Assets and expenses both have a “debit” balance on the financial statements, but that’s where their similarities end. Spending on one can make you rich and spending too much on the other can leave you broke. An expense is money you may need to spend, but after a year, there is nothing lasting to show for it. An asset is a tangible resource that is still worth something after a year or more and that belongs to you or your business. The best assets grow in value over time, but some lose their value too. Real estate typically goes up in value, while a car loses value, or depreciates heavily, in its first few years. The best example of an asset versus an expense is spending on a mortgage versus rent. When you pay a mortgage, you own more of the property than you did last month. One day, you can sell your ownership in the property and get cash or another asset in trade. When you pay rent, there’s nothing left at the end of the month. There’s no accumulated value. Generally speaking, spending on an asset builds or at least better preserves your wealth. Spending on an [...]
Musings of a Burbank CPA: 10 Questions to Ask When Working With an Accountant
Here is a list of things to discuss with a prospective new accountant (or even your old one!) More details in this article in Entrepeneur by Kim Lachance Shandrow: http://www.entrepreneur.com/article/232841# Not taking advantage of a paid professional is just as bad as not having a paid professional – in both cases something is lacking in the relationship! It is a resource that used correctly can add to your business bottom line, whether it is business planning, tax planning or even a general question – answer discussion. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Musings: The Art of Accounting – Now You Are Starting to Work!
This article by Edward Mendlowitz in AccountingToday reminds us in a funny way that you not only have to work hard, you have to look like you are working hard so everyone will know! http://www.accountingtoday.com/news/Art-of-Accounting-Now-Starting-Work-69296-1.html You just have to remember that perception is important! It is the old saying “Looking busy is more important that being busy!” So make sure everyone knows that as a CPA or tax preparer you are always busy, because a CPA who doesn’ t look busy, especially during tax season, must not be very good because no one uses him. Promote yourself! If anyone asks if you need more work, say “I am always busy, but I am always looking for new business!” For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Has been Featured On https://twitter.com/bstonercpa