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How to Save for a House While Investing for Retirement

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Real estate or property investment. Home mortgage loan rate. Saving money for retirement concept. Coin stack on international banknotes with house model on table. Business growth backgroundSaving for a house and investing for retirement are two of the biggest financial goals many people pursue—but trying to do both at the same time can feel like a balancing act. One requires upfront cash for a near-term purchase, while the other is a long-term investment in your future. How do you prioritize one without sacrificing the other?

The truth is, with the right strategy and discipline, you can save for a home while also building your retirement nest egg. Here’s how to make both goals work in tandem.

Step 1: Define Your Goals Clearly
Before you start juggling savings priorities, get specific about your targets:

  • Home goal: How much do you need for a down payment? When do you want to buy?
  • Retirement goal: How much do you want to retire with, and at what age?

Write these down and give each a timeline. This helps you stay motivated and make informed decisions about trade-offs along the way.

Step 2: Build a Budget That Reflects Both Goals
Treat both goals as line items in your budget. Your monthly income should cover:

  • Essentials (rent, utilities, groceries)
  • Minimum debt payments (if any)
  • Retirement contributions
  • Home savings contributions
  • Emergency fund (3–6 months of expenses)

If there’s not enough room to fund both goals, look for ways to cut expenses or increase income before you sacrifice your future savings.

Step 3: Start with Your Employer’s Retirement Match
If your employer offers a 401(k) match, prioritize contributing at least enough to get the full match. That’s free money—and passing it up is leaving part of your paycheck on the table.

Once you’ve captured the match, you can redirect additional funds toward your house savings.

Step 4: Open a Dedicated House Savings Account
Keep your house fund separate from your checking or emergency savings. This could be a high-yield savings account or money market account—something safe, liquid, and earning interest.

Avoid investing this money in the stock market if your goal is within the next 3–5 years. Market volatility could derail your plans just when you’re ready to buy.

Step 5: Automate Your Contributions
Set up automatic transfers for both retirement and house savings. Treat them like bills that must be paid every month. Automation removes the temptation to spend and ensures consistency.

Step 6: Consider Retirement-Friendly Ways to Fund a Home
If you’re short on a down payment but have money in retirement accounts, you may have options:

  • IRA withdrawal: First-time homebuyers can withdraw up to $10,000 from a traditional or Roth IRA without the 10% early withdrawal penalty (though you may still owe income tax on traditional IRA funds).
  • 401(k) loan: Some plans allow you to borrow against your 401(k) and pay yourself back over time, with interest. But tread carefully—if you leave your job, the loan may be due immediately.

These should be last-resort options. Withdrawing retirement funds early can hurt your long-term growth and future security.

Step 7: Reevaluate Regularly
Life changes—so should your plan. Every 6–12 months, revisit your goals, your progress, and your budget. If you get a raise, bonus, or reduce expenses, consider increasing contributions to both funds.

Also keep an eye on changes in mortgage rates, home prices, and retirement account performance.

Final Thoughts
It’s not easy to save for a house and invest for retirement at the same time—but it is possible. The key is to create a plan that honors both goals, stays flexible, and makes the best use of your financial resources.

Think of your future home as a stepping stone, and your retirement as the foundation for long-term freedom. With steady effort and smart planning, you don’t have to choose between them—you can build both, one dollar at a time.

Tired of Typing? Use Recurring Transactions In QuickBooks Online

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Close up image photography of a human hand in action with computer keyboard. Illustration image of people working too hardQuickBooks Online is good at saving you time and keystrokes. Here’s another way it helps avoid duplicate data entry.

Accounting is a repetitive process. As you prepare invoices and receipts and bills, and other sales and purchase forms, you undoubtedly grow weary of typing the same information over and over. Customer and vendor names, addresses, product and service descriptions – you practically memorize these details if you have to enter them frequently.

QuickBooks Online does that memorization for you. Once you’ve entered a detail like a customer’s shipping address or the cost of an item, you never have to supply it again. You only have to select data from lists when you’re creating a purchase order, for example.

But the site goes further. If you have to enter transactions on a regular basis that are identical or nearly identical, QuickBooks Online allows you to save them as recurring templates. When it’s time for them to go out, it gives you options for dispatching them depending on the need for any tweaking. Here’s how it works.

How Do You Make Transactions Recur?

The process is very simple. You start by creating a transaction that you’d like to repeat at intervals you specify. For example, you might send monthly invoices to some customers for lawn services. Enter the invoice details like you normally would, selecting a customer and the item or service descriptions and any other information that needs to be included.

When you’re done, click the Manage icon in the upper right, scroll down in the panel that opens on the right, and click Scheduling, then toggle on the button next to Make invoice recurring. In the Template name field, give it a descriptive name that you’ll associate with the invoice. Then click the down arrow in the field under Type.

QuickBooks Online gives you three options for managing your recurring transactions.

There are three ways you can ensure that the invoice goes out at its specified interval. They are:

● Scheduled. If you select this, your transaction will go out as scheduled with no intervention from you. Only the date will change. We urge caution with this one. Be sure you won’t want to change anything.
● Reminder. QuickBooks Online will send you a reminder ahead of the scheduled date. You can specify how many days ahead you should receive it. Then it’s up to you to make any necessary changes and send it out.
● Unscheduled. QuickBooks Online will do nothing except save your template. You can modify and use this at any time that’s appropriate.

Deal with the other Template options and scroll down to set up intervals and starting/ending dates if necessary. If you choose Unscheduled, you can save the template. For Reminder and Scheduled, though, be sure to complete the fields at the bottom of the pane before saving.

If you’re creating a Scheduled or Reminder invoice template, you’ll need to complete the fields at the bottom of the Recurring settings pane.

NOTE: These instructions are based on QuickBooks Online’s new invoice format. It’s possible that your account is still using the old format. If that’s the case, or if you’re creating another type of transaction that will recur (like a bill) you will see a link at the bottom of the form that says Make recurring. Your other options will remain the same.

How Do You Use Recurring Transactions?

When you want to modify or use a recurring transaction, click the gear icon in the upper right of the page and select Recurring transactions under Lists. A table containing all of the ones you’ve created will open. There are multiple columns in this table that provide a lot of information about each transaction. They are Template Name, Type, Txn (Transaction) Type, Interval, Previous Date, Next Date, Customer/Vendor, and Amount.

● The final column, Action, lists the options you have for each type of recurring transaction. For Unscheduled Invoices, you’ll most likely Use them, though you can also Edit them. If you set up a transaction as a Reminder, you can do the following to it:
● Edit (edit the template, not the transaction)
● Use (opens the original transaction that you can edit, save, and send)
● Duplicate (duplicate the template)
● Pause (stop sending reminders temporarily)
● Skip next date
● Delete

Your time as a business owner is valuable. Don’t waste any of it doing duplicate data entry. Creating recurring transactions in QuickBooks Online is one way of minimizing keystrokes and using the time savings to manage other elements of your business. If you have any questions about what we discussed here or are struggling with any other features in QuickBooks Online, don’t hesitate to contact us to schedule an appointment.

Understanding Depreciation Deductions for Business Real Estate

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A sign showing an downward arrow in front of a highrise condominium or apartment. Concept of decreasing or slumping condo prices and value or a real estate bust.Depreciation is one of the most powerful tax advantages available to real estate owners. If you own commercial property or use real estate in your business, depreciation deductions can significantly reduce your taxable income over time. However, many business owners miss out on maximizing these benefits due to a lack of understanding.

Here’s a clear and practical guide to how depreciation works for business real estate and how you can use it to your financial advantage.

What Is Real Estate Depreciation?
Depreciation is the process of deducting the cost of a long-term asset over its useful life. For real estate, this means that instead of writing off the full cost of a building in the year it was purchased, you gradually deduct portions of its value each year.

Importantly, land itself does not depreciate—only the building and certain improvements do.

Depreciation Basics for Business Property

  • Depreciable assets: Buildings, structural components (roof, HVAC, plumbing), and certain improvements
  • Non-depreciable assets: Land, inventory, and personal residences
  • Depreciation method: The IRS requires the Modified Accelerated Cost Recovery System (MACRS)
  • Depreciation period:
    • Residential rental property: 27.5 years
    • Commercial property: 39 years

How to Calculate Depreciation
Let’s say you buy a commercial building for $1 million, with land valued at $200,000. Only the building portion ($800,000) is depreciable.

Annual depreciation deduction = $800,000 ÷ 39 = $20,513 per year

That’s over $20,000 per year in tax deductions—without spending another dime.

Requirements for Depreciation

To claim depreciation on a property:

  1. You must own the property (not lease it).
  2. You must use it for business or income-producing purposes.
  3. It must have a determinable useful life (expected to last more than a year).
  4. The property must be placed in service (available for use) before you can begin depreciation.

Improvements vs. Repairs

  • Repairs (e.g., fixing a leak) are usually fully deductible in the year incurred.
  • Improvements (e.g., replacing the roof or adding a new HVAC system) must be capitalized and depreciated over time.

Bonus Depreciation and Section 179

Although buildings themselves must be depreciated over decades, certain components or improvements may qualify for bonus depreciation or Section 179 expensing, allowing you to deduct more upfront.

  • Bonus Depreciation: Temporarily allows 100% immediate expensing of qualified improvements (dropping to 80% in 2023 and phasing out by 2027 under current law).
  • Section 179: Allows immediate expensing of certain improvements, such as roofs, HVACs, and alarm systems, up to a limit ($1.22 million in 2024, subject to phaseouts).

These tools can accelerate deductions and improve cash flow.

Cost Segregation: Supercharge Your Depreciation

A cost segregation study breaks your building into components (e.g., flooring, lighting, fixtures) that can be depreciated faster—over 5, 7, or 15 years instead of 39.

While the study involves a cost (usually performed by specialists), the tax savings can be substantial—especially for high-value properties.

What Happens When You Sell? Depreciation Recapture

Depreciation lowers your taxable income, but it can also increase your tax bill when you sell.

  • Depreciation recapture: When you sell the property, the IRS may “recapture” depreciation and tax it at a maximum rate of 25%.
  • That doesn’t mean depreciation isn’t worth it—far from it—but you should plan ahead with your accountant or tax advisor to manage the exit strategy.

Documentation and Compliance

To stay compliant:

  • Keep detailed records of the purchase price, improvement costs, and depreciation schedules.
  • Use IRS Form 4562 to report depreciation each year.
  • Consult a tax professional to ensure accuracy and to explore strategies like cost segregation and bonus depreciation.

Final Thoughts
Depreciation deductions can significantly lower your tax liability and free up cash for reinvestment in your business. By understanding how to apply these rules to your commercial real estate, you can build wealth more efficiently and strategically.

Remember: Real estate doesn’t just appreciate in value—it also helps you depreciate your tax burden.

How to Properly Manage Your Business Cash Flow

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Golden coins fall out of the metal tap. Vector illustration in flat styleCash flow is the lifeblood of any business. Regardless of how innovative your product is or how many sales you generate, if there’s not enough cash available to cover day-to-day expenses, your business could quickly find itself in trouble. Managing cash flow effectively ensures your company remains financially healthy and resilient during economic ups and downs. Here’s a comprehensive guide to help you properly manage your business cash flow.

1. Understand What Cash Flow Really Means
Cash flow refers to the movement of money in and out of your business. There are two types:

  • Positive Cash Flow: More money is coming in than going out.
  • Negative Cash Flow: More money is leaving than coming in.

While short-term negative cash flow may not be fatal, persistent issues can lead to insolvency. Understanding the timing and sources of cash inflows and outflows is critical.

2. Forecast Your Cash Flow
Creating a cash flow forecast helps anticipate future cash shortages and surpluses. This should be a rolling forecast, updated monthly (or even weekly) to reflect changes in the business environment.

Key components of a forecast include:

  • Projected income (sales, loans, investments)
  • Fixed and variable expenses (rent, utilities, payroll, inventory)
  • One-off expenses (equipment, marketing campaigns)

By forecasting ahead, you can spot potential issues and plan how to deal with them before they become serious problems.

3. Accelerate Receivables
Waiting too long to collect money can starve your business of needed cash. Implement strategies to speed up receivables:

  • Send invoices promptly
  • Offer early payment discounts
  • Use digital invoicing systems
  • Follow up on overdue payments quickly
  • Consider invoice factoring if needed

4. Manage Payables Wisely
While it’s tempting to pay every bill as soon as it arrives, good cash flow management means holding onto cash as long as it makes sense:

  • Take full advantage of supplier payment terms
  • Negotiate better terms when possible
  • Avoid late fees, which can damage supplier relationships

Be strategic: prioritize payments that affect operations (payroll, rent, key suppliers) and delay less critical expenses if needed.

5. Control Inventory Levels
Excess inventory ties up cash that could be used elsewhere. Use inventory management systems to track usage trends and optimize purchasing:

  • Implement just-in-time (JIT) inventory where feasible
  • Identify slow-moving stock and find ways to liquidate it
  • Work with suppliers on flexible ordering

6. Build a Cash Reserve
Having an emergency cash cushion can prevent panic during slow periods. Set aside a percentage of profits each month until you have 3–6 months of operating expenses saved.

7. Monitor and Analyze Cash Flow Regularly
Use accounting software or dashboards to monitor your cash flow in real time. Regularly analyze key metrics like:

  • Operating cash flow
  • Days sales outstanding (DSO)
  • Days payable outstanding (DPO)
  • Cash conversion cycle (CCC)

Reviewing this data will help you spot patterns and make better financial decisions.

8. Cut Unnecessary Costs
Lean operations often translate into stronger cash flow. Audit your expenses regularly:

  • Cancel unused subscriptions
  • Outsource non-core functions
  • Switch to cost-effective suppliers
  • Automate routine tasks to reduce labor costs

9. Secure Financing Before You Need It
If you foresee a future cash gap, explore financing options early while your financials are strong:

  • Business lines of credit
  • Short-term loans
  • Equity investment

Having financing in place can provide a buffer during lean periods without panic borrowing.

10. Educate Your Team
Cash flow isn’t just the finance department’s concern. Train department heads and team leaders on budgeting, purchasing, and financial responsibility. A company-wide culture of financial awareness leads to smarter spending decisions across the board.

Final Thoughts
Properly managing your business’s cash flow isn’t just about survival—it’s about building a strong foundation for sustainable growth. With proactive forecasting, tight control over receivables and payables, strategic spending, and continuous monitoring, your business will be better prepared to weather financial challenges and seize new opportunities.

Remember: Revenue is vanity, profit is sanity, but cash is king. Treat it that way.

Real Estate vs. Stock Market: Which is the Better Investment for You?

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Hands of a young Asian businessman Man putting coins into piggy bank and holding money side by side to save expenses A savings plan that provides enough of his income for payments.When it comes to building wealth, two of the most popular investment avenues are real estate and the stock market. Both offer opportunities for substantial returns, but they differ greatly in terms of risk, liquidity, and investment strategies. Deciding which one is better for you depends on your financial goals, risk tolerance, and time horizon. In this article, we’ll compare real estate and the stock market, outlining their pros and cons to help you make an informed decision.

1. Initial Investment Requirements

One of the primary differences between investing in real estate and the stock market is the initial amount of capital required.

  • Real Estate: Buying a property usually requires a large upfront investment. Even with a mortgage, you’ll need a significant down payment (typically 20% of the property’s value) along with closing costs, property taxes, and maintenance expenses. Real estate investments also often require ongoing expenses such as repairs, insurance, and property management.
  • Stock Market: Stocks are much more accessible to individual investors, allowing you to start with as little or as much capital as you like. Thanks to platforms like brokerage apps, you can begin investing with a small amount of money and gradually increase your portfolio.

Which is better for you?

 

If you have substantial capital and are ready for a long-term investment, real estate might be the right choice. If you’re starting with limited funds, the stock market offers a low barrier to entry and greater flexibility.

2. Liquidity

Liquidity refers to how easily you can convert an asset into cash. This is a key difference between real estate and the stock market.

  • Real Estate: Real estate is a relatively illiquid asset. Selling a property can take time—weeks, months, or even longer depending on the market. Even if you need cash quickly, real estate transactions are complex and may involve paying agent commissions, fees, and taxes.
  • Stock Market: Stocks are highly liquid. They can be bought and sold quickly, often within minutes or hours, depending on market conditions. This liquidity allows you to access your investment funds whenever needed, making the stock market more flexible.

Which is better for you?

 

If you need easy access to your money, the stock market is more favorable. Real estate is better suited for investors who can afford to have their capital tied up for longer periods.

3. Risk and Volatility

All investments come with risk, but the types of risk vary between real estate and the stock market.

  • Real Estate: Real estate is generally considered a stable, long-term investment. While property values fluctuate, they tend to rise over time, making real estate less volatile than the stock market. However, real estate is not without risks—market crashes, property damage, or rental vacancies can impact your returns.
  • Stock Market: Stocks are known for their volatility. Prices can rise or fall rapidly in response to economic news, market sentiment, or company performance. While this can lead to quick gains, it can also result in significant losses if the market takes a downturn. Over the long term, however, the stock market has historically provided strong returns.

Which is better for you?

 

If you’re comfortable with higher risk and short-term volatility, the stock market may suit you. If you prefer a more stable, long-term investment, real estate could be the better option.

4. Control Over the Investment

How much control do you want over your investment? This varies significantly between real estate and the stock market.

  • Real Estate: As a real estate investor, you have direct control over your property. You can decide what improvements to make, who to rent to, and how to manage the property. This level of control appeals to hands-on investors who like to be actively involved in managing their assets.
  • Stock Market: In contrast, investing in the stock market offers little direct control. You can choose which stocks or funds to invest in, but after that, the performance of your investment depends on market forces and company management. This passive nature may appeal to investors who prefer a “set it and forget it” approach.

Which is better for you?

 

If you like to be hands-on and enjoy managing tangible assets, real estate may be the right choice. If you prefer passive investing, the stock market is a better fit.

5. Potential for Growth and Returns

The potential for returns is a critical factor when comparing investments.

  • Real Estate: Real estate offers multiple streams of income, including rental income and property appreciation. Over time, your property can increase in value, providing significant returns when you sell. However, real estate tends to appreciate slowly, and returns can be affected by market conditions, property upkeep, and tenant reliability.
  • Stock Market: Historically, the stock market has offered higher returns than real estate. Over the long term, stocks have averaged annual returns of 7-10%. This is particularly true if you invest in growth stocks or index funds. The downside is that stock market gains are not guaranteed, and short-term volatility can wipe out returns if you need to sell during a downturn.

Which is better for you?

 

For long-term growth potential, the stock market may offer higher returns. Real estate, while slower to appreciate, provides more stable and reliable income streams through rent and may appeal to income-focused investors.

6. Time Commitment and Management

Consider the amount of time and effort you’re willing to put into managing your investment.

  • Real Estate: Owning and managing real estate can be time-intensive. You may need to handle tenant issues, property maintenance, and repairs, or hire a property management company (which reduces your returns). Real estate is generally considered an active investment that requires ongoing involvement.
  • Stock Market: Stock market investing is much less time-consuming. You can manage a stock portfolio with minimal effort, especially if you invest in index funds or use automated investment tools. This makes the stock market ideal for those with limited time to dedicate to managing their investments.

Which is better for you?

 

If you’re looking for a hands-off investment, the stock market is more suitable. Real estate may be the better option if you’re willing to spend time actively managing your investment.

Conclusion: Which Investment is Right for You?

The decision between investing in real estate or the stock market depends on your financial goals, risk tolerance, time horizon, and investment style. Here’s a quick summary:

  • Real Estate: Best for investors seeking long-term stability, passive income from rent, and a tangible asset they can manage. Ideal for those with significant upfront capital and a willingness to handle property management.
  • Stock Market: Best for investors seeking liquidity, higher potential returns, and a more hands-off approach. Ideal for those with smaller amounts of capital who are comfortable with market volatility.

In many cases, the answer may not be “either/or” but a combination of both. Diversifying your portfolio with both real estate and stock market investments can help you balance risk and return, providing both short-term liquidity and long-term growth.

Managing Products and Services in QuickBooks Online

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Creating item and service records, tracking them, and using them in transactions

Customers may be the lifeblood of your business, but they wouldn’t exist without the products and services you sell. It doesn’t matter whether you’re a mineral specimen dealer who does one-off sales, a reseller who sells items you make or buy wholesale in large lots, or a provider of services. You must always know what you have available to offer buyers – goods, designing websites, or offering lawn care services in your community, for example.

QuickBooks Online can keep you in the know about what you have available to sell, and it can manage the forms and transactions you need to do business with your buying audience. If you were doing your accounting and customer management manually, you might be using index cards and large wall calendars and file folders stuffed with product lists and schedules. You’d spend a lot of time digging through item drawers and closets, counting your inventory by hand, and shuffling paper invoices and sales receipts and payment documentation.

Instead, what if all of that is automated, saving time, reducing errors, and increasing your chances of success? Here’s a quick look at some of the basics.

Are You Ready?

We’ve written about product and service management a lot. So you should know that to get ready to sell, you have to have made sure QuickBooks Online is set up to handle any inventory you might have. Click the gear icon in the upper right corner and then click Account and settings under Your Company. Click Sales in the toolbar and scroll down to Products and services. Make sure the first, fourth, and fifth options are turned on, as pictured below (the other two are optional). If they’re not, click the pencil icon in the upper right corner and change them. Be sure to click Save when you’re finished, then Done in the lower right corner.
Make sure your Products and services settings are correct.

Have you created your product and service records? You can do this on the fly as you’re entering transactions, but it’s much better to do it ahead of time. That way, too, you’re not as likely to skip the details, which will be important later on when you’re running reports, for example. We’ve gone over the steps before. Click New in the upper left corner, then Add product/service under Other. A vertical panel slides out from the right, and you simply select from options and enter data.

Warning: Be very precise when you’re dealing with inventory information. If you haven’t gone through this process before, it might be worth scheduling a session with us to go over this important step.

Using Your Records in Transactions

Let’s go through the process of entering a sales receipt. Click New in the upper left corner, and then Sales receipt under Customers. . Choose a Customer from the drop-down list and complete any other fields necessary in the upper section of the form. Select the Service Date in the first column by clicking the calendar, then select the Product/Service in the next column (or click + Add new). The Description should fill in automatically.

QuickBooks Online provides inventory information as you’re completing sales forms.

The QTY (quantity) defaults to 1. If you mouse over or click in that field, a small window will pop up containing numbers for Qty. on hand and Reorder point, as pictured above.

Tip: If you know that you have more in stock that is showing, you can cancel out of the transaction, find the item record in the list on the Products & services page, and click Edit at the end of the row. You’ll be able to adjust the quantity or the starting value. Be very careful with this. Please contact us if you’re not very confident about how to handle this.

Enter any additional items and/or services needed and save the transaction.

The Products and Services Page

QuickBooks Online offers numerous reports related to products and services and inventory tracking (you’ll find them under Reports | Sales and customers), but you can learn a lot from the Product and Service page (Sales | Products and Services). At the top of the screen (where you can’t miss them) are two colored circles containing the number of items that are Low Stock or Out of Stock.

This important information appears at the top of the Products and Services page.

Click on either of these, and the list below will change to only display these items. You can get a lot of information about your products and services on this page, including Sales Price and Cost, Qty On Hand, and Reorder Point. You can also create new records or import databases of records in CSV, Excel, and Google Sheet format. We can help you prepare to do this.

Your business depends on accurate, real-time information about your inventory, and QuickBooks Online can supply it. This element of the site, though, requires precision and regular upkeep. If you’re struggling with it, let us step in and help. We’re available to troubleshoot one-time problems, but we can also take a more active role in your accounting.