Accountant, Business Expenses, expenses, Small Business, Taxes, Uncategorized
While the past decade has seen the advent of several tax preparation programs that allow users to file their taxes online, these programs raise several questions: Will filing your taxes online find you all of the deductions you qualify for? Are these programs secure? What if you encounter an issue? Here, we will examine the pros and cons of using tax software versus the advantages and disadvantages of filing with a CPA.
Time
Depending on how complex your returns are, filing your taxes can take a fair amount of time. But, with that said, when you compare filing online with visiting an accountant, the time difference is clear. When you file online, you are still responsible for inputting all of the necessary information into the program. When you file with an accountant, they are responsible for wading through your information to complete the worksheets and calculations that result in your final return. This gives you the opportunity to spend your time doing what you want to do, rather than dealing with your taxes – which few people find enjoyable. (more…)
Bookkeeping, Small Business, Uncategorized
From movie portrayals of IRS auditors as fear-mongering bullies to dozens of unnerving myths and urban legends, it’s fair to say that there is no shortage of negative perceptions about tax auditing. When it comes down to separating fact from fiction, tax filers want to know: Is the process really as bad as it seems in pop culture? In a word—No! In this month’s blog we’ll explain the auditing process and dispel some common misconceptions about tax auditing.
What is tax auditing?
You can think of tax auditing as a fact-checking process by the Internal Revenue Service (IRS) on someone’s personal or organizational taxes. An audit occurs when the IRS, which is overseen by the U.S. government, selects and investigates a tax return to ensure that all reported information is correct. Most often, the IRS is simply seeking clarification through something called a correspondence audit. This type of audit occurs when a return doesn’t match typical trends based on the IRS’ data. In this case, the IRS requests documentation from the filer, and the audit can be resolved quickly if everything checks out. An examination audit can be a little bit more involved and occurs when something looks truly irregular in a return. (more…)
Accountant, CPA, Small Business, Uncategorized
Do you need help preparing your taxes? Do you want to plan for retirement, but aren’t quite sure where to start? A personal CPA can help you with these tasks and many more related to your personal finances—find out all you need to know in this month’s post.
What is a CPA (Certified Public Accountant)?
All CPAs are accountants—but not all accountants are CPAs (AICPA). To earn CPA licensure, a certified public accountant must complete a high level of accounting education, gain experience in public accounting, and pass their state-regulated Uniform CPA exam. Once an accountant has met these stringent requirements, he or she can practice accounting for all sorts of clients including non-profits, government agencies, privately owned companies and individuals. (more…)
Accountant, Accounting, Bookkeeping, Business Expenses, CPA, Deductions, expenses, Small Business, Taxes, Uncategorized
Cost accounting is a technique used to determine the best financial course of action. The primary purpose of cost accounting is to help decision-makers make decisions. By analyzing the cost of products, services, and projects, accountants can advise businesses of the best course of action regarding a particular transaction. To put it more simply, you calculate the elements of cost for product process (raw materials, labor, and expenses/overhead), compare that cost with the product price, determine the business’s revenue, and decide if and where savings are needed.
Cost accounting doesn’t have a singular approach. Cost accounting methods include: (more…)
