Budgeting and Planning: How an Accounting Firm Can Help You Create a Strong Financial Foundation

If your goal is to begin managing your finances better – which should be a goal for everyone – it’s important to brush up on your budgeting skills. From here, you can set goals and determine ways to achieve them. But where to begin? Not everyone has skills with spreadsheets, and Excel may help you balance the numbers, but it’s not going to be able to make financial planning suggestions or offer tips based on best practices. 

The Benefits of Tapping an Accounting Firm’s Expertise

If you’re serious about budgeting and financial planning, an accounting firm is a good start, even if it’s just for occasional consulting. Even if you plan to handle your finances yourself going forward, a financial planning and accounting business can help you in a number of ways by putting you on the right track toward better financial stewardship. Following are some ways professional financial planners can help you. 

They can aid you in creating a realistic budget. At its core, budgeting involves the following activities:    calculating your net income, listing your monthly expenses, identifying fixed and variable expenses, determining average monthly costs for each expense, and making adjustments as needed. In reality, many of us tend to overestimate our income and underestimate our expenses. It’s also hard to know how much flexibility to build into a budget so we can absorb unexpected expenses, and when and how to add factors such as inflation. A professional financial services company can examine your income and your expenses and guide you in building a realistic budget and budgeting process that works for you, whether it’s via software or spreadsheet. 

They can help you develop realistic financial goals. Humans tend to get overambitious in their financial goals and feel like failures when they realize they can’t meet them. This can be discouraging and affect your ability to build wealth. The solution is to use the expertise of a financial services consultant to set realistic goals so that you can feel like you’re accomplishing your benchmarks. 

They can outline strategies for achieving your goals. Once your goals are set, an accounting firm can help you create strategies for achieving these goals. This might include trimming unnecessary expenses, boosting your income, investing better, taking advantage of lower interest rates or debt consolidation, and a realistic savings plan.  

They can advise you on taxes. Your financial decisions, including what you spend and what you save, will affect your taxes in different ways. It’s important to keep an eye on taxes when you make financial planning decisions because you will want to minimize your tax burden and maximize the amount of money you keep. A financial services professional can help you go over your plans and understand the taxation implications, then recommend ways to reduce your taxes. DOAAR is a small business bookkeeping, tax and consulting services firm, with an additional focus on its clients’ personal finances. Specializing in bookkeeping, controller, and CFO services, DOAAR’s offering spans daily accounting, month-end closing, complex financial modeling and oversight. From execution to analysis and strategy, DOAAR provides clients with a powerful and fully integrated back-office accounting solution. We have locations throughout California and the rest of the U.S. For more information, visit our website or call 888-405-0880.

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