Question and Answer

Question:

I have a couple side gigs and my only bookkeeping record is my checking account and charge cards. Where do I start to make tax preparation easier?

Answer:

With the higher standard deduction, it may or may not make sense to track expenses for the purpose of tax deductions. You can track expenses and save receipts using various software packages or smartphone apps. Your tax advisor can help you make these decisions. Remember to pay estimated taxes quarterly. It is recommended that you keep business and personal accounts separate.

Question:

How can I improve my credit score?

Answer:

Poor credit can raise your borrowing costs or eliminate your ability to borrow altogether, and it can even disqualify you from employment opportunities. To improve your score, start by understanding your problem. Do you make late payments or carry too much debt compared to your overall credit limit? Make it your mission to pay every bill on time. A recent history of on-time payments will help improve your score. If you carry too much debt, stop spending and start paying it off. Creditors want to see responsible customers. Don’t add to your debt. Applying frequently for new cards or loans can also hurt your score.