Hood CPAs and all other CPAs can do a few core tasks as your Marshall Missouri CPAs. Here is a list of just a few of the many things your accountant can do for you!
Calculate Your Net Worth
Net worth is the difference between what you own and what you owe. If your assets exceed your liabilities, you have a positive net worth. Conversely, if your liabilities are greater than your assets, you have a negative net worth.
Your net worth provides a snapshot of your financial situation at this point in time. If you calculate your net worth today, you will see the end result of everything you\’ve earned and everything you\’ve spent up until right now. While this figure is helpful—for example, it can provide a wake-up call if you are completely off track, or a job-well-done confirmation, if you are doing well—tracking your net worth over time, offers a more meaningful view of your finances.
For instance, if you have a lot of assets but few liabilities, you could have a high net worth but be in danger of falling into debt if you make big purchases. On the other hand —and this is especially true if you are in your 20s or older—you might not have enough assets to support a big purchase, even if you have the money. In this case, your net worth will provide a negative guide.
Your Marshall Missouri CPAs can help you calculate your net worth by using one of several methods. The simplest way is to use a calculator with default settings. Then, your CPA will move the decimal point one place to the right, making the calculation more accurate.
Another way is to have your Marshall Missouri CPAs use a software program called Net Worth. This program can be downloaded from the Internet, or you can find it in app stores for your smartphone or tablet. Signing up for an account at Net Worth will bring up your credit score, and you can follow the prompts to calculate your net worth.
The score from these programs is unrelated to how much money you make or how much stuff you own. It is simply an estimate of your wealth —the amount of money you own, plus the value of your remaining assets.
For example, if your assets are worth $200,000 and your liabilities are $100,000, you will have a positive net worth of $100,000. Conversely, if your assets are worth $100,000 and your liabilities are $200,000, you will have a negative net worth of minus $100,000. Negative net worth does not necessarily indicate that you are financially irresponsible; it just means that you have more liabilities than assets.
Your Marshall Missouri CPAs will also be able to give you a financial report for current year compilation, including an analysis of your spending and saving habits. This information will help you understand how you\’re doing financially and what opportunities there are for growth.
Part 5 —Millions and Billions
If you want to see how math works in practice, try using the following formula:
Number of coins in circulation x multiplier = total value of coins in circulation
For example, there are $5 million worth of one-dollar coins in circulation. The multiplier is $100, so $5 million x $100 = $1,000,000. Therefore, the total value of all one-dollar coins in circulation is $4,818,400.
You could also use a formula like this:
Number of shares in a company x number of years = total worth of shares
For example, there are 100 shares in a company that has been in existence for five years. The price of a share is $10. The total worth of the 100 shares is $1,000.
Is There Any Way For Our Marshall Missouri CPAs To Relieve You?
If you\’re interested in seeing how math works in practice, download the demo version of Quicken WillMaker from the Internet. This software allows you to create various types of trusts, including a Irrevocable and revocable trust. You can also create a will, which is a document that outlines your wishes for the Marshall Missouri CPAs distribution of your assets should you pass away.
Part 6 — Powerful procrastination
I usually don\’t use the word \’powerful\’ to describe things. But, when I need to procrastinate, I turn to this:
Procrastination is the swim lane into which you cannot control yourself. It is what makes the moment you realize you need to do something important so painful.
Every day, we are drifted toward habits that we prefer instead of those we want to perform. Instead of working on our taxes during tax time, we wait until June. Instead of updating our will, we put off until after our birthday. We might even qualify for a special exemption from our state if we can show that we are not responsible for our tax liabilities.
aleration is ahalla when it comes to procrastination. We start wars and avoid tasks that require all of our attention because they are frustrated by the speed with which we can achieve. We have the experts on staff who are more than able and capable of providing excellence results.
So, how do we focus on what we want to accomplish, rather than on what we avoid?
I turned to my favorite productivity expert, Mark Manson, for help.
Manson is the author of the book, Mastery, which I read in one sitting while on vacation. It is a guidebook for achieving greatness through massive habits of attention.
In Chapter 5 of his book, Manson outlines ten steps he learned from the greatests of all time. At the time, I thought it was simply a list of the most common habits that would be found in the most successful people. But, over time, I\’ve come to see that there is something deeper there that is applicable to all areas of life.
Most of us are familiar with the basic habit formation process from our own Marshall Missouri CPAs lives. We experience a desire to perform a task—like building a Habit Tracker or writing a will—and then work on it until it becomes a routine.
Visit us online at https://hoodcpas.com or give us a call at (918)- 336-7600!