$30,000 – that’s the average cost of setting up shop and starting your own business these days. It may not seem like much at first until you consider the competition for loans and the difficulty securing a hefty investment up front. When you’re unable or unwilling to seek loans from private lenders and banking institutions, your natural inclination may be to approach friends and families. Here are a few things to keep in mind, compliments of Ann Irons, a small business CPA in Bellingham, MA.

Weighing Your Options

Before you approach a prospective financier, consider the advantages and disadvantages you may encounter over the course of business:

Pros

• You’ve already established trust
• Fewer requirements must be met
• Subjectivity, or the “We know him; he’s a good guy” advantage
• Cash is usually received sooner
• Less paperwork

Cons

• Lender may expect to gain control over decision-making in exchange for funding
• Failure or delays in repayment can harm relationships
• Other perceived entitlements, such as free or discounted merchandise or services

They may not sit down at the dinner table with us or send letters from summer camp, but most pet owners consider their animals to be part of the family. This raises an interesting question. If we can claim expenses for raising children and providing care to other eligible dependents, can we also deduct expenses related to the care and maintenance of our pets? Absolutely, under certain circumstances, says Ann Irons, CPA. Irons, who provides financial planning and preparation of income taxes in Bellingham, MA.

Managing your finances requires you to strike the perfect balance of earning, spending and saving. It’s not an easy task, as evidenced by the fact that only half of Americans’ have savings that exceed their income for one month. For those whose savings are less than or equal to one month’s income, it would take only one month to deplete their savings entirely. Then what? Ann Irons, a certified public accountant in Bellingham, MA, explains that saving money is critical to your long-term financial stability, but that sometimes you must spend money to make money, and ultimately to save money. She goes on to discuss the benefits of using a CPA and the best way to get more for your money.

A Little Preparation Goes a Long Way

As head of household, the ability to make responsible, informed financial decisions determines the quality of life for yourself and your family. When things get hectic, poorly managed money could spell disaster. Fortunately, you have options for keeping tabs on your personal finances.