Kothai Accounting

12/06/2025

Cash flow issues

“It’s not that you can’t make the decision. It’s that you’re not sure you can afford it.”

Clarity in cash flow doesn’t just change how you feel. It changes what you do.

When the numbers are fuzzy, decisions get delayed

But when you can see where the money’s coming from, what’s going out, and what’s around the corner?

You stop second-guessing and start moving with confidence.
1. You know when to hire.
2. You see when to invest.
3. You trust that taxes won’t throw everything off track.

Cash flow clarity isn’t about being perfect. It’s about being prepared.

The best part? It doesn’t take a finance degree.
Just simple systems, clean books, and a partner who helps you stay on top of it.
What’s a decision you’ve been sitting on—waiting for the “right time”?
Sometimes the answer is already in your numbers.

Send a message to learn more

08/04/2021

What is Life Insurance?

Life insurance is a contract between an insurer and a policyholder. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured policyholder dies, in exchange for the premiums paid by the policyholder during their lifetime. – Investopedia

What are the important aspects you should know about life insurance?

For the contract to be enforceable, not only does the life insurance application must accurately disclose the insured’s past, current health conditions, high-risk activities but also the insurance provider’s other specified conditions.

For a life insurance policy to remain in force, the policyholder must pay a single premium upfront or pay regular premiums over time.

When the insured dies, the policy’s named beneficiaries will receive the death benefit.

What are the different types of Life insurance?

There are three main types of life insurance: whole life, universal life, and term life insurance. Each category serves its own purpose for unique circumstances.

What are the advantages of having life insurance?

Life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured’s death. Life insurance is important to obtain as it protects your family by adding creditor’s protection and lets you leave them an amount at the time of death.

A life insurance plan completes your financial plan.

03/31/2021

“Don't save what is left after spending; spend what is left after saving." – Warren Buffett

Whether you have short – and/or long-term saving goals, the hardest step in saving money is getting started. Listed below is a simple and realistic strategy outline to help you start saving.

1. Saving should be a habit.
- Incorporate savings in your daily habits.

2. Pay yourself first.
- Make sure that enough income is first saved before monthly
expenses

3. Think first before you spend.
- Before purchasing any goods or services, think about whether it is a need or a want?

4. Start with as little as possible
- Start by saving the least amount of money possible and gradually increase the amount saved.

5. Live below your means
- Eliminate the unnecessary expenses that are only taking money away from your savings.

6. Setup automatic payments
- Choose a savings amount, date, and frequency, and then set up an automatic transfer from your regular account to your savings account.

7. Set and follow a budget
- Determine an appropriate budget to be followed each month and continue to spend within the budget.

8. Don’t spend more money than you earn.
- Start by creating a budget to evaluate what you can afford and to categorize your expenses to determine whether they are important or not.

9. Keep track of your expenses
- Ensure you are following the expenses you make to get an accurate idea of your spending habits to better evaluate for the future.

10. Start Today!

Once you start saving money, you will soon come to realize the many benefits that come with saving money:

● Savings can be used for expenses instead of a credit card
● Financially independent
● You can cover unexpected costs
● Comfortable in retirement
● No surprises such as losing your job
● Reduces your debt
● Down payment for your home
● Money is a highly in-demand commodity

>>>A bonus tip is to start dedicating a few days each month where you do not spend anything.

03/10/2021

An emergency fund is created and set aside for unexpected expenses. These emergency surprises usually don’t give you time to adjust your budget. A few examples are an emergency car breakdown, job loss, health problems that prevent you from working, emergency home repair, etc.

How to set up an emergency fund:

It’s important that you choose the right type of account to build your emergency fund. It should be easy to access your money quickly in case of an emergency. It should be separate from the regular account. Also consider no or fewer transaction fees, withdrawals with no penalties.

1. Start by saving a realistic amount

It’s recommended that you save the equivalent of 3 to 6 months of your regular expenses. You can also aim to save 3 to 6 months of income.

2. Make it a habit

Incorporate savings in your daily habits.

3. Automate your savings

Choose a savings amount, date, and frequency, and then set up an automatic transfer from your regular account to your savings account.

4. Eliminate an expense and save the amount

Eliminate some expenses and add these amounts to your emergency fund.

5. Review your goals

Review your financial goals on a regular basis. Your family, personal, or work situation may change, and this may affect your budget.

6. Increase your emergency fund

Take advantage of every opportunity that can help you increase your emergency fund. Deposit any additional amount into your savings account whenever possible. For example, if you get a tax refund, get a pay raise, get money as a gift, bonus, etc.

7. Advice to help you use an emergency fund

Before using all or part of your emergency fund, determine whether you’re really experiencing an emergency or if the expense is something that can be put off until you’ve had the opportunity to save.

Ask yourself these three questions:

• Is this event unexpected?
• Is it necessary?
• Is it urgent?

The more you answer “yes” to any of these questions, the more you need to access your emergency funds. Saving for an emergency fund isn’t about long-term goals, increasing your wealth, or planning for retirement. It’s about having immediate access to cash.

02/19/2021

Personal Financial Goals

A goal is an idea for the future or result that a person or a group of people plan and commit to achieving. People endeavor to reach goals within a finite time by setting deadlines.

Step 1:
Create a list of all the financial goals such as purchasing homes. cars, businesses, investments, retirements, big purchases, dreams, pay off debt, and so forth. If you have a very clear and in-depth picture of your, goals, working towards the goal is easier.

Step 2:
Have three types of goals, Short (1-3 years), Medium (3-5 years), and long-range (5-10 years) goals. The span of the goals will depend on your personal preferences. People usually prefer to make Short-term and Medium-term goals. Not many create or are keen on long-range goals. They make a significant impact in the long. Slow and Steady Wins the race.

Step 3:
It must be SMART. (Specific, Measurable, Achievable, Result-oriented, and Timely). If you don’t have a targeted time, then it is not a goal. It's merely a wish. To get better results, set one goal at a time.

Step 4
Research about your goals. Don’t begin your goals without thinking about how to achieve them. Always seek help from specialists in that field. It's worth paying attention to now, instead of later. If you can’t describe your goals in simple words, then it is difficult to reach them.

Step 5
Setting finance goals may be boring for some, but it’s worth achieving. You can always seek help from your accountant or financial advisor if you are stuck.

Step 6
This is one of my favorite steps. Make sure your goal includes some fun such as entertainment, vacation and etc.

Once you’ve reached your goals, treat yourself!

02/06/2021

Did you get a chance to track your Personal Net worth?

Don’t consider this as your financial statement, consider this as your financial report card. This is what you’ve achieved in the end. The report shows the difference between what you owe and what you own. This will reveal your position in finance. You need to track your finances once or twice a year. You should consider your personal finances as a high priority next to your health. It will not take up all your time. But it's worth it in the end. This report will tell you whether you are progressing or not.

How to calculate your net worth?

Step 1:

a) List all the items that belong to assets such as home, your car (Personally, I don’t consider a car as an asset. It depreciates normally), precious metals, RRSP, TFSA, Non-Registered investments, Rental properties, etc.

b) Estimate the value

c) Total it.

Step 2:

a) List all items that belong to liabilities such as Mortgage loans, Personal loans, car loans, Credit card balances, student loans, etc.

b) Estimate the value

c) Total it

Step 3: Subtract Step2 from Step 1 (Liabilities from Assets).

Once you prepare your financial statement, please make sure the following otherwise it will become a waste of your time:

1. Be honest with your finances – Your financial information should be as accurate as possible. This will give you an accurate picture of your finance.

2. Indicate the date for your report – You will know the date of your financial position.

3. Do something about it – Your financial statement is not there to file or store. Decide how you can increase your assets and bring a positive figure.