Money Management Intelligence | Gold, Stocks & Crypto Investing

Investing in Cryptocurrencies

Cryptocurrencies are an alternative to fiat currency that use advanced cryptography techniques and they allow for secure transactions on a blockchain, or distributed ledger. This technology prevents double-spending by ensuring that transactions are recorded in a secure way and crypto currencies can be traded for a variety of different things.

Physical high-value commodities such as gold and silver are considered to be excellent alternatives to fiat currency. These commodities have been around for centuries and are easily portable. Unlike fiat currency, these physical assets are not tied to a government, so they don’t lose value. Another great benefit of these commodities is that they are divisible and durable.

The popularity and adoption of digital currencies is growing. As a result, investors should consider all their options. This will allow them to make informed decisions regarding their investments. This article will give you an overview of the main alternatives. The following discussion is not comprehensive, but will serve as a starting point.

Where to start

If you are a beginner to cryptocurrency and are unsure of where to invest, consider getting a financial advisor to help you get started. While some financial advisors are comfortable with digital assets and blockchain technology, they aren’t necessarily experts in this area. To be truly effective in their role, advisors should be familiar with custody, taxation, and trading. and shoud be able to discuss the value of a crypto asset in terms of its value, so do find out if they have experience in crpyto investing. While the crypto market is considered to be speculative and volatile, getting a financial advisor to help you invest in crypto is an excellent way to protect your money and make sure you get your money’s worth.

Financial advisors have traditionally been hesitant to incorporate cryptocurrency into their client’s portfolios. However, a recent survey by Cerulli Associates found that 45% of financial advisors expect to use crypto in the future. Another 10% are currently using cryptocurrency, primarily due to requests from clients.

They can also help you understand cryptocurrency and its tax implications and the different types of investments available to you to help you reach your financial goals. They can also help you decide if investing in crypto is right for you. However, it is crucial to remember that you should invest only with the amount of money you can afford to lose.

A financial advisor is also aware of the risks and hazards of investing in cryptocurrencies. Some of the potential risks include the possibility of loss of capital and tax reporting obligations. Depending on how your crypto investment performs, a financial advisor can advise you on the best strategy and will also be able to help you determine whether it fits into your overall portfolio and if it will help you or hinder your financial goals.

Investing through a broker

Investing in Crypto through a broker offers a range of financial services. A broker will fill your order by specifying the type of coin and amount you want to purchase. The broker will then deliver the coins to your private or web wallet. It’s important to do your research and choose a broker that is regulated by a regulator.

A good broker will be able to offer competitive commissions and fees. You’ll also have access to specialized resources relating to the digital currency. While a broker can be a valuable tool in investing, you might want to consider diversifying between multiple brokerages. This can help you keep your low-risk investments separate from those with higher-risk investment requirements.

There are several brokers that offer cryptocurrency trading. Robinhood is one of the most popular brokers. Its onboarding process is fast and simple. It’s also important to note that you don’t need to buy a whole coin to trade it. You can invest as little as $1. The most popular crypto coins for trading on Robinhood are bitcoin, Ethereum, Litecoin, and Dogecoin. The platform also offers crime insurance and zero-percent commission fees.

Transaction fees are another key consideration to keep in mind. Most brokers charge around 0.5 percent of the value of your crypto assets. Depending on the platform, this can add up. Some brokers also charge fees for deposits and withdrawals although these fees vary by currency and exchange and are usually relatively small. Moreover, some brokers offer margin trading, where you borrow funds from the exchange. Margin trading, however, carries additional fees and interest.

It’s important to note that investing in crypto has many risks. As with any investment, it’s crucial to understand your risk tolerance and investment goals. Ultimately, you should decide on a platform that suits you best. And don’t forget to take care of your safety. You never know when hackers may target your personal information.

While investing in crypto can be a good way to diversify your portfolio, you should still take precautions to minimize risks. Remember, the crypto market is volatile. It’s also important to keep in mind that you don’t want to invest any money that you can’t afford to lose. You should also use a good antivirus software to protect yourself from online threats.

Investing directly in crypto

Investing in cryptocurrency can be a risky endeavor, which can be seen form the volatility it has experience this year. Experts recommend investing small amounts over a long period of time. You should also monitor the performance of your investment as compared to larger companies’ stocks, cryptocurrency may fluctuate more. Investing small amounts in crypto will allow you to keep a close eye on your investments.

One way to invest in crypto is to buy shares in a crypto index fund. These funds hold a variety of cryptocurrencies and then sell shares to investors. The shares of the crypto index fund can fluctuate in value relative to the value of the underlying digital assets. The price of your shares depends on demand and supply.

You can also invest directly in crypto by investing in companies that generate value from blockchain technology. While there are a number of risks with this approach, it is possible to generate significant returns. For instance, a single Bitcoin was worth only $414 in early 2016, and hot a high of $61k in Oct 2021. Such a return is nothing to sneeze at. In addition, you can still make noticeable profits by playing the market sensibly.

In addition to investing directly in cryptocurrency, you can also invest in the infrastructure of the crypto industry. This includes mining companies, exchanges, and blockchain developers. Another way to invest in cryptocurrency is to speculate on future cryptocurrency futures. By trading in cryptocurrency futures, you can hedge your bets on the direction of the asset. By making a primary trade in one direction and a secondary trade in the opposite direction, you can avoid losses and maximize your returns.

However, investing in cryptocurrency requires research. Successful investors only invest in assets they understand and can afford to lose. Furthermore, you must carefully consider the percentage of your portfolio that you can allocate to it. Remember that a larger percentage of your portfolio will be at greater risk, but it will also yield higher returns.

Tax

How to find a good QuickBooks or Xero accountant

As a small business owner, you cannot underestimate the value of each dollar. Meticulous accounting will help you determine the viability of your business.

You may choose to use one of the many accounting software available online. But you’ll reap more benefits when you hire a professional accountant.

An accountant will provide the following services:

account and record-keeping,
business advisory services,
tax advise, and
auditing services

So, how do you find the right Quickbooks or Xero accountant?

Let’s find out below.

7 Essential steps to choosing a good accountant

Determine the Key qualifications you need

What services do you need from your accountant? The answer to this question will help you determine the qualifications you are looking for in an accountant.

You can hire a non-certified accountant to handle business financial statements and bookkeeping. But for in-depth tax advice and financial analysis, you need an accountant who is certified and licensed. You can go for a certified professional accountant (CPA) or certified management accountant (CMA). Both CPAs and CMAs have business experience and are required to obtain continuing education credits.

Apart from certifications, go for accountants who have some experience in your industry.

Find a referral

Most experts agree that the best way to find an accountant is by getting a referral from other businesses, your colleagues, friends, or attorney. Ask about their accountants and whether they are satisfied with the services provided. You can also get a referral from the Society of Certified Public Accountants in your state.

Check out the referrals

Perform a careful analysis of your candidate’s resume and certifications. Ask for client references. Call the clients to determine if they were satisfied with the services offered. You can also do a background check and look online to see if there are any complaints about the candidates you choose.

Determine how much work will be done by the accountant

The volume work you need the accountant to handle is a crucial factor when choosing the right QuickBooks or Xero accountant. The work will also determine if you’ll hire a fulltime or part-time accountant. You can divide accounting services into

Recording and assembling business transactions
Generating returns
Generating financial statements

Interview the Referrals

During the interview, confirm the range of services that the accountant offers and communicate about the services you need.

Additionally, ask about their availability and their preferred working location. Find out if they have any questions for you.

Remember, an accountant needs to be someone you can trust with your money. A good one will save you money and help you grow your business.

Evaluate your compatibility. Check out the accountant’s personality and find out how they will handle financial issues in your business.

Here are some questions that you can ask during the interview:

Are you a CPA? (Not every accountant is certified)
What degrees have you earned?
When did you receive a license to practice?
Where are you licensed to practice?
What’s your area of specialization?
Who are some of your clients?

Confirm the rates and fees

Many accountants charge by the hour. But if they are part of a firm, they might charge a monthly retainer. You can get quotes from different accountants and estimate annual charges. Remember that higher fees usually mean more experience, which translates to more efficient services.

Spell out the terms of the agreement

After choosing an accountant, draft an engagement letter that shows the details of the services to be offered, including preparation of returns and financial statements.

Regularly meet with your accountant to review your financial statements. Go over the numbers and identify cost-cutting opportunities. You can make your accountant’s work more comfortable by maintaining a good record of your checks and income sources.

Tax

Benefits of Small Business and Tax Advisory Accountants

As a small business owner, realizing profits is a top priority. You are always looking for ways to cut expenses. As a cost-cutting measure, many small business managers avoid hiring accountants. These managers figure that they can handle the financial paperwork without any trouble.

Unfortunately, in the long run, not hiring an accountant can be costly. Small business accountants do not just fill and file forms. A good accountant will help you grow your business by providing valuable information on strategic financial planning. Professionals will also manage your tax return account and save you lots of money in taxes.

In this article, we look at several reasons why you should look at utilising the services of a tax advisor.

But first here’s an important question.

How much will an accountant charge to do my business tax returns and personal tax return services?

Tax preparation prices vary by region, depending on the size of a business and the number of services that will be required.

Most tax preparers will give you a customized quote.

According to SCORE.org, a small business nonprofit organization, small business owners spend $1000 to $5000 on accounting costs.

According to the National Society of Accountants, for the 2018-2019 tax season, the average cost of having an accountant prepare a federal Form 1040 income tax return was about $200 for the most straightforward returns.

Here are the benefits of hiring a small business accountant

1. You save time and money

It’s no secret that filing tax returns can be a tedious and time-consuming process. Trying to beat the deadlines and file accurate returns can leave many small business owners stressed out. By hiring an accountant, you can have more time to concentrate on your business.

Tax advisory accountants will ensure that you don’t miss any tax return deadlines so that you can avoid penalties. Plus, they will check all your documents to ensure that your returns are accurate. You can avoid refilling taxes because of errors in your forms.

You can try tracking how much time you spend filing and keeping track of your tax returns. Compare the time spent with your hourly rate. Check how much you would spend on an accountant per month. Most often than not, it is cheaper to hire a professional to handle your taxes and compliance issues.

2. Reduce your tax liability

As your business grows, you’ll want to reduce your tax liability. A professional accountant will advise you on how to run your business in the most tax-efficient way so you can save money.

You’ll need to learn how to maximize your tax deductions. This will involve keeping track of every single expense throughout the year so that you can identify potential deductions. Without an accountant, it’s challenging to track and account for the essential things like depreciation and out-of-pocket expenses. Accountants will help you strategically plan for year-end deductions.

Because of their in-depth knowledge of the tax regulations, accountants will help you work out tax-saving strategies. Such strategies include timing income to lower taxes, tax credits, and funding pension plans. With a good accountant, you can take advantage of tax law changes.

3. You get strategic financial advice

Apart from offering tax compliance services, a professional accountant will give strategic advisory services to help you make critical financial decisions for your business. You can consult them before investing in high-value assets. They will advise you about the implications of hiring more employees. Accountants will also help you with budgeting and monitoring cash flow. Plus, you will get advice on the best legal structure for your business.

4. You will plan for the Future

Building a sustainable business is not an easy task. You need to take the time to plan for the future of your business. Unfortunately, day-to-day business operations can keep you preoccupied. An accountant can look at the big picture and help you set financial goals to grow your business.

By examining your financial data and records, accountants will advise you on how to stay viable and competitive. You’ll know when to buy inventory. You can determine the best time to make big investments.

You don’t have to be alone at the end of the year trying to make sense of a pile of invoices and receipts. You can partner with an accountant who will provide expert guidance on your finances so that you can build a successful business.