Posted by adminjian on June 1, 2017 · Leave a Comment
Hiring a CPA
Many businesses desire to hire a CPA but often worry that they don’t have the requisite funds. There are several ways that companies can raise money in order to hire a competent and qualified CPA. Here are three ways your business can save money in order to hire a CPA:
Cut Out Unnecessary Purchases
If, over the last several years, your business has gained a reputation for spending a lot of unnecessary money, now may be a great time to start cutting out unnecessary purchases. It may be difficult to do, but it will be worthwhile once you’re finally able to hire a CPA.
Be Intentional In Saving Money
If you want to save money in order to hire a CPA, make sure you allocate a certain amount of money that you need to save up front. For example, if you know it will cost your business $5,000 a year in order to hire a CPA, make a conscious effort to save that much by the end of the year so you can begin a new year with your new CPA.
Hire a CPA By The Hour
Many businesses mistakenly assume that they have to put a CPA on the payroll as a full time employee. If your business is not in the position to add a CPA as a full time employee, consider hiring by the hour. In order to get your money’s worth when hiring a CPA by the hour it’s important that you always come to each meeting with your CPA prepared to answer all of his or her questions.
What other ways can your business save money in order to hire a CPA? Leave your comments below.
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Posted by adminjian on April 25, 2017 · Leave a Comment
Deductions
Filing our taxes can easily be the most exciting, and the most stressful, thing you do all year long. Filing taxes can be fun when you know a refund awaits you on the other side; but it can also be stressful during those times you know you owe thousands in back taxes.
For these two reasons alone, many people refuse to rely on their own expertise and instead opt to hire a CPA. A CPA (which stands for Certified Public Accountant) is equipped with the tools necessary to make sure that you not only file your taxes correctly but that you are getting the tax deductions for which you qualify.
Below are five deductions your CPA can help you obtain:
Charity
Did you donate to charity this year? Did you take a large amount of clothing to the Goodwill? Great news! Your CPA can help you deduct those items from your taxes. Who would’ve ever guessed that your giving heart would get you a tax write-off!
Self-Employed
Are you a business owner? Do you complete freelance work on a consistent basis? You’re in luck. Your status can make you eligible for the self-employed taxes. Your CPA can help you determine what items related to your business can be deducted.
Internet
Believe it or not, a good CPA has the ability to help you deduct internet expenses from your taxes if you use the internet to complete your work for a company that hasn’t paid for the computer you use.
Meals & Entertainment
Are you a business owner who regularly entertains your clients or partners over drinks or a meal? As long as these costs are clearly for business purposes, be sure to keep record of time, place and receipts, and at the end of the year your CPA can help you deduct these costs.
Telephone Charges
Are you constantly plagued with high cell or telephone bills thanks to client calls? Telephone charges are a little known tax deduction that could save your business thousands of dollars at the end of the year.
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Posted by adminjian on April 6, 2017 · Leave a Comment
Big Purchases
Are you a business owner looking to make a big purchase? Do you want to make the purchase but have no idea where to begin? Whether you recognize it or not, making a big purchase is not something you have to do alone. In fact, your CPA could be the one who helps you as you prepare to make your next big purchase, and here are several ways that your CPA can do this:
Your CPA Can Tell You What Your Budget Is
Just because you want to buy something doesn’t mean you’re in the financial place to buy it. Working with your CPA before you make a big purchase can help show you what exactly you can afford, and what expenses you may need to eliminate in order to afford it.
Your CPA Can Help You Save Money
Perhaps you can’t spend money right away. While this may be discouraging, when you’re looking to make a big purchase, your CPA can actually help you save money that will go toward your big purchase.
Your CPA Can Put You On A Spending Diet
When your money is funny, sometimes it’s important that your CPA put you a spending diet. A spending diet will help you eliminate useless spending, and put you on a pathway to ultimately buying exactly whatever it is you want.
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Posted by adminjian on March 31, 2017 · Leave a Comment
Collaborating with Your Accountant
Believe it or not, being an accountant is not an easy task. In fact, it can easily be one of the most stressful jobs in the professional world. Many times the job of an accountant is stressful simply because no one else in the office can seem to understand what they do on a daily basis. Whether you understand the role of your accountant or not, here are four ways you can work with your accountant to enhance the overall experience in your office:
Have an Open Door Policy
Because being an accountant can be very stressful, so make sure you always have an open door policy. Having an open door policy will give you the opportunity to not only share your goals on a consistent basis with your accountant, but will give your accountant the opportunity to express his or her concerns.
Avoid Last Minute Deadlines
Accountants typically have a large number of deadlines to work with, and adding more deadlines to their plate is not only unhealthy for their work life balance, it’s unhealthy for your business because you don’t want to have an overwhelmed employee.
Be Transparent
Is your business suffering? Will you soon be forced to downsize? Be transparent with your CPA about all financial concerns, the more transparent you are the more they are better fit to assist you with your needs.
Be Grateful
Every employee desires to be appreciated, and if anything, your accountant needs to always know just how grateful you are for their services. Accountants literally go above and beyond to ensure the success of your business and gratitude can really go along way.
What ways have you found that help you better work with your accountant as your business grows? Leave your comments below.
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Posted by adminjian on March 28, 2017 · Leave a Comment
Complicated Tax Forms
Tax forms can be complicated and confusing, especially if you have no accounting background. Here are four pieces of advice which you can use to decipher your tax forms:
Seek Advice
Not really sure how to fill out that complicated tax form? Ask your CPA for advice. He or she can give you advice and wisdom on how to accurately fill out your forms.
Discuss Tax Laws
In order to understand your tax forms, you have to first understand the tax laws which apply to you. As you understand the tax laws, you will be able to determine how to effectively fill out your forms with greater precision and speed.
Embrace Mistakes
Often, people are afraid of making mistakes on their tax forms, and for this reason these people end up failing to file their forms in a timely fashion or at all. Mistakes could be costly; however, not filing at all could land you in even more hot water. Don’t let a fear of making errors prevent you from filing your return; just be sure to learn from your mistakes and incorporate your newly acquired knowledge during future tax seasons.
Do Your Research
Afraid to ask for advice on how to fill out those complicated tax forms but you know you desperately need help? Do your research. Don’t be afraid to ask questions, and most of all don’t be afraid to admit that you have no idea what you’re doing. The key to gaining knowledge is to first acknowledge what you don’t know.
What tips have helped you to better understand complicated tax forms? Leave your comments below.
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Posted by adminjian on March 23, 2017 · Leave a Comment
When to Hire a New CPA
When hiring new employees, you must first recognize that not all CPAs are meant to work with you and your team. While letting go of one employee in order to hire another can be a strenuous task, there are several signs you can look for to get a sense of when it’s time to hire a new CPA.
Here are three of these signs:
Communication Slows or Stops
One of the clear warning signs that it’s time to hire a new CPA is when your communication begins to fade or vanishes completely. As a business owner, it’s important that you and your CPA have a constant line of communication, and if the communication be unclear, there is no way that the two of you will be able to achieve your professional goals.
Funds Become Misplaced
While this may seem like a no brainer, even when you have a CPA it’s important for you to continue to keep your eyes on your funds. If you begin to notice that your funds are being misplaced, it may not necessarily be a sign that your accountant is stealing, but it may be an indication that he or she is no longer paying attention to details.
Financial Growth Plateaus
A good CPA knows what it takes in order to become financially responsible, and if your CPA is not helping your business grow, what purpose are they serving your business?
Letting go of an employee is never fun, but recognizing these warning signs early can save you from making terrible decisions later on as these signs relate to your CPA’s services to your business.
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Posted by adminjian on March 9, 2017 · Leave a Comment
Questions for Your Prospective CPA
Many people contact CPA firms with the hope that the CPA firm can automatically know exactly how to help them. While most CPAs are well equipped to handle tax preparation, it should not be assumed that all CPAs will know exactly how to service your specific needs right away. In fact, the more questions you ask, the more you can learn about how a prospective CPA will be able to handle your particular situation.
Here are just a few questions you should ask before hiring a tax preparer.
Do you have preparer tax ID number?
This should literally be the first question you ask. Anyone who prepares tax returns for money must have a valid PTIN. If they don’t have their PTIN, run away as fast as you can, because you may be dealing with a fraud.
What is your tax background?
For some people, this question would appear to be a tad intrusive, but asking for a company’s tax background is important. Just because one is a CPA doesn’t always mean they are qualified to handle you and your business needs.
Have you ever prepared a tax return for another business?
Just because a CPA has prepared a tax return before doesn’t mean they’ve prepared one for a business. Make sure you ask, and if possible ask for information so you can substantiate whatever response they give. You should also try to obtain references for whichever CPA you’d like to work with.
Do you know the state requirements which pertain to me?
This is another important question to ask because you want to make sure that the CPA knows the tax laws in your city/state. Not knowing your state laws could be a costly mistake that you never knew you signed up for.
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Posted by adminjian on March 3, 2017 · Leave a Comment
Benefits of Hiring a CPA
If you’re reading this, chances are high you’ve toiled a bit with the idea of hiring a CPA for your business. You’ve contemplated the advantages of being able to just call a CPA to see how much money your company has taken in over the last quarter. You’ve thought about the convenience of being able to phone your accountant to determine if you can afford to make that big purchase you’ve been considering for so long. While we all have goals (some bigger than others) we all must have a plan in order to reach our goals. Small business owners should be sure to ask themselves this important question: will hiring a CPA help me achieve my professional goals? Here are a couple of reasons to support the idea that the answer to this question is probably a yes.
Going Solo is Often Extremely Difficult
Going solo is not an easy task. Many business owners make the mistake early on of assuming that they can use tax or accounting software in lieu of actually hiring a CPA. While there is nothing wrong with using these products, ultimately business owners find it difficult for such products to fully compensate for the services of a capable CPA. Accountants can be as cheap or as expensive as you want them to be; however, it is often said that you get what you pay for.
Hiring a CPA Will Save You Money
Yes, you read correctly. Hiring a CPA will actually help you save money. While the initial decision to hire a CPA will cost you some amount of money, this investment will actually save you money in the long run. Why, you ask? It’s quite simple. Hiring a CPA will help you see where you are spending money and also help you identify and take advantage of the various credits and deductions for which you qualify.
What ways could you benefit from hiring a CPA?
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Posted by adminjian on March 2, 2017 · Leave a Comment
Getting Your Money’s Worth
One of the most common reasons many businesses do not hire a CPA is that they believe they cannot afford to hire a CPA. And while in some cases this belief may be accurate, in the long-run hiring a CPA will usually result in an improved financial situation for most businesses. However, in order to receive the greatest benefit from a CPA, there are certain ways along which you have to conduct yourself.
Here are four things which can help you get your money’s worth when you decide to hire a CPA:
Build a Relationship
Once you find a CPA that you like and have built a great relationship with, stick to it. Building relationships is vital to success in any situation involving frequent client to customer interaction. It is especially important once you find a great CPA simply because it’s not always easy to match up with the perfect accountant.
Be Organized
CPAs usually charge by the hour, and so it’s important that you make sure you’re always organized and thoroughly prepared. Being organized and prepared will ensure that you utilize your CPA’s time in the most efficient manner possible.
Be Honest
If you tell the truth, you don’t have to remember what you said. Don’t ever attempt to undercut your CPA by low balling your financial earnings or even by overestimating them. Be completely honest with how much money you are making and how much you are spending. Being totally honest with your CPA will enable them to help you the most.
Consult Your CPA about All Financial Matters
Don’t ever be afraid to consult with your CPA about your financial matters. Some people often wonder if the questions they have for their CPA are “dumb” questions, but there is no such thing as a dumb question. If you’re worried about your finances, tell your CPA. If you are fearful that you are overspending, tell your CPA. Any situation that involves money should be shared with your CPA up front and candidly.
What ways have you identified that help you get your money’s worth when hiring a CPA? Leave your comments below.
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Posted by adminjian on February 25, 2017 · Leave a Comment
Accounting Mistakes
We have all made accounting mistakes in the course of running our business. In most cases, businesses don’t even hire an accountant until they’ve made so many mistakes that they need to take on an accountant out of sheer necessity. If you hire an accountant, your business can avoid the negative repercussions which follow when accounting mistakes are made.
Here are three common accounting mistakes an accountant can help you overcome:
Not Keeping Expense Receipts
When you are managing your own books, you don’t really have any accountability when it comes to making sure you hold on to your expense receipts. Once you hire an accountant, your accountant will ask you to keep track of your expense receipts and any good business owner knows that if you don’t listen to your accountant, your business is doomed.
Not Keeping Up with Receivables
Every business owner loves getting paid, but for whatever reason, no one likes to keep track of the money they receive. While this may seem like no big deal throughout the year, it could really become a nightmare during tax season because you will suddenly be left trying to figure out how much money you’ve made, and if in fact all the invoices you sent out were actually paid in full.
Not Recording Cash Transactions
As a business owner, it can be easy to forget about the cash transactions you make or the cash payments you receive because keeping track of every single cash transaction is not an easy task. If you don’t have time to record every cash transaction, your accountant will have time. Tracking cash transactions will not only help you see how much money you are making, it will also show how you recklessly spend cash (if you do).
What was your experience like hiring an accountant? In what ways have they helped eliminate your money issues? Comment below!
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