If you are just starting a business or have been in one for a while, you quickly understand the importance of keeping good records. And as a financial person, having an owner that understands the basics of great bookkeeping makes it so much easier to help that owner understand what those books are telling him or her. So on that front, presented here are four keystone bookkeeping concepts that are worthy of discussion.
Selecting the proper accounting method. There are two different methods for recording transactions: cash-basis and accrual-basis. In general, the cash-basis method records a transaction when a payment is made or cash is received, while the accrual-basis method records the transaction upon delivery of the good or service, either as a sale or as a cost. Small businesses often use cash-basis as it is easier to track. Larger businesses who buy from vendors on account (accounts payable) generally use accrual-basis accounting. The key is to understand what method your business uses and whether it uses the same method for your books as it does on your tax return. The IRS allows the cash basis method for tax purposes for the majority of small business, but once a choice is made, it can only be changed with proper reporting to the IRS. Things to consider: How important is the matching principal to your business? This aligns revenue with related costs to get a clean picture of interim profitability. If this is important, accrual might be best. What about the importance of cash flow? If high, using cash basis will get you answers more quickly.
Create an account structure that fits the company. The main types of accounts in a business are assets, liabilities, equity, income, cost of goods sold, and other expenses. Each group will often have numerous accounts and sub-accounts associated with them. Having the right mix of accounts, created and grouped in an organized fashion, will help you properly classify transactions and prepare usable financial statements. Things to consider: If there is little activity in an account, consider summarizing it with other like items. Know why you need an account before you create it…to make business decisions? to compare to last year? for tax reasons?
Enter accurate and timely transactions. The value your data provides is dependent on each transaction being recorded correctly and on time. Entering transactions in the wrong account can cause major issues down the road. Financial reporting that is delayed can hide problems that need immediate attention. Some transactions are relatively straightforward, and some are more complex (like payroll, accruals, and deferrals).Things to consider: Conduct a flash report the first day of each month. This will get the ball rolling.
Establish financial statements for decision-making. The purpose of your statements should be to help you run your business and make decisions. For the bank, it’s to see if you are a great risk to lend money. To the government, it’s to pay taxes. Or for the prospective buyer, to value your company’s worth. Things to consider: Really understand the three key financial statements (income statement, balance sheet, and statement of cash flows). Know how they inter-relate and understand how to read them to make better decisions. What key accounts are the drivers of your business? What is the bank looking at?
If properly executed, your bookkeeping system will create accurate financial statements that can be used to make key financial decisions. Feel free to call with any questions or to discuss bookkeeping solutions for your business.
Cybercriminals are sidestepping two-factor authentication. Here’s how you can stay ahead.
Every day, cybercriminals try to access bank accounts, take over email inboxes, and harvest personal information using passwords purchased in bulk from underground marketplaces. Using two Factor Authentication (2FA), also known as multi-factor authentication, is a way to help block these break-ins by requiring a second form of verification. As you might expect, attackers are adapting and learning how to work around it.
Here’s a look at how criminals are getting past 2FA and how adding more security layers can help you.
How thieves are circumventing 2FA
In response to widespread use of 2FA, underground forums began sharing phishing kits, SIM-swapping playbooks, and malware designed specifically to intercept verification codes and session tokens. What started as basic credential harvesting evolved into coordinated, real-time attacks built to outmaneuver 2FA rather than defeat it outright.
Most methods of sidestepping 2FA involve exploiting human behavior rather than breaking encryption. Attackers capitalize on urgency, confusion, distraction, and trust, to manipulate you into approving login requests or sharing verification codes that were meant to keep intruders out. Because these attacks target weaknesses that exist beyond the password itself, meaningful protection must extend beyond relying on 2FA alone.
Strengthening Online Protection Beyond 2FA
Here are some tips to help protect your accounts from theft.
Use authenticator apps or hardware security keys instead of SMS-based codes. Text messages can be intercepted or redirected through SIM-swapping schemes, while authenticator apps generate time-based codes on your device and hardware keys require physical interaction, making remote compromise far more difficult.
Enable biometric authentication where available. Fingerprints or facial recognition add a personal, physical layer to the login process, limiting the usefulness of stolen credentials and reinforcing account access with something uniquely tied to you.
Monitor account activity and enable login alerts. Real-time notifications about new devices or unusual sign-ins allow you to respond quickly, reset credentials, and prevent further unauthorized access before damage escalates.
Practice phishing awareness by checking URLs, avoiding suspicious links, verifying requests. Many attacks hinge on deception, so slowing down to confirm website addresses and independently validate urgent messages can stop credential theft in its tracks.
Use strong, unique passwords with a password manager. Password managers generate complex combinations and prevent reuse across accounts, reducing the impact of data breaches and credential stuffing attacks.
Keep devices updated to reduce malware risk. Software updates patch known vulnerabilities that attackers actively exploit to steal session tokens, capture keystrokes, or install surveillance tools.
Consider identity monitoring services for high-value accounts. These services can alert you when personal information appears in breach databases or underground marketplaces, giving you time to change things before your data is sold to someone who will attempt to attack your accounts.
Encourage adopting a layered security mindset. Combining multiple safeguards creates overlapping protection, making it significantly harder for attackers to bypass your defenses.
Two-factor authentication remains a powerful online defense, but true digital resilience comes from layering protections. As cyber threats evolve, your security strategy must do so as well.
Creating a sound financial foundation for you and your family is a great goal. Here are five thoughts that may help.
Pay yourself first. Treat saving money with the same care you pay your bills. Take a percentage of everything you earn and save it. Using this technique can help build your savings balance and keep you from living paycheck to paycheck.
Know and use the Rule of 72. You can roughly calculate the number of years compound interest will take to double your money using the Rule of 72. Do this by dividing 72 by your rate of return to estimate how long it takes to double your money. For example, 10% interest will double an investment in 7.2 years; investments with an 8% return will double in nine years. Use this concept to understand the power of saving and investing.
Use savings versus debt for purchases. Unpaid debt is like compound interest but in reverse. For instance, using a credit card with a 12% interest rate to pay $1,500 for home appliances costs over $2,000 if paid back over 5 years. The result is that you have to work harder and earn more to pay for the items you purchase. A better idea may be to save and then buy your dream item.
Understand amortization. When a bank loans you money, it gives you a specific interest rate and a set number of years to pay it back. Each payment you make contains interest as well as a reduction of the amount owed, called principal. Most of the interest payments are front-loaded, while the last few payments are virtually all principal. Making additional principal payments at the beginning of the loan’s term will decrease the amount of interest you pay to the bank and help you pay off the loan more quickly.
Taxes are complex and require help. Tax laws are complicated. They are made even more complex when the rules change, like this year!. Even worse, the IRS is not in the job of telling you when you forget to take a deduction. The best way to stay out of the IRS spotlight AND minimize your taxes is to ask for help.
Tax credits are some of the most valuable tools around to help cut your tax bill. But figuring out how to use these credits on your tax return can get complicated very quickly. Here’s what you need to know.
Understanding the difference
To help illustrate the difference between a credit and a deduction, here is an example of a single taxpayer making $50,000 in 2025.
Tax Deduction Example: Gee I. Johe earns $50,000 and owes $5,000 in taxes. If you add a $1,000 tax deduction, he’ll decrease his $50,000 income to $49,000, and owe about $4,800 in taxes.
Result: A $1,000 tax deduction decreases Gee’s tax bill by $200, from $5,000 to $4,800.
Tax Credit Example: Now let’s assume Gee has a $1,000 tax credit versus a deduction. Gee’s tax bill decreases from $5,000 to $4,000, while his $50,000 income stays the same.
Result: A $1,000 tax credit decreases your tax bill from $5,000 to $4,000.
In this example, your tax credit is five times as valuable as a tax deduction.
Credits are usually worth more
Credits are generally worth much more than deductions. However there are several hurdles you have to clear before being able to take advantage of a credit.
To illustrate, consider the popular child tax credit.
Hurdle #1: Meet basic qualifications
You can claim a $2,200 tax credit for each qualifying child you have on your 2025 tax return. The good news is that the IRS’s definition of a qualifying child is fairly broad, but there are enough nuances to the definition that Hurdle #1 could get complicated. And then to make matters more complicated…
Hurdle #2: Meet income qualifications
If you make too much money, you can’t claim the credit. If you’re single, head of household or married filing separately, the child tax credit completely goes away if you exceed $240,000 of taxable income. If you’re married filing jointly, the credit disappears above $440,000 of income.
Hurdle #3: Meet income tax qualifications
To claim the entire $2,200 child tax credit, you must owe at least $2,200 of income tax. For example, if you owe $3,000 in taxes and have one child that qualifies for the credit, you can claim the entire $2,200 credit. But if you only owe $1,000 in taxes, the maximum amount of the child tax credit you can claim is $1,700.
Take the tax credit…but get help!
The bottom line is that tax credits are usually more valuable than tax deductions. But tax credits also come with lots of rules that can be confusing. Please call to schedule a tax planning session to make sure you make the most of the available tax credits for your situation.
Couples often name money as a major source of tension – but it can also become one of your greatest tools for building trust and momentum together. When approached intentionally, money stops being a stressor and starts becoming a strategy. Here are some ideas for creating financial harmony with your long-term partner or spouse.
Be radically transparent. Honesty about money should start early. Both partners should understand the full financial picture including income, debts, savings, investments, and credit history, says everydayhealth.com. Major obligations such as student loans, credit card balances, or family financial responsibilities should never come as a surprise years into the relationship. Secrecy around money erodes trust quickly.
Transparency also extends beyond numbers. Spending habits, avoidance tendencies, and emotional triggers around money matter just as much as account balances.
Have recurring future-focused conversations. Make space for proactive conversations about where you are headed financially. Children, career moves, business ventures, caregiving, travel, and retirement all carry financial implications. If your long-term visions drift apart, put them back on a common course.
According to Mutual of Omaha, consider revisiting these discussions periodically. Goals and priorities evolve, and staying aligned requires ongoing communication.
Understand each other’s financial comfort zones. Two people can earn the same income yet feel very different levels of security, says the financial tech company Beem.com. One may view a mortgage or low-interest loan as practical, while the other prefers minimal debt and maximum stability.
Talk through specific scenarios, for example how much savings feels safe, what level of debt is acceptable, and what qualifies as a splurge. These conversations reveal deeper beliefs about risk and security. The objective is not to win the argument, but to understand each other’s reasoning.
Divide responsibilities, but build shared competence. One partner may enjoy the details while the other prefers strategy. Divide responsibilities accordingly, but avoid letting one person disengage completely, suggests The Gottman Institute.
Whether it is paying bills, managing investments, or meeting with advisors, both partners need to understand the accounts, obligations, and key documents. This includes access to the accounts in case of an unforeseen health event.
Turn conflict into collaboration. Disagreements are inevitable. One partner may prioritize experiences, while the other focuses on saving or upgrading practical needs. Rather than turning these moments into battles, the website theknot.com says to approach them as shared design challenges. Look for solutions that respect both security and enjoyment – perhaps adjusting the scale of a purchase or setting aside personal spending allowances.
When couples approach money as a shared strategy rather than a recurring argument, something powerful happens. Financial discussions stop feeling like threats and start feeling like planning sessions for a future you are intentionally building together.
