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Personal Finance and Handling Money – An Owner/Operator Mindset

Many people believe money is the embodiment of material wealth and allegedly personal freedom. Regardless of our sophistication and education, we are typically swept up with this misrepresentation. We seek financial well-being anywhere we can find it. Those of us without real cash reserves or large disposable incomes mistakenly replace what we lack in funds with expensive lines of credit. We leverage what we have in order to acquire what we seek to possess.

Unfortunately many of us confuse what we want with what we believe we need. We accumulate indiscriminately. We oftentimes compound matters by purchasing material goods that have little or no long term value with leveraged cash obligations that increase over time. Herein is the beginning path of many a person to their eventual financial doom. Unfortunately in order to accumulate wealth in our society, we need capital. We need to grow our money through investments of appreciating value; we need discipline, luck, time, and a particular mindset.

Our personal response to money determines how successfully we can use it to the best advantage. Notice how the inherent concept in this last sentence was to USE money toward some further end. Money does not, in itself, give us wealth and freedom; it is actually only a vehicle to achieve it. We need to understand the emotions that affect our decisions about how we use money in order to improve ourselves and gain a greater prosperity and well-being. Few people would argue that if we ran our lives like a home-based business, our emotional approach as a successfully owner/operator to money would probably have a more utilitarian perspective.

The secret here is that money looks different to a business person; “capital assets” are used to finance business goals. Money is a “means” to some “end”. It is not typically perceived as personal reward. The successful sole proprietor of a home-based business tends to mentally separate what is in their “pocket” from what is in the “business operating account”. Similarly, lines of credit leverage the business’ capital resources to increase future financial returns. Responsible management means anticipating investment returns that will exceed the total costs of the credit used. If you run your life like a successful home-based business, you don’t charge your personal 10-day vacation on a credit card! Think of yourself not as consumer but potentially a producer of value. You take a 10-day business trip and, while there, develop new business contacts. Cash expenditures serve some financial purpose and are routinely goal-directed; money is spent to build value rather than just spend cash. This change in mindset especially in these hard times is a critical secret if one wants to gain financial success and personal freedom.

Appreciating the Critical Role Played by CPAs and Accountants

Large businesses today increasingly require professionals who can bring together knowledge from multiple resources to address tactical business problems and help develop new business models. This fact provides new break-throughs for accounting professionals who can bring new value in a global, growing and free economy. There is an urgent need for Accounting professionals who are not only trained in the normal accounting standards but also possess the leading integrative and hi-tech competencies with multi-disciplinary knowledge and skills.

Amongst the two genres of accounting- general accountants and CPAs, there lies a substantial of demarcation among the two. Where a general accountant is involved in preparing the disclosures about the various financial letters necessary to assist the executives, regulators and funding sources make better calls; a Certified Public Accountants (CPA) can manage a number of jobs and tasks. CPAs provide advanced income tax preparation and service for a range of customers including individuals, small businesses and corporations. Accountants also perform intermediate-level business consulting work. Depending on the state in which they reside, to maintain their license, every three years CPAs must take up to 200 hours of continuing education courses in order to stay current of changes in their profession.

It is known that all CPAs can be accountants but all accountants can not be CPAs though the two terms are mistakenly used interchangeably. The job and responsibilities of CPAs is considered to be complex than that of accountants. The fact is that no matter what the specific responsibility or the difference between their functions is, they all serve as a primary resource for advice and/or consultation with respect to business matters and financial advice. CPAs can operate in virtually any area of finance including forensics, initial public offerings, corporate governance, preventing, detecting, and investigating financial frauds, finance information technology, especially as applied to accounting and auditing and performance management and other funding.

As you are most likely aware, accurately prepared financial statements are a crucial part of any business endeavor and it calls for the services of highly qualified professionals to do the job. Locating a professional CPA or accountant is a challenge but the process can be made simpler if you do some of preparation. Achieving CPA status takes work, smarts, ethics, and a lifelong commitment to learning. It all begins with countless of hours of some of the toughest business courses at any college or university. Then, after graduation and a year of professional work under the guidance of another CPA, candidate CPAs must pass a thorough test of their business, auditing, and general accounting skills. Their training and unique knowledge perfectly positions them to function as financial managers and strategists, often serving as chief financial officers for medium to large-sized businesses. Other attributes may include the moral ethics defining the trustworthy nature of the candidate and his dedication towards the job.

If you are in search of a professional accounting specialist (CPA, accountant or bookkeeper) in Austin or central Texas, then Austin-Accountants.com is the answer. They are a recognized accounting advisor firm and can help you find the right professional who will protect your interests and your financial assets.