Posts Tagged ‘Taxes’

Why Choose a Certified Public Accountant for Tax Preparation?

Sunday, December 12th, 2010

Today’s ever changing economy and current tax legislation dictate qualified counsel when making financial decisions.  When you contact a Certified Public Accountant CPA about business, tax and financial matters, you can be assured that the assistance you receive comes from years of specialized training in money matters and in helping clients like yourself with taxes, business planning, retirement, investments, accounting or concerns about secure financial future. CPAs are more than just individuals who do your yearly taxes. They can advise you on a long list of other services. CPAs are part of a business owner’s professional team along with a banker and a lawyer.

Professional Proficiency:

The CPA designation is given to individuals who demonstrate expertise in the field of accounting and taxes by completing their college education and passing a state-administrated CPA examination. This stringent test consists of a broad range of subjects, including audit, practice, finance, accounting, taxation and professional ethics. Before being certified by the State Board of Accountancy, a CPA candidate must also complete a period of “hands-on experience” with a certified CPA firm.

Education:

A CPA’s education is never complete!  CPAs maintain their professional proficiency and license through a series of mandatory continuing education courses on timely subjects such as taxes, business structure, accounting practices and computerization, just to name a few.  Some CPA’s go on to get their MST Degree (Master Degree in Taxation). These CPAs are the most knowledgeable and are the equivalent of Tax attorneys in their education and experience with tax law.

Tax Planning & Return Preparation:

No one is better qualified to assist with tax planning and preparation than your CPACPAs prepare individual, partnership, corporation, trust and estate returns plus those required by local taxing authorities.  Should a tax audit occur, CPAs are also authorized to appear on your behalf before the Internal Revenue Service.

Investment Review:

No one can predict the financial future exactly, but CPAs are trained to help you explore the pros and cons of an investment from both a growth and tax point of view.

Business Analysis & Services:

When you start a business or acquire business property, a CPA can help you formulate budgets for short-term or long-term business plans and assist in establishing appropriate business structure.  Once your business is established, your CPA can help select, set up and maintain computer and accounting systems best suited for your business needs.  Additional CPA services for businesses include preparing financial statements, payroll reports, business tax returns and documents required by local, state, and federal agencies.

Financial, Retirement & Estate Planning:

Conserving capital and minimizing taxes are important aspects to establishing any plan. Whether you are planning for your children’s education, helping a child get established with a first home, planning for your own retirement, setting up a family trust or planning your estate for your heirs, your CPA is the best choice to assist you.  Your CPA can also help with loan refinance analysis, personal business management, educational financial aid applications and other personal financial needs.

Confidentiality:

When you consult a CPA, your business is handled in strict confidence dictated by the ethical standards of the accounting profession.  This firm obtains most of its clients through referrals, which means you were most likely referred here by a business associate, a relative or a friend.  Feel secure in the fact that your financials and tax information will not be shared with others and will be safeguarded with the highest confidentiality.

Interviewing a CPA:

Ask what type of services they do for their clients, how long they’ve been in business full time, and for references. Don’t forget to ask to see their license. Ask them about the benefits of choosing them over another CPA.  Ask about their rates and what those rates include.  Also, ask what their hourly rate is and what the cost would be to answer questions during the year. If you’re a business owner, pick a CPA who has 60% of their business coming from small business owners like you. They’re more apt to keep up with the laws regarding clients they deal with most often. Bring a copy of at least one year’s tax return when you interview a CPA. This way your prospective CPA can give you educated “guesstimates” as to what their services will cost you.

Services CPAs Can Provide:

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Tax Preparers and Tax Planning

Sunday, December 12th, 2010

If there is one constant in the world of tax preparation, it is tax law changes.  For many years, CPA’s  and other tax preparers have learned to accept, anticipate, and even embrace change. All these changes and complications will force practitioners to emphasize tax planning in order to save their client’s money. Over the years technology in tax software industry and lack of regulation on the tax preparation industry has led to a lot of competition from many non qualified tax preparers. A CPA is required to pass strict testing, ethics and continuing education requirements in order to keep informed and licensed. A CPA is highly qualified to find tax planning strategies that enable a client to eliminate, minimize, or defer a tax liability.

Tax preparation and tax planning by a qualified CPA will enable a client to eliminate, minimize, or defer a tax liability. Traditional tax planning has been event-driven, undertaken upon the occurrence of certain events in a client’s life such as starting a new business, making an investment decision, selling property, or taking a retirement plan distribution. While event-driven tax planning will certainly continue to be a value-added service, the tax preparer CPA has the educational background to do comprehensive tax planning, year-after-year to save his clients money. While tax considerations may be significant, and are often the reason the tax preparer is involved in the first place, the economics should drive the decision-making process. Allowing tax considerations to override economic considerations can lead to adverse results for the client.  As a CPA with over twenty years experience we are experts in business, tax and financial matters. You can be assured that the assistance you receive comes from years of specialized training in money matters and in helping clients like yourself with taxes, business planning, retirement, investments and, accounting. CPA’s are more than just individuals who do your yearly taxes. They can advise you on a long list of other services.

Income tax preparation is an important part of reducing a client’s tax burden by making sure all tax credits and deductions are not missed.

Small Business owners

Businesses operated as a sole proprietorship’s have many opportunities for tax savings. With proper tax planning, opportunities exist to maximize deductions of expenses combining business and personal elements. Business deductions for self-employed taxpayers are doubly important since they generally reduce both federal income and self-employment taxes.

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