Simple

Today's financial world is very complex. Your tax rate depends on your income. However, due to income phaseouts and tax credits, your tax rate is not really what tax you pay. Refinancing your home or business loan can help you save a lot of money in your monthly expenses. However, in the long run, it could cause you to pay thousands more in interest. A company you invest in could have great liquidity, solid profits for the last few quarters, and an outstanding projection. However, instability in the market could cause that company's stock price to be very volatile. The only way to navigate through this complexity is to keep things as simple as possible. Athletes often say they perform better when everything seems to slow down. Things seem to get simpler for them. Financially, we should strive for the same state.

Simplicity is easy to obtain if you really want it. First, you should organize your tax situation. Know what your income sources are, and review them periodically. Find out how investments are performing. Always be asking yourself, "Is this a tax deduction? If not, how could it be?" Discuss your tax situation with your tax professional at least once a year for planning. Second, meet with your financial adviser at least once a year. With market fluctuations, last year's big loss in an investment should be met with this year's big gain. Consider your full investment strategy. How many institutions/advisers do you work with? Investment diversity can be better achieved with one investment adviser than with ten. Your insurance situation needs the same consideration. A good way to have too much life insurance is to have multiple insurance providers. Third, get rid of the clutter. Bundle your utilities as much as you can. Cancel unnecessary credit cards - one credit card is all anyone needs. Narrow your charitable giving by becoming a strong supporter of a few organizations, rather than a minor contributor of many organizations.

It is not a coincidence that the most powerful advice we get is often considered simple. Keeping it simple is the way to make your financial world slow down, allowing you to obtain the control you should always have.

Stability

Financial stability, or the ability to meet the needs of ourselves and our loved ones, is always at the core of our goals. Sure, we may want the big house, expensive car and VIP tickets to all of our favorite events, but we would not consider having any of these if our basic needs were not met first. Most basic needs are the same for everyone - food and water, shelter, clothes. However, we all get into a bit of a gray area when determining what is a need and what is a want as we begin fulfilling those needs. How much do you spend on food? What size of a house is really necessary? How new should your wardrobe be? The answers to these questions are different for us all. But the answers are incredibly significant. Your state of mind factors heavily into your financial stability. If you are uncomfortable about what your basic needs are, finding financial stability becomes very difficult. This is why keeping a clear definition of what your needs are is very important.

Once you have stability defined, you have to find a way to achieve it. Many of us meet roadblocks on the way to achieving our financial stability. For some, it is mounting credit card debt they cannot manage. For others, it is a bad investment they cannot get out from under. For many, it is student loan debt that has put them in a position where it seems impossible to succeed. The good news is stability is always possible. It just takes knowledge, creativity, a good work ethic and patience. A good work ethic and patience are all up to you. A quality adviser can help give you the knowledge and creativity to set up the plan you need to succeed, and to help you evaluate and adjust your plan as you go. The best decisions are those with 100% support. Your adviser will help you make sure you have a plan you can support 100%.

Through good times and bad, financial stability is always at the core of our goals. It should, therefore, be something we plan with a much bigger emphasis. If you have not thought about this in the past few months, it is time to think about it now.

C.P.A.

In becoming a C.P.A., there are a few distinct memories that shaped my development dramatically. The first was moving into the upper division of the accounting curriculum at Purdue's Krannert School of Management. Pre-recs were done. My classes were all subjects I wanted to take, and not just there to make me more well-rounded. The second was my first tax season. I learned as much in those four months as I did in all of college. The hours were tough, but that wasn't a big deal. Managing everyone's expectations (bosses, co-workers, clients, etc.) was amazing. You learn to juggle quickly when moving into the "real world." The third was my first sitting for the C.P.A. exam. I studied for two months and felt totally unprepared. I woke up early, drove down to the fair grounds, and took my seat on a little wooden chair at a 50-year-old folding table in the sheep barn with 5,000 of my closest friends. They kept the doors open to keep air flowing. Of course it was the beginning of November, so that flowing air was pretty cold. I never thought I passed anything that day. I did know that I would pass it, no matter what it took. These three experiences were key to my meeting the requirements of the C.P.A. license. They made me realize it was going to be a fight. And I fought, and fought, and fought. I can't tell you how proud I am when I look at my license. I am proud because of the fight to get it, and I am proud because of what I can do with it.

The C.P.A. license was established as a way for accountants to regulate themselves. As a C.P.A., I have certain responsibilities. I must stay educated, keep within the guidelines set forth by industry accepted rules, and maintain a strong ethical standard when advising and assisting clients. As a business adviser and income tax specialist, my education consists of keeping up with the latest industry trends and government regulations. The economy and the government's reaction to the economy over the last decade have made this a complicated task. Fortunately, the ever-expanding internet as well as other technological advances have made it possible to keep up. Staying within guidelines isn't as much of a challenge for me as it is for others in public accounting. Auditors for public companies are much more focused on this task. For me, making sure all government filings are done timely and correctly are the main focus. The virtue of ethics is important for all of us. If you cross the line into unethical behavior, you get yourself into a tough situation. Usually, this occurs when something unexpected happens that shouldn't have been unexpected. If you won the lottery in January of last year, April 15th of this year isn't the time to find out how much tax you owe on it. This is an important part of my practice. My advice has to remain honest, and timely. I must strive to keep in strong communication with my clients. At least strong enough to know when they win the lottery. I must also be as true with my advice as possible. If cash flow is tight, and the current business model isn't going to change things, I need to let my clients know. Problems won't be resolved by ignoring them. They must be challenged full on.

The C.P.A. profession is the most unique profession because it is self-regulated. Although certain government agencies have tried to change this over the years, their regulation has paled in comparison to the standard at which we hold ourselves. This is why I am so proud of that license. It makes me a part of the most trusted group around.

Accountant

When I was 14 years old, I was asked by a friend's father what I wanted to be when I grew up. My response was quick, accountant. In thinking back, I'm not sure why the 14-year-old me chose accountant. I have distant relatives who are accountants, but I'm not sure if I even knew that then. It doesn't matter, accountant was what I said, and I never wavered. Four years of high school, four and a half years of college, and I was an accountant. Now what? Well I figured out pretty quickly what an accountant does at my first job. I started with a local public accounting firm in January. My first week, I worked just over 40 hours. Not too bad, except I started on Wednesday. My second week, everyone left the office except for me and one senior staff accountant. We were in charge of payroll. Poor Jason. My average was four touches on each payroll client. In other words, I prepared the return, I made changes per the senior staff, I made more changes per the senior staff, I made more changes per the senior staff...you get the idea. The rest of my first tax season was more of the same. No two projects I worked on were the same. I prepared 70 personal returns. All were different. I prepared 50 business returns.
All were different. I did salary schedules, fixed asset listings, and more payroll returns. I adjusted clients' accounting files to allocate payroll, recorded depreciation, set up new loans, and set up new companies. I learned about SIMPLE plans, 401(k) plans, Section 179 for fixed asset purchases, and Section 351 for non-taxable asset transfers. After April 15th that year, I knew what an accountant did, and more importantly, I was glad a very smart 14-year-old me said accountant.

Over the years since, what I do has changed a lot. I can prepare payroll as well as anyone out there, but I don't. I know how to calculate a retirement plan match for a company, but I don't. I can key in check stubs into an accounting system quick as lightning, but I don't. Mainly because of government regulation and technological advances, what I do is different now. However, what I am is very much the same. As an accountant, I help people understand the financial environment around them. I do not make business decisions for clients, but I do help clients understand what the decision means for their business. I do not make personal financial decisions for clients, but I do help clients understand where they currently are, and what all their options are going forward. I firmly believe that the worst decision anyone can make is one that they will not 100% support after making it. It is impossible to support any decision, even a little bit, when you have no idea what the decision even is.

So the question now is, what can an accountant do for you? Are you comfortable with your current tax situation? No, not your 2010 tax situation, but your 2011 tax situation. Do you know how your current business/personal cash flow breaks down? If a new opportunity came about tomorrow, would you be comfortable making a decision you can support 100% based on the information you have right now? Answer honestly. This is where an accountant can fit in for you. With new technology, an accountant can get a great picture of your current tax situation. This will leave no surprises for the spring. Keeping up detailed records that allow a quick assessment of your cash flow, and how different opportunities could effect it, has never been easier. Bank files download into accounting programs, websites can keep track and organize personal expenditures, and internet search tools allow you to research more powerfully than ever before. And accountants can use all of this to help you make the very best decisions. That is what an accountant can do for you.