Dec
30
What does “independent” accountants do aside from working on tax during January to April?
Filed Under United States | 5 Comments
Clarom087 asked:
I mean accountants (CPA) who doesn’t work in a company. What can they do during the nontax season. Please give me some details.
FLOYD
____________________________________________________________________
I mean accountants (CPA) who doesn’t work in a company. What can they do during the nontax season. Please give me some details.
FLOYD
Dec
29
Going Online- Why Accountants And Cpas Should Have Websites
Filed Under Advice | Comments Off
Madison Lockwood asked:
The Tax Software Revolution
The most common service that accountants and CPAs provide to the public at large is tax preparation. That tradition has had a large hole blown in it by the arrival of software packages that allow individuals to prepare their own tax returns with an on-screen guide walking them through the process. The states and the federal government have cooperated by making online filing available and, furthermore, an attractive option because it will get you your tax refund quicker than a traditional paper filing.
Millions of Americans have opted for this method, and for many of them it’s a good choice. Large numbers of them did not use accounting services in the first place, as they had simple tax returns. However there is also a large class of people who are utilizing the yearly software option when perhaps they would do better with professional service. A good accountant can find tax breaks or prepare itemized lists that help your tax situation where you may not see the opportunity or may not be willing to dedicate the time to itemizing.
Why Professionals are Better than Software
The individuals that are caught between the “simple return” pool and the group of people who have to use professional help every year because of complicated personal financial situations are the group that accountants and CPAs need to recapture. The best way to convince someone that paying for professional services will save them money in the long run is to spell it out for them, and the best tool for that is the internet.
Large firms like H&R Block have expanded beyond the tax return business into financial planning. Many accounting firms or even CPAs working on their own are in a position to provide at least some financial counseling that extends beyond annual tax returns. An internet site is a compelling tool for explaining the goals and advantages of long term financial planning. It’s a method of explaining the multiple advantages of working with an accounting professional rather than a $40 software package.
Full Service Business Explained on a Full Service Website
An accountant’s website can speak also to the value of a one-to-one relationship as opposed to the services of a large firm such as H&R Block. Creative packaging is a tool used by many small accounting firms. Use their tax preparation services and receive an outline for an initial five year financial plan, gratis. It’s a method of leveraging the tax return process in order to introduce other potential services.
An internet site can also offer valuable advice to the increasing number of people who are working at home or on a contract basis for large employers. Many who take this professional path do not understand the different requirements for federal tax payments that are involved. A friendly – and partial – explanation on a CPA’s professional website will serve as an invitation to call and arrange a visit.
The usual collections of FAQs and recommendations, suggested links and biographical information can serve to introduce an accountant and develop a sense of professionalism before the customer and the service provider have their first conversation. An internet site is a better advertising tool and introductory method than direct mail, a yellow pages ad, even radio or TV… better than anything but a personal recommendation.
HEATH
The Tax Software Revolution
The most common service that accountants and CPAs provide to the public at large is tax preparation. That tradition has had a large hole blown in it by the arrival of software packages that allow individuals to prepare their own tax returns with an on-screen guide walking them through the process. The states and the federal government have cooperated by making online filing available and, furthermore, an attractive option because it will get you your tax refund quicker than a traditional paper filing.
____________________________________________________________________
Millions of Americans have opted for this method, and for many of them it’s a good choice. Large numbers of them did not use accounting services in the first place, as they had simple tax returns. However there is also a large class of people who are utilizing the yearly software option when perhaps they would do better with professional service. A good accountant can find tax breaks or prepare itemized lists that help your tax situation where you may not see the opportunity or may not be willing to dedicate the time to itemizing.
Why Professionals are Better than Software
The individuals that are caught between the “simple return” pool and the group of people who have to use professional help every year because of complicated personal financial situations are the group that accountants and CPAs need to recapture. The best way to convince someone that paying for professional services will save them money in the long run is to spell it out for them, and the best tool for that is the internet.
Large firms like H&R Block have expanded beyond the tax return business into financial planning. Many accounting firms or even CPAs working on their own are in a position to provide at least some financial counseling that extends beyond annual tax returns. An internet site is a compelling tool for explaining the goals and advantages of long term financial planning. It’s a method of explaining the multiple advantages of working with an accounting professional rather than a $40 software package.
Full Service Business Explained on a Full Service Website
An accountant’s website can speak also to the value of a one-to-one relationship as opposed to the services of a large firm such as H&R Block. Creative packaging is a tool used by many small accounting firms. Use their tax preparation services and receive an outline for an initial five year financial plan, gratis. It’s a method of leveraging the tax return process in order to introduce other potential services.
An internet site can also offer valuable advice to the increasing number of people who are working at home or on a contract basis for large employers. Many who take this professional path do not understand the different requirements for federal tax payments that are involved. A friendly – and partial – explanation on a CPA’s professional website will serve as an invitation to call and arrange a visit.
The usual collections of FAQs and recommendations, suggested links and biographical information can serve to introduce an accountant and develop a sense of professionalism before the customer and the service provider have their first conversation. An internet site is a better advertising tool and introductory method than direct mail, a yellow pages ad, even radio or TV… better than anything but a personal recommendation.
HEATH
Dec
27
Tax Deductions the First Time Home Buyer Can Expect
Filed Under Taxes | Comments Off
Ron Piner, CPA asked:
What You Can Expect From Your New Home
When one acquires his or her first new home, there is great expectation of a new income tax deduction. This expectation exists for both single folks and married couples as they wander into the new world of itemized deductions. No more do we get to fill out the short income tax forms, we must now use federal form “schedule A” to get the tax goodies that others have promised. What lies in store for the first time home buyer? What income tax benefits really do exist and how does the first time home buyer go about getting the benefits? This is what we came to discuss and we will not rest until a firm understanding of first time home buying is reached.
Step One-The Settlement
Before moving into a new residence, the all anticipated settlement date must arrive. Are there income tax deductions on the settlement sheet? There certainly could be. If points are paid to obtain financing, these points are income tax deductible and include points paid by the seller. There must be enough money paid by the borrower at settlement to cover the amount of points paid in order to get a current income tax deduction. When seller paid points are taken as a tax deduction, the cost basis of the home must be reduced by the seller paid points. For example, if a new home is purchased for $400,000, and the seller pays one point or $4,000, the buyer can deduct this amount but will reduce the home’s cost basis to $396,000. The deduction of points in the year of settlement is unique to the purchase of a principal residence. Any other purchase of real estate would require the amortization of points to expense over the life of the loan.
Real estate taxes paid at settlement are also deductible. This is the amount on page one of the settlement sheet that reimburses taxes paid by the seller in advance of his leaving the property. Taxes placed in escrow (usually displayed on page two of the settlement sheet) are not currently deductible as settlement expenses but will be deductible when disbursed by escrow. The remaining items on the settlement sheet are not currently deductible and should be capitalized as cost of the residence.
The time of year that settlement on a new residence occurs can have a significant impact on the availability of income tax deductions. For instance, suppose a married couple settles on a new home in December. Because this is their first home, they have not been itemizing deductions but instead have been using the standard deduction of $10,300 (2006 standard deduction for married couples filing a joint return). They will not make their first mortgage payment until January of the next year. Because of this, it is likely that the deductible settlement costs will be of little or no value to the happy home owners. They would have been better off to push settlement over to January and into a year where they would have twelve mortgage payments, real estate taxes, and could make maximum use of deductible settlement costs. Please plan your transaction accordingly.
Going Forward
Looking ahead, the first time home owner can look forward to deducting mortgage interest expense from their income taxes. This is true as long as their original acquisition debt does not exceed $1 million. Real estate taxes will also be deductible providing that the home owner or owners are not in the alternative minimum tax. Assuming that alternative minimum tax does not apply, the first time home buyer can expect to get tax deductions for both the mortgage interest and the real estate taxes paid during the year. It is even possible to get the tax advantages of home ownership immediately by changing withholding allowances. Let’s assume that a single taxpayer will have $20,000 in mortgage interest deductions and $4,000 in real estate taxes. Because this taxpayer’s standard deduction of $5,150 is built in to the tax withholding tables, we know that he can take an additional $18,150 in deductions ($24,000 less the standard deduction of $5,150). In order to get the tax benefit currently, the taxpayer would file a new W-4 form (withholding allowances form) with the payroll department where he works. This taxpayer would be eligible to claim an additional 5 exemptions ($18,150 divided by $3,300 which is the personal exemption allowance) which would thane serve to increase net pay over the upcoming weeks. This process works similarly for married couples except that the standard deduction used for determining additional deductions is $10,300. I should mention this caution. If both husband and wife work, each has a standard deduction built-in to their respective withholding tables. In this case, the amount that is used to calculate excess deductions is $20,600. Don’t forget that other deductions making up itemized deductions include state income taxes withheld or paid, charitable contributions, casualty and theft losses, medical expenses exceeding adjusted gross income limits, and miscellaneous deduction (typically from un-reimbursed employee business expenses). Remember, if a taxpayer is in the alternative minimum tax, there will be no benefit for income and real estate taxes paid and no benefit for miscellaneous itemized deductions. This is supposed to be a simple overview of what a new homeowner can expect in the way of income tax benefits. Unfortunately, nothing is ever really simple.
Ron Piner, CPA
Host of “Better Business”
Saturday Mornings at 10ET
On WBIS AM 1190
www.wbis1190.com
www.mwibonline.com
taxguy9@hotmail.com
LAWRENCE
What You Can Expect From Your New Home
When one acquires his or her first new home, there is great expectation of a new income tax deduction. This expectation exists for both single folks and married couples as they wander into the new world of itemized deductions. No more do we get to fill out the short income tax forms, we must now use federal form “schedule A” to get the tax goodies that others have promised. What lies in store for the first time home buyer? What income tax benefits really do exist and how does the first time home buyer go about getting the benefits? This is what we came to discuss and we will not rest until a firm understanding of first time home buying is reached.
____________________________________________________________________
Step One-The Settlement
Before moving into a new residence, the all anticipated settlement date must arrive. Are there income tax deductions on the settlement sheet? There certainly could be. If points are paid to obtain financing, these points are income tax deductible and include points paid by the seller. There must be enough money paid by the borrower at settlement to cover the amount of points paid in order to get a current income tax deduction. When seller paid points are taken as a tax deduction, the cost basis of the home must be reduced by the seller paid points. For example, if a new home is purchased for $400,000, and the seller pays one point or $4,000, the buyer can deduct this amount but will reduce the home’s cost basis to $396,000. The deduction of points in the year of settlement is unique to the purchase of a principal residence. Any other purchase of real estate would require the amortization of points to expense over the life of the loan.
Real estate taxes paid at settlement are also deductible. This is the amount on page one of the settlement sheet that reimburses taxes paid by the seller in advance of his leaving the property. Taxes placed in escrow (usually displayed on page two of the settlement sheet) are not currently deductible as settlement expenses but will be deductible when disbursed by escrow. The remaining items on the settlement sheet are not currently deductible and should be capitalized as cost of the residence.
The time of year that settlement on a new residence occurs can have a significant impact on the availability of income tax deductions. For instance, suppose a married couple settles on a new home in December. Because this is their first home, they have not been itemizing deductions but instead have been using the standard deduction of $10,300 (2006 standard deduction for married couples filing a joint return). They will not make their first mortgage payment until January of the next year. Because of this, it is likely that the deductible settlement costs will be of little or no value to the happy home owners. They would have been better off to push settlement over to January and into a year where they would have twelve mortgage payments, real estate taxes, and could make maximum use of deductible settlement costs. Please plan your transaction accordingly.
Going Forward
Looking ahead, the first time home owner can look forward to deducting mortgage interest expense from their income taxes. This is true as long as their original acquisition debt does not exceed $1 million. Real estate taxes will also be deductible providing that the home owner or owners are not in the alternative minimum tax. Assuming that alternative minimum tax does not apply, the first time home buyer can expect to get tax deductions for both the mortgage interest and the real estate taxes paid during the year. It is even possible to get the tax advantages of home ownership immediately by changing withholding allowances. Let’s assume that a single taxpayer will have $20,000 in mortgage interest deductions and $4,000 in real estate taxes. Because this taxpayer’s standard deduction of $5,150 is built in to the tax withholding tables, we know that he can take an additional $18,150 in deductions ($24,000 less the standard deduction of $5,150). In order to get the tax benefit currently, the taxpayer would file a new W-4 form (withholding allowances form) with the payroll department where he works. This taxpayer would be eligible to claim an additional 5 exemptions ($18,150 divided by $3,300 which is the personal exemption allowance) which would thane serve to increase net pay over the upcoming weeks. This process works similarly for married couples except that the standard deduction used for determining additional deductions is $10,300. I should mention this caution. If both husband and wife work, each has a standard deduction built-in to their respective withholding tables. In this case, the amount that is used to calculate excess deductions is $20,600. Don’t forget that other deductions making up itemized deductions include state income taxes withheld or paid, charitable contributions, casualty and theft losses, medical expenses exceeding adjusted gross income limits, and miscellaneous deduction (typically from un-reimbursed employee business expenses). Remember, if a taxpayer is in the alternative minimum tax, there will be no benefit for income and real estate taxes paid and no benefit for miscellaneous itemized deductions. This is supposed to be a simple overview of what a new homeowner can expect in the way of income tax benefits. Unfortunately, nothing is ever really simple.
Ron Piner, CPA
Host of “Better Business”
Saturday Mornings at 10ET
On WBIS AM 1190
www.wbis1190.com
www.mwibonline.com
taxguy9@hotmail.com
LAWRENCE
Dec
24
Rukia K asked:
I am thinking about going into either field as a day job since I’m taking a record keeping class. Although, I’m leaning towards accountant because I don’t want to risk getting sexually harassed if I’m a secretary. So how much does either job make an hour?
COLIN
I am thinking about going into either field as a day job since I’m taking a record keeping class. Although, I’m leaning towards accountant because I don’t want to risk getting sexually harassed if I’m a secretary. So how much does either job make an hour?
COLIN
Dec
23
mdlr1975 asked:
I need to know how many tax accountants there are (# of people) and the number of tax accountant practices, but haven’t been able to find the number…This is a challenging one!
BRAD
I need to know how many tax accountants there are (# of people) and the number of tax accountant practices, but haven’t been able to find the number…This is a challenging one!
BRAD
Dec
23
How To Find Cpa Affiliate Networks
Filed Under Marketing | Comments Off
Jonathan White asked:
A Cost per Action for those of you new to this way of advertising is a term that is associated with online advertising and online marketing circles. The CPA is regarded as the optimal form of purchasing an online advertising. Google has actually involved this into their Adsense. Other related terms are eCPA or effective Cost Per Action.
CPA is also known as Cost per Acquisition which is that the CPA offers made by the merchants are all about them acquiring something along the lines of customers, leads or even prospects. The terms Cost per Action and Cost per Acquisition they are both correct.
Finding a good CPA Affiliate Network is important; you want to find a network that is going to have all good programs. You can find these networks online but some of them are hard to find. You have to first determine what type of network you want to use. You have a choice of marketing solutions provider, pay for performance network, cost per action advertising network or performance based online marketing or cost per action.
Cost per action is one of the most popular networks to choose from. There are many networks out there and some can be hard to find, here are some we have come across and hope they can help you. Affiliate Fuel, this company has CPA network with a solid reputation for a personal service and they have a very fast payment time. Affiliate Window and Affiliate Future are both United Kingdom bases networks and they have a good number of products and services.
Azoogle Ads is a huge CPA Network, they have their own site, and they are one of the best. Adreporting.Com this is a professional and a well-rounded affiliate network and they have a few hundred merchants available for you.
CPA Empire is a good-sized affiliate network that offers its clients a medium sized list of advertisers.
There are so many other networks you can use, check online at http://www.affiliateseeking.com/netwo/23000002/1.html, there is well over 100 CPA Affiliate Networks listed. Read each one and see what program works best for you and apply, you can apply to more than one.
LOGAN
A Cost per Action for those of you new to this way of advertising is a term that is associated with online advertising and online marketing circles. The CPA is regarded as the optimal form of purchasing an online advertising. Google has actually involved this into their Adsense. Other related terms are eCPA or effective Cost Per Action.
CPA is also known as Cost per Acquisition which is that the CPA offers made by the merchants are all about them acquiring something along the lines of customers, leads or even prospects. The terms Cost per Action and Cost per Acquisition they are both correct.
Finding a good CPA Affiliate Network is important; you want to find a network that is going to have all good programs. You can find these networks online but some of them are hard to find. You have to first determine what type of network you want to use. You have a choice of marketing solutions provider, pay for performance network, cost per action advertising network or performance based online marketing or cost per action.
Cost per action is one of the most popular networks to choose from. There are many networks out there and some can be hard to find, here are some we have come across and hope they can help you. Affiliate Fuel, this company has CPA network with a solid reputation for a personal service and they have a very fast payment time. Affiliate Window and Affiliate Future are both United Kingdom bases networks and they have a good number of products and services.
Azoogle Ads is a huge CPA Network, they have their own site, and they are one of the best. Adreporting.Com this is a professional and a well-rounded affiliate network and they have a few hundred merchants available for you.
CPA Empire is a good-sized affiliate network that offers its clients a medium sized list of advertisers.
There are so many other networks you can use, check online at http://www.affiliateseeking.com/netwo/23000002/1.html, there is well over 100 CPA Affiliate Networks listed. Read each one and see what program works best for you and apply, you can apply to more than one.
LOGAN
Dec
21
How to Find a Good Cpa
Filed Under Small Business | Comments Off
Mani Malarvannan asked:
Business handling whether it is big or small is always the important part in the growth and prospects of the company. So a efficient CPAs must be hired who can handle the Complex Financial problem properly.
The following are the 7 best tips to find your efficient CPAs:
1.Qualifications matters a much for the CPAs
CPAs are not number cruncher who only can identify your companies profit and loss statement . They handle lot more pressure like tax planning, business consulting and other legal formalities. You should check that whether the CPAs has passed all the state governed tests and qualified for the recertification tests. This qualification is highly required as this shows that the CPA you are getting knows all the desired government rules and regulations.
2. Analyze yours Expectation from the CPAs
A good CPA not only just file your tax returns but will give good financial advice in a simple way that may help for the success for your company . For example how buying or leasing a car for the office can affects the tax for the company. A good CPA is such a important person in small business that he can handle total finance of the company and owner can focus on their core business.
3. Client Referral
Firstly choose 4-5 CPAs according to merit .Speak to colleagues and their clients or get a referral from a trustworthy source. You may ask your financial planner, insurance agent or even your banker. Alternatively you can ask the CPAs for references of clients they are working with. Once get information about them pick the best out of them.
4. Dont Hurry in your decision
It takes lot of time and effort to select the CPAs. You should not hurry in it; it is not the matter of joke. Your CPA must satisfy your needs and give valuable financial guidelines that will save both your money and time and helps in the productive gain of the company. Ideally you should interview about 4-5 CPAs and pick the best one which will help to recognize their capabilities.
5. Outsourcing the Account
By outsourcing accounting to a competent CPA you can reduces the administrative hassles of hiring a full-time CPA. This CPAs are highly professional. This outsourcing will bring down the accounting cost without the sacrifice of the quality services. More and more businesses are preferring the outsource of their accounting.
6. A set of Question must be prepare for the Interview
A set of question must be set in your mind before you go to ask the candidate. Questionnaires must contain questions about how to save money in your business, financial strategies that will ensure the long-term growth of the business. You could also ask for the comments of the CPA about company’s past accounting statement.
7. Technological Expertise Check
CPA should uses the same accounting software you are currently using otherwise you will face a huge monetary loss for transfering your financial and accounting data from your current accounting software to a different accounting software used by your CPA. If you are not using any accounting software then you need to decide what accounting software is good for your business first before choosing your CPA.
Small businesses should find proper CPA so that they can run their small business smoothly. These tips can help small business owners in choosing the right CPA for their company.
BOBBY
Business handling whether it is big or small is always the important part in the growth and prospects of the company. So a efficient CPAs must be hired who can handle the Complex Financial problem properly.
The following are the 7 best tips to find your efficient CPAs:
1.Qualifications matters a much for the CPAs
CPAs are not number cruncher who only can identify your companies profit and loss statement . They handle lot more pressure like tax planning, business consulting and other legal formalities. You should check that whether the CPAs has passed all the state governed tests and qualified for the recertification tests. This qualification is highly required as this shows that the CPA you are getting knows all the desired government rules and regulations.
2. Analyze yours Expectation from the CPAs
A good CPA not only just file your tax returns but will give good financial advice in a simple way that may help for the success for your company . For example how buying or leasing a car for the office can affects the tax for the company. A good CPA is such a important person in small business that he can handle total finance of the company and owner can focus on their core business.
3. Client Referral
Firstly choose 4-5 CPAs according to merit .Speak to colleagues and their clients or get a referral from a trustworthy source. You may ask your financial planner, insurance agent or even your banker. Alternatively you can ask the CPAs for references of clients they are working with. Once get information about them pick the best out of them.
4. Dont Hurry in your decision
It takes lot of time and effort to select the CPAs. You should not hurry in it; it is not the matter of joke. Your CPA must satisfy your needs and give valuable financial guidelines that will save both your money and time and helps in the productive gain of the company. Ideally you should interview about 4-5 CPAs and pick the best one which will help to recognize their capabilities.
5. Outsourcing the Account
By outsourcing accounting to a competent CPA you can reduces the administrative hassles of hiring a full-time CPA. This CPAs are highly professional. This outsourcing will bring down the accounting cost without the sacrifice of the quality services. More and more businesses are preferring the outsource of their accounting.
6. A set of Question must be prepare for the Interview
A set of question must be set in your mind before you go to ask the candidate. Questionnaires must contain questions about how to save money in your business, financial strategies that will ensure the long-term growth of the business. You could also ask for the comments of the CPA about company’s past accounting statement.
7. Technological Expertise Check
CPA should uses the same accounting software you are currently using otherwise you will face a huge monetary loss for transfering your financial and accounting data from your current accounting software to a different accounting software used by your CPA. If you are not using any accounting software then you need to decide what accounting software is good for your business first before choosing your CPA.
Small businesses should find proper CPA so that they can run their small business smoothly. These tips can help small business owners in choosing the right CPA for their company.
BOBBY
Dec
21
elijahhbk asked:
i just read the rich dad poor dad book and the author said that i should hire tax lawyers, accountants, stock brokers,to have a rich future. how can i afford them all.
QUENTIN
i just read the rich dad poor dad book and the author said that i should hire tax lawyers, accountants, stock brokers,to have a rich future. how can i afford them all.
QUENTIN
Dec
20
jforrest46221 asked:
I’m an accounting major and would love to work from home. I know it can’t be 100% of the time, but….
I’m an accounting major and would love to work from home. I know it can’t be 100% of the time, but….
If you’re an accountant, let me know how many days (or hours) per week your boss allows you to work from home (even if it is zero)!
Thank you!
BERNARDO
Dec
20
Accountant Cpa or Bookkeeper
Filed Under Payment Disputes | Comments Off
Ed Sullivan asked:
You have started your business and things are going great, now you decide you need some help with managing your books, you open the yellow pages and under accounting you see, CPA’s, Accountants and Bookkeepers. Which do you choose? Which one would be good for your small business? And what’s the difference?
There are differences, and one of those differences will be cost, and as you have learned when you started your business cost will be a factor in almost every business decision you make. Which one will get you the most for your businesses dollar? That’s a question you will have to decide depending on the services you think you will need.
A CPA (Certified Public Accountant) will be the most expensive choice, and in my opinion, too much for a small business starting out. Depending on what you need a CPA’s rates can run you an average of $250.00 to $500.00 a month and if your not in need of financial consulting or having tax problems, in my opinion you will be paying an unneeded expense on a service that wont be utilized for your business.
An Accountant can do the same things as a CPA the difference is about a 4 year degree and the required exams to be a certified public accountant, there rates wont be as high but the end results will be the same, there average rate will range from $200.00 to $ 400.00 a month with basically the same services.
A CPA and an Accountant will both do fine jobs for you, but it will cost you more than what you need to spend for something as small as managing your books, which is what you will be doing as a small business. You will take your books and all your receipts and bank statements to the account or CPA and they will hand all that to their bookkeeper who will get your books in a manageable and clean order at the rate of the accountant or CPA.
If your needs are basic and you need someone to do your books or payroll or sales tax, my advice is a bookkeeper. A bookkeeper will do just that, they will get your books in order, they can do your payroll or sales taxes and some can even do your taxes, all this a t a much lower cost, the average rate for a bookkeeper is $150.00 to $300.00 a month depending on your needs.
If you do have an accountant or a CPA and you have a bookkeeper do your books, you will still save money because your books will be in good clean shape when you give them to your accountant or CPA, meaning they don’t have to have their bookkeeper do anything and the time they bill you for will be quite less than if they had to clean up your books every month.
Cutting cost in your business is going to be something you will always look for and this little tip could be a savings you don’t want to ignore, my advice do some research, call some CPA’s Accountants and some Bookkeepers, compare their services and rates, then choose the best for your business.
MARCUS
You have started your business and things are going great, now you decide you need some help with managing your books, you open the yellow pages and under accounting you see, CPA’s, Accountants and Bookkeepers. Which do you choose? Which one would be good for your small business? And what’s the difference?
There are differences, and one of those differences will be cost, and as you have learned when you started your business cost will be a factor in almost every business decision you make. Which one will get you the most for your businesses dollar? That’s a question you will have to decide depending on the services you think you will need.
A CPA (Certified Public Accountant) will be the most expensive choice, and in my opinion, too much for a small business starting out. Depending on what you need a CPA’s rates can run you an average of $250.00 to $500.00 a month and if your not in need of financial consulting or having tax problems, in my opinion you will be paying an unneeded expense on a service that wont be utilized for your business.
An Accountant can do the same things as a CPA the difference is about a 4 year degree and the required exams to be a certified public accountant, there rates wont be as high but the end results will be the same, there average rate will range from $200.00 to $ 400.00 a month with basically the same services.
A CPA and an Accountant will both do fine jobs for you, but it will cost you more than what you need to spend for something as small as managing your books, which is what you will be doing as a small business. You will take your books and all your receipts and bank statements to the account or CPA and they will hand all that to their bookkeeper who will get your books in a manageable and clean order at the rate of the accountant or CPA.
If your needs are basic and you need someone to do your books or payroll or sales tax, my advice is a bookkeeper. A bookkeeper will do just that, they will get your books in order, they can do your payroll or sales taxes and some can even do your taxes, all this a t a much lower cost, the average rate for a bookkeeper is $150.00 to $300.00 a month depending on your needs.
If you do have an accountant or a CPA and you have a bookkeeper do your books, you will still save money because your books will be in good clean shape when you give them to your accountant or CPA, meaning they don’t have to have their bookkeeper do anything and the time they bill you for will be quite less than if they had to clean up your books every month.
Cutting cost in your business is going to be something you will always look for and this little tip could be a savings you don’t want to ignore, my advice do some research, call some CPA’s Accountants and some Bookkeepers, compare their services and rates, then choose the best for your business.
MARCUS