busted

Accounting Myth

Truth:

While this isn't necessarily untrue, it is more than just handing it all over to your accountant and expecting everything to be easily fixed. Our team is here to provide advice and clarity on money issues, we can put your tax affairs in order, and help you find ways to cut costs, BUT it is ultimately up to you whether your business succeeds or fails. Our advice? Put in the time and effort now, and have an accountant supplement your success.

Financial Myth

Truth:

Market drops are no fun to be a part of, but they are a part of the normative economic cycle. In fact, we've experienced 10 bear markets over the last 40 years. While our natural human reaction is to want to decrease risk and take chips off the table during a down market, history shows us this is not a good idea.  It is impossible to perfectly time the market and know when to pull our funds out and put them back in.  Data shows us that if we miss just a few of the top-performing days, it has a drastically negative impact on our portfolio.  Although it can be difficult to watch account balances drop, the proper approach is to maintain the correct allocation for your situation over a long-term time frame.  For some people, it may even be prudent to take on more risk in a down market.  This is, of course, situation-dependent.

Financial Myth

Truth:

While spending and savings are one of the major areas included in a financial plan, it is only one part to the bigger plan. A budget is specifically designed to track your spending and savings habits, helping you become more efficient with your personal cash flow. A financial plan on the other hand, encompasses all of the areas of your financial life—savings, spending, income, and housing, to insurance, estate plans, and retirement.

Accounting Myth

Truth:

It is not only important to have separate bank accounts for personal and business expenses, it is essential. By separating the two, you make yourself less likely to be audited and even if your business does go through an audit, separate business finances provide a clear audit trail that will make the whole process much smoother.

Financial Myth

Truth:

Here at Lockshield Partners, we understand the struggles and needs that life throws at you. We want you to use your money wisely but we also understand that life is for living! Our goal is to not make you miserable until you retire, but to instead utilize your money so that you can enjoy your life in every stage.

Accounting Myth

Truth:

Truth: Your accountant should be a resource, not a catch-all. While they keep track of the books and file taxes, they can–and should–do much more. The bread and butter of what we do is much more involved. By acting as consultants and small business experts, we are able to help you with business advice, guide tax plans, ensure compliance, look into financing and credit possibilities, manage cash flow, and find ways to reduce your overhead expenses while protecting assets etc. With that being said, we still want and need you to be involved firsthand in order to understand how the business is doing overall.