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Give Yourself the Present of Financial Presence
“Being present and sticking to your budget shouldn’t be limited to the holiday season. It’s a gift that keeps on giving throughout the year.”
As the holiday season approaches, there’s a palpable feeling of excitement — after all, it’s a time for celebration, togetherness, and giving! However, it’s also a time when spending tends to skyrocket, and financial stress can cast a shadow over the festivities. This year, consider giving yourself the invaluable gift of being present in your finances. The pressure to spend lavishly during the holidays can be overwhelming. From buying gifts for loved ones to hosting gatherings and decorating, the expenses can quickly add up. It’s easy to get swept away in the spirit of giving without considering the long-term financial
your resources wisely, plan for future expenses, and ensure you have enough to cover your needs and desires without going into debt. Studies show that roughly 35% of Americans took on debt last year to pay for holiday purchases and gifts. This holiday season, identify your financial priorities. What are the most important expenses? Is it the perfect gift for a loved one, a special holiday meal, or creating lasting memories with experiences rather than material items? Once you have outlined your priorities, you can set a total budget that includes everything from gifts and decorations to travel and entertainment expenses. Being present and sticking to your budget shouldn’t be limited to the holiday season. It’s a gift that keeps on giving throughout the year. So, as the end of the year nears, plan for tax season next year to ensure you don’t have any surprises, establish your 2024 budget, and take the reins on your spending habits. Embrace budgeting as a means to enjoy the festivities without the burden of financial strain. By doing so, you’ll not only create lasting memories but also lay the foundation for a financially secure future. Remember, the most meaningful gifts often provide peace of mind and the freedom to enjoy life to the fullest.
implications. Moreover, I read something the other day that piqued my interest. It stated that most families with a joint income of $150,000 a year are $500 away from bankruptcy. Upon further research, I found that many families with higher incomes would struggle to cover $500–$1,000 emergencies. To avoid falling into this scenario, it’s important to give yourself the present of presence in your finances. It’s paramount to look at your finances every year, pay down debt, and possibly create a “B” word — you know, a budget. Budgeting is a powerful tool that can help you stay in control of your finances, not just during the holiday season but year-round. Creating a budget allows you to allocate
DECEMBER 2023
From my family to you and yours, happy holidays!
-Ben Golden
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FINANCIAL ACC UNDERSTANDING THE DOJ
Outdoor Survival Tips Every
The Department of Justice (DOJ) mandates that all recipients of federal awards establish and maintain precise financial records while accurately accounting for the received funds. This requirement is crucial for organizations to effectively manage and track federal funds while complying with legal accounting practices. According to IRS Publication 538, titled “Accounting Periods and Methods,” every taxpayer must consistently employ one accounting method. Organizations lacking proper accounting methods encounter difficulties determining accurate tax obligations or tracking annual revenue and expenses. That’s why putting the correct accounting method to work is important! Let’s take a look at the different types of accounting methods.
Winter Sports Lover Should Know
Cash Method Income is recorded upon receipt, and expenses are recorded when paid.
Accrual Method Income is recorded when earned, and
Whether you love to hike, ski, snowboard, or simply live in a cold climate, you need to learn how to protect yourself from frostbite and hypothermia. You never know when you might be caught outside in frigid temperatures! Here are a few tips to remember in case you find yourself in a dangerous situation. 1. Find or build a wind shelter. Icy wind can slice through even the warmest winter gear and quickly sap your body heat. If you’re stuck outside in an urban area, you can shelter behind a wall. Some survivalists even recommend emptying a large trash can and climbing inside until the weather dies down because plastic is a great insulator. (Fun fact: Winter cyclists wear plastic “socks” over or under their real socks to protect their feet from the cold.) Trees can provide a natural wind shelter in the wilderness, or you can build a snow cave in a snowy, treeless area. Pile the snow around you into a drift, then burrow inside to protect yourself from the wind. Dig all the way to the ground if you can, and block most of the entrance to your cave with whatever you have on hand — a backpack, pine boughs, or more snow. 2. Protect your lungs from the cold. Breathe through your nose and cover your mouth with a scarf or other clothing. These steps will warm the air you breathe, prevent shortness of breath, and keep your core temperature up. 3. Melt snow before you eat it. You might be tempted to eat snow if you feel thirsty, but this can have a dangerous effect on your body temperature. Instead, melt the snow into water before consuming it. Ideally, you have a water bottle or canteen with you. Fill it with snow, slide it inside your jacket, and wait for your body heat to melt the snow. These tips aren’t a substitute for the basics like staying home in bad weather, wearing layers, packing survival gear, and learning to build a fire. But they can help you stay warm until help arrives!
expenses are recorded when incurred.
Homemade Eggnog
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ORP, OR LLC COUNTABILITY: J’S ACCOUNTING MANDATE Modified Accrual Method This combines aspects of both cash and accrual methods. Which method is right for you? Your selection should align with your organization’s nature and financial activities. Smaller organizations without inventory often use the cash method, while the IRS requires those with over $25 million in sales or inventory to use the accrual method. Changing your method requires IRS approval. It should be noted that federal award recipients must specify their accounting system (cash or accrual) on the SF-425 Federal Financial Report. Failure to provide accurate information on
this form may result in holds on federal funds and denial of payment requests through the Automated Standard Application for Payments (ASAP). We always recommend seeking our advice or the guidance of a certified public accountant to determine the most suitable accounting method for your organization, since many factors such as staff, state regulations, organizational size, and expansion plans come into play!
WIN OF THE MONTH Keep on Trucking
INGREDIENTS
CASE SNAPSHOT Client: Retired Wife/Ex-Wife Type of IRS Issue: Personal and Business Tax Year in Question: Multiple Years IRS Claimed Liability: $268,404.28 Savings: $263,501.75
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3 cups whole milk 1 tbsp vanilla extract
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2 cups heavy cream 1 1/2 tsp nutmeg
For topping •
3 eggs, room temperature
4 egg yolks, room temperature
Whipped cream Ground cinnamon
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1/3 cup sugar
Extra nutmeg
1/4 tsp salt
DIRECTIONS
Our client was content living off her retirement money while her husband started a trucking business. To contribute, she used some of her retirement funds to buy a truck for her husband’s business. Shortly after starting the business, her husband was in a terrible accident and has lived on disability ever since. The couple divorced, and our client was terrified because she was unsure what her total tax liability was with both the IRS and the state of California. We conducted an investigation and were able to give her the full “picture” of her liabilities and what she owes. Then, we negotiated a currently not collectible status with the state and the IRS. While in this status, the collection statutes ran out on $263,501.75 worth of older debt, bringing our client’s liability down to $4,902.53. This manageable amount will allow our client to keep on trucking for many years to come!
1. In a saucepan over medium heat, combine milk and vanilla, swirling occasionally until it starts to steam. 2. In a mixing bowl, beat eggs, egg yolks, sugar, and salt for approximately 5 minutes until the mixture is thickened. Slowly add milk and whisk to combine. 3. Pour the mixture back into the saucepan and cook over low heat, stirring for about 6 minutes. 4. In another large mixing bowl, place heavy cream and nutmeg. Strain egg mixture into the cream and cool in the fridge for at least 2 hours. When chilled, fill a glass with eggnog and top with whipped cream, cinnamon, and extra nutmeg!
Inspired by AheadOfThyme.com
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1 Harness the Power of Financial Presence 2 3 Tips for Surviving Freezing Temperatures INSIDE THIS ISSUE
Understanding the DOJ’s Accounting Mandate
3 Homemade Eggnog
Win of the Month 4 Will the Airbnb Crackdown Lead to Affordable Homes?
The Fall of Airbnb and Short-Term Rentals WHAT DO THESE BANS MEAN FOR THE HOUSING MARKET?
Almost everyone has stayed in an Airbnb or at least heard of the global short-term rental company. Since its inception in 2008, Airbnb has offered listings worldwide. The company has been providing budget options and, more recently, high-end lodging for every type of traveler. But the golden age of Airbnb may be over. U.S. cities have recently tightened restrictions on Airbnb hosts and anyone renting short-term accommodations. The reason is that Airbnb listings have caused local rent prices to skyrocket, especially in tourist destinations like New York City. According to
a “de facto ban” on these accommodations. In 2022, the city prohibited owners from renting out a unit for less than 30 days at a time without the host being present in the unit. Cities in California battling inaccessible housing have also released new regulations on Airbnb hosts. Even in San Francisco, where the company originated, hosts must be full-time residents and cannot rent out listings for more than 90 days a year. Dallas has been the most recent to establish regulations, asserting that all short-term rentals are banned from neighborhoods of single- family homes. Short-term rentals in communities with multifamily dwellings are still allowed but must pay the same taxes and fees as hotels. How will the housing market be affected? As the bans continue to roll out in cities worldwide, many hope this will bring more low-priced properties into the market. While plenty of talk about these changes may encourage real estate investors and homebuyers, the truth is that it might not make a difference. Experts say these short- term rental owners won’t simply start selling their property. Instead, they’ll work around the restrictions and likely transform listings into long-term rentals. Don’t get your hopes up!
Jorge González-Hermoso, a research associate at the Urban Institute, the Big Apple recently showed more Airbnb listings than actual apartments for rent. More tourists than established owners/renters were living in residential dwellings. Airbnb regulations vary. So, how are cities working toward preserving their communities? By implementing tighter restrictions that severely limit the types of short-term rentals allowed. New York City was one of the first to put what Airbnb called
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