There are people who get great satisfaction from taking care of the day to day functions of managing the bills, storing important receipts and documents, and keeping things organized so when tax time rolls around again everything is organized and can simply be pulled out so they can do their taxes or to their tax preparer. They get a big grin on their face(s) when the subject comes up and are ready to provide all kinds of helpful hints about how they are “masters of family accounting universe” and can readily provide data on income and expenses with virtually no advance warning.
But not everyone feels the same way about getting these chores done on a regular basis. Some are busy with careers and avocations and the time available for such tasks comes at a premium. The time spent on more mundane functions as organization and paying bills can seem like a low payoff activity and the focus and attention should be elsewhere. In many cases they are correct and the focus on their time may likely be more effective elsewhere.
For some the very idea sends them into a depression about needing to get caught up. Usually some crisis is the motivator such as getting information for taxes or refinancing a mortgage. Periodically the emotional wave of “I need to get a better handle on things” creates a sense of pressure to be more aware of what’s going on. Some recognize getting it done is a bigger priority than whether they do it or not.
Those who travel extensively also find taking care of finances more difficult. While somewhat easier with Internet capabilities one must transact business over connections that may be less secure and sometimes nonexistent.
Aging is an issue as well. A spouses death can leave the survivor who has never had to deal with the finances in a vulnerable place. Never having the need to deal with the finances can leave the survivor frightened and that can lead to emotional decisions that may not serve their interests. In other cases the ability to do the job may also be a factor. Eyesight and mental capabilities may deteriorate and with it the ability to complete the tasks they have completed with total confidence previously.
A Family Accounting Service can provide the following benefits:
- Bills evaluated for proper amount and then paid
- Receipts categorized and stored electronically for easy retrieval
- Tax deductible items are organized and delivered when authorized and requested to tax preparers.
- Records established and maintained for asset purchase and tax records
- Improvements to home added to home cost basis
- Tax records for depreciable assets
- Records maintained for maintenance and repairs
- Current tax projections prepared
- Comparison to current withholdings and estimates
Family accounting is not a service that everyone needs and it is not an inexpensive service to avail yourself of. That being said it is invaluable for those who need it. It can make the difference between being stressed out over finances and having the ability to enjoy life and the resources that have been accumulated. White Oaks Wealth Advisors offers family accounting services. Please feel free to contact us with any questions.