How to Improve Your Credit Score

A good credit score is not just something to brag about, and it can help you secure low interest rates if you apply for credit cards and any loans. Credit cards are a handy tool to improve creditworthiness, as they can be used to manage credit utilization rates and make payments consistently and on time. According to recent studies, secured credit cards and cards that offer intro-APR, such as those offered by Visa, MasterCard, American Express, Discover, and other credit unions like Money Trumpet, are ideal for improved credit.

Make Payments on Time

Paying on time will prevent additional fees like late fees and penalty interest rates. If you can pay the full amount, that is much better to save you from any further interest to occur. You will find that if you communicate with your creditors and show good faith by making at least the minimum monthly payments, they are more likely to understand you and try to help you keep your destroyed credit.

Do Not Over Use Your Credit Card

The real thing is, the improvement in your credit rating is unlikely to in one billing cycle. Once you start practicing positive financial habits, you will see an improvement in your credit ratings over time, and you are likely to increase them if you use your credit card wisely. One of the factors that will be taken into account when calculating your score is your credit card balance.

Your balance may take into account your ability to pay your bills, your monthly payments, and your overall financial health. Some people end up with a poor credit score because they overuse their credit cards, and others make purchases they can’t afford with them.

Plan and Prove Your Credit Worthiness

If you want to take out a mortgage next year, your credit rating could get in the way because lenders pay attention when they make lending decisions. Many people aspire to build credit and securing a credit card, but it can take a year or a year – and – a half – to see an improvement in your score along the way.

Work with your bank and see if there is any payment plan that they can work on to bring your account to current if you have past dues. You can also apply for a secured card to start building your credit score.

Conclusion

There is no single – size – fit – to increase your credit score, but there are a number of different options available to you in terms of managing credit card balances. Start by taking a close look at your debt obligations and develop a plan that best fits your specific goals.

taxes

Tax Benefits of Independent Contractors

It is easy to get confused about the main difference between an employee and an independent contractor. Workers must understand that each type of work has its merits and demerits. On the same note, your personality can get better-suited to only one style of working over the other.

When you are earning a living as an independent contractor, it offers you more flexibility and control over your job. Also, you will take advantage of some tax benefits that are not available to employees. Visit the ir35 calculator site to understand the tax benefits that you will get. In our post today, we are going to share the following tax benefits for independent contractors.

No Withholding

When you are an independent contractor, there are a lot of tax benefits that will help you. When you receive payments from each of your clients, note that it is not subjected to state and federal tax withholding as employee paychecks. Even if you must pay taxes, you will only do it by making up to four estimated tax payments over a given year. In doing this, it offers you more control and also allows you to avoid overpaying your taxes since you will have to calculate each of your payment on your cumulative contractor earnings.

Contractor Deductions

income taxMost of the taxpayers who are employees are eligible to deduct their work-related expenses. However, the IRS places various limitations on the amount that they deduct. Therefore, if you are working as an independent contractor, you have an opportunity to deduct all of your business expenses directly from your earnings. Note that your deductions will include different fees, including your car and the cost of supplies.

Accrual Method Accounting

When you are managing a business that is offering services as an independent contractor, you will have an opportunity to use accrual methods of accounting for your contractor’s expenses and earnings. The main tax benefit of this method is that you will claim your deductions during the period when you become liable for their payments.

Self-Employment Tax Implications

As an independent contractor, you have an opportunity or obligation to pay for your self-employment taxes apart from your income tax. It is essential to understand that these taxes cover the same medical and social security taxes that your employers withhold from the paychecks. The benefit of making your self-employment tax by yourself will enable you to claim deductions as a form of adjustment to your income for half of your payments.

accountancy service

Choosing the Best Accountant for Your Business

Several things have to be in place for your business to turn out successful. A proper team of experts is one thing that can help you take your business to the right level. You should look for professionals in different fields who may prove to be helpful to your business. An accountant is one person who should be part of your team. This is someone in charge of your business finances. They help ensure everything is accounted for in your business, which is vital for growth.

Financial challenges that usually arise in most businesses are generally as a result of poor management of funds. Hiring an accountant helps to ensure that everything is accounted for. Look for the right person for the job.  You can get a CPA in Wheaton, Illinois if your are in the US. One of the things an accountant does in your business is to prepare all the accounting books in your company.

certified accountantYou can tell the financial performance of your business within a specific period when you hire one. Planning for your upcoming business calendar will be easy as a result. An accountant can also help in filing your tax returns and ensuring your business records are up to date. This reduces the chances of landing in trouble with the relevant authorities in your area. Hiring this expert minimizes your work burden because they will carry out some of these tasks for you. There are several things you need to factor in when hiring an accountant for your business. They include:

Qualifications

The accountant you want to hire in your business should have all the documents needed to prove that they are qualified for the job. They should present their academic qualification and certification documents that show they are trained and licensed for the job. This will help you know you are working with the right person.

Experience

You also need to look at the level of expertise of the accountant you want to hire for your business. The period they have been in service is one thing that can help you understand this better. You can also look at the firms they have served in and their success rate in such a service.

Rates

business accountingThe amount a specific accountant is charging for their service is the other thing you need to consider when looking for one. You can hire them on a contractual or permanent basis. Discuss the rates to settle on an amount you can pay them.

How to Choose the Best Tax Return Professional

Income tax return deadline is always knocking at your door before you even know it. If you keep forgetting to fill your tax return year in year out, you need a professional to help you fill the returns in time to avoid penalties. An IRS Professionals is a person who possesses a PTIN (Preparer Tax Identification Number) and has the expertise in the IRS sector.

These professionals have varied skills regarding accounting and tax in general. That is the reason why choosing the best tax return professional is a very challenging process. Reason being; it requires more time and effort to choose the best out of many on either online and offline platforms. However, with our simple guidelines, you will surely make an informed decision. If you need a professional tax advisor, here are tips for choosing the best in the business.

Do some Creeping

Always ensure that you hire an individual who meets the law requirements. Do the creeping by ensuring that the latter has an IRS Preparer Tax Identification Number which is popularly denoted (PTIN). Always ensure that the tax preparer has the necessary education and certification to go about their day to day business. The qualification can be searched on the IRS directory. Consult with the IRS website to verify their status.

Qualification Review

Secondly, conduct a qualification review to ascertain whether or not they are qualified for the job. There are many scammers, especially on the internet. That is why it is important to review the qualifications of every IRS tax preparer you come across or desire to work with. Conducting a qualification review is very important before handing over your money. The recent IRS regulations require every professional tax preparer to have a valid PTIN as aforementioned.

Enrolled on the IRS Website

Always ensure that the professional you choose to work with is enrolled in the IRS system or website. An enrolled agent can represent you or your company in any tax-related issues. Also, make sure you hire an agent that has passed the IRS exam and go for training for every three years since tax policies are ever changing.

Review their History

Before you make up your mind ensure that you review the professional’s history with other clients. Checking the history of the agent will help you to understand the kind of person you will be working with. If they have a bad history whereby their previous clients have aired many complaints about their services, avoid such an agent. Just because a given agent meets all the above-mentioned aspect, they do not automatically qualify for the job.