Replenishing the Source

"Love never dies a natural death. It dies because we don't know how to replenish its source. It dies of blindness and errors and betrayals. It dies of illness and wounds; it dies of weariness, of witherings, of tarnishings." ~ Anais Nin

Alternative to Quicken, for Mac

I am always on the lookout for alternatives to the Intuit Empire. The makers of QuickBooks and Quicken sell a number of services and have become the lion's share of the market. Yes it's what most people are using.

But it leaves a lot to the imagination. They don't develop almost at all for Mac and their compatibility and other issues seem unnecessary and unreasonable.

This morning I was gifted with a new idea: iBank. For Mac. It seems to have the functionality of Quicken plus some and is integrated with all the cool Mac functionality that we love.

Try it and let me know what you think!

Financial security: Insurance

Recently I was driving on a gravel road and hit a pothole. When I got home I found that I was leaking oil badly, so I took the car to the shop where there was more than two thousand dollars worth of damage, none of it covered by the warranty. They did, however, suggest that I call my insurance and low and behold it was covered!

One thing I rarely think about these days is my insurance. I bought coverage years ago as suggested by the academic honors group from college without thinking a lot about it (I was young and uninitiated). I also bought renter's insurance for my apartment.

When I got the new car last year I decided to go all out and get the policy with full coverage, uninsured motorist, collision, the works - to take really good care of myself financially. It was a better choice than I realized.

What I found is that small bit of planning has saved me a lot of money. A few years ago the building had a break in and the insurance covered our loss at $1500. And this time I paid $100 for the $2200 in repairs. Useful!

This is the case of an ounce of prevention is worth more than a pound of cure. The $1400 a year that I pay for insurance more than makes up for what I've had to claim in the past few years.

Insurance is a form of self-care. What kind and how much are something to discuss with a professional.

I watch people under-insure themselves all the time. And then I watch them struggle when something happens. It's just painful. And unnecessary. The difference in premiums is often minimal and the sense of peace it often brings can be profound. So really consider the ramifications of that decision.

If you've done your budgeting work, you'll know whether the price of the insurance is within your budget and what things you could move around if you needed to.

Making the right choice doesn't have to be a mystery. There's a local agent that I love, Ruth Stroup, who does amazing things. I recently watched her increase a client’s coverage on a home while simultaneous decreasing their payments because she did some consolidation. She's done great work for my clients.

There's also SafeCo which is who I use because they've done such a great job over the years.

Insurance is about increasing your financial security. If you think you don't have what you need or you have more than you need, contact a professional and ask questions. The good ones will answer them without pressuring you and only invite you into their practice if they can help you.

Taxes and payroll

I was just reading this article about what happens when you don't keep up your tax obligations. If you're an entrepreneurs and especially if you are thinking of setting up payroll, it's required reading for sure.

One of the skills that most people don't have is bookkeeping. Oh they can pay bills and follow up on invoices to get those payments, but payroll taxes and understanding the filing requirements and tax laws is beyond them (and most people don't want to track tax law). There's nothing wrong with that.

As an entrepreneur you don't have to be a genius about taxes or payroll to do it right.

He recommends having a bookkeeper or bookkeeping company and I agree. Beyond that I recommend having a bookkeeper and a CPA or Enrolled Agent (EA). At minimum I recommend having a professional help you set up your books and systems so that you're getting a good start. Even the smallest companies can benefit from having quarterly accounting services to make sure that they're on track.

A CPA is a Certified Public Accountant. It means that they are accountants who have passed the certification exam and do continuing education every year in order to keep their certification They, along with EA's, have a contract with the government which means that they have a responsibility to you and to the IRS. They can represent you in front of the IRS and have a burden of responsibility concerning getting your taxes right (based on the information you provide). Others, including bookkeepers, do not. That's one of the main reasons I don't do taxes and one of the main reasons that you ought to consider hiring such a professional to do that very important yearly task.

If you are involved in a company that does payroll or are an entrepreneur without a bookkeeper or accounting professional, it's a must read.

Remember: not understanding the tax law is no excuse in front of the IRS!