Before you decide on a new accountant to work with, its important to find one based on recommendations from other people.
Ask Family and Friends First – You can ask friends and family if they have any recommendations of accountants they have worked with and had good experiences with. But, if you don’t have any personal references, the next best way is to go online and find reviews and ratings of accountants in your area.
The old saying goes that death and taxes are the only two certainties in life. Maybe so and maybe not. I’m discovering a third certainty in life: most Americans are paying way too much in taxes to Uncle Sam. There are hundreds of tax deductible business expenses for small and home-based businesses that Americans currently overlook.
Did you know that if you have a home-based business and you take certain steps you could qualify for up to $5,000 per year in tax savings? That means that you could either pay Uncle Sam up to $5,000 less up front in quarterly tax payments or withholdings, or you could get a bigger refund on the back end. You just have to know which tax deductible business expenses to look for.
Now $5,000 sounds like a lot of money so how is it possible that so many people don’t know about these deductions? More importantly, why don’t their tax accountants know about these tax deductible business expenses? Continue reading ‘Tax Deductible Business Expenses Even Your Accountant Doesn’t Know About’ »
I am not a CPA or an accountant, so I don’t give out tax advice. However, I have compiled some information in regards to homeowner’s tax consequences for a short sale/ foreclosure event. These are some of the most common questions asked by homeowners.
If a homeowner has taken out a “home equity loan” (or aka, HELOC) loan and has received any cash out (even from a past refinance) to pay off unsecured debts, (i.e. credit cards, car loans, motorcycle or boat loan, etc…), the sum of that money maybe considered a “taxable event” aka mortgage debt forgiveness” by the IRS).
The “debt forgiveness” is calculated by deducting the original purchase price (or acquisition cost) FROM THE “NET LOSS” THE BANK INCURS after the home reverts back to the bank and is sold by their real estate division. Renovation Costs can be added to increase the base value…but in the case of an audit the proof is on the home owner and they must have all receipts. Continue reading ‘IRS Clarifies Shortsale Tax Consequences For Homeowners’ »
Estate planning is a process involving the counsel of professional advisors who are familiar with your goals and concerns, your assets and how they are owned, and your family structure. It can involve the services of a variety of professionals, including your lawyer, accountant, financial planner, life insurance advisor, banker and broker. Estate planning covers the transfer of property at death as well as a variety of other personal matters and may or may not involve tax planning. There are many questions that you must ask yourself before beginning your estate planning.
First, what is involved in estate planning? There are many issues to consider in creating an estate plan. First of all, ask yourself the following questions:
• What are my assets and what is their approximate value?
• Whom do I want to receive those assets-and when?
• Who should manage those assets if I cannot-either during my lifetime or after my death?
• Who should be responsible for taking care of my minor children if I become unable to care for them myself?
• Who should make decisions on my behalf concerning my care and welfare if I become unable to care for myself?
Second, who needs estate planning? You do-whether your estate is large or small. Either way, you should designate someone to manage your assets and make health care and personal care decisions for you if you ever become unable to do so for yourself. If your estate is small, you may simply focus on who will receive your assets after your death, and who should manage your estate, pay your last debts and handle the distribution of your assets. If your estate is large, your lawyer will also discuss various ways of preserving your assets for your beneficiaries and of reducing or postponing the amount of estate tax which otherwise might be payable after your death. Continue reading ‘Are You Leaving Your Estate Planning to Chance?’ »
“Work with” is the operative phrase; do not assume your accountant knows everything he or she needs to know in order to prepare your taxes.
Make an appointment with your accountant after the peak tax preparation season. Ask him for a list of items he needs from you in order to make the proper deductions.
The six most dangerous words to your financial wealth regarding your income tax preparation, “My accountant handles all of that.”
Remember, it is your income which is affected by your tax preparation not your accountant, so take an active role in your tax preparation.
Also, if there have been changes in your financial responsibilities let him know. For instance if you are responsible now for the care of your or your spouse’s aging parents, let your accountant know, there may be tax deductions you can take.
You may know about the attorney-client privilege. Whatever you say to your attorney is privileged information. Under law your attorney cannot be compelled to reveal your conversation with her. Continue reading ‘Tax Preparation Tactics – How to Work With Your Accountant’ »
Being a public trust is not an easy task, transparency is always expected in that matter, thus, I could say, that as a Certified Public Accountant is also not that an easy job. A Certified Public Accountant (CPA) is qualified professional accountant being certified by the state that he or she is capable for corporate accounting, tax audits as well as small business consulting. In order to become a public accountant, there are things that are so important to follow, and these would include that a person must undergo an intense college education in various business, finance and accounting subjects, and the most important is to pass the 14-hour CPA examination which deals with the topics like auditing, accounting, business management, and especially business laws and regulations including tax.
That is how difficult it is to grab such certification. One must need to sweat before having a nice relax. Being a Certified Public Accountant is always considered as a very rewarding position, because if we are going to talk about pressures, you can find it there, yet being a CPA can create a difference in ones life. You can earn a good salary and a good job in the world of business, because once a CPA finished the long tenure of education and pass its tedious trainings, they can already avail the most rewarding jobs in the business scenario. Still, the certification says it all; it is just a matter of sacrifice in order to be certified. Almost all businesses and organizations nowadays, it may be big or small, they always hire CPAs to supervise their accounting systems, their taxation procedures, and the most important aspect is their financial flow. Continue reading ‘Certified Public Accountant – A Public Trust’ »
Being a public trust is not an easy task, transparency is always expected in that matter, thus, I could say, that as a Certified Public Accountant is also not that an easy job. A Certified Public Accountant (CPA) is qualified professional accountant being certified by the state that he or she is capable for corporate accounting, tax audits as well as small business consulting. In order to become a public accountant, there are things that are so important to follow, and these would include that a person must undergo an intense college education in various business, finance and accounting subjects, and the most important is to pass the 14-hour CPA examination which deals with the topics like auditing, accounting, business management, and especially business laws and regulations including tax.
That is how difficult it is to grab such certification. One must need to sweat before having a nice relax. Being a Certified Public Accountant is always considered as a very rewarding position, because if we are going to talk about pressures, you can find it there, yet being a CPA can create a difference in ones life. You can earn a good salary and a good job in the world of business, because once a CPA finished the long tenure of education and pass its tedious trainings, they can already avail the most rewarding jobs in the business scenario. Still, the certification says it all; it is just a matter of sacrifice in order to be certified. Almost all businesses and organizations nowadays, it may be big or small, they always hire CPAs to supervise their accounting systems, their taxation procedures, and the most important aspect is their financial flow. Continue reading ‘Certified Public Accountant – A Public Trust’ »
In Australia over 97% businesses are small to medium businesses. Roughly half go out of business in the first five years!
There is little reason to expect the world wide trends to be any different.
Its easy to start a business. All it takes is an idea, something to annoy you in your existing job, a market downturn, a moment of entrepreneurial valour, a touch of envy when you see someone making a killing at something.
Why dont most businesses make it?
One reason is that business owners lose sight of the importance of working ON your business and not in it.
Working on your business, means just that, spending time working on developing your staff, systems, business plan, budget, products, doing your own accounts, sorting out legal issues, vision casting, developing a marketing plan, and so on. It is strengthening the foundation upon which your business will sit.
Working in your business means doing work for your clients that generates income. It means attending to short term and urgent matters.
Its easy to talk about working on your business rather than in it. A lot easier than actually doing it!
Imagine you start a business as a lawyer, and you have experience. Since you know what you are doing, you can service clients and provide excellent services without much thought. Now imagine you are so busy you need to hire your first employee – a junior since that’s all you can afford. How do you ensure that the work they provide to your clients is up to your standard? What systems and procedures for work have you implemented? What about review procedures? It is at this point that many business owners, have an entrepreneurial seizure. They decide that every employee is an idiot, that they are the only person who knows how to do anything, and many decide to get small again, to have no more staff than required, and to do it all themselves.
That my friends, is what you call a job, and is very different from what I would call a business. After all, the risk of starting your own business is that you might find yourself working for an even bigger idiot than the one you thought you were working for before! and this time your stuck together!
When starting a business you should be honest with yourself about whether you are starting a business or simply starting a job where you are self employed but have no intention of building an organisation that will service customers and generate income primarily through employees and a system of doing business that you oversee.
The fact is that the fruits of business for people who have a self employed job are small. You will most likely find someone out there who also wants to buy a job if you want to sell, but the second you stop working you stop earning, and rather than increasing your freedom, you will probably end up increasing your working hours.
The fruits for people who build a successful business are abundant.
1) Selling the business
If you can build a business that profitably employs a number of people, you will most likely be able to fetch a very attractive sale price for the business.
At the moment in Australia, if you meet certain criteria, you can potentially sell your business and receive 75% of the sale amount tax free.
Continue reading ‘Working on your business vs working in your business’ »
In Australia over 97% businesses are small to medium businesses. Roughly half go out of business in the first five years!
There is little reason to expect the world wide trends to be any different.
Its easy to start a business. All it takes is an idea, something to annoy you in your existing job, a market downturn, a moment of entrepreneurial valour, a touch of envy when you see someone making a killing at something.
Why dont most businesses make it?
One reason is that business owners lose sight of the importance of working ON your business and not in it.
Working on your business, means just that, spending time working on developing your staff, systems, business plan, budget, products, doing your own accounts, sorting out legal issues, vision casting, developing a marketing plan, and so on. It is strengthening the foundation upon which your business will sit.
Working in your business means doing work for your clients that generates income. It means attending to short term and urgent matters.
Its easy to talk about working on your business rather than in it. A lot easier than actually doing it!
Imagine you start a business as a lawyer, and you have experience. Since you know what you are doing, you can service clients and provide excellent services without much thought. Now imagine you are so busy you need to hire your first employee – a junior since that’s all you can afford. How do you ensure that the work they provide to your clients is up to your standard? What systems and procedures for work have you implemented? What about review procedures? It is at this point that many business owners, have an entrepreneurial seizure. They decide that every employee is an idiot, that they are the only person who knows how to do anything, and many decide to get small again, to have no more staff than required, and to do it all themselves.
That my friends, is what you call a job, and is very different from what I would call a business. After all, the risk of starting your own business is that you might find yourself working for an even bigger idiot than the one you thought you were working for before! and this time your stuck together!
When starting a business you should be honest with yourself about whether you are starting a business or simply starting a job where you are self employed but have no intention of building an organisation that will service customers and generate income primarily through employees and a system of doing business that you oversee.
The fact is that the fruits of business for people who have a self employed job are small. You will most likely find someone out there who also wants to buy a job if you want to sell, but the second you stop working you stop earning, and rather than increasing your freedom, you will probably end up increasing your working hours.
The fruits for people who build a successful business are abundant.
1) Selling the business
If you can build a business that profitably employs a number of people, you will most likely be able to fetch a very attractive sale price for the business.
Continue reading ‘Working on your business vs working in your business’ »