Are you tired of your budget being too tight from month to month? Does the worry of not having enough saved up for the future overwhelm you? If so, then it’s time to regain control of your finances.

While we know that this is easier said than done, it can be brought to fruition through successful financial planning. What are the steps of such successful planning, though? How can you prepare for the future when you have debts to pay right now? How can a financial planner possibly help?

See below for an in-depth guide on financial planning and why it’s so beneficial for those who choose to dedicate themselves to the cause.

What is Financial Planning?

Many of you have heard of financial planning services before, but aren’t entirely sure what they do. You might not be entirely sure what “financial planning” means. Not to worry! Everyone has to start somewhere.

In a nutshell, financial planning is when you implement a strategy (usually with the help of a professional) to take care of both immediate and future financial needs.

The difference between financial planning and budgeting is that financial planning prepares you for different costs and market fluctuations. If these incidents come up, you can adapt and overcome.

Such good planning helps you make the most of whatever income you have. You take the income and build a plan around it, maximizing your savings, paying off debt, investing in an IRA, and assigning duty for every single dollar that you make.

What Are the Benefits of Financial Planning?

Just as important as knowing what financial planning is all about is figuring out how it can help you achieve your goals. In other words: what’s in it for you?

1. An Expert’s Opinion

Possibly one of the biggest reasons you’re behind on your financial goals is because of all of the other things you have going on in your life. You have a career, a family, and more to worry about than just what’s written on your budget.

Although it shouldn’t, budgeting often seems to take the back seat. That’s where financial planning offers the most benefit. Rather than being ignored, your finances are now under the care of a certified professional.

A financial planner will use their experience to help you build a successful financial plan for the future. They’ll be able to explain things like Roth IRAs, mutual funds, and 401Ks in a way that you will understand.

The more you push off preparing for the future, the worse shape you’ll be in. Financial planning helps you to buck that trend by putting it in the hands of a trusted professional.

2. Clear and Concise Goals

One of the biggest causes of financial failure is lack of goal setting. If you don’t have goals in place, you have nothing to achieve. This will lead to you lacking the motivation to monitor your finances in the first place.

Setting goals such as paying off your student loans, saving to retire early, or buying a house in the next five years are goals that grant you direction. Such goals offer you a focal point to fixate on that allows you to stick to your budget.

Your financial planner will help you talk through the goals that you have set and give you recommendations on how to move forward.

For example, if you tell them you want to start a business within the next five years, they can give you information regarding how much you should save and which costs you should prepare for.

3. Quicken Your Savings

Perhaps your biggest financial regret has been putting off your savings for too long. You have put yourself in a situation where you won’t be able to retire with as much money as you’d hoped.

Joining forces with a financial planning service will quicken your savings and help you get back on track. They can help you use different strategies to prioritize your savings and get you into a comfortable position.

Not only will you save quicker, but you’ll also be able to pay off debt faster, thus giving you more money to play around with each month.

What Services Do Financial Planners Offer?

While many of them have their specific areas of expertise, financial planning offers a plethora of different services.

Financial planners can help you learn and begin to invest in the stock market by helping you build an investment portfolio.

Financial planners can also help you monitor insurance needs, save for college, save for retirement, plan for taxes, estate planning, and more.

The initial meeting with your financial planner will map all of this out. You can start by talking through the different goals that you have along with a timeline to achieve them.

No matter what you’re starting out with, a financial planner will use their services to improve your finances in every facet. Whether you’re wanting to improve your personal finances or finances for your company, they’ll be able to help you out!

Invest the Time and Money in Financial Planning Today

Now that you’ve read many different aspects of financial planning and how it works, it is time for you to find the financial planning services you need!

Be sure to read how the second wave of coronavirus might shape the stock market in the near future if you’d like to learn more.

For more inquiries, please be sure to reach out via our contact page and we’ll be happy to assist you further!

Jeremy Shaw, CPA, is an audit manager at WNDE.  In this role, he serves clients in a wide variety of industries, including distribution, manufacturing, business and professional services.  He specializes in working with for-profits and non-profits—his non-profit clients serve the homeless, provide meals for seniors and dental services for children in need—and employee benefit plans.  He joined the WNDE team in 2012.
Jeremy was born and raised in Los Angeles.  He was attracted to accounting because many in his family have been involved in the field and because of the opportunity it would give him to have exposure to different kinds of businesses.  He noted, “Accounting is the language of business.”
He earned a B.S. in Accounting from Chapman University in 2007.  Since then, he has worked in both private industry and public accounting.  He has lived in Orange County since 1997.  Outside of work he enjoys watching football and hockey.
His areas of expertise include audits, review and compilations.  He likes working with WNDE, he said, because “I like the people, the work and the diversity of clients whom we serve.”

Your Medical Expenses May Save You Money at Tax Time, But a Few Key Rules Apply

Due to the 10% AGI threshold for taxpayers less than 65 years old, explained Krystle Dean, CPA, a senior tax manager for WNDE, clients often are not able to take the available tax deduction for medical expenses.  For a taxpayer 65 or older, the AGI threshold is reduced to 7.5% through 2016, she continued, “so it is more common to see those clients receiving a tax deduction for their medical expenses.”

Here are some Tax Tips to help you determine if you can deduct medical and dental expenses on your tax return:

• Itemize. You can only claim your medical expenses on your taxes that you paid for in 2016, if you itemize deductions on your federal tax return.
• Income. Include all qualified medical costs that you paid for during the year, however, you only realize a tax benefit when your total amount is more than 10 percent of your adjusted gross income.
• Temporary Threshold for Age 65.  If you or your spouse is age 65 or older, then it’s 7.5 percent of your adjusted gross income. This exception applies through Dec. 31, 2016.
• Qualifying Expenses.  You can include most medical and dental costs that you paid for yourself, your spouse and your dependents including:
  • The costs of diagnosing, treating, easing or preventing disease.
  • The costs you pay for prescription drugs and insulin.
  • The costs you pay for insurance premiums for policies that cover medical care qualify.
  • Some long-term care insurance costs.

Some common examples of expenses that taxpayers can include in their medical expenses but they may not be aware of, Krystle noted, are acupuncture, chiropractic care, inpatient rehabilitation facilities, long-term care premiums (limited depending on age) and certain weight loss programs.  Some cosmetic surgeries, related to accident, disease or congenital abnormality, also can be deductible.  Krystle continued, “If there are certain treatments that your doctor recommends, it may be something that is a tax deduction, so please consult your CPA accountant.”
Costs reimbursed by insurance or other sources normally do not qualify for a deduction. For more examples of costs, you can and can not deduct, see IRS Publication 502, Medical and Dental Expenses. You can get it on IRS.gov/forms anytime.

• Travel Costs Count.  You may be able to deduct travel costs related to medical care. This includes costs such as public transportation, ambulance service, tolls and parking fees. If you use your car, you can deduct either the actual costs or the  standard mileage rate for medical travel. The rate is 19 cents per mile for 2015.
• No Double Benefit.  You can’t claim a tax deduction for medical expenses paid with funds from your Health Savings Accounts or Flexible Spending Arrangements. Amounts paid with funds from those plans are usually tax-free.
• Use the Tool.  Use the Interactive Tax Assistant tool on IRS.gov to see if you can deduct your medical expenses. It can answer many of your questions on a wide range of tax topics including the health care law.

“Keep all records of income and deductions until the statute of limitations runs out,” Krystle said, “which is three years from the date taxpayers file their tax returns for federal and four years for California.”
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
Have more questions or looking to offset some of your filed taxes with medical and dental deductions? Contact a WNDE tax accountant and who can better assist you in maximizing your tax services to get the most savings possible.

Additional IRS Resources:

• Schedule A (Form 1040), Itemized Deductions
• Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans

IRS YouTube Video:

• Medical and Dental Expenses – English | Spanish | ASL

IRS Podcasts:

• Medical and Dental Expenses – English | Spanish

Melissa Hou, CPA, MST, is a tax manager.   In this role, she works with clients in a wide variety of industries including distribution, manufacturing, sales, business and professional services, real estate and non-profit organizations.  She specializes in rental real estate, real estate development and real estate investment.  She joined the WNDE team in 2015.
Melissa was born in Taiwan and grew up in Los Angeles.  She is fluent in Mandarin Chinese and English.  She earned a Bachelor of Arts degree in Business Economics at UCLA, and a Master of Taxation at Golden Gate University.  Accounting was not her first career choice, she said, but she agreed to try it out for three months upon her father’s insistence.  Melissa remarked, “He was right.  I absolutely loved how challenging and dynamic accounting is.  There is an endless amount of learning and growth available.”
Her areas of expertise include: partnerships, s-corporations, c-corporations, individuals, and trusts; planning, quarterly and year-end tax provisions, research; business property tax, sales tax; non-profit organization tax compliance; and Quickbooks.  She is a member of the AICPA and CalCPA.
Interests outside of the office include spending time with her boyfriend and dog, hiking, attending concerts and traveling both domestically and internationally.

Taxpayers who still file paper returns may find now is the best time to switch to e-file. Last year over 85 percent of taxpayers filed their taxes electronically. There are really no good reasons to paper file, said WNDE Partner Candace Huie, unless a filer is specifically prohibited from E-filing.  E-file is the fastest and safest way to file.
Here are the top seven reasons a taxpayer should file electronically in 2017:

1. Accurate and Easy. IRS e-file is the best way to file an accurate tax return. The tax software helps taxpayers avoid mistakes by doing the math for them. It guides users through each section of a tax return. E-file is easier than doing taxes by hand and mailing paper tax forms.
2. Safe and Secure. IRS e-file meets strict security guidelines. It uses modern encryption technology to protect tax returns. The IRS continues to work with states and tax industry leaders to protect tax returns from refund fraud. This new effort has put more safeguards in place to make tax filing safer than ever before. The IRS has processed more than one billion e-filed returns safely and securely.  Candy said, “Tax software companies and the taxing authorities are on the cutting edge of security for the efiling process.  Taxpayers have a higher risk of exposure to identity theft when mailing their paper filed returns.”
3. Convenient and Often Free. Taxpayers can e-file for free through IRS Free File. Free File is only available on IRS.gov. Taxpayers may qualify to have their taxes e-filed for free through IRS volunteer programs. Volunteer Income Tax Assistance offers free tax preparation for those earning $54,000 or less. Tax Counseling for the Elderly generally helps people who are age 60 or older. Taxpayers can buy commercial tax software or ask their tax preparer to e-file their tax return. Most paid preparers have to file their clients’ returns electronically.
4. Faster Refunds. In most cases, e-file prevents mistakes and helps people get their refund faster. The quickest way to get a refund is to combine e-file with direct deposit into a bank account. The IRS issues more than nine out of 10 refunds in less than 21 days – however, some returns need further review and take longer.  Candy noted, “E-filing gives you the ability to track the timeliness of filing your tax return and make getting your refunds much quicker.”
5. Prior-Year Tax Return. Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
6. Health Care Coverage Reporting. IRS e-file can help with tax provisions of the health care law. The software will walk users through each line on the tax form that relate to the Affordable Care Act.
7. Payment Options. If taxpayers owe taxes, they can e-file early and set up an automatic payment on any day until the April 18 deadline. They can pay electronically from their bank account with IRS Direct Pay. Other payment options include electronic funds withdrawal and payment by debit or credit card. Visit IRS.gov/payments for details.

Candy concluded, “E-filing has made the overall tax filing process quicker, more efficient, and much more secure while nearly eliminating the room for “human error” by the taxing authorities when manually processing paper filed returns.”
IRS YouTube Videos:

• Welcome to Free File – English
• IRS Taxes: Three Easy Ways to Pay – English | Spanish | ASL

Share this tip on social media — Seven Reasons Taxpayers Should E-file Their Taxes in 2017. http://go.usa.gov/x9ye3#IRS

WNDE is pleased to announce the hiring of three new managers:  Usman Ilyas, David Moya and Rex Vollmer.  Usman is an audit manager, Rex a senior audit manager and David a senior tax manager.

Usman has 12 years of comprehensive experience in providing audit and advisory services to local governmentsand non-profit organizations.  He specializes in the preparation of comprehensive annual financial reports (CAFR), state controller’s reports and in conducting federal compliance audits in accordance with Uniform Guidance.  He is also experienced in providing audit and advisory services to local governments and non-profit organizations.

David works with privately held businesses, high net-worth individuals, trusts and estates.  His experience includes preparation and review of individual, partnership, corporate, trust, gift and estate tax returns. He has clients involved in various industries including manufacturing, distribution, professional and service-oriented businesses.  He has worked in the accounting field since 1990, including 10 years in Honolulu.

Rex has a broad range of auditing experience, and has audited companies in a wide range of industries.  Before coming to WNDE, Rex served as an audit director at a firm which performed audits of publicly traded companies.  His experience has allowed him to acquire technical expertise in handling complex financial reporting matters, including business combinations, complex debt and equity transactions and share-based compensation.  In addition to performing financial statement audits and reviews, he is also active in providing consulting services, including assessments on internal controls.
“We’re delighted to welcome these highly skilled individuals,” said Dave Doran, managing partner.  “They bring many outstanding talents to our professional team, and will enable us to better serve our clients.”