

Simply consulting for an hour or two with your Reno CPA can save you 10, 20 or even more hours of research and frustration trying to determine what is best for your business, and also help you find the best ways to protect it.

So save yourself the struggle and time consuming research by hiring a professional. Evans Nelson stays informed, so you can focus on your passions.

Elections & Tax Law Changesencpaswp2016-09-22T16:02:27-07:00

Three Key Facts to Know When Prepping for the CPA Exam

Three Key Facts to Know When Prepping for the CPA Exam Scores of colleges and universities offer the chance to major in accounting, because of how versatile the degree is. Indeed, by taking plenty of business courses with a focus in accounting and financial management, you’re diversifying yourself in order to fit into a number of different industries. But just because you graduated with a degree in accounting doesn’t automatically make you an accountant.

Becoming a certified public accountant, or CPA for short, is a benchmark many choose to go on and accomplish, because it greatly increases their employment opportunities. CPAs tend to be in high demand because their services are just as good as those of tax relief attorneys but at typically more affordable rates. Plus, CPAs can provide auditing services to the public, as well. Since becoming a CPA is a significant commitment, here are a few items you definitely need to know before you consider it:

You’ll need a college degree.

Just like you can’t be expected to become a plumber without having the necessary training first, you likely won’t be able to pass the CPA exam without a number of years of college under your belt to lay the groundwork. Your degree track might be very regimented, but take courses in business law and other areas of management, too, in order to get a full education in the field. Then, the real fun can begin.

You’ll need to study. A lot.

The best form of CPA training and practice is to simply bury yourself in books for the months leading up to the exam. The CPA certification requirements always involves successful completion of the examination, which is uniform across all 50 states and in Guam, Puerto Rico and the nation’s capital. Think of it as the bar exam but for accountants and you’ll be able to view in it the appropriate context.

You could benefit from CPA training courses, too.

Familiarize yourself early on with the CPA requirements. If they sound absolutely overwhelming to you and you begin to hyperventilate, it might be a good idea to look into some CPA training classes to help prepare you. The CPA exam is particularly daunting, too, since it’s comprised of four different sections, all of which need to be studied for at great length. Everyone learns differently, and if you think you could learn well in a CPA training course, definitely get involved — sooner rather than later.

The most important thing you need to keep in mind is that passing the CPA exam is an investment in your future. Once you obtain your certification, you’ll also need to amass plenty of on-the-job experience, too, to truly learn how to be the best accounting professional you can be. CPA is just a title, and you want to show your employers how valuable you the person can be to their organization. It takes time, but when it comes to CPA training and preparation, it’s always time well spent.

Three Key Facts to Know When Prepping for the CPA Examencpaswp2016-09-22T14:22:00-07:00

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