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FAQs

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  • Should I outsource my accounting and tax preparation?
    In our very biased opinion, yes. I would argue that doing your own accounting and tax return preparation costs you much more than it saves in most situations. Are you taking advantage of all the tax saving opportunities your business affords you? Could you focus on more profitable activities like serving customers and gaining new clients if you weren’t doing your own accounting? If you had a financial advocate to discuss your business numbers and situation with during the year, could you better leverage the opportunities available to you? If you answered yes to any of the following questions, let’s at least have a conversation.
  • Why should I choose monthly bookkeeping and accounting instead of yearly?
    Your accountant or financial strategist should be looking at your numbers frequently to provide accurate advice. As a small business, you will need forecasting and goal-setting to reach financial success. This is impossible to do if you only look at those numbers annually. With monthly accounting, you can reduce your tax liability, make proactive financial decisions and gain peace of mind over your finances.
  • How do I choose the right accountant for my business?
    Here are the top three reasons why clients chose us over their prior firm: Communication Issues: It could be not responding timely, it could be the attitude in which the communication occurs (the “I’m smarter than you…” attitude), or it could be not knowing what the price is upfront. Incurring Tax Penalties: We’ve gained more than a few clients due to tax penalties incurred as the result of operational failures at their prior firm. Lack of Tax Planning & Goal Setting: A good accountant should be an extension of your business, a trusted advocate that partners with you to help you grow your business, build wealth, and take advantage of the opportunities available to you.
  • Why should I use a CPA instead of doing my taxes myself?
    The IRS estimates that it can take 28 ½ hours to research tax law, organize your records, and complete a standard 1040 return with three common schedules. Tax law is constantly changing, so it is important that you are educated about these changes so you correctly fill out your forms. Being technologically savvy is also important as tax preparation software can help eliminate errors, both mathematical and technical. If you’re not comfortable with using this type of software, you may want to contact a CPA. ​ If you’re a salaried employee who takes the standard deduction, your return is likely to be simple. However, if you’ve encountered a major life change, such as marriage or divorce, or own a vacation home or rental property, your tax situation may be more complicated. Self-employed individuals and small business owners are more likely to be audited by the IRS, and working with a CPA will help lessen that risk. In addition, if you have a high income, live in a state with high income taxes, or have a lot of miscellaneous itemized deductions, you could be subjected to the Alternative Minimum Tax (AMT). The AMT, which eliminates many itemized deductions and was created to ensure that the wealthy pay their share of taxes, is now affecting more middle-class taxpayers. If you think this might affect you, consult a CPA.
  • How long should I keep my tax records for?
    All business records, especially sales and payroll must be kept for seven years. The Social Security Administration requires discrepancy be resolve anytime within this seven year window. The IRS and the states will audit within the seven year window. Keep all federal, state and local returns indefinitely and the all supporting documents for seven (7) years. Real Estate and stock market transactions records should be kept. Tax consequences of a transaction can depend on events that happened years earlier. Taxpayers often keep files in a single, easily accessible location. Consider keeping your files in a safe deposit box or other safe place outside your home.
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