Financial Flipside

The last two weeks have been a bit of an economic whirlwind, with the US imposing steel and aluminium tariffs on Canada, the EU, and Mexico, a move that has driven US-Canadian relations in particular to a new low as Canada imposed its own tariffs on American goods. Just yesterday, the US launched another salvo in its ongoing trade conflict with China,  threatening to place tariffs on a wide range of goods valued at around 450 billion dollars. This has resulted in a steep decline in stock prices and has provoked anxiety across industries. All of this antagonism has pushed the US to the brink of a trade war.   In this episode, we engage in some trade talks of our own. Specifically, we try to answer three questions: Why is this happening? What is a trade war? Why should we, as regular citizens, care about politicians arguing over billions of dollars and unfathomably large quantities of  goods? We also talk about manufacturing, nostalgia, and the future of the US economy.   Mentioned on the show:   Protectionis

For relatively small  bits of paper and metal, money carries a lot of weight. It is (supposedly) both the root of all evil and the key to happiness In our particular capitalist society, we both venerate and distrust people who have managed to acquire a lot of money. It is at once a source of anxiety and a source of comfort.  In short: our relationship with money is complicated.   In today’s episode, we engage in literal #realmoneytalk. We discuss the history of money, its power in our lives, and how the almost mystical power we’ve ascribed to money can make it really hard to talk about. We also touch on the consequences of not talking about money because it’s scary or taboo or because we don’t know how. We can’t promise to demystify money in half an hour, but we do have some practical tips for building a less fear-based relationship with the contents of your wallet.   Mentioned in this episode: Money makes the man. The history of money Who decides how much money is worth? What causes currency to change in

What is cash flow? Put simply, it’s the money (cash and cash-equivalents, so CDs, shares of equity, government bonds, bank accounts)  coming into and going out of your business. It’s an easy enough concept to understand, but day-to-day cash flow management is the Achilles’ heel of many a small business. A study by US Bank found that 82% of all failed business are undone by poor cash management. Admittedly frightening statistics aside, there are a number of reasons for small businesses to care about cash flow. In the first half the episode, we discuss what cash flow awareness can do for your company, where to look for cash flow information, and how to understand what you’re seeing.   We generally talk about cash flow in a business context, but it's equally important to keep on top of the movement of money in and out of your life and personal bank account. In the second half of the show, we chat about applying cash flow management principles to your personal finances, including budgeting, expense planning, and

After our tax reform detour in Episode 7, we’re back to talk a little more about credit. Specifically, we discuss business credit: how it differs from individual credit, some of the different types, and how and when to use it. If you’re concerned about balancing funding sources, or wondering what the SBA actually does, this is the episode for you.   Mentioned on the show Types of business credit scores Types of business credit The ins and outs of the Small Business Administration Pros and cons of SBA financing Other sources of financing, including grants, crowdfunding, angel investors, and venture capital.   Bonus: the  tax consequences of crowdfunding

In today’s episode, your hosts issue a joint mea culpa…about the Tax Cuts and Jobs Act. In our most recent episode on tax reform, we expressed doubt that the bill would become law, largely because of how far apart the House and Senate bills were. You can imagine our surprise when Congress actually managed to pass its first major piece of legislation by the end of 2017. We are  already starting to the see the effects in the form of new W-4 forms and a new withholding calculator, and  the IRS continues to provide updates and guidance as new rules are established. We won’t be able to assess the real impact of the new tax law until after tax season (you can definitely expect a follow-up  episode), but in the meantime, we outline the key features of the law and speculate about the impact of  the TCJA for business and individual taxpayers, both in terms of liability and in terms of the wider social repercussions that always accompany changes to the tax code. Join, us won’t you? Mentioned on the show: Impacts on

Join us as we take a look at credit: its history, why we are so invested in it, how it fits into the economy at large, and how to best make use of it.   Mentioned on the show: A history of credit from Ancient Sumer to the present An outline of how consumer credit works A lot of how we think about credit is embedded in the origin of the word, which implies a relationship of trust or belief. The relationship between credit, inflation, and wages Why debt isn’t necessarily the enemy Why we should change our thinking about the role of credit in our lives. Is bail the new debtors prison? Inequalities in access to credit, as exhibited by things like differences in mortgages If you've missed an episode, you can find them on our website,  via Apple Podcasts , or Google Play. Bonus: A 2009 study examined how things like appearance affect perceptions of creditworthiness  

In our last episode, we discussed the high-level overview of the House's tax reform bill. Now that both the House and Senate have released their versions of the Tax Cuts and Jobs Act, we thought that we would revisit the topic. We give a rundown of the business and individual tax features of the House plan,discuss how it differs from the one in the Senate, and talk about why tax reform matters beyond your bottom line. We also have questions...lots of questions.   Note: this episode was recorded before the House passed its version of the bill. This article breaks down the remaining differences between this version and the one in the Senate A bit of housekeeping: You can now subscribe to the Financial Flipside on Google Play and Apple Podcasts! If you prefer RSS, our feed is here. Mentioned in this episode: An overview of the House plan How the House plan will affect businesses and individuals How the Senate plan differs, and some possible reasons why Bonus: How Will the Senate Tax Plan Affect You? A

This week we talk about one of life’s two certainties: taxes. Specifically, we have a lively discussion about the recently-released Republican tax plan. In addition to covering the plan’s major points and some of its implications for taxpayers, we discuss the history of taxes, how taxes work today, and why size matters when talking about small businesses and tax reform.   Mentioned on the show:   The high-level version of the Republican tax plan If you prefer visuals, the NY Times outlines the plan in 6 charts A brief history of taxes in the US An IRS survey finds that 90% of Americans see  paying taxes as a civic duty Part of understanding how tax reform will impact you involves knowing the difference between tax rates and tax brackets The impact of the plan on small business owners may depend on what we mean by small business, which can vary widely by industry   Bonus: What do small business owners think of tax reform? It depends on who you ask. A bit of a blast from the past: Greece illustrates on

In episode 3, we continue our wealth discussion, but with a focus on small businesses. We talk about what drives our entrepreneurial aspirations, the difference between having a job and having a business, and how to set your company up for the long haul. Specifically, we discuss the importance of processes, getting well-acquainted with your finances, succession planning. Finally, we talk about resources for learning about enterprise building if you don’t have access to a business consultant, CPA, or financial planner.   Note: We’re moving to Mondays! We will still be posting episodes every two weeks, so join us on October 23 for more real money talk. Mentioned in the show: SCORE For more information about working on your business vs. working in your business: The E-Myth SizeUp, the Small Business Administration’s industry benchmarking tool Process Management: We use Jetpack Workflow, which is especially for accountants and bookkeepers.. This article has a roundup of other software to help create and manage

What is wealth, and why is  talking about it so difficult? Our second episode covers the difference between wealth and riches, barriers to discussing and building wealth, and some ways to save and invest in light of these obstacles. As mentioned at the end of the show, we want to hear from you: (how) are you working on building wealth? What has worked? What hasn’t? Do you have any wealth-building questions? If so, ask us on Twitter (@HeywardCPA) or Facebook (facebook.com/heywardcpa) Mentioned on the show What is Wealth? A recent study finds that the median wealth of Black (and more slowly, Latinx) people in the US is trending toward zero *^ A selection of saving and investment apps: Acorns, Digit, Stash. *Note: on the show, we said that, with a median wealth of zero, 50% of Black or Latinx  people would have 0 wealth and %50 would be in debt. Correction: 50% of Black or Latinx people would be in debt or have zero wealth, and the other 50% would have $1.00 or more in wealth. ^This article lacks

In our pilot episode, the Financial Flipside tackles starting out...in business, that is. We cover planning, managing your finances, and our collective love affair with entrepreneurship. We also  share some of our favorite small business resources.   Mentioned on the show:  Research: Writing a Business Plan Makes Your Startup More Likely to Succeed (Harvard Business Review, July 14, 2017)  Fundera: www.fundera.com  SCORE: https://www.score.org/  IRS Small Business and Self-Employed Tax Center: https://www.irs.gov/businesses/small-businesses-self-employed  Bplans (LivePlan’s business blog, which has lots of business planning resources): http://www.bplans.com/  Plus a bonus  https://www.xero.com/us/resources/small-business-guides/ Xero’s Small Business Guides https://www.xero.com/us/resources/small-business-guides/checklists/starting-a-business-checklist/