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The Certified Public Accountant's Guide to Financial Forecasting and Analysis

Sun, 29 Oct 2023 20:14:08 GMT

See the future through numbers with Cartier CPAs

Financial forecasting and analysis is both art and science. As certified public accountants, we blend numerical data with real-world experience and business acumen to help clients predict future performance. Our crystal ball is forged from spreadsheets, benchmarks, and insights you can bank on.

At Cartier CPAs, we're not just number-crunchers. We're trusted advisors who interpret figures and trends to guide strategic decisions. From startups to Fortune 500 companies, our financial forecasting helps businesses seize opportunities and avoid pitfalls.

Join us on a voyage beyond the limits of accounting. Together, we'll navigate uncertainty and shed light on the road ahead. The future is yours to master with our CPAs as your guides.

Introduction: Why Financial Forecasting Matters

"It's tough to make predictions, especially about the future."

Yogi Berra's famous quote rings true in business. The future is uncertain. Market conditions change. New competitors emerge. How can you steer your company with confidence?

Financial forecasting is the compass enterprises need to chart their course. By analyzing past performance and current trends, CPAs predict sales, costs, cash flow, and other metrics. Leaders leverage these insights to:

Set realistic goals and objectives - Forecasts align business plans with actual performance.
Make strategic decisions - Should you introduce a new product line? Expand operations? CPAs assess how moves today will impact the future.
Secure funding - Lenders and investors rely on forecasts to evaluate funding requests and measure progress.
Benchmark performance - Regular forecasts help monitor achievement of targets and quickly respond to deviations.

While forecasts are not 100% accurate, they give your best estimate of what lies ahead. With comprehensive models and scenario planning, CPAs help you anticipate challenges and capitalize on opportunities.

CPAs Partner with Companies for Ongoing Forecasting

Financial forecasts are not one-time events. They require continuous fine-tuning to reflect changes in the business climate. CPAs work closely with clients to:

Establish forecasting frameworks - We help design forecast models tailored to your operations, reporting needs, and growth strategies.
Gather inputs - CPAs collect historical data, industry benchmarks, and assumptions from your leadership team to inform forecasts.
Analyze and interpret data - We identify trends and key drivers of performance to project future results.
Present findings - CPAs deliver forecast reports and presentations with actionable insights.
Update forecasts regularly - As new data becomes available, we revise projections to ensure accuracy.
Track variance - By comparing forecasts with actual results, CPAs highlight areas for improvement.

This collaborative process yields living forecasts that evolve with your business. With CPAs as partners, you can plan for the future with confidence.

Types of Financial Forecasts CPAs Prepare

CPAs employ various forecasting methods depending on your business needs:

1. Sales Forecasts

Projected sales revenue serves as the foundation for overall financial plans.
Analyze past sales data, market conditions, and new initiatives.
Typical metrics:Sales volume by product/service

2. Expense Forecasts

Predict overhead, payroll, supplies, taxes, and other upcoming costs.
Factor in inflation, business expansion, and other influences on expenses.
Metrics may include:Cost of goods sold

3. Cash Flow Forecasts

Estimate future cash inflows/outflows month-by-month or quarterly.
Key for managing liquidity and identifying cash shortfalls early.
Incorporates projections for:Cash from operations

4. Budgets

Detailed financial plans for implementing strategies.
Combines forecasts for income, expenses, headcount, capex, etc.
Guides day-to-day decision making and execution.

5. Pro Forma Financial Statements

Projected income statement, balance sheet, and statement of cash flows.
Illustrates impact of business plans on key financial statements.
Help assess borrowing needs, ROI of investments, valuation.

Building Blocks of Accurate Forecasting

Forecasting is both art and science. While crunching the numbers, CPAs also rely on the qualitative insights of management. Here are keys to developing forecasts that reflect business realities:

Leverage historical data - Trends in past performance provide a baseline for projections.

Research external factors - Consider economic conditions, industry trends, market changes, and other outside forces that may impact performance.

Identify key assumptions - Consult with managers to determine the variables underlying projections, like price increases, production capacity, inflation, etc.

Model multiple scenarios - Create optimistic, pessimistic, and most likely projections to stress-test strategies.

Compare actual vs. forecast - Review variance to improve forecasting models and methods.

Provide context - Analyze the story behind the numbers to inform strategic decisions.

Update regularly - Revise forecasts as business conditions evolve.

Document methodology - Outline data sources, assumptions, and models used so forecasts can be recreated.

With these best practices, CPAs develop actionable forecasts to guide both short and long-term plans.

Financial Analysis Complements Forecasting

While forecasting focuses on the future, financial analysis evaluates where you stand today. CPAs perform ratio analysis, benchmarking, and other assessments to diagnose current performance.

Key techniques include:

Ratio analysis - Assess liquidity, leverage, profitability, asset utilization, and other metrics relative to past performance, competitors, or industry averages.
Common size analysis - Compare line items as a percentage of total assets, net sales, etc. Spot reliance on specific products/customers.
Trend analysis - Review performance over sequential periods to identify developing trends.
DuPont analysis - Break down ROI to determine drivers of profitability.
What-if analysis - Model effects of potential strategies or scenarios on financials.
Budget variance - Compare actual results to budgets to identify positives/negatives.

Financial analysis provides the foundation for accurate forecasting. By understanding where you are, CPAs can better predict where you are going.

Conclusion: Partner with Cartier CPAs for Strategic Financial Insights

At Cartier CPAs, forecasting is about more than crunching numbers. It's about starting meaningful conversations that inform your future. With customized models and experienced guidance, we provide financial insights to drive growth and mitigate risk.

Let us stress-test your strategies before you make critical investments. With CPAs as strategic advisors, you can approach the future with clarity and confidence. Contact Cartier CPAs to get started on forecasting that propels your vision forward. The numbers don't lie - your success is our passion.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How a CPA Can Help You Optimize Your Business Tax Strategy for Maximum Savings

Sun, 15 Oct 2023 19:47:06 GMT

Supercharge Your Company's Financial Health with Expert Tax Planning

Running a successful business requires mastering many skills - from operations and marketing to HR and accounting. But one of the most complex yet crucial areas that demands expertise is navigating business taxes. Failing to manage taxes efficiently could lead to thousands in lost savings, penalties, and other unnecessary costs.

That's why partnering with a knowledgeable CPA should be a top priority for smart business owners and managers. With the right tax strategy in place, you can unlock major savings, incentives, and growth opportunities to take your company's success to new heights.

Why Business Tax Strategy Matters

For many companies, taxes are treated as an afterthought. They scramble to handle tax compliance, filing returns and paying what's owed to stay legal. But this reactive approach completely misses the bigger picture and advantages that proactive tax planning can provide.

Tax strategy has the power to:

Lower your tax liability legally - A CPA can help you capitalize on deductions, credits, exemptions, and other tax-reducing opportunities you may be missing out on. Just a 5-10% reduction in your effective tax rate can save tens of thousands.
Maximize write-offs - Don't leave money on the table by not fully utilizing depreciation, amortization, and expensing to lower your taxable income. A CPA can pinpoint every allowable write-off.
Time income and expenses strategically - Deferring revenue realization while accelerating expenses can minimize tax liability in a given year when done right. Your CPA can model the optimal timing strategies.
Structure your business smartly - From entity type election (C-Corp, S-Corp, LLC) to shareholder payroll and profit distributions, a CPA can ensure you're set up to legally minimize taxes.
Uncover credits and incentives - Federal, state, and local governments offer tax credits and other incentives for various business activities - if you know how to tap into them. An expert CPA has the knowledge to connect you.
Plan for future tax scenarios - Proper planning can reduce taxes related to an ownership transition, acquisition, expansion, or other major milestone down the road.

How a CPA Optimizes Your Tax Strategy

With an intricate understanding of the 74,000+ pages of federal tax code and complexities of state tax laws, CPAs are uniquely equipped to provide strategic tax planning tailored to your business's situation.

Rather than a simple checklist approach, they take a comprehensive view across these key areas:

Analyzing Your Entity Structure

Should you be taxed as a C-Corp, S-Corp, partnership, sole proprietorship, or LLC? What are the tax implications of each?
If converting entity types, what are the transition rules and tax impacts?
How should ownership interests be divided and profit/loss passed through to owners?
What payroll, distribution, and accounting practices align with your structure?

Reviewing Your Books and Operations

How do you currently recognize income and claim expenses on your books? Are there more strategic ways?
Are there unclaimed deductions or credits you should be taking advantage of?
Are you maximizing depreciation write-offs available to your assets?
Are you properly classifying payments to owners as salary vs distributions for optimal tax treatment?

Projecting Your Tax Picture

Use projections to model how much your current tax strategy will cost over the next 5 years.
Run scenarios to estimate tax impact of potential changes - growth, new products/services, physical expansion, acquisitions.
Compare strategies to find the most tax-efficient moves and investments.

Implementing Tax Minimization Tactics

Time revenue recognition and expenses to your advantage.
Shift your asset mix to favor tax-advantaged investments.
Set up payroll and accounting practices to optimize owner compensation.
Take advantage of available federal and state credits and incentives.
Harvest tax losses to offset capital gains.
Leverage retirement and fringe benefit options to reduce taxable payroll.

Managing Ongoing Tax Compliance

Handle every required federal and state tax filing and payment.
Resolve notices, audits, and other issues with tax authorities.
Adjust strategies as needed based on new tax laws and your evolving business.

Real-World Examples of CPA Tax Strategy Wins

To give you a better idea of how impactful proactive tax planning can be, here are some real-world examples from clients of Cartier CPAs:

Manufacturer

Converted from C-Corp to an S-Corp to save $125k in taxes annually
Established defined benefit pension plan to generate $90k in annual retirement plan contributions as a tax deduction

Tech Firm

Cut tax bill by $240k through R&D tax credit for software development activities
Deferred $1 million in taxable revenue through multi-year service contracts

Restaurant Chain

Saved $315k in FICA taxes by reclassifying owner payments as S-Corp distributions rather than wages
Reduced taxable income by $500k through bonus depreciation on renovations

E-Commerce Company

Deducted home office space, supplies, and utilities to reduce owner's taxable income by $21k
Eliminated $51k in state income taxes by restructuring as an LLC

Law Firm

Saved $112k annually through tax loss harvesting strategy for investments
Implemented defined benefit plan to allow partners to contribute over $200k tax-free annually

Let Cartier CPAs Optimize Your Business Taxes

Don't leave potential tax savings on the table. With the right strategic planning, you can put thousands of extra dollars annually into growing your business instead of paying unnecessary taxes.

Contact Cartier CPAs today to schedule a free consultation. Our expert CPAs will analyze your current tax situation and recommend customized strategies to maximize deductions, credits, and other benefits while remaining fully compliant.

We offer transparent pricing with no surprise fees. Let us put our decades of tax experience to work for you!

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Navigating the Intricacies of Ecommerce Accounting How a CPA Can Help

Tue, 26 Sep 2023 10:50:45 GMT

CPAs Provide the e-commerce accounting Expertise Online Sellers Need to Succeed

New ParagraphRunning an e-commerce business comes with its fair share of challenges in today's highly competitive digital landscape. Beyond attracting customers and fulfilling orders, one of the biggest pain points for ecommerce merchants is accounting.

With complex sales tax rules, intricate revenue streams, omnichannel inventory tracking, international expansion, and the need for actionable financial reporting, ecommerce accounting can quickly become a major headache. Many ecommerce owners end up feeling lost in the financial intricacies of running an online business.

Fortunately, partnering with a knowledgeable certified public accountant (CPA) can provide invaluable expertise to navigate the various accounting intricacies unique to e-commerce. This allows online business owners to regain clarity over their finances and make smart data-driven decisions.

Here are some of the key areas where an experienced ecommerce CPA can help:

Conquering Multi-State Sales Tax Complexities

For ecommerce sellers making sales across multiple U.S. states, properly handling sales tax can be incredibly challenging. There are over 12,000 sales tax jurisdictions spread across the country, and rates, regulations, filing requirements, and product exemptions vary widely. States are also continuously updating their laws, making compliance a constantly moving target.

Some of the specific ways a multi-state sales tax expert CPA can help include:

Determining nexus requirements in each state to understand when a seller must collect and remit sales tax based on factors like inventory, affiliate relationships, economic thresholds, and more.
Managing new sales tax registrations and permits when expanding into additional states.
Configuring ecommerce platforms, POS systems, and accounting software to properly calculate localized sales tax rates in every jurisdiction.
Filing regular sales tax returns, filings, and payments to each state. Handle more complex returns required in some states.
Researching updated sales tax laws and requirements across thousands of state and local jurisdictions.
Claiming eligible sales tax exemptions for things like clothing, food, medical products.
Providing audit support if contacted by a state tax authority.

With a CPA handling multi-state sales tax, ecommerce businesses can focus on growth knowing they are fully compliant in every state and jurisdiction.

Demystifying Ecommerce Revenue Recognition

For many ecommerce companies, properly recognizing revenue streams can also be a challenge. With subscription services, dynamic pricing, bundled products, gift cards, dropshipping, returns, complex advertising revenue, and more, determining when and how revenue should be counted is key for accurate financial reporting.

A CPA experienced in ecommerce revenue recognition can help by:

Identifying the appropriate timing and accounting periods to recognize revenue as products and services are delivered.
Applying GAAP principles to ensure revenue meets relevant criteria before being recognized.
Tracking unearned revenue liability where funds have been collected but goods not yet provided.
Handling revenue recognition across diverse streams like subscriptions, bundles, advertising, affiliate revenue, and more throughout the customer lifecycle.
Continuously updating revenue as returns, refunds, chargebacks, and gift card redemptions occur.
Avoiding common revenue recognition mistakes like counting revenue too early or late.

With their support, ecommerce businesses can feel confident their financial reporting reflects revenue accurately across all diverse streams.

Optimizing Inventory Management & Visibility

For ecommerce retailers that sell physical products, keeping tight control over inventory availability across multiple locations and sales channels is critical for avoiding stock-outs and providing a positive customer experience. However achieving unified visibility and accuracy with inventory constantly in flux can be extremely difficult.

A CPA experienced in omnichannel retail inventory management can provide valuable guidance with:

Integrating inventory data across ecommerce platforms, order processing systems, accounting software, 3PLs, and offline channels into a single unified view.
Building real-time visibility into inventory quantities, status, and movement across the supply chain.
Analyzing sales velocity and demand forecasts to determine optimal stock levels and reorder points for each product.
Automating workflows to ensure inventory availability is checked during order processing to avoid overselling.
Providing best practices for inventory costing methods like FIFO, LIFO, average cost, and more.
Detecting and addressing shrinkage when actual inventory counts don't match book counts.
Writing-off or disposing of obsolete, expired, or excess inventory according to accounting guidelines.
Instituting controls and cycle counting processes to maintain high accuracy as inventory scales up.

With their expertise, CPAs can help ecommerce sellers minimize stock-outs, carry the right levels of inventory, and achieve omnichannel accuracy.

Mastering Global Ecommerce & International Expansion

For ecommerce businesses with global ambitions, selling to customers worldwide opens amazing opportunities but also introduces new accounting complexities. This includes things like:

Charging the appropriate VAT, GST, or sales tax rates for every country goods are shipped to.
Navigating customs duties, import/export regulations, and documentation requirements.
Managing foreign currency conversions and payments while avoiding excessive transaction fees.
Adhering to accounting rules and regulations (GAAP or IFRS) in each country of operation.

A globally savvy CPA can be invaluable for ensuring ecommerce companies handle international transactions properly and remain tax compliant across borders as they expand globally.

Producing Actionable Financial Reporting & Analysis

Accessing timely and accurate financial statements and reports is critical for ecommerce businesses to analyze performance, identify trends and opportunities, forecast finances, and make informed strategic decisions.

A CPA can deliver tailored financial reporting and insights including:

Structuring standard monthly, quarterly, and annual financial statements like P&Ls, balance sheets, cash flow statements.
Performing account reconciliations to identify and resolve discrepancies.
Building budgets and forecasts based on historical performance and trends.
Driving decisions through variance analysis by comparing actuals to plans.
Segmenting financials by business units, product lines, regions, or other drivers to surface key insights.
Benchmarking against competitors and industry standards.
Consulting on strategies to optimize profitability, cash flow, and growth.

With the massive ecommerce market size expected to reach over $5.5 trillion globally by 2027, partnering with a CPA is key to sustaining growth and profitability. Rather than getting lost in the intricacies, leverage a knowledgeable CPA to provide tailored guidance and clarity across critical areas like sales tax, revenue recognition, inventory, global expansion, financial reporting, and more.

If your ecommerce business needs specialized accounting expertise and solutions, the dedicated CPAs at CartierCPAs have guided countless online sellers by turning complex financial data into actionable insights to drive growth. Contact us for a customized assessment.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

The Road to Financial Wellness: How a CPA Can Help You Achieve Your Money Goals

Fri, 15 Sep 2023 10:35:20 GMT

Achieve Financial Wellness with a Certified Public Accountant

What does it mean to be financially well? It goes beyond just having enough money to pay your bills. True financial wellness is having the resources and knowledge to meet your current financial obligations, prepare for future goals, and sleep well at night. That’s where working with a certified public accountant (CPA) can make a big difference.

CPAs are uniquely equipped to provide personalized guidance to help you achieve financial wellness. With expertise in areas like tax planning, investment strategy, retirement preparation, and estate planning, a CPA can be your financial advocate. Read on to learn more about how partnering with a CPA can set you on the road to financial health.

Defining Financial Wellness

Financial wellness involves having financial stability in the present while also being able to save and invest for the future. Key elements of financial wellness include:

Living within your means - This means spending less than you earn so you aren't accumulating unhealthy debt. Setting a realistic budget and sticking to it is key.
Having an emergency fund - Experts recommend having 3-6 months of living expenses set aside in case of an emergency like job loss or major home repair.
Managing debt responsibly - Avoid high interest debt like credit cards. Have a plan to pay off debt like student loans in a reasonable timeframe.
Saving for goals - Consistently contribute to short and long term savings for things like vacations, vehicles, college, and retirement.
Having adequate insurance - Make sure you have proper health, disability, auto, home, and life insurance coverage.
Investing for the future - Invest in things like retirement accounts, mutual funds, and real estate to steadily build wealth over decades.
Having an estate plan - Create clear plans for how assets will be passed on through wills, trusts, beneficiaries, and asset gifting.

Accomplishing all those tasks allows you to have control over your finances rather than feeling controlled by your finances. Financial wellness leads to less stress and anxiety. Attaining lasting financial wellness should be everyone's goal.

Benefits of Financial Wellness

Reaching a state of financial wellness has many benefits:

More opportunities - You can seize opportunities to enrich your life, like taking dream vacations, without the limitation of finances holding you back.
Ability to give - The more financially well you become, the more you can give back to causes important to you through charitable donations and volunteering.
Security for later years - You don't have to worry about your livelihood as you age or face unexpected health issues. Your savings and insurance provide comfort.
Passing on a legacy - With proper estate planning, you know that your assets will be left to loved ones or charities according to your values.
Pride and confidence - There is deep satisfaction in knowing you made smart financial choices leading to stability and abundance.

Financial wellness gives you freedom - freedom from stress about money, freedom to enrich your life, and freedom to leave a lasting legacy.

How a CPA Provides Financial Guidance

Achieving financial wellness rarely happens by accident. It requires carefully planning, discipline, and guidance from financial experts. That's where a certified public accountant can help.

CPAs are financial professionals with specialized expertise in money management, taxes, accounting, and financial planning. When you work with a CPA, you have a financial advocate to maximize your money.

Specifically, a CPA can provide guidance with:

Budgeting - They can help track your spending, create realistic budgets aligned with your financial goals, and offer tips to save and manage debt.
Record keeping - CPAs will help you organize tax records, insurance policies, titles, investment statements, and all paperwork needed for optimal financial tracking.
Tax planning - CPAs are experts at finding deductions, credits, and tax-advantaged accounts to minimize your tax liability.
Audit support - If you ever face the prospect of an IRS audit, your CPA can represent you and communicate with tax authorities.
Investing - CPAs help you develop long-term investment strategies tailored specifically for your retirement plans and other financial goals.
401(k) and IRA guidance - They can advise you on making the most of workplace retirement accounts and setting up IRAs.
Insurance planning - They recommend insurance policies to protect your assets without overpaying for unnecessary premiums.
College savings - CPAs guide you on how much to save, the best college savings vehicles, and ways to pay for college.
Debt reduction tactics - They create plans to pay off debt quickly by minimizing interest payments.
Real estate planning - CPAs help with decisions on home ownership like rent vs. buy analysis, purchase timing, and mortgage options.
Retirement planning - They run projections on your retirement income and savings needs and suggest ways to close any gaps.
Estate planning - CPAs help you create wills, designate beneficiaries, set up trusts, and develop estate tax strategies.

The expertise of a CPA covers every aspect of your financial life. Their guidance maximizes your money in the short and long term.

Tax Planning Benefits

One of the biggest values a CPA provides is expertise in developing proactive tax planning strategies. CPAs stay continually updated on the intricacies of the tax code to identify how clients can minimize their tax burden through deductions, credits, income shifting, and more.

Some of the strategies a CPA may employ for tax reduction include:

Maximizing 401(k) contributions - Contributing to traditional 401(k)s lowers your taxable income. CPAs advise on maxing out annual contributions.
Health savings accounts - Money contributed to an HSA reduces your taxable income. CPAs help set up and fund these accounts.
Harvesting tax losses - Selling losing investments can offset capital gains and lower your tax burden. CPAs guide you on loss harvesting.
Donating to charity - If you itemize your deductions, charitable giving helps lower taxable income. CPAs explain deduction limits.
Claiming business expenses - If you are self-employed, your CPA identifies deductible business expenses like mileage, supplies, home offices, and more.
Education credits and deductions - CPAs uncover tax savings opportunities related to education costs through vehicles like 529 plans.
Child and dependent credits - Raising kids and supporting others can make you eligible for tax credits. Your CPA will ensure you claim everything entitled.
Splitting income - If married, CPAs may recommend ways to shift income between spouses to take advantage of lower tax brackets.
Roth IRA conversions - Converting traditional IRA funds to a Roth IRA can reduce lifetime tax liability. A CPA analyzes if this makes sense.
Catching errors - CPAs double check your returns to correct any mistakes and prevent audits and penalties.

Proactive planning with an experienced CPA can result in thousands of tax savings over your lifetime.

Investment Planning Approaches

One of the keys to building lasting wealth is developing a sound investment strategy. Your CPA can guide you on making investments that align with your risk tolerance and time horizon.

Factors a CPA considers when advising on investments include:

Risk tolerance - They help you complete questionnaires to determine your comfort level with risk so investments stay within your bounds. Conservative investors may favor things like bonds and dividend stocks, while more aggressive investors may opt for emerging market funds and small cap stocks.
Time horizon - If you are investing for retirement 30 years away, you can accept more risk and volatility. Your CPA steers you toward long-term capital appreciation. If you need funds in 5 years for college, CPAs recommend safer investments like high yield savings.
Asset allocation - CPAs run analysis to arrive at investment allocations across stocks, bonds, real estate, commodities, and cash that align with your risk appetite and objectives. Diversification is key.
Fees - CPAs recommend low fee investments like certain ETFs and index funds when appropriate so more of your money goes to growth rather than management expenses.
Tax strategy - Taxable accounts are invested differently than retirement accounts to minimize Uncle Sam's cut. CPAs construct your portfolio using tax-efficient placements.
Rebalancing - As some investments outperform, asset allocation can shift out of balance. Your CPA helps rebalance periodically to maintain target allocations.
Performance - Your CPA monitors your investment returns versus appropriate benchmarks and suggests changes if you are lagging.

With guidance from a CPA, you can invest confidently knowing your portfolio is structured to meet your needs.

Retirement Planning with a CPA

One of the biggest financial goals most people have is being able to retire comfortably. A CPA can help make sure you are on track to have enough income in your later years.

Retirement planning starts with estimating your income needs in retirement based on the lifestyle you envision. Will you travel extensively? Will your mortgage be paid off? What standard of living do you hope to maintain? Your CPA runs projections to quantify your target annual retirement income.

Next, your CPA reviews all your current retirement savings in accounts like 401(k)s, IRAs, annuities, and pensions. They project how much those existing balances may grow to by retirement based on expected returns.

Comparing your income needs to your projected savings gives a clear picture of any potential shortfall. Your CPA may recommend increasing your savings rate if a gap exists. For example, they may advise contributing 15% of your salary rather than just 10%.

As you enter retirement, CPAs recommend strategies for withdrawing from accounts in a tax efficient manner. They also analyze which accounts to tap first to optimize for tax treatment, required minimum distributions, and more.

CPAs also consider sources of guaranteed lifetime income like social security and annuities. They run alternate scenarios changing factors like your claiming age to maximize total income.

Detailed retirement planning with a CPA reduces chances of outliving your savings and creates confidence in your financial future.

Estate Planning with a CPA

CPAs can also assist with estate planning to ensure your assets are passed on according to your wishes when you pass away. Estate planning often involves strategies to also minimize taxes owed by your heirs.

As part of the estate planning process, your CPA helps:

Create a clear will stating beneficiaries and asset distribution details to avoid disputes between heirs. CPAs ensure wills adhere to your precise desires.
Set up trusts as needed, like an irrevocable life insurance trust to keep life insurance proceeds out of your taxable estate. Trusts provide more control than direct asset gifting.
Designate proper beneficiaries for all your accounts so assets transfer directly rather than through probate. CPAs help select primary and contingent beneficiaries.
Gift assets before death, like to grandchildren, to reduce the size of your taxable estate if it exceeds estate tax exemption levels. CPAs guide you on gift tax nuances.
Establish plans for business interests, real estate properties, personal possessions, digital assets, and all your property to avoid confusion. Your CPA covers all your assets.
Navigate probate after your passing and communicate with the executor to close out your affairs according to your documented wishes.
Develop strategies to minimize estate taxes owed on assets transferred. CPAs run scenarios to reduce your taxable estate.

Proper planning ensures you leave the legacy you desire. A CPA helps you protect your life's work.

Selecting a CPA for Your Needs

With money management guidance across all those areas, working with a CPA provides immense value. As you search for a CPA, keep the following tips in mind:

Ask for referrals from trusted business contacts and financial advisors
Look for CPAs with additional certifications like PFS (Personal Financial Specialist) or CFP (Certified Financial Planner)
Choose a CPA that specializes in services relevant to you, like taxes or retirement planning
Select a CPA that has experience working with individuals with situations similar to yours
Meet with the CPA beforehand to confirm you have a good rapport and align on planning philosophies
Review credentials to ensure an ethical track record and no disciplinary issues

Schedule introductory meetings with a few qualified CPAs in your area to find the best fit.

Partner for Financial Wellness

Achieving lasting financial wellness involves diligently managing your day-to-day finances while keeping an eye on the future. With so many complex money decisions to make, guidance from a knowledgeable CPA provides immense value.

By leveraging the tax, investing, retirement, and estate planning expertise of a CPA, you put yourself firmly on the road to financial wellness. Contact CartierCPAs today to schedule a consultation and let us help guide you towards financial freedom!

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

5 Essential Services Offered by Certified Public Accountants You Didn't Know About

Tue, 22 Aug 2023 13:12:09 GMT

Going beyond numbers to fuel your financial success.

Certified public accountants (CPAs) are much more than just number crunchers. While tax preparation and auditing financial statements are core CPA services, today's accounting professionals offer a diverse range of value-added services to help individuals and businesses achieve financial success.

At CartierCPAs , our experienced CPAs provide comprehensive accounting, advisory and consulting services that go far beyond the basics. Here are 5 essential services we offer that you may not realize CPAs can provide:

1. Beyond Numbers: Forensic Accounting

Forensic accounting utilizes accounting, auditing, and investigative skills to conduct investigations into financial crimes or disputes. CPAs serving as forensic accountants can provide litigation support and expert witness services for legal cases involving:

Fraud investigations - Uncover fraud by reviewing accounting records, bank statements, legal documents and other financial information to identify discrepancies, irregularities and suspicious transactions that may indicate fraudulent activities.
Business valuation - Conduct business valuations for disputes related to partner ownership and shareholder rights, estate taxation, mergers and acquisitions, or divorce proceedings involving business assets.
Economic damage calculations - Quantify financial damages resulting from breach of contract, loss of business value, or other harms in contract disputes, intellectual property infringement cases, and personal injury lawsuits.
Bankruptcy and insolvency analysis - Analyze accounting records and financial documents to assess solvency, trace funds, identify preferential payments to creditors prior to bankruptcy, and investigate potential fraud or misconduct of bankrupt companies.
Matrimonial disputes - Provide support on separating finances, tracing hidden assets, assessing business value, and determining income for spousal or child support in divorce proceedings.

With their keen financial minds, CPAs are perfectly suited for forensic accounting. They can sniff out obscured or falsified financial records, track illicit cash flows, and quantify losses in ways that uncover the complete story behind complex financial crimes or disputes.

At CartierCPAs , our forensic accounting services help clients resolve financial disputes and reveal the truth in uncertain situations. We provide the objective analysis you can trust. Our CPAs have testified in court as expert witnesses and worked closely with top law firms on high-profile cases.

2. Estate & Trust: Safeguarding Your Legacy

Proper estate and trust administration is crucial for preserving assets to pass onto your loved ones. CPAs are experts in estate, gift, and trust taxes who can help you:

Develop estate plans that minimize taxes - Create customized plans to utilize exemptions, deductions, exclusions, and credits to reduce estate tax liability. Strategies may involve gifts to heirs or donating to charity.
Set up trusts to protect assets - Establish trusts to avoid probate, shield assets from creditors, smoothly transition family businesses, or control distributions to beneficiaries.
Value complex estates with multiple properties and assets - Determine accurate date-of-death values for real estate, closely-held businesses, investment accounts, collectibles, vehicles, and other assets to calculate estate taxes.
Administer estates and trusts in accordance with laws and regulations - Navigate complex tax rules and filing requirements, make distributions to beneficiaries, and maintain necessary documentation on behalf of estates and trusts.
Distribute inheritance to beneficiaries - Manage final accounting and asset distribution, while resolving any disputes between beneficiaries over inheritance disbursements.

With their tax expertise and attention to detail, CPAs can ensure your estate plan fulfills your wishes while optimizing inheritance for your beneficiaries. At CartierCPAs , our estate and trust services provide complete peace of mind that your legacy will be protected. We have administered estates worth tens of millions of dollars and overseen complex trust arrangements with multiple beneficiaries.

3. Non-Profit Accounting: For a Cause, With Care

Non-profit organizations have unique accounting and compliance needs. CPAs well-versed in non-profit regulations can provide:

Audits required to meet non-profit financial standards - Perform audits to verify financial statements are free of material misstatements and prepared according to Generally Accepted Accounting Principles for non-profits.
Tax reporting tailored for 501(c) entities - File accurate Form 990 information returns outlining revenue sources, expenses, assets, and key personnel salaries required to maintain 501(c) tax exemption.
Budgeting and cash flow analysis - Develop budgets aligned with strategic plans and grant cycles, along with cash flow projections to anticipate liquidity needs.
Systems to track grants and restricted funds - Implement customized systems to properly record and spend grant funds for designated purposes, maintaining documentation on compliance.

For non-profits focused on their mission, having a CPA manage finances provides confidence that accounting and compliance are handled with expertise. At CartierCPAs , our non-profit accounting services help organizations make the most of their resources to drive impact. We are trusted by local charities and global NGOs alike to support their causes through sound financial stewardship.

4. Personalized Services: Your Financial Concierge

CPAs often develop long-term relationships acting as trusted financial advisors for individuals and business owners. Services a CPA can provide directly to you include:

Budgeting and cash flow planning - Review income and expenses to create realistic budgets aligned with your financial goals, managing cash flow smoothly across months.
Record keeping for tax reporting - Maintain proper documentation on deductible expenses, charitable giving, business mileage, and other items to maximize tax deductions and credits.
Retirement and investment planning - Project retirement needs, recommend investment strategies aligned with goals and risk tolerance and help diversify and preserve wealth.
Insurance analysis - Evaluate existing policies to ensure proper life, health, property, and liability coverage at optimal rates.
College savings strategies - Explore 529 plans, financial aid options, and other ways to save and pay for college.
Guidance on major financial decisions - Provide input on significant personal finance decisions like buying or selling real estate, changing jobs, inheriting wealth, or retiring early.

A CPA provides personalized service tailored to your situation and financial goals. Think of your CPA as your financial concierge! At CartierCPAs , our high-touch approach provides you with a partner invested in your success. We get to know you on a one-on-one level to offer tailored advice that helps you build wealth and achieve what matters most to you.

5. Business Accounting: Fueling Your Growth

Of course, CPAs specialize in core accounting services vital for business success:

Bookkeeping and financial statements - Maintain records, produce balance sheets, income statements, cash flow statements, and other reports conveying the financial health of a business.
Cash flow analysis - Review cash inflows and outflows to assess liquidity, plan cash reserves, and identify periods with potential cash shortfalls.
Budgeting and forecasting - Develop financial plans and projections for revenue, growth, production, staffing, capital expenditures, and other key items.
Tax planning and filing - Advise on corporate structure, deductions and credits to minimize tax liability, and prepare and file business tax returns.
Payroll administration - Handle payroll processing, tax deposits, filings, and compliance.
Financial benchmarking - Compare financial ratios like profit margins, return on assets, debt levels, and other metrics to industry standards.
Systems implementation - Deploy new accounting systems and ensure smooth integration with business operations and reporting.

However, CPAs particularly excel at using financial insights to directly enhance business growth, profitability, and value. As advisors with deep financial expertise, CPAs make ideal business partners.

At CartierCPAs , our business accounting services help companies at every stage, from pre-revenue startups to established corporations. We offer strategic insights tailored for your business. Our CPAs have helped companies raise millions in capital, expand into new markets, and successfully sell their businesses for maximum valuation.

Partner with a CPA for Success

This overview just scratches the surface of the diverse services offered by today's CPAs. At CartierCPAs, our experienced certified public accountants provide full-scope financial services for individuals and businesses. Contact us to see how we can help you thrive. Our customized approach provides the expertise and guidance you need to accomplish your financial goals.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Are You Leaving Money on the Table? How a CPA Can Optimize Your Financial Strategy

Mon, 14 Aug 2023 13:00:07 GMT

Your CPA provides far more than tax prep. Let them guide you to financial victories all year long.

People ofte n think of CPAs solely as tax preparers. While preparing taxes is a core part of a CPA's work, the reality is that CPAs do so much more. A skilled CPA can help you develop and execute smart financial strategies that put more money in your pocket. Read on to learn how partnering with a CPA can optimize your finances.

Take Advantage of Tax Deductions and Credits

One of the biggest ways a CPA can save you money is by finding tax deductions and credits you may be missing. Most people only claim the standard deduction when filing their taxes. However, if you own a home, run a business, have extensive medical expenses, or qualify for other deductions, itemizing your taxes could yield bigger write-offs.

A savvy CPA will ask probing questions to uncover potential deductions you may not even be aware of. They'll advise you on actions to take before year-end to maximize write-offs as well.

CPAs also stay up-to-date on changing tax laws and credits. For example, electric vehicle credits, energy efficiency home improvements, and other "green" incentives have become more generous in recent years. A CPA can determine which tax credits you qualify for and ensure you claim every dollar.

Make the Most of Retirement and Investment Accounts

Between IRAs, 401(k)s, HSAs, and other retirement and investment accounts, the options can get confusing. A financial-savvy CPA can help you make smart decisions to optimize these accounts for tax benefits and growth potential.

For retirement accounts, they can help select whether a Roth or traditional account is better for your situation. They'll advise you on maximizing employer matches and proper withdrawal strategies in retirement. For investments, CPAs help track capital gains/losses for tax planning and make recommendations to balance risk vs. reward.

Overall, a CPA helps ensure you aren't leaving any money on the table when it comes to retirement and investment planning.

Structure Your Business to Minimize Taxes

For business owners, working with a CPA is critical. CPAs are experts at helping you structure your business to lower taxes legally.

Some key ways they do this include:

Choosing the right business entity (LLC, S-Corp, C-Corp)
Taking advantage of business deductions
Setting up payroll and accounting procedures that minimize taxes
Using tax strategies like cost segregation to accelerate depreciation
Implementing retirement plans like Solo 401(k)s

A CPA serves as an advisor to help business owners make decisions through a tax optimization lens. This allows you to keep more of what you earn.

Manage Debt and Cash Flow Intelligently

Managing loans, lines of credit, and cash flow is an intricate balancing act. A CPA can impart advice to help you borrow strategically and optimize cash management.

On debt paydown strategies, they'll assess whether approaches like debt snowball vs. avalanche make sense for your situation. For larger loans, they may advise converting to lower interest rate products.

Cash flow planning is also key. A CPA can help construct systems to segment money for taxes, growth goals, and monthly needs. This prevents overspending and ensures you have funds available when tax bills come due.\

Overall, a CPA serves as a sounding board to manage debt and cash flow in financially savvy ways.

Guide You on Major Financial Decisions

CPAs provide experienced counsel on all sorts of major financial decisions. Whether you're considering buying/selling real estate, investing in a business, inheriting assets, or other big moves, a CPA analyzes the tax ramifications and offers insightful advice.

They'll illustrate the after-tax results of different scenarios to help you make smart choices. Often CPAs partner with other professionals like financial advisors and lawyers to provide comprehensive guidance.

By consulting a CPA before major financial moves, you can sidestep costly tax surprises down the road. Their expert input helps you make savvy decisions the first time.

Add Up the Potential Savings

Hopefully, this article has revealed all the ways partnering with a top CPA can optimize your finances. From tax savings to strategic planning to advising on big decisions, a CPA's guidance adds tremendous value.

Don't leave money on the table by limiting a CPA's role to just taxes. Engage them as a year-round financial strategist and uncover savings you never realized were available.

At CartierCPAs, our experienced CPAs strive to be trusted advisors who help both individuals and businesses maximize their bottom line. Contact us to schedule a consultation and start optimizing your financial strategy today.

Your finances are the foundation for your future. Having a strong financial strategy allows you to weather life's storms and take advantage of new opportunities. Working with a certified public accountant (CPA) can help you build resilience into your finances to prepare for whatever the future may bring.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How to Future-Proof Your Finances with a Certified Public Accountant

Wed, 26 Jul 2023 13:06:35 GMT

Assess Where You Stand Today

The first step in future-proofing your finances is to understand your current financial situation. A CPA can analyze your income, expenses, assets, liabilities, insurance coverage, estate plan, investments, taxes, and other aspects of your financial life.

This assessment identifies strengths to build on as well as vulnerabilities to address. It also benchmarks where you stand today so you can measure progress.

Examine Spending and Budget

A CPA can review your spending habits and create a budget that maximizes savings. This includes looking for ways to reduce expenses without sacrificing quality of life.

Proper budgeting ensures you live within your means and directs surplus funds into savings and investments. It also helps you prepare for changes down the road, such as reduced income in retirement.

Assess Asset Protection

CPAs help safeguard your assets from risks like lawsuits, accidents, and natural disasters. Proper insurance coverage on your life, health, home, auto, and personal property is essential.

Estate planning strategies such as trusts and beneficiary designations also ensure your assets transfer according to your wishes if something happens to you.

Evaluate Income Sources

Today’s income funds tomorrow’s expenses. CPAs help diversify your income to withstand dips in any one stream. This can include generating rental income or residual business income.

CPAs can also help you maximize Social Security benefits and structure retirement account withdrawals to last your lifetime.

Audit Tax Strategy

CPAs are experts at identifying tax savings opportunities. This includes taking advantage of retirement accounts, Health Savings Accounts, deductions, credits, and income tax planning.

Effective tax planning puts more money in your pocket both now and in the future. CPAs stay up to date on the latest tax laws to benefit their clients.

Optimize Your Financial Foundation

Once you understand your finances, a CPA can take steps to optimize your financial foundation for the future. This provides stability and flexibility to adapt as life unfolds.

Build Liquidity

Liquidity means having access to cash when you need it. CPAs recommend keeping 3-6 months of living expenses in an emergency fund. This liquidity cushions you from unexpected expenses or income disruptions.

CPAs can help you structure your finances to build an emergency fund. This may include budgeting, debt reduction, expense cutting, or redirecting additional income into savings.

Mitigate Risk

CPAs help construct an integrated risk management plan using insurance, legal protections, and business continuity protocols.

This ensures you have safeguards in place to buffer against property loss, death, disability, lawsuits, cyber threats, natural catastrophes, and business interruptions. Addressing these risks gives you greater peace of mind.

Automate Finances

CPAs can set up automated processes for bill payment, asset transfers, data backups, and other financial functions. This reduces time spent managing money and minimizes mistakes caused by doing tasks manually.

Automation also ensures critical financial steps continue if you become injured or pass away suddenly. Smart automation gives you financial security.

Plan Strategically for the Future

CPAs help you make smart financial decisions to accomplish future goals like retiring comfortably, paying for your child’s college, starting a business, or leaving a legacy.

Project Cash Flow Needs

A CPA can forecast future income and expense needs for objectives like retirement or college savings. This projection shows how much you need to save each year to reach your goals.

CPAs stress test the projections under different market return scenarios to build in a margin of safety. This helps ensure you save enough even in down markets.

Align Investments

Your investment portfolio should align with your risk tolerance and goals. CPAs recommend diversified, low-cost index funds to meet most investors’ needs.

More complex assets like rental property, businesses, or alternative investments require special expertise. CPAs help structure these appropriately and understand their impacts on your finances.

Make Strategic Tax Decisions

CPAs model the tax implications of financial decisions. This prevents choices like selling investments or converting a traditional IRA to a Roth from backfiring due to taxes owed.

Proper tax planning around investments, estate planning, real estate, and business ownership can save you tremendous amounts over your lifetime.

Continuously Monitor and Adapt

The financial planning process doesn’t end after putting a plan in place. Your CPA monitors progress and adapts the strategy as needed.

Review Changes Annually

Your CPA should review your situation at least annually to identify changes impacting your plan. This includes shifts in your income, marital status, dependents, health, career, or goals.

The CPA then adjusts your financial blueprint accordingly to keep you on track. Think of it like an annual checkup and tune-up for your finances.

Revisit Assumptions

Initial projections make assumptions that may prove incorrect over time, such as investment returns or inflation rates. Your CPA revisits the underlying assumptions to see if the plan needs revising.

Course correcting earlier rather than later gets your finances back on a prudent path before small deviations become major problems.

Make Tactical Adjustments

Along the way, your CPA will recommend tactical shifts as circumstances warrant. This may include revisiting your asset allocation, redirecting surplus cash into different priorities, or adjusting retirement account contributions based on changes in your tax situation.

Having an expert in your corner provides financial flexibility and peace of mind.

Partner with a CPA for Financial Resilience

Taking the right steps today allows you to prepare for a range of possible futures. A Certified Public Accountant can help you analyze, optimize, strategize, adapt, and remain resilient no matter what lies ahead.

If you seek to future-proof your finances, contact CartierCPA for CPA services. Our experienced CPAs work as strategic thought partners to help you achieve financial security and peace of mind.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

The Certified Public Accountant's Guide to Maximizing Deductions and Minimizing Your Tax Burden

Wed, 19 Jul 2023 12:43:49 GMT

"Taxing Times Made Easy: Unlocking the Magic of CPA-led Tax Optimization

Are you mystified by the labyrinth of tax regulations? Have you ever wondered if you're not making the most of your income because of missed deductions? You're not alone. Here at CartierCPA, we are committed to illuminating the path towards tax optimization. Our Certified Public Accountants (CPAs) are armed with the knowledge and skills to turn your tax confusion into clarity, your tax burden into financial liberty. Welcome to the Certified Public Accountant's guide to maximizing deductions and minimizing your tax burden.

The Essence of a CPA: Guiding Your Tax Journey

A Certified Public Accountant is your most reliable ally in navigating the treacherous waters of tax laws. Possessing a CPA designation is not just about mastery of numbers. It represents a commitment to ethical standards, continual learning, and in-depth knowledge of tax laws and financial regulations. When you entrust your financial journey to a CPA, you're not just getting a tax preparer, but a tax strategist committed to making your finances work harder for you.

The Power of Deductions: Maximizing Your Financial Advantage

Tax deductions are an effective way to reduce your tax liability, but understanding and maximizing them can be challenging. CPAs specialize in identifying and optimizing these deductions, translating them into tangible savings for you. Common areas often overlooked include:

Home office expenses
Business use of your vehicle
Education and professional development costs
Charitable contributions

Each of these deductions comes with their specific stipulations and rules for eligibility. An experienced CPA from CartierCPA can help guide you through these complexities, ensuring that you benefit from each deduction you're entitled to.

Tax Credits: An Unseen Financial Boost

While deductions decrease your taxable income, tax credits directly reduce the amount of tax you owe. They are an invaluable tool in the CPA's arsenal to further decrease your tax burden. From Earned Income Tax Credit to Child and Dependent Care Credit, these can be worth thousands of dollars in tax savings. Your CartierCPA professional is adept at securing these credits, translating tax law into financial empowerment

Advanced Tax Strategies: A Proactive Approach to Minimize Your Tax Burden

Beyond deductions and credits, a savvy CPA employs advanced tax strategies to secure your financial future. Strategies such as:

Income Shifting: This strategy involves shifting income among family members to take advantage of lower tax rates.
Tax-Deferred Retirement Plans : Contributing to retirement plans like 401(k)s and IRAs can lower your current tax liability while setting you up for a comfortable future.
Capital Gain Planning : By strategically selling or holding assets, CPAs can help you manage your capital gains taxes.

CPAs think beyond the present tax season. At CartierCPA, our tax planning is as much about creating your prosperous future as it is about managing your present.

Unleashing the Power of Tax Technology

In the digital era, harnessing the power of tax software and technology is a crucial aspect of tax planning. Our CPAs at CartierCPA are not just financial wizards but also technology-savvy professionals. They use the latest tax software to ensure accuracy, speed, and optimal outcomes for you.

From detecting potential audit triggers to calculating complex tax scenarios, our use of technology transforms your tax experience from a daunting task into a seamless, efficient process.

Transforming Taxation: The CartierCPA Commitment

At CartierCPA , our mission goes beyond tax preparation. We are dedicated to transforming the way you perceive and experience taxation. Our Certified Public Accountants are your guides and advocates, armed with the expertise to maximize your deductions, optimize your credits, and implement advanced tax strategies.

Our commitment is to provide proactive, personalized tax solutions that not only minimize your tax burden but also enhance your financial health. We believe that with the right guidance and strategic planning, tax season can transition from a source of stress to an opportunity for financial empowerment.

Experience the CartierCPA difference. Let's turn taxing times into a path to your financial liberation.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Can a CPA Save You Money on Your Taxes? The Ultimate Breakdown

Wed, 28 Jun 2023 21:52:44 GMT

Uncover the Potential Benefits of Hiring a CPA

Tax season – that dreaded time of year when we're all left scratching our heads, wondering if we've done everything right. Wouldn't it be great if there was someone who could help us navigate this confusing landscape, potentially saving us some hard-earned cash in the process? Well, folks, today we're going to discuss the age-old question: Can a certified public accountant (CPA) really save you money on your taxes?

In this ultimate breakdown, we'll weigh up the pros and cons of hiring a CPA for tax management and reveal top tips to help you make an informed decision. So, buckle up and get ready for an eye-opening journey into the world of CPAs and tax savings!

How Can a CPA Save You Money on Your Taxes?

First things first: What's all the buzz about CPAs? We're glad you asked! A CPA is not just an ordinary accountant; they've undergone rigorous training and examinations to be certified in specific financial disciplines. Their expertise in taxation makes them uniquely qualified to:

Navigate complex tax laws
Find deductions and credits exclusive to your circumstances
Minimize your tax liability
Achieve maximum tax returns

According to the American Institute of CPAs , CPA candidates must complete at least 150 hours of education and pass a 16-hour, four-part exam. That's an impressive set of qualifications! Now, let's dive into how these experts can help save you money on your taxes.

Access to Tax Credits and Deductions

Tax laws are constantly evolving, and keeping up with them can be a real chore. However, CPAs eat, sleep, and breathe tax regulations! They are always up-to-date with the latest changes and understand the ins-and-outs of the tax code. Does that mean they can find deductions and credits like no one's business? You betcha!

It's hard to know all tax breaks and deductions that apply to you. A CPA can help you identify them and maximize your savings.

Error Prevention and Timely Filing

Like they say, "to err is human." But when it comes to taxes, making mistakes can cost you big time! Errors on your tax forms might lead to hefty penalties or trigger an unnecessary audit. Here's where hiring a CPA turns into a game-changer: Not only will they ensure your taxes are filed accurately, but they'll also guarantee timely submission so you won't face late fees.

In addition, CPAs are known for their problem-solving abilities. If you have any issues with the IRS, you will have a reliable professional to represent you and find a solution. That is what you call peace of mind!

Long-term Tax Planning

Thinking about your financial future? CPAs are your go-to experts! They provide invaluable advice when planning for significant life events, such as starting a business, selling property, or preparing for retirement. These key moments have tax implications, and a CPA can help minimize your liability while maximizing your financial growth.

Honestly, saving money on your taxes is just the tip of the iceberg when it comes to the benefits of working with a CPA. But hold on a minute – let's not forget to address potential drawbacks before you jump right in.

Potential Drawbacks of Hiring a CPA

It is true that nothing is perfect, not even certified public accountants (CPAs). While they can save you money on your taxes and offer valuable guidance, they do come at a price. It is important to do your research and weigh the pros and cons before making a decision about whether or not to hire a CPA.

Still on the fence? Let's summarize our findings and wrap this up!

The Final Verdict: To Hire or Not to Hire?

So, can a CPA save you money on your taxes? The answer is: It depends! By uncovering deductions and credits specific to your circumstances, preventing errors and penalties, and guiding long-term tax planning strategies, hiring a CPA has the potential to save you money. However, consider their fees and ensure that engaging their services aligns with your unique needs.

The bottom line is that every situation is different; what works for one person might not work for another. Assess the complexity of your tax situation, evaluate the potential benefits, and decide whether hiring a CPA is right for you.

Need help with your taxes or financial planning? Contact CartierCPA today and discover how our team of expert CPAs can assist you in navigating the tax world and saving money!

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How a CPA Can Help You Avoid Costly Financial Mistakes

Wed, 14 Jun 2023 21:37:32 GMT

How a CPA Can Help You Avoid Costly Financial Mistakes: Unlocking the Power of Professional Financial Guidance

At some point in our lives, we'll all face financial challenges that make us wish we had someone by our side to help navigate through the storm. While friends and family are great for emotional support, they may not always have the professional expertise necessary to identify potential financial pitfalls and effectively steer us clear of them. That's where hiring a Certified Public Accountant (CPA) comes into play – an investment that can save you from making costly financial mistakes while keeping your wealth on track for future success.

In this in-depth look at the benefits enlisted professionals provide, we'll cover:

Understanding Tax Laws and Their Implications
Streamlining Business Operations
Maximizing Retirement Plan Benefits
Creating Budgets and Financial Plans
Monitoring and Reducing Financial Risks

Let's dive right in, shall we?

Understanding Tax Laws and Their Implications

One of the most significant benefits of having a CPA on your team is their ability to interpret complex tax laws and regulations. We all know how confusing it can be to navigate taxes and their ever-changing rules, but a professional accountant can provide invaluable guidance:

Strategic tax planning: A CPA will work with you to develop strategies for minimizing your tax liability, whether you're an individual or running a business.
Tax advice tailored to your needs : It's essential to remember that everyone's financial situation is unique. A CPA will take the time to understand your circumstances and offer specialized advice based on your specific needs.
Preparation and filing of taxes: Say goodbye to tax return headaches – leave the preparation and filing up to a professional who knows the ins and outs of the tax code.

The result? More money saved in the long run, a better understanding of your obligations, and peace of mind come tax time.

Streamlining Business Operations

If you're a business owner or entrepreneur, a CPA can be an indispensable resource:

Accounting system set-up and maintenance: Having a well-organized accounting system is crucial for any successful business. A CPA can help design and maintain a system tailored to your needs, ensuring all financial transactions are accurately recorded.
Cash flow management: One of the top reasons why businesses fail is poor cash flow management. CPAs provide guidance on monitoring cash flow effectively, enabling you to make informed decisions about expenses or investments.
Advice on business structure: The type of business entity you choose – sole proprietorship, partnership, corporation or LLC – affects taxes, personal risk, and more. A CPA can advise on the best structure for your specific situation.

Streamlining processes and optimizing internal operations is key to effective business management. With a CPA by your side, ensure long-term success while avoiding expensive mistakes in the process.

Maximizing Retirement Plan Benefits

Saving for retirement is an essential aspect of personal finance, but it's easy to make costly mistakes that can jeopardize your future security. That's where a CPA comes in:

Optimizing your retirement strategy: Whether you have a 401(k) plan, IRA, or other retirement savings vehicles, a CPA can help you choose the best options and maximize the benefits based on your unique financial profile.
Tax implications of withdrawals: Withdrawing funds from a retirement account often carries tax penalties. A CPA can guide you through withdrawal strategies that minimize taxes and avoid costly surprises.

It's never too late – or too early – to take control of your retirement savings and ensure you're on track for a comfortable future.

Creating Budgets and Financial Plans

Budgeting and financial planning are crucial for individuals and businesses alike. A CPA can help create customized plans tailored to your needs:

Developing realistic budgets: A CPA will analyze your income, expenses, and financial goals to create a budget that works for your lifestyle or business operations.
Long-term financial planning: Whether it's saving for a down payment on a house, planning for college tuition or setting aside funds for business expansion, having a roadmap to reach those goals makes it much more achievable.

Financial stability starts with good planning. Equip yourself with the right tools, knowledge, and support by working with a CPA.

Monitoring and Reducing Financial Risks

A key component of achieving financial success lies in monitoring risk and implementing measures to reduce it:

Assessing risk exposure: CPAs provide guidance on identifying potential financial risks associated with investments, business ventures or other endeavors.
Delivering strategies for risk mitigation : Once risks have been identified, accountants can recommend steps to diminish their impact on personal wealth or business operations.

Why wait for financial trouble to strike? Enlist the help of a skilled CPA to protect your wealth and pave the way for future success.

In Summary

It's clear that a CPA's assistance transcends tax season, providing invaluable advice and support throughout the year. They're the financial superheroes you never knew you needed, saving you from costly mistakes and propelling you toward your financial goals.

Don't wait until disaster strikes – take charge of your finances today! Contact Cartier CPA's to discover how our expert CPAs can guide you through life's financial challenges and lead you toward a more secure future.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

The Secret Sauce to Financial Success: How Certified Public Accountants Can Transform Your Business

Brad@automationlinks.com (Brad Smith) — Wed, 17 May 2023 19:39:06 GMT

Unlocking Your Business's Financial Potential with a CPA

The Recipe for Success Starts with a CPA

As a business owner, you're always on the lookout for the most effective ways to streamline operations, cut costs, and increase revenue. The key ingredient to achieving that perfect blend of efficiency and profitability? Certified Public Accountants (CPAs). These financial gurus possess the skills, knowledge, and experience to help you make the most of your resources and guide your business to success. So, what are you waiting for? Dive into the world of CPAs and learn just how they can transform your business, one number at a time.

Demystifying the Role of a CPA

The Backbone of Your Business's Financial Health

At the heart of every successful business is a solid financial foundation. CPAs play a crucial role in establishing and maintaining this foundation by offering a wide range of services, including:

Financial statement preparation and analysis
Tax planning and preparation
Auditing and assurance
Business valuation
Financial forecasting and budgeting
Cash flow management
Internal control evaluation

The CPA Advantage: Why Settle for Less?

CPAs possess a unique combination of education, experience, and licensure. They must pass a comprehensive exam and meet strict requirements to earn their CPA designation, making them the cream of the crop in the financial world. As a result, they bring unparalleled expertise and insight to your business, helping you avoid costly mistakes and capitalize on opportunities for growth. Why settle for anything less than the best?

The Certified Public Accountant as Your Business's Financial Navigator

Guiding Your Business Through the Tax Maze

Taxes can be a real headache for business owners, but having a CPA on your side is like having a personal tour guide through the tax maze. They'll help you navigate the ever-changing tax landscape, ensuring that your business remains compliant and that you take advantage of every possible tax-saving opportunity. Say goodbye to missed deductions and tax penalties, and hello to a brighter financial future.

Ensuring Accurate and Transparent Financial Reporting

Financial reporting is essential for making informed business decisions, attracting investors, and maintaining positive relationships with suppliers and clients. CPAs are experts in preparing accurate and transparent financial statements that comply with the latest accounting standards, giving you the tools you need to steer your business in the right direction.

The CPA as Your Business's Growth Catalyst

Unleashing the Power of Financial Analysis

Armed with their financial expertise, CPAs can unlock valuable insights hidden within your business's financial data. Through in-depth analysis, they can identify trends, strengths, and weaknesses, helping you make data-driven decisions that propel your business forward.

Strategic Planning for Long-Term Success

A CPA's expertise extends beyond crunching numbers they can also help you develop a strategic plan for your business's long-term growth and success. By analyzing your company's financial performance, a CPA can provide invaluable guidance on areas such as mergers and acquisitions, expansion plans, and investment strategies.

In Summary: The CPA – Your Business's Secret Weapon

When it comes to financial success, a Certified Public Accountant is your business's secret weapon. With their unrivalled expertise and insight, CPAs can help you build a solid financial foundation, navigate the complexities of taxes and financial reporting, and unlock your business's full growth potential. Don't leave your business's success to chance partner with a CPA today and experience the transformative power of financial efficiency. So, are you ready to let a CPA be the secret sauce to your business success?

Ready to unlock your business's financial potential with the help of a Certified Public Accountant? Look no further than Cartier CPAs, your trusted partner in achieving success. Contact us today for a consultation and discover just how effective our CPA services can be for your business. Click here to get in touch with Cartier CPA s.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

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The Art of Balancing Your Books: Insider Tips from Certified Public Accountants

Thu, 20 Apr 2023 06:23:22 GMT

Let's face it, bookkeeping isn't exactly the most exciting part of running a business. But hey, it's super important, and mastering it can make a world of difference for your business. So, buckle up and let's explore some insider tips from those number-crunching gurus, the certified public accountants (CPAs). We'll cover how to keep your financial records on point, make smart decisions, and set your business up for long-term success.

Why Bookkeeping Matters

Spot-on bookkeeping is the secret sauce of any successful business. It helps you keep tabs on your financial transactions, stay on top of your cash flow, and stay in the good graces of the taxman. Plus, solid bookkeeping gives you priceless insights into your business's financial health, helping you make well-informed decisions and pinpoint areas that need some TLC.

Understanding Financial Statements

Before we get down to the nitty-gritty of bookkeeping, let's make sure you're familiar with the big three financial statements that form the foundation of your business's financial records:

Income Statement: This bad boy summarizes your revenue, expenses, and net income for a specific accounting period. It shows whether you're raking in profits or drowning in losses.

Balance Sheet: This snapshot of your business's financial position lists your assets, liabilities, and equity at a particular moment in time. It's like a report card for your business's solvency and liquidity.

Cash Flow Statement : This statement tracks the dough flowing in and out of your business, breaking down operating, investing, and financing activities over an accounting period.

The Fundamentals of Bookkeeping

To keep your books in tip-top shape, you've got to know a few key concepts:

Double-Entry System: This popular bookkeeping method logs each transaction as both a credit and a debit in two separate accounts. It's like a safety net, ensuring your books stay balanced and error-free.

Accounting Periods: These predefined timeframes (usually monthly, quarterly, or annually) help you consistently track and analyze your financial performance.

Chart of Accounts: This handy organizational tool sorts your financial transactions into different accounts, like assets, liabilities, revenues, and expenses.

Essential Bookkeeping Tips

Alright, now that we've covered the basics, let's dive into some practical tips for mastering the art of bookkeeping:

Stay Organized: Whip up a reliable system for organizing and filing your financial documents, like invoices, receipts, and bank statements. Trust us, staying organized will save you time and keep mistakes at bay.

Record Transactions Promptly : Don't let transactions pile up like dirty laundry. Record them ASAP to ensure accuracy and minimize the chances of errors or oversights.

Regularly Reconcile Accounts: Compare your financial records with bank and credit card statements to make sure everything's on point. Regular reconciliation helps you spot discrepancies and fix problems before they snowball.

Monitor Your Cash Flow: Keep a close eye on your cash flow to dodge potential shortfalls. Regularly reviewing your cash flow statement can help you spot trends and plan for future needs.

Maintain Accurate Records: Keeping your records squeaky clean is crucial for tax compliance and decision-making. Be diligent about recording transactions and double-check your financial statements for errors or inconsistencies.

Using Accounting Software

Accounting software can be a game-changer, streamlining your bookkeeping process and reducing the chances of slip-ups. There's a smorgasbord of options out there, from basic tools for small businesses to powerhouse solutions for larger enterprises. When choosing the right software for your needs, think about features, ease of use, and scalability.

When to Hire a Professional

Many small business owners can handle their books just fine on their own, but there might come a time when you need some pro-level expertise. Think about hiring a CPA if you:

Need a hand with tax planning and compliance
Want help with complex financial transactions
Are gearing up for a business expansion or acquisition
Are looking for guidance on upping your financial management game.

Conclusion:

Nailing the art of balancing your books is a must for your business's long-term success. By getting a grip on the fundamentals, putting practical tips into action, and seeking professional help when needed, you can keep your financial records shipshape and make well-informed decisions. Just remember, staying organized, recording transactions promptly, and regularly checking your financial statements are the keys to effective bookkeeping.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

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The Unseen Lifesaver: How a CPA Can Rescue You from Financial Ruin

Mon, 20 Mar 2023 18:44:52 GMT

You're drowning in a sea of financial troubles, and the only thing that can save you is a certified public accountant (CPA). Surprised? Let me explain how these unsung heroes can help you recover from financial disasters.

A Friendly and Conversational Guide to CPAs

When dealing with financial crises, it's essential to have someone on your side who knows the ropes. That's where CPAs come in. These professionals are not just number crunchers; they're your allies in navigating through the stormy waters of monetary turmoil. Think of them as your knowledgeable friends, always ready to lend a helping hand.

Understanding the True Value of CPAs

You might be wondering what exactly makes CPAs so crucial in times of financial distress. Let's dive into the three key aspects that make them indispensable:

1. Accuracy: In the world of finance, precision is paramount. CPAs are trained to provide accurate and reliable information, ensuring that every detail is accounted for.

2. Intriguing Insights: With their vast knowledge and expertise, CPAs can offer valuable insights and advice on how to manage your finances better.

3. Invaluable Guidance: When it comes to financial recovery, having clear instructions can make all the difference. CPAs are well-equipped to provide actionable steps that lead you back to stability.
So read on as we explore why CPAs are your best bet for financial recovery and how they can help you bounce back from even the most disastrous situations.

The CPA Advantage: Turning the Tide on Financial Disasters

Now that we've established the importance of CPAs, let's delve into the specific ways they can assist you in overcoming financial setbacks:

1. Tax Troubles? No Problem:

One of the biggest challenges individuals and businesses face during financial crises is dealing with taxes. Whether it's filing late returns or negotiating payment plans, CPAs have the knowledge and experience to tackle these issues head-on, potentially saving you thousands of dollars in penalties and interest.

2. Business Restructuring Made Easy:

For companies facing financial difficulties, restructuring may be necessary to stay afloat. CPAs are experts at analyzing financial statements and identifying areas where costs can be cut or revenue increased. Their guidance can prove vital in making tough decisions that help your business survive and thrive.

3. Personal Finance Overhaul:

CPAs aren't just for businesses; they can also provide invaluable support to individuals struggling with personal finance issues. From creating budgets to managing debt, these professionals can offer tailor-made solutions that put you back in control of your finances.

4. Expert Advice on Legal Matters:

Financial disasters often come with legal complications, such as bankruptcy proceedings or lawsuits. CPAs have a deep understanding of financial laws and regulations, ensuring that you're well-prepared for any legal battles that may arise.

Anticipating Your Needs: How CPAs Stay One Step Ahead

To truly appreciate the value of a CPA, it's essential to recognize their ability to anticipate your needs and address potential problems before they escalate. By analyzing your financial situation, they can identify warning signs and provide proactive solutions that prevent further damage.

For instance, a CPA may notice discrepancies in your tax filings that could trigger an audit. By addressing these issues promptly, they can save you from costly penalties and legal troubles down the line.

Concise and Effective Communication: The CPA Way

A crucial aspect of any professional relationship is clear and concise communication. CPAs excel at breaking down complex financial concepts into easily digestible information, ensuring that you fully understand your situation and the steps needed to improve it.

By simplifying jargon and eliminating unnecessary details, CPAs make it easy for you to grasp the crux of your financial predicament and focus on what truly matters recovery.

In Conclusion: Embrace the Power of a CPA

Financial disasters can strike anyone, at any time. But with a CPA by your side, you'll be well-equipped to face these challenges head-on and emerge stronger than ever. So if you find yourself in financial turmoil, don't hesitate to seek the guidance of these skilled professionals they just might be the lifeline you need.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

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Shotgun Blast to Your Financial Future: CPA or Financial Advisor - Who's Your Money Hero?

Mon, 20 Feb 2023 18:15:57 GMT

When it comes to managing your finances, who should you trust: a Certified Public Accountant (CPA) or a Financial Advisor? This life-altering decision can make or break your financial future. So buckle up, and let's dive into the world of finance superheroes!

A Friendly Battle: CPA vs. Financial Advisor

To help you make the best choice, we'll explore the key differences between CPAs and Financial Advisors, their unique superpowers, and how they can benefit you. But don't worry; we're here to guide you every step of the way.

1. Decoding the Superpowers: What Do They Do?

First things first, let's understand their unique abilities.

The Mighty CPA: These financial warriors are experts in tax laws and regulations. They can prepare and file your tax returns, provide tax planning advice, perform audits, and ensure compliance with financial regulations.
The Resourceful Financial Advisor: These money maestros specialize in helping you create a financial plan to achieve your goals. They can assist with investments, retirement planning, insurance, and even estate planning.

Now that we've unmasked their superpowers, let's see how they can help you in your quest for financial success.

2. When to Call Upon the Mighty CPA

If you're lost in the maze of tax laws and regulations, a CPA is your go-to hero. Here are some scenarios where a CPA can save the day:

Filing Taxes: When tax season rolls around, they'll ensure you maximize deductions and minimize liabilities.
Owning a Business: If you run a business, a CPA can manage your financial records and ensure compliance with tax laws.
Facing an Audit: In case of an IRS audit, CPAs are licensed to represent you and protect your interests.

But wait! There's more to consider before making your choice.

3. Enlisting the Help of a Resourceful Financial Advisor

If you're looking to secure your financial future and achieve your goals, a Financial Advisor is your ally. Here's when their expertise comes in handy:

Planning for Retirement: They can help you create a retirement plan that ensures a comfortable lifestyle.
Investing Wisely: They'll guide you in selecting the right investments to grow your wealth over time.
Insurance and Estate Planning: A Financial Advisor will help you protect your assets and plan for the future of your loved ones.

Now that we've explored their unique abilities let's answer some burning questions.

4. So, Who Should You Choose?

The answer depends on your specific needs. If you need help with taxes, compliance, or audits, a CPA is the right choice. However, if you're looking for guidance on investments, retirement planning, and overall financial health, a Financial Advisor is the way to go.

5. Can You Have Both?

Absolutely! In fact, many individuals and businesses benefit from having both a CPA and Financial Advisor on their team. This dynamic duo can work together to ensure your finances are optimized for success.

6. Making the Right Choice

To choose the best finance superhero for you, consider these factors:

Credentials: Ensure they have proper qualifications (e.g., CPA license or professional certifications).
Experience: Look for professionals with experience in areas relevant to your needs.
Compatibility : Find someone who understands your goals and communicates effectively.

In Conclusion: Your Personal Finance Superheroes

Ultimately, deciding between a CPA and a Financial Advisor boils down to understanding their unique superpowers and how they align with your financial needs. Keep this guide handy as you navigate towards financial success it's time to find your money hero!

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

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Investigative Accounting: A Powerful Tool Against Financial Crime

Fri, 20 Jan 2023 17:22:55 GMT

Financial crimes are on the rise globally, with companies and individuals losing billions of dollars every year. These crimes are perpetrated by individuals or groups who use sophisticated methods to defraud businesses, government agencies, and individuals. The effects of financial crimes can be devastating to the victims, leading to the loss of assets, reputation, and sometimes lives.

Investigative accounting is a powerful tool that can be used to combat financial crime. This technique involves analyzing financial records, transactions, and other financial data to uncover fraudulent activities. Investigative accountants work closely with law enforcement agencies, attorneys, and other professionals to provide expert testimony in legal proceedings.
In this article, we will discuss investigative accounting, its benefits, and how it works.

What is Investigative Accounting?

Investigative accounting is a specialized field that involves applying accounting, auditing, and investigative skills to uncover financial fraud, embezzlement, and other financial crimes. The primary role of an investigative accountant is to investigate and detect fraudulent activities, determine the extent of losses, and help organizations to recover their losses.

Investigative accountants are often called upon to investigate cases of embezzlement, financial statement fraud, asset misappropriation, money laundering, and other financial crimes. They work closely with law enforcement agencies and legal professionals to provide expert testimony and evidence in legal proceedings.

Benefits of Investigative Accounting:

Investigative accounting has several benefits for organizations, individuals, and society as a whole. Some of these benefits include:

1. Prevention of Financial Crimes:
Investigative accounting helps prevent financial crimes by identifying weaknesses in an organization's financial systems and processes. Conducting regular audits and assessments can help organizations to identify and address potential vulnerabilities that could be exploited by fraudsters.
2. Early Detection of Fraudulent Activities:
Investigative accounting can help detect fraudulent activities early before they escalate and cause significant losses. By monitoring financial transactions and conducting regular audits, investigative accountants can identify irregularities and suspicious activities that could indicate fraud.
3. Recovery of Lost Assets:
Investigative accountants also help organizations recover lost assets by identifying and tracing assets that have been misappropriated or stolen. By working with law enforcement agencies and legal professionals, they can assist in the recovery of assets through civil litigation or other legal means.
4. Strengthening of Financial Controls:
Investigative accounting can help organizations strengthen their financial controls by identifying weaknesses and recommending improvements. By implementing robust financial controls and processes, organizations can reduce the risk of financial fraud and protect their assets.

How Investigative Accounting Works:

Investigative accounting involves several steps, including:

1. Planning and Scoping:
The first step in investigative accounting is to plan and scope the investigation. This involves identifying the objectives of the investigation, determining the scope of work, and establishing a timeline and budget.
2. Data Collection and Analysis:
The next step is to collect and analyze financial data. This includes reviewing financial statements, bank statements, invoices, receipts, and other financial documents to identify potential fraud or irregularities.
3. Interviews and Interrogations:
Investigators may conduct interviews or interrogations with employees, management, and other relevant parties to gather additional information and insights into the suspected fraudulent activity.
4. Reporting and Testimony:
The final step is to prepare a report detailing the findings of the investigation. Investigative accountants may also be called upon to provide expert testimony in legal proceedings, such as civil or criminal trials.

The Takeaway:

Investigative accounting is a powerful tool that can be used to detect, prevent, and investigate financial crimes. It's specialized accounting, auditing, and investigation skills allow it to analyze financial data and identify potentially fraudulent activities. By working closely with law enforcement agencies, attorneys, and other professionals, investigative accountants provide expert testimony and evidence in legal proceedings, helping to bring perpetrators of financial crimes to justice.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

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The Most Common Tax Mistakes Made by Self-Employed

Fri, 30 Dec 2022 18:52:40 GMT

Self-employed individuals have a variety of unique tax obligations that can be daunting to navigate. Making mistakes while filing taxes can be costly and complex for self-employed individuals. Between tracking income, filing the proper paperwork, and understanding the tax laws. To help you avoid costly errors, here are the 10 most common tax mistakes made by self-employed individuals and tips about what you can do to prevent them.

1. Failing to Keep Accurate Records:

One of the most common mistakes self-employed individuals make is failing to keep accurate records. With detailed records of your income and expenses, it can be easier to calculate the amount of taxes you owe. Make sure to track all income and expenses, including mileage, and keep all receipts. Additionally, you should file quarterly taxes to avoid any penalties.

2. Not Setting Money Aside for Taxes:

Many self-employed individuals don’t realize they must set money aside for taxes. The taxes should be estimated and set up a separate savings account for them. Save enough money throughout the year to cover tax obligations. If you’re having trouble calculating what you owe, consider hiring a professional to help.

3. Not Deducting Business Expenses:

Self-employed individuals often forget to take advantage of the deductions they’re eligible for. Make sure to take all available deductions and understand the types of deductions available. Keep detailed records of your expenses, and make sure to file for home office deductions if you use one.

4. Not Paying Self-Employment Tax:

Self-employment tax can be one of the more confusing aspects of tax season. It is a tax you must pay on any income you make, including payment from freelancing, running a side business, or any other type of self-employment. You must pay this tax to the IRS, which reaches toward Social Security and Medicare. Make sure to understand the self-employment tax and calculate the correct amount of tax due. Additionally, make sure to make the quarterly payments and file the taxes on time.

5. Not Filing a Tax Return:

For self-employed, it is required to file a tax return. Make sure to understand the fill requirements and file a return when necessary. Not filing your taxes on time can lead to penalties and interest. Additionally, make sure to file a return even if you don’t think you owe taxes.

6. Not Understanding Tax Credits:

Tax credits can be beneficial for self-employed individuals, but many don’t understand their value. By Knowing tax credits, one can qualify for and save a lot of money on a tax bill. Make sure to take advantage of the available tax credits and understand the eligibility criteria for certain credits. Also, make sure to file the proper paperwork to receive the credits.

7. Not Keeping Up With Tax Law Changes:

Tax laws can change annually, so it’s essential to stay updated with any new tax laws. Make sure to understand how the changes affect you, and consider consulting a professional if you’re unsure.

8. Not Taking Advantage of Tax Planning:

Tax planning can help you ensure you’re paying the right amount of taxes and taking advantage of available deductions. Make sure to plan for tax season and consider using tax planning strategies. Additionally, consider using tax planning software to make the process easier.

9. Not Filing an Extension:

If you need more time to file your taxes, make sure to file for an extension. Not filing an extension on time can lead to penalties, so make sure to file one if you need it.

10. Not Hiring a Professional:

Finally, consider hiring a professional tax preparer. A professional can help to understand the complex tax laws, take advantage of available deductions, and ensure you’re filing the proper paperwork. Make sure to consult a professional if you need help with your taxes.

Conclusion

In conclusion, Self-Employed individuals should be mindful of the potential tax errors that can be made. Keeping accurate records and understanding the deductions can help to ensure that you remain alien from the IRS. Additionally, seeking advice from a tax professional can help to prevent mistakes and keep on track for a successful tax season.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

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Employee benefit plan audits

Mon, 28 Nov 2022 20:54:40 GMT

Employee benefit plan audits are an important part of maintaining a comprehensive benefits program. When carried out properly, they can help ensure that the program is providing the right level of coverage and protecting the interests of employees. An audit will also help employers maintain compliance with applicable laws and regulations. Knowing the process and the scope of an audit can help employers prepare and respond appropriately.

The Audit Process

The audit process starts with the selection of an auditor. The auditor must be a professional with experience in employee benefit plan audits. It is important to select an auditor who is knowledgeable and familiar with the plan’s specific requirements. The auditor will also perform a review of the plan’s documents and records to determine if the plan is compliant with applicable laws and regulations.

Overview of Benefits

Employers should be aware of the different types of available benefits and their associated costs. These benefits can include health insurance, retirement plans, disability insurance, life insurance, and other types of coverage. The cost of these benefits can vary depending on the type and level of coverage, so employers should be familiar with the costs associated with each type of benefit.

Preparing for an Employee Benefit Plan Audit

Before an audit can begin, employers must gather essential documents. These documents should include the plan’s Summary Plan Description, plan documents, provider agreements, and any other relevant documents. Employers should also establish internal controls to ensure that the plan is being administered properly. This can include setting up procedures for the distribution of plan documents, conducting regular reviews of the plan, and ensuring that all required information is being reported accurately.

Reviewing Policies and Procedures

Employers should also review their policies and procedures to ensure compliance with the plan. This may include reviewing the plan’s eligibility requirements, how contributions are made, and how benefits are administered. Employers should also ensure that they are following the plan’s disclosure requirements and providing employees with the necessary information to understand their benefits.

During an Employee Benefit Plan Audit

Once the audit is underway, the auditor will need to understand the scope of the audit. The auditor will need to determine which documents and records need to be reviewed and which procedures need to be performed. The auditor will also need to design audit procedures to ensure that the plan is being administered in accordance with applicable laws and regulations.

Analyzing Results

After the audit is complete, the auditor will analyze the results and prepare a report. The report will provide an overview of the audit findings and recommendations for corrective action. The auditor may also recommend changes to the plan’s policies and procedures if necessary.

Making Corrections as Necessary

Once the audit is complete, employers should address any areas that need corrective action. This may include implementing changes to the plan’s policies and procedures, making corrections to the plan documents, or making changes to the plan’s administration.

Maintaining Documentation

Employers should maintain all documents related to the audit, such as the auditor’s report, the plan documents, and the plan’s Summary Plan Description. This will help ensure that the plan is being administered in accordance with applicable laws and regulations.

Implementing Controls

Once any corrective action has been taken, employers should implement internal controls to ensure that the plan is being administered properly. This may include setting up procedures for the distribution of plan documents, conducting regular reviews of the plan, and ensuring that all required information is being reported accurately.

Conclusion

Employee benefit plan audits are an important part of maintaining a comprehensive benefits program. Knowing the process and the scope of an audit can help employers prepare and respond appropriately. By understanding the importance of the audit process and taking the necessary steps to ensure compliance, employers can ensure that their employee benefit plan is providing the right level of coverage and protecting the interests of their employees.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

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What records to keep for tax purposes

Mon, 31 Oct 2022 13:01:14 GMT

There is a lot of confusion surrounding what records to keep for tax purposes. This is because the answer depends on a number of factors, including the type of business you own, the country in which you operate, and the specific tax laws that apply to your business.

In general, however, you should keep any records that could be used to support the income, deductions, or credits you claim on your tax return. This includes receipts, invoices, bank statements, and records of any other expenses you incurred in running your business.

It is important to keep good records throughout the year, as this will make it much easier to prepare your tax return when the time comes. Trying to track down records after the fact can be a nightmare, and it is often impossible to get missing records from third parties (such as banks or suppliers).

Let’s dive into it little more

What records to keep
Different types of records
How long to keep records
Storing records

1. What records to keep

As a general rule, you should keep any records that could be used to support the income, deductions, or credits you claim on your tax return. This includes receipts, invoices, bank statements, and records of any other expenses you incurred in running your business.

Different types of businesses will have different records, and you should keep whatever records are relevant to your business. For example, if you are a freelance writer, you would need to keep records of the articles you have written, the date they were published, and how much you were paid for each article.

2. Different types of records

There are many different types of records that you may need to keep, depending on the type of business you own. Some of the most common types of records include:

Income records: These include sales invoices, bank statements, and records of any other income you receive.

Expense records: These include receipts, invoices, and bank statements for any expenses you incur in running your business.

Asset records: These include records of any business assets you own, such as equipment, vehicles, or real estate.

Liability records: These include records of any money you owe, such as loans, credit card balances, and accounts payable.

Employee records: If you have employees, you will need to keep records of their wages, hours worked, and any taxes withheld.

Tax records: You should keep records of any taxes you have paid, such as income tax, sales tax, and property tax.

3. How long to keep records

In general, you should keep records for at least three years. This is because the IRS can audit your tax return for up to three years after it is filed.

However, there are some circumstances where you may need to keep records for longer than three years. For example, if you claim a loss carryforward on your tax return, you will need to keep records of the loss for seven years.

4. Storing records

There is no one-size-fits-all answer to this question, as it depends on the type and volume of records you have.

If you have a small number of records, you may be able to store them in a filing cabinet or box. However, if you have a large number of records, you may need to store them in a storage unit or off-site location.

Conclusion

Keeping good records is essential for any business owner. This is because the records you keep can be used to support the income, deductions, or credits you claim on your tax return.

There is no one-size-fits-all answer to the question of what records to keep, as it depends on the type of business you own, the country in which you operate, and the specific tax laws that apply to your business. However, in general, you should keep any records that could be used to support the income, deductions, or credits you claim on your tax return.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

What to do if you think you were audited unfair

Fri, 30 Sep 2022 12:19:31 GMT

If you believe that you were audited unfairly, there are some steps you can take to try to rectify the situation. First, it’s important to understand the difference between an unfair and an incorrect audit. An unfair audit is one where the IRS has not followed its own procedures, or has applied the tax laws in a way that is not consistent with past practice. An incorrect audit is one where the IRS has made a mistake in its application of the tax laws. If you believe you were subjected to an unfair audit, you can file a complaint with the IRS. If you believe the IRS made an error in its audit of you, you can file an appeal.

Let's discuss it further answering some questions.

What is the difference between an unfair and an incorrect audit?
How to file a complaint with the IRS if you believe you were subjected to an unfair audit
How to file an appeal if you believe the IRS made an error in its audit of you
What are the potential outcomes of filing a complaint or an appeal?

1.What is the difference between an unfair and an incorrect audit?

An unfair audit is one where the IRS has not followed its own procedures, or has applied the tax laws in a way that is not consistent with past practice. An incorrect audit is one where the IRS has made a mistake in its application of the tax laws.

2.How to file a complaint with the IRS if you believe you were subjected to an unfair audit

If you believe you were subjected to an unfair audit, you can file a complaint with the IRS. Include as much information as possible about the unfairness of the audit in your complaint.

3.How to file an appeal if you believe the IRS made an error in its audit of you

If you believe the IRS made an error in its audit of you, you can file an appeal. Include as much information as possible about the errors made in your appeal.

4.What are the potential outcomes of filing a complaint or an appeal?

The potential outcomes of filing a complaint or an appeal depend on the specifics of your case. In some cases, the IRS may agree that an audit was unfair or that errors were made, and may take corrective action. In other cases, the IRS may not agree with the complaint or appeal, and the audit results may stand.

Conclusion:

If you believe you were audited unfairly or that the IRS made errors in its audit of you, you can file a complaint or appeal. The potential outcomes of doing so depend on the specifics of your case. In some cases, the IRS may agree with the complaint or appeal and take corrective action. In other cases, the IRS may not agree with the complaint or appeal, and the audit results may stand.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

What Does A CPA Do For Individuals?

Thu, 01 Sep 2022 10:05:47 GMT

Suppose you are an individual who is looking for financial help. In that case, you might consider hiring a certified public accountant (CPA). CPAs provide a broad range of services, from tax preparation and filing to estate planning and auditing. This article will explore what CPAs can do for individuals and how they can help you manage your finances.

A Certified Public Accountant (CPA) is a professional who provides financial services to individuals. CPAs can prepare tax returns, help with financial planning, and provide other financial services.

Individuals may use a CPA for help with their personal finances. A CPA can guide financial planning and budgeting and offer advice on investing and saving for retirement. A CPA can also prepare individual tax returns and help them maximize their deductions.

For businesses, a CPA can provide bookkeeping and accounting services and advice on taxation and business strategy. CPAs can also help businesses with financial planning and forecasting.

If you are looking for financial assistance, a CPA may be able to help. Contact a local CPA today to learn more about the services they offer.

The Different Types of CPAs

There are different types of CPAs, and each one provides different services. Here is a brief overview of the most common types of CPAs:

Tax CPAs: Tax CPAs specialize in tax preparation and planning. They can help you with your personal or business taxes and offer advice on tax-saving strategies.
Audit CPAs: Audit CPAs provide assurance services, which means they help businesses verify their financial statements and ensure that they are accurate.
Management CPAs: Management CPAs work with businesses to improve their financial management and operational efficiency. They may provide consulting services or work as part of a business's accounting or finance department.
Forensic CPAs: Forensic CPAs use their accounting skills to investigate fraud and other financial crimes. They may work for law enforcement agencies or as private consultants.
Personal Financial Planning CPAs: Personal Financial Planning CPAs help individuals with their long-term financial goals, such as retirement planning, investment strategies, and estate planning.

The Advantages of Having a CPA

There are many advantages of having a CPA, especially if you are an individual. A CPA can help you with your taxes, financial planning, and other important financial matters. Here are some of the top advantages of having a CPA:

Tax Preparation and Planning: A CPA can help you prepare your taxes and plan for any potential tax liability. They can also help you take advantage of any tax breaks or deductions you may be eligible for.
Financial Planning: A CPA can help you create a financial plan that meets your short-term and long-term goals. They can also help you manage your debt, invest wisely, and save for retirement.
Business Advice: If you own a business, a CPA can provide invaluable advice on financial matters such as accounting, bookkeeping, tax compliance, and business strategy.
Estate Planning: A CPA can help you create a comprehensive estate plan that includes wills, trusts, and asset protection strategies. This is especially important if you have significant assets or dependents.
Audit Representation: If the IRS or state tax authorities audit you, a CPA can represent you and negotiate on your behalf. This can help you avoid penalties and interest charges.
Financial Literacy: A CPA can help you become more financially literate. They can teach you about budgeting, investing, and other financial topics. This knowledge can help you make better financial decisions in the future.

How to Find a CPA

When it comes to finding a CPA, there are a few things you can do to make sure you find the right one for you. The first step is to ask around and get recommendations from people you trust. Once you have a few names, you can research each CPA to see if they are qualified and have experience in the areas you need help with.

Conclusion

A certified public accountant (CPA) can provide various services for individuals, from preparing and filing taxes to managing finances and investing. CPAs are highly trained and licensed professionals who can help you save money, improve your financial situation, and achieve your financial goals. If you're looking for help with your personal finances, consider hiring a CPA.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Trust accounting: What You Need to Know

Sun, 31 Jul 2022 18:34:19 GMT

Trust accounting is the process of keeping track of funds that are held in trust for a specific purpose. This could be money that is held in an escrow account, or it could be money that is set aside for a specific project. Trust accounting involves tracking both the income and expenses associated with the trust fund, as well as making sure that the money is used for its intended purpose.

The Different Types of Trust Accounts

There are many different types of trust accounts, each with its own purpose. Here is a quick rundown of the most common types of trusts:

Testamentary trust: A testamentary trust is created through a will and only comes into existence after the death of the person who created the trust (the “grantor”). Upon the grantor’s death, the trustee is responsible for administering the trust according to the terms set forth in the trust agreement.
Living trust: A living trust, also called an “inter Vivos” trust, is created during the lifetime of the grantor. The grantor can be the trustee of his or her own living trust, but it is not required. Once created, the terms of the living trust cannot be changed without the consent of all parties to the trust.
Charitable trust: A charitable trust is created for the purpose of benefiting a charity or charities. The trustee must administer the trust in accordance with state and federal law and the terms of the trust agreement.
Special needs trust: A special needs trust is used to provide for the care of a disabled person without impacting that person’s eligibility for government benefits. The trustee must administer the trust according to state and federal law and the terms of the trust agreement.
Irrevocable trust: An irrevocable trust is a trust that cannot be modified or terminated without the consent of all parties to the trust. Once created, the terms of an irrevocable trust cannot be changed.
Revocable trust: A revocable trust is a trust that can be modified or terminated by the grantor at any time, without the consent of the other parties to the trust.
Spendthrift trust: A spendthrift trust is used to protect assets from being dissipated by beneficiaries who may have a spending problem or be unable to manage their finances responsibly. The terms of a spendthrift trust can restrict how and when beneficiaries can access funds from the trust.
Generation-skipping transfer tax trust: A generation-skipping transfer tax trust is used to minimize or avoid the federal generation-skipping transfer tax. The trustee must administer the trust according to state and federal law and the terms of the trust agreement.
Self-settled trust: A self-settled trust is a trust that is created for the benefit of the grantor. The grantor can be the trustee of his or her own self-settled trust, but it is not required. Once created, the terms of the self-settled trust cannot be changed without the consent of all parties to the trust.
Asset protection trust: An asset protection trust is used to protect assets from creditors. The trustee must administer the trust according to state and federal law and the terms of the trust agreement.

How to set up a trust account

If you're thinking of setting up a trust, there are a few things you need to know about how they work.

First, you'll need to choose a trustee. This person will be responsible for managing the trust account and making sure that the assets are used according to your wishes. You'll need to decide whether you want a professional trustee or someone you know and trust personally.

Next, you'll need to fund the trust account. This can be done with cash, investments, or property. The trustee will then use these assets to pay for the expenses of the beneficiaries, as well as any taxes or other fees associated with the trust.

Finally, you'll need to keep track of the trust account. The trustee will provide regular reports on the account's activity and balance. It's important to review these reports carefully so that you can ensure that the trust is being managed properly.

Trust accounting can seem complicated, but it doesn't have to be. With a little bit of planning, you can set up a trust that will provide for your loved ones long after you're gone.

The Pros and Cons of Trust Accounting

As a small business owner, you may be wondering if trust accounting is right for you. Trust accounting can be a great way to keep track of your finances and make sure that your money is being used appropriately. However, there are also some potential downsides to using trust accounting. In this blog post, we'll explore the pros and cons of trust accounting so that you can decide if it's right for you.

The Pros of Trust Accounting

There are several advantages to using trust accounting for your small business. First, trust accounting can help you keep track of your finances and make sure that your money is being used appropriately. You'll be able to see exactly where your money is going and how it's being used, which can help you make better financial decisions. Additionally, trust accounting can help you build credibility with potential investors or lenders. If they see that you're using trust accounting, they'll know that you're serious about managing your finances in a responsible way. Finally, trust accounting can provide tax benefits for your business. The interest earned on trust accounts is typically taxed at a lower rate than other types of income, so using trust accounting can save you money on your taxes.

The Cons of Trust Accounting

There are also some potential disadvantages to using trust accounting. First, it can be time-consuming to set up and maintain a trust account. You'll need to keep track of your finances carefully and make sure that all of the paperwork is in order. Additionally, trust accounting can be expensive. You may need to hire an accountant or financial advisor to help you set up and maintain your trust account. Finally, there is always the risk that your money will not be used as intended. If you're not careful, you could end up losing money through mismanagement or fraud.

Conclusion

As you can see, trust accounting is a complex topic with many different moving parts. But, hopefully, this article has given you a better understanding of the basics and what you need to know to get started. If you have any further questions or would like help setting up your own trust account, please don't hesitate to contact us . We're always happy to help!

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

There are various extended sales tax exemptions and sales tax holidays taking place in Florida, starting in the month of July.

Thu, 07 Jul 2022 12:34:38 GMT

There are various extended sales tax exemptions and sales tax holidays taking place in Florida, starting in the month of July.

Back to School

The back to school sales tax holiday will begin on Monday, July 25, 2022 and end on Sunday, August 7, 2022. During the sales tax holiday period, tax is not due on the retail sale of:

Clothing, footwear, and certain accessories with a sales price of $100 or less per item
Certain school supplies with a sales price of $50 or less per item
Learning aids and jigsaw puzzles with a sales price of $30 or less
Personal computers and certain computer-related accessories with a sales price of $1500 or less, when purchased for noncommercial home or personal use

More information is available in TIP #22A01-08 .

Children's Diapers and Baby and Toddler Clothing, Apparel, and Shoes

Florida's first sales tax exemption period on children's diapers and baby toddler clothing, apparel, and shoes begins Friday, July 1, 2022 and ends Friday, June 30, 2023. During this sales tax exemption period, tax is not due on the retail sale of children's diapers or on baby and toddler clothing, apparel, and shoes primarily intended for children age 5 or younger.

Clothing and apparel means any article of clothing or wearing apparel intended to be worn on or about the human body. Children's diapers include single-use and reusable diapers, including those used for toilet training, and diaper inserts.

More information is available in TIP #22A01-06 .

Energy Star Appliances

Florida's sales tax exemption period on new ENERGY STAR appliances for noncommercial use begins Friday, July 1, 2022 and ends Friday, June 30, 2023. During this sales tax exemption period, tax is not due on the retail sale of eligible new ENERGY STAR appliances and purchased for noncommercial use. The rental of eligible new ENERGY STAR appliances does not qualify for the exemption.

ENERGY STAR appliances means one of the listed products below if designated by the United States Environmental Protection Agency and the United States Department of Energy as meeting or exceeding each agency's requirements under the ENERGY STAR program and is affixed with a label. The sales tax exemption does not apply when the new ENERGY STAR appliances is purchased for trade, business, or resale.

Eligible items:

Clothes dryers selling for $1500 or less
Refrigerators or combination refrigerators/freezers selling for $3000 or less
Washing machines selling for $1500 or less
Water heaters selling for $1500 or less

More information is available in TIP #22A01-05 .

Freedom Week

This sales tax holiday begins on Friday, July 1, 2022 and ends on Thursday, July 7, 2022. During this sales tax holiday period, tax is not due on the retail sale or admissions to music events, sporting events, cultural events, specified performances, movies, museums, state parks, and fitness facilities. Also exempt from sales tax during this holiday period are eligible boating and water activity supplies, camping supplies, fishing supplies, general outdoor supplies, residential pool supplies, and sporting equipment.

The sales tax holiday does not apply to:

Rentals of any eligible items
Sales within a theme park, entertainment complex, public lodging establishment or airport

For a detailed list of eligible items see TIP #22A01-04 .

Impact-Resistant Doors, Garage Doors, and Windows

A temporary sales tax exemption period on impact-resistant doors, impact resistant garage doors, and impact-resistant windows begins on July 1, 2022 and ends June 30, 2024. During this sales tax exemption period, tax is not due on the retail sales of impact-resistant doors, impact-resistant garage doors, and impact-resistant windows for commercial or noncommercial use.

More information is available in TIP #22A01-07 .

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How CPAs can provide value to clients in litigation support

Wed, 15 Jun 2022 11:21:28 GMT

As more companies are being scrutinized for their data, processes, and reporting methods under the heightened scrutiny of the fourth accounting revision known as Generally Accepted Accounting Principles or GAAP, businesses are becoming increasingly attuned to ensuring that external data and information do not contradict their own opinions and opinions of other stakeholders.

Litigators’ growing use of CPAs to offer support in an array of areas has left many businesses seeking answers regarding how they can engage a CPA in their organization and create value through the service provided. Here are some insights on what you can expect from a CPA if you ask them to support your business with an engagement.

What legal support can a CPA offer to your business?

A CPA can partner with your business to provide an in-depth analysis of your financial information and its compliance with applicable laws and regulations. By integrating a lawyer’s expertise in financial analysis with a CPA’s expertise in auditing, accounting, and taxation, you can achieve a comprehensive insight into your business and its relationship with the outside world.

CPAs may also help your business manage the audit process and compliance risks by providing advice on internal controls, documentation requirements, and recordkeeping practices. Since the audit process is inherently complex and subject to frequent change, a CPA may also provide consulting services on matters such as managing the audit risk and creating a risk-based audit risk plan.

Why engage a CPA for support in litigation support

Litigators often demand high levels of information and documentation in support of a case, as well as high levels of compliance with legal and regulatory requirements. In addition to meeting the high standards required in-lieu of an attorney, a CPA can help your business navigate a complex set of requirements and risks associated with litigation support engagements.

For example, a CPA can help your business comply with legal and regulatory requirements that include Sarbanes-Oxley (SOX) and the Anti-Money Laundering (AML) Regulations. A CPA may also help your business prepare and maintain documentation in support of a case, including witness and deposition notes and communications, emails, and other records.

How you can hire a CPA for support in litigation

A CPA may be a good choice for support in litigation if your business is engaged in a particular industry or subsector with a well-known or recognized entity. In other cases, a CPA specialization may not be available in your city or region. To identify if a CPA is a good fit for your organization, conduct a thorough vetting of the firm.

First, conduct a thorough background investigation on the firm to determine its reputation, level of experience, and how well the firm understands your industry and how you operate. Next, arrange for an in-person consultation with the firm to get a better sense of the firm and your needs. During this consultation, your CPA should be able to provide you with an overview of the firm’s services and experience, as well as provide you with a firm estimate of costs. As part of the consultation, your CPA may also offer insights on how to structure a retainer agreement to ensure the right level of contracting between you and the firm.

How can CPAs help with due diligence?

A CPA can help with the due diligence process by providing your business with an overview of your financial information. Your CPA may also help you identify and manage risks related to your business. During this process, your CPA can also offer insights into your financial information and its compliance with applicable laws and regulations.

Your CPA can help you choose and implement an effective risk management strategy, such as risk-rating your business and evaluating your risk profile with respect to asset types, cash flow, and contingent liabilities. Additionally, your CPA can help you manage the risk of the audit process and the audit risk plan.

Additional advice

While CPAs can provide support in an array of legal areas, most CPAs are not attorneys and can only provide legal advice in the areas of law in which they are formally trained. Before engaging a CPA firm, ensure that the firm is formally trained as a CPA, has the requisite certifications and licenses, and is properly registered with the appropriate regulatory authorities.

If you find that a CPA is a good fit for your business, you may want to consider employing a CPA as a consultant. With proper training and oversight, a CPA as a consultant can help your business navigate and manage the risks associated with the audit process, including audit risk management. If you choose this route, ensure that the firm employs a risk manager, in addition to a compliance officer, who can help the firm identify and manage audit risk.

Conclusion

With the increasingly complex nature of today’s legal landscape and its accompanying due diligence requirements, there is a rising demand for specialized services from firms that specialize in providing services similar to those that a law firm would provide. Litigators’ growing use of CPAs to offer support in an array of areas has left many businesses seeking answers regarding how they can engage a CPA in their organization and create value through the service provided. In this article, we hope to provide some insights into how CPAs can provide value to clients in litigation support.

Let’s discuss to have litigation support.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Do you need a CPA or an accountant?

Tue, 31 May 2022 21:21:32 GMT

There is no one-size-fits-all answer to this question. The best way to determine whether you need a CPA or an accountant is to ask yourself a few questions, such as:

What is the nature of your business?

The nature of your business will impact the type of accountant you need. For example, if you are a small business owner, you may only need a part-time accountant to help with your bookkeeping and tax preparation. On the other hand, if you are a large corporation, you may need a full-time CPA to handle your complex financial needs. However, if you are a non-profit organization, you may need a CPA to help with your financial reporting.

Do you have complex financial needs?

Complex financial needs will also impact the type of accountant you need. If you have a simple business with straightforward financial needs, an accountant may be all you need. However, if you have a complex business with multiple financial needs, you may need a CPA to handle your finances. For example, you may need a CPA to help you with your accounting, tax planning and preparation, and financial reporting.

Do you need someone to help you with tax planning and preparation?

Tax planning and preparation can be complex, so you may need a CPA to help you with these tasks. However, if you have a simple tax return, an accountant may be all you need. A CPA can help you with tax planning and preparation in several ways, including:

Helping you to determine the best tax strategy for your business.
Helping you to determine your tax liability.
Helping you to prepare your tax return.
Helping you to prepare your quarterly tax returns.
Helping you to prepare your annual tax returns..

Do you need someone to help you with business advice?

Business advice is another area where a CPA can be helpful. If you need advice on starting a business, expanding your business, or improving your business, a CPA can offer helpful guidance.

A CPA can help you with business advice in several ways, including:

Providing advice on starting a business, such as helping you to determine the type of business you should start and helping you to find the right location for your business.
Providing advice on expanding your business, such as helping you to determine the best way to expand your business and helping you to find the right location for your business.
Providing advice on improving your business, such as helping you to determine the best way to improve your business and helping you to find the right location for your business.

The Bottom-Line

The bottom line is that there is no one-size-fits-all answer to the question of whether you need a CPA or an accountant. The best way to determine which type of professional is right for you is to ask yourself a few questions and then make a decision based on your specific needs.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

5 Tips for Financial Planning on a Budget

Sat, 23 Apr 2022 09:08:46 GMT

Financial planning is not just for the rich. No matter how much income you make, you need to have a financial plan to ensure that you are making the best use of your money. A financial plan is a step-by-step guide that you can use to achieve your personal financial goals.

Take a look at your spending habits

The first step to creating a financial plan is to understand your current spending habits. It’s challenging to create a budget if you don’t know how much money you are currently spending on different expenses. You will need to make a list of all of your current expenses and then categorize those expenses. You should subdivide your expenses into categories such as housing, food, utilities, clothing, entertainment, and others. Once you have an idea of how much money you are spending, the next step is to eliminate those expenses that are not absolutely necessary. You might also have to look at your current income and make sure that there is enough money to cover all of your expenses.

Set up a budget

The next step to creating a financial plan is to set up a budget. A budget is simply a plan for how you will spend your money during a specific period of time. A budget can be set up for a week, a month, or even a year. A budget should include a list of all of your expenses and a plan for how you will pay those expenses. The first step to creating a budget is to determine the amount of money that you have coming in each month. This includes all of your income, such as your salary, Social Security benefits, and any other income that you have. The next step is to calculate all of your expenses. This includes all of your monthly expenses, such as your mortgage, utilities, and food. You should also include any monthly expenses that you have that are not a monthly expense. For example, if you have a car payment, you should include that as a monthly expense. The final step is to add up all of your expenses and subtract that from your monthly income. This will give you an idea of how much money you have left over at the end of the month.

Get rid of your debt

Debt is a burden that can weigh you down for years. If you are in debt, it’s important to create a plan to get out of debt as soon as possible. There are several ways to pay off your debt. One way to pay off your debt is to pay off your high-interest debts first. You can also pay off your high-interest credit card balances by transferring your balances to a lower-interest credit card.

Pay off short-term debts

It’s important to pay off your short-term debts first. The reason for this is that your short-term debts are going to be easier to pay off than your long-term debts. The reason for this is that your long-term debts are going to have a higher interest rate than your short-term debts.

Pay off high-interest debts

If you have high-interest debts, it’s important to pay them off as soon as possible. The reason for this is that the interest on these debts is going to be higher than the interest on your other debts. This means that it’s going to take you longer to pay off your debt if you don’t pay it off as quickly as possible.

Save money

Your financial plan should include a plan to save money. You should be saving at least 10% of your income each month. This is a good way to start saving for your future. You should also be saving for your retirement. The best way to do this is to open a retirement account and put money into it each month.

Set up a savings account

It’s important to set up a savings account so that you can have an emergency fund to fall back on when you need it. You should be saving at least 10% of your income each month. This is a good way to start saving for your future. You should also be saving for your retirement.

Set up an emergency fund

It’s important to set up an emergency fund so that you can have an emergency fund to fall back on when you need it. You should be saving at least 10% of your income each month. This is a good way to start saving for your future. You should also be saving for your retirement.

Get the right insurance

Insurance is an important part of your financial plan. You should make sure that you have the right kind of insurance to cover you in case of an emergency. You should also make sure that you have enough insurance to cover your family in case of an emergency. There are many different types of insurance, such as life insurance, health insurance, homeowners insurance, and auto insurance. It’s important to understand what each type of insurance is and how it works so that you can get the right insurance to cover you and your family in case of an emergency.

Final thoughts

Creating a financial plan can be challenging, but it can also be rewarding. It’s important to take the time to create a plan that will help you achieve your financial goals. There are many resources available to help you create a financial plan. These include books, websites, and even personal finance experts. Once you have created a plan, you will be able to start working toward your financial goals. Let's the right CPA help you with your financial plannings.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

What to do after an audit?

Wed, 09 Mar 2022 20:15:53 GMT

Audits can be a stressful experience, but knowing what to do after an audit can help make the process easier. After an audit, you should take steps to correct any problems that were found, and you may also need to take additional steps to ensure that you are in compliance with audit findings.

1. Gather all of your documentation.

2. Review the findings of the audit.

3. Create a plan of action.

4. Take action on the plan.

5. Follow up with the auditor.

6. Keep track of your progress.

Gather all of your documentation:

After an audit, you should gather all of your documentation to submit to the auditor. This documentation should include any records that support your financial statements, as well as any records that were used to support your compliance with audit findings. You should also gather any other records that the auditor may request.

Review the findings of the audit:

The auditor will provide you with a report of their findings. You will need to review this report and take action on the recommendations made. You may need to hire a consultant to help you with this.

Create a plan of action:

Once you have reviewed the findings of the audit and created a plan of action, you will need to take action on the plan. This may include hiring consultants or making changes to your business practices.

Take action on the plan:

Once you have created a plan of action, you will need to take action on the plan. This means implementing the changes recommended by the auditor.

Follow up with the auditor:

The auditor will want to follow up with you to ensure that you are taking action on the recommendations made. They will also want to ensure that the changes are having the desired effect.

Keep track of your progress:

It is important to keep track of your progress as you implement the changes recommended by the auditor. This will help you to ensure that you are making progress and that the changes are having the desired effect.

Conclusion

Audits can be overwhelming and daunting, but following these steps can help make the process a little easier. By gathering all of your documentation, reviewing the findings of the audit, creating a plan of action, and taking action on the plan, you can make the most of the audit process. If you have any questions or need help implementing the changes recommended by the auditor, be sure to consult a professional.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

6 Things to Consider When Conducting an Audit

Wed, 16 Feb 2022 08:21:51 GMT

Auditing is a critical business process for any organization. It provides a way to measure the performance of your company and identify areas that need to be improved or addressed. There are many aspects that you need to consider when conducting an audit. These include the type of audit, the size of your organization, and what types of records you want to evaluate. However, it’s important to know that there’s no one-size-fits-all approach. Here are 8 things you should think about before conducting your own audit.

Understanding the different types of audits

An audit is an evaluation of your company’s records. It helps you identify any areas that need improvement or attention, which can help your business grow. There are many types of audits that assess your organization in different ways. For example, you could have a financial audit, which looks at the numbers and figures to make sure everything makes sense. Alternatively, you could have a compliance audit, which checks to make sure you’re in accordance with government laws and regulations.

Determining the size of your organization

The size of your organization will greatly affect the type of audit that you should conduct. If you’re a small company, then you may only need to do a financial audit. If you’re a larger company, you may need to do an operational audit as well.

Choosing what records to audit

The first thing you should think about when conducting an audit is the type of records to audit. Records can be divided into three different types:

Permanent records, which include your organization’s financial statements and accounting books.

Reference records, which include any documents that are related to a specific project or operation.

Temporary records, which include email messages, phone messages, and memos.

Knowing the risks associated with an audit

A risk you need to know about before conducting an audit is the cost. Hiring a professional can be expensive and can take up a lot of your time. If you’re not sure how to go about the audit, it may take some resources and time to figure it out.

Planning for your audit

You also need to think about what you want to measure before conducting your audit. What do you want to look at? How much time do you have? What are your goals for this audit? These are all questions that need to be answered before beginning your audit.

It’s also important to know which records are required for your business. You don’t want to spend hours looking through every record and file that exists just because you think they might contain useful information.

Reporting on your audit results

It’s important to know how to report on the results of your audit. The way that you present the results of your audit can have a big impact on how people respond to it. You may want to consider presenting your findings in a proposal form, which would be similar to a business proposal. This is an excellent way to show how you plan on addressing the issues you found during your audit. When it comes to reporting, don’t forget about the importance of visuals!

Conclusion

With the help of this guide, you should be able to conduct your next audit with confidence. The key is to be prepared, know what to keep an eye out for, and stay on top of the process.

Whether you’re an individual looking to make sure you’re paying your taxes correctly, or a company looking to make sure every dollar is accounted for, an audit can help you get to the bottom of things.

Now that you are armed with this information, go forth and audit with confidence!

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Top 5 Reasons Why You Need A Financial Advisor

Fri, 14 Jan 2022 18:33:31 GMT

With the changing landscape in personal finance, it is more important than ever to have a financial advisor. In the past, you could rely on your own knowledge of investments and insurance. But today, with risks lurking in all sorts of places, it is crucial to have someone who knows what they are doing. Whether you want to start a business or retire comfortably, a financial advisor can make your goals a reality.

To make it easier for you to wrap your head around this, we have gathered reasons why you need a financial advisor:

Acquire Change with a Financial Planner

Personal finance is another name for basically protecting and growing your wealth. One needs to realize and accept that wealth doesn't remain as it is, forever. As life changes, so does your personal finance.

In the past, you could rely on your knowledge of investments and insurance to provide for you and your family. But today, with risks lurking in all sorts of places, it is crucial to have an advisor who knows what they are doing.

A financial planner offers personalized advice about saving for retirement, long-term care strategies and asset protection. They also help you plan for the unexpected with life insurance and disability insurance. You might even need an estate planner when you get older because by then, most likely one-half your wealth will be in Medicare and Social Security benefits which will be worth less than current benefits.

If you’re looking for a plan that is tailored to suit your needs and goals, contact an experienced financial advisor today!

Your Life Made Easier

It can be difficult to stay on top of everything when you're balancing a busy work and personal life. With the risk factors in today's world, it is important to have an expert by your side to help you manage your finances.

Be Prepared for Your Professional Life Downs

A good financial advisor will make sure that you are ready for any possibility - from starting a business to retiring comfortably. In addition, a financial advisor can help with planning for the unexpected with life insurance and disability insurance. You might also need an estate planner when you get older because by then, most likely half of your wealth will be in Medicare and Social Security benefits which will be worth less than current benefits.

Need Advice?

Your financial advisor is the only person you would want to turn to if you need personalized advice. They can help you develop a strategy for managing your finances. They will also be able to provide you with information about new investment opportunities and other financial products. But it is important to look for someone who is qualified to be an advisor. You want to make sure that they have the right credentials to provide advice and guidance on the type of personal finance services you need.

Resolving Your Concerns

A financial advisor can help you make informed decisions on how best to save for retirement, long-term care strategies and asset protection strategies. You might even need an estate planner when you get older because by then, most likely one-half of your wealth will be in Medicare and Social Security benefits which will be worth less than current benefits.

Your financial advisor will be able to provide you with guidance about these types of issues or any others that might come up. For instance, if you are thinking about starting a business or retiring comfortably, they can help assess the risks and plan accordingly so that your goals are realized!

Conclusion

Your financial advisor can help you stay on top of your finances by providing the guidance and support you need to make the best financial decisions for your future. The right advisor will provide you with the tools to stay on track with your goals, minimize taxes, reduce debt, prepare for retirement, and much more.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

4 Tips for Successfully Completing a Single Audit With Ease

Wed, 15 Dec 2021 11:30:07 GMT

The audit is an important part of your yearly financial reporting process. It provides you with detailed information about your finances and helps you to understand where your money went in the past year.

An audit is also a good way to make sure that there are no errors or mistakes in your finances. When done correctly, it will provide you with information which you can use to make important decisions for the future. However, not all audits are easy to complete - they can be time-consuming, complicated, and stressful. This guide will help you get through the audit process while also making it easier for you to understand what each section means. Read on below to find out how!

Importance of the Audit Process

An audit is a formal examination of your company's financial records. It's an important part of the yearly financial reporting process and provides detailed information about your finances from the previous year. To calculate your yearly budget and keep track of your financial growth, an audit plays a crucial role.

Proper Planning for the Audit

When you're completing your audit, it's important to stay organized. This will make your audit go more smoothly and ensure that you get the most out of it.

Firstly, create a schedule which includes major tasks like filling out financial documents, meeting with knowledgeable professionals for advice, and reviewing your financial statements.

Next, set aside a space in your home or office where you can work on the audit. You'll want a quiet place where you won't be distracted by other things going on in the house.

You also need to take care of yourself when auditing so you can focus on the task at hand. Make sure that you have enough food and drink available - don't underestimate how much energy an audit can require! If possible, do some light exercise before starting work to help relieve stress and get your body moving.

Finally, know what type of information you're looking for from the audit process in advance in order to make it easier for yourself in the long-run. Remember: Your goal is not only to complete an audit but also to use it as a tool for making future business decisions.

What an Audit Consists of

An audit, being an in-depth examination of a company's financial records, is accomplished by a third party who reviews the company's books and records to ensure that all transactions have been accounted for.

An audit isn't just something you can turn on and off when you're in need of one. Audits are done yearly or quarterly, depending on the size of your business and how much money it takes in. They often take anywhere from a few hours to a day or two to complete, but they can be more detailed and take longer if necessary.

In the audit process, the auditor will look over your finances - from cash receipts to bank deposits and everything in between - to make sure that everything balances up correctly.

How to Approach Each Subsection

The audit may seem daunting, but it doesn't have to be. If you take the time to understand all of the sections, you will find it easier to complete.

The first part of an audit covers your income statements. Income statements are an overview of how much money you made or lost during a specific period. You can use the information in this section to learn about your revenue and expenses - things like cost of goods sold and salaries.

The revenue section also lists information on your costs that come from outside sources, like supplies or services. The expenses section shows what it cost for things like rent, utilities, or transportation costs.

Next up is your balance sheet which includes information about your assets, liabilities, and equity (the amount of money you've earned) at the end of the year. Depending on how much money each line item totals up to, these numbers can either make you happy or sad when they're totaled together. The balance sheet is important because it tells you how much money you have in total at any given time.

Conclusion

An audit has a lot of importance in your business raising and finance raising. A successful audit can be accomplished by following these five steps. Proper planning, meticulous attention to detail, and an understanding of the process. We hope reading this helped you highlight steps to achieve a perfect audit!

How to Prepare for the Audit

The audit is a yearly process and it's important to make sure you're prepared for it. The first step is to make sure you have all the necessary documentation and records for your business.

There are several different types of documents that need to be kept on file; financial, legal, and tax documents. It's important that these documents are organized and easy to find when needed.

If you don't already have a system in place, start by creating one. You can use filing cabinets, binders, folders, or databases to organize your files. Keep everything neatly labeled so it's easy to find what you're looking for!

Another important thing to keep in mind is the location of your records and documentation:

-Keep them at home if they're personal or proprietary information - this includes customer lists and product plans

-Keep them at work if they're office related - this includes budgets and project plans

-Keep them at a trusted third party storage facility if they are sensitive materials - this includes bank statements

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

A Complete Guide to Manage Assets in a Bankruptcy Case

Tue, 16 Nov 2021 07:29:44 GMT

If you are considering filing for bankruptcy, you might be wondering about the process of managing assets. The reality is that bankruptcy can affect your credit score and your ability to borrow money, but it does not necessarily mean that you will lose everything. If you want to keep some assets, here are some steps to take during this process:

What assets can be kept in a bankruptcy case?

If you are filing bankruptcy, the first thing you should do is determine what assets you want to keep. You can use a bankruptcy lawyer or qualified bankruptcy trustee to help you work through this process.

Some of these assets might include personal property, some exempt property, some jointly owned property, and retirement accounts. If one spouse files for bankruptcy while the other spouse has some assets, they can choose which assets to keep.

Personal property includes things like jewelry, electronics, furniture, clothing, and tools. Exempt property includes things like money in an IRA or 401(k) account up to $1 million. Jointly owned property are things like bank accounts with someone else who cannot be on the joint account due to their age or marital status. Retirement accounts are often exempt because they are considered protected property.

How to keep or sell your assets?

If you decide to seek bankruptcy protection, you will need to determine what assets you want to keep. Bankruptcy rules vary by state and the court overseeing your case. However, in most cases, your assets will be protected from the creditors if they are used for certain purposes.

In general, bankruptcy can protect your assets from being seized by a creditor when it is filed under Chapter 7 or Chapter 13 of the Bankruptcy Code. In some instances, there could be restrictions on what you can do with certain assets in order to qualify for this protection.

To avoid risking losing everything in a bankruptcy proceeding, it's important to know what assets are at risk and take steps in advance to protect them.

How to share assets with family and friends?

There are two ways you can keep any assets that you might want to keep after filing for bankruptcy.

Keep the asset in your name and not tell anyone about it.
Ask someone close to you—like a family member or friend—to hold the asset on your behalf.

If you decide to ask a family member or friend to hold an asset for you, there are some things that need to be considered:

The person should have enough income and assets of their own so they don't need to use the money from holding the asset for you.

They should be able to cover any costs associated with holding the asset, such as rental fees or mortgage payments if it's a piece of real estate.

They should not have plans to borrow money in the near future because this could affect their ability to pay back a loan.

Who can help you manage your assets?

Your attorney may be able to assist you with this process, but there are plenty of other options. You may want to work with a company that specializes in managing bankruptcy assets, or hire someone on contract for advice on how to best manage your assets during the process.

If you do decide to work with an outside company, make sure they have experience working with people who have filed for bankruptcy protection so they can offer expert advice and counsel on how best to manage your assets during this time of need. This can be especially helpful if you have questions about what the law permits in terms of keeping certain items during the duration of the process.

Conclusion

When it comes to the management of your assets in a bankruptcy, there are a lot of choices and decisions that need to be made sensibly. One needs to find the right person or service to make the process a little bit easier and less stressful.

With the help of this article, we hope we made your way through the bankruptcy journey clearer and easier.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How to properly manage your business cash flow

Fri, 15 Oct 2021 06:00:05 GMT

How to properly manage your business cash flow

Whether you are part of a large company or running your own business, managing cash flow is one duty that you simply can't afford to ignore. Cash flow management is the way in which an organization manages its sources of funds and its patterns of expenditure. Cash flow problems can occur even when companies bring in money faster than they spend it, but not having a plan to deal with the incoming and outgoing money can lead a business into serious debt. Cash flow is one of the most important elements in any business, yet it's often ignored or mismanaged.

When a company receives cash from its customers before it pays for inventory or other expenses, this puts the firm in what's called a "positive cash flow" position. Cash flow is a term that describes the movement of money into and out of a business. It can also refer to the amount of cash that's available for investment, debt repayment, or expansion.

When a company spends more money than it makes in revenue, this puts it in a "negative cash flow" position. Cash flow problems are common with small businesses because they have less money coming from their external sources. The primary source of capital for these companies usually comes from loans and external investors, so when they don't get enough incoming cash, they experience difficulties making payroll and other expenses that require immediate payment. Cash flow problems can sometimes be solved by taking on short-term liabilities such as credit cards or borrowing from family members while the company resolves its cash flow issues. Cash flow problems can also get worse if the company takes on too much debt or has to pay high-interest rates for borrowed money.

Cash flow analysis is essential in helping companies identify their spending patterns and it's one of the first things that business owners should examine before they create a budget. Cash flow analysis involves examining several different factors, including daily cash receipts, expenses, accounts receivable, inventory levels, accounts payable, and capital expenditures. Tracking all these elements will help you determine your available sources of funds. Managers often take notice when there's either not enough incoming cash to cover their routine costs or when outgoing costs are higher than their revenue bringing in more cash. Cash shortages usually lead to management prioritizing which bills should be paid and which expenses can wait. Cash flow analysis can be difficult to keep up with because it requires accounting and forecasting skills along with an in-depth knowledge of the company's products, customers, and competitors. Cash flow analysis is one area that small business owners can seek assistance in by hiring a CPA (certified public accountant).

Tips to manage your business cash flow properly

1. Evaluate your cash flow needs by taking into consideration the amount of money you have on hand, the amount of time it will take to get paid for a job or project, and what bills need to be paid.

2. Create a budget that includes income sources, fixed expenses, variable expenses, and savings goals

3. Prioritize your spending by looking at which items are necessities (i.e., groceries) versus luxuries (i.e., dining out)

4. Look for ways to cut back on unnecessary spending like cancelling unused memberships or subscriptions

5. Have an emergency fund with enough money in it so that if something unexpected comes up you can cover it without having to borrow from someone else

6. Keep track of all transactions including how much is owed and when payments are due - this way you'll know when there's not enough money coming in or too much going out.

Conclusion

Managing your business cash flow is what will keep you in the black. If you are not managing your accounts receivable, inventory, and other expenses accordingly, this may put you at risk of encountering a negative cashflow position that can be difficult to get out of. By analyzing these factors carefully before making any major decisions about how much money should go where in order for it all to work together smoothly, companies can identify their spending patterns and make adjustments as needed.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

A Startup's 5 Metrics That Every VC Expects

Thu, 30 Sep 2021 06:00:07 GMT

A Startup's 5 Metrics That Every VC Expects

A company needs greater funding as it grows. It's critical to be prepared to share key metrics with venture capitalists who might be interested in investing in a startup, whether it's to reduce operational costs, improve marketing efforts, or hire more employees.

Five metrics from a startup

1.Market Data

For VCs, market data is critical in their decision-making process. They'll want to consider several factors because each one can reveal whether they'll see a return on their investment.

Before deciding, VCs look at the following market data:

Market cap

VCs are typically drawn to startups with large market capitalizations. In most cases, bigger market caps are better. One must back up their market size estimates with Third-party market research reports and customer feedback on product desire.

Competition

Competition can make or break A VC's interest in a startup. If the market is populated with other startups or well-established businesses, the chances of working with someone are minimal. One must demonstrate that competition is not a major concern for their business.

2. Customer Acquisition Cost (CAC)

The customer acquisition cost is important to VCs because it shows how much it costs to gain a new customer. The goal is to keep CAC low, so gaining new customers does not come at a high cost to a startup.

VCs will consider the following factors when determining CAC:

Ad spending
Sales rep salaries
Cost of marketing campaigns

3. Average Revenue Per Client

Following their examination of the CAC, the VCs will turn their attention to the average revenue per client. Basically, it's figuring out how much money one can make from a client. When VCs combine this with CAC, investors can see the business's potential profitability.

The number of customers who leave on average in a period is referred to as churn. This metric is typically calculated monthly and provides VCs with a sign of the overall client base's sustainability.

4. Allocation of Expenses

Expense allocation is one of the most important metrics for VCs to consider. Because they are donating funds in order to produce more of it. The way one spends money now and in the past can show whether the VC is interested in investing in a startup.

VCs will demand detailed records that include:

A budget that is comprehensive
Reports on spending by category

5. Payroll Data

Startups frequently seek additional investors in order to expand their workforce. If that's the case, VCs will demand a thorough examination of the payroll systems. The following are some of the major points of concern:

Hiring practices: To know if it's workable to hire many new employees
Retention rate: If the company is hiring because of growth or difficulty in keeping employees.

Conclusion

When a startup can present these metrics to potential VCs, it provides them with the knowledge they need to make important investment decisions. It's one thing to impress them, but it's quite another to prepare relevant information to answer their questions. Showing them data that proves they will most likely see a return on investment is the best approach.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Challenges and Changes in Post-Pandemic Auditing

Sun, 15 Aug 2021 07:00:05 GMT

During the pandemic, approximately 70% of auditors had to change their plans and reprioritize audit activities!

The COVID-19 pandemic added to the difficulty of preparing financial statements and conducting audits. There is no government authority issuing policy for accounting standard changes, which is the main challenge in preparing financial statements. Conducting audits for the COVID-19 pandemic is also difficult because it introduces new concepts into financial reporting.

To effectively address these issues, one must go beyond the most obvious observations and find the root causes.

Points to be Addressed Based on Research & Observations

Here are the 4 points that need to be addressed:

1. Access To Managerial Assistance Is Limited

Team members require assistance with both their tasks and relationships. Auditors working in audits are used to work in a setting where someone with more experience instructs them to complete specific tasks. Planned calls are;

More structured, with shorter conversations.
Team members can hide their struggles, frustrations, and failures because everyone is on their best behavior.
Supervisors can quickly lose sight of their responsibilities if they don't see the full scope of their needs.

2. Mutual Understanding Is Mainly Missing

In a remote working environment, getting information from clients and colleagues takes more time and effort. In the short term, proceeding without all of the necessary information may appear to be the best way to meet budgets and deadlines.

It's easy for important information to become siloed if there's no way to share it freely and informally. Working remotely creates more barriers for experienced team members to share their audit and client knowledge with new team members.

3. Social Opportunities are Limited

Auditing is a team sport, and successful teams are built on mutual trust and respect. Because a lack of trust and respect has the following consequences:

• It makes work less enjoyable

• It also makes the unit less productive

Due to remote working, relationships are distorted and broken.

4. Work from Home

Working from home is a significant obstacle, whether ignoring roommate distractions, homeschooling the kids, or simply finding a physical workspace that allows us to be productive. It's important to remember that working from home poses some challenges for everyone.

The most common way to deal with these difficulties is to rearrange one's schedule to accommodate the various demands.
When everyone on the team (the client) adjusts their work schedules, getting quick answers to simple questions becomes more difficult.
The pace of progress is much slower.
In the long run, blurring the line between work and home can be disadvantageous to both aspects of one's life.

Final Thoughts

Innovating how the world will embrace and reimagine the dynamic of client relationships will be a priority in the coming years. It's unclear how various professions will look and feel after the pandemic has passed, especially in Audits and firms, but things won't be the same as they were before 2020. In the long run, the auditors who can best adapt to this new environment will win out.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How Can a Hybrid Work Model Benefit Your Team In the New Normal?

Sun, 01 Aug 2021 06:34:44 GMT

In 2021, a global survey found that 73% of employees want flexible remote work options!

What is a Hybrid Work Model?

The hybrid work model is a work style that allows employees to work from various locations, including at home, on the go, and in the office. A successful hybrid work model system promotes:

Autonomy
Flexibility
High efficiency
Collaboration
Effective work habits
Positive workplace relationships

Office Working Conditions In The New Normal

After the pandemic, how will offices look? It's a good question, but it raises an even better one: After a year of working remotely, how much post-pandemic life will take place in an office?

Finance managers would like to explore ways to make pandemic-related efficiencies more efficient, such as shrinking office footprints and increasing technology use.

A hybrid work model schedule is in which an optimally sized team commutes to headquarters. At the same time, other colleagues work from home is an excellent way to cash productivity gains while eliminating losses over the past year.

How To Build a Hybrid Work Model?

The following steps can help answer the question:

1. Define Expectations from Remote Workers

Employees who work remotely have the flexibility to work a few hours in the morning and the rest of their shift at night. These work schedules must be agreed upon ahead of time.

When working remotely, people can set their schedules once these expectations are established.

2. Ensuring Cover In the Office

One of the most challenging aspects of hybrid work model scheduling is determining who needs to be at the office and when. One reason for this is clients are not expected to work around their schedules. For in-person meetings, they'll expect the relevant people to be present.

Evaluate the number of people needed in the office and list any professionals who will be required on-site.

3. Schedule Team Meetings

Team meetings help to share the best practices and analyze problems. Meetings should be held while people are on-site. Alternatively, hybrid meetings can be held, with remote workers calling into the conference room or continuing with all virtual gatherings.

4. Continue to Look Over the Schedule

For many people, a hybrid work model will be a new and potentially disorientating experience. Regularly check in with everyone and ask questions about the employee's confidence while working from home, if they feel essential during team discussions etc.

Final Thoughts

Employees are concerned they will miss out on opportunities for advancement because of this full-time remote work's lack of visibility. Some people are worried that their relationships will suffer if they don't see their coworkers in person. However, most people still don't want to return to full-time work because they prefer hybrid flexibility.

Megacorporation’s are already experimenting with a hybrid work model that allows employees to work remotely part of the time. It's not just for Enterprise companies, which is why any company should consider hybrid work.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Post Pandemic Effects: A Preview of the Mid-Year Sales Tax Rates and Rules Changes

Wed, 30 Jun 2021 09:50:27 GMT

The post-pandemic state of the United States' sales tax has appeared into a clearer picture, and it's looking (surprisingly) brighter, yet (predictably) more complicated.

Around $350 billion goes towards helping most states to manage revenue shortfalls triggered by the COVID-19 last year. (Vertex Mid-Year 2021 Sales Tax Rates and Rules Report)

With help from the American Rescue Plan Act of 2021, states are beginning to focus on stabilizing their budgets.

As identified last year, there is a steady stream of new district sales taxes materializing.

Our mid-year sales tax report includes information generated by collecting data from cities, districts, counties, and states as of May 31. This information resembles the corporate tax groups as they track them, including many other factors like moving to cloud technologies, post-Wayfair changes, etc.

Mid-Year Report Summry

1. New district taxes continue to increase:

In 2020, the number of new district taxes (177) was the second-highest in the last ten years. One hundred twenty-six new district taxes have been imposed as of May 31, 2021. If current trends continue, the number of new district taxes in 2021 will set a new high.

2. Districts are also revising tax rates more often

the number of sales tax adjustments at the district level has gone up significantly of 2020 district tax reforms through May 31. While the majority of the 2021 district tax adjustments are reductions, they contribute to the complexity of tax management.

3. Average rates continue to rise

Despite the reductions in district tax rates, the average district tax rate, as well as the average county and local sales tax rates, keeps climbing. Through May 31, the current total sales tax rate for 2021 is 10.14 percent, a 10-year high.

Since 2019, no states have changed their sales tax rates. Thus the average state sales tax value remains at 5.63 %. Most States were able to withstand the worldwide pandemic's economic and financial problems. However, a few states whose revenues are primarily on taxes collected by energy, transportation, tourist industry, and other hard-hit industries are experiencing serious budget deficits that must be handled.

Indirect tax teams should also keep an eye on continuing post-Wayfair sales tax revisions and related auditing operations. To cope with current sale tax collection and remittance requirements on their transactions, we've witnessed international in-bound merchants adopt sales tax technology solutions and/or start to sell via marketplaces.

Marketplaces and online merchants in Europe have a rather short time to prepare for upcoming VAT e-commerce legislation, which is due to take action on July 1, 2021, in the European Union (EU).

cloud based tax solutions are on rise

We're also keeping an eye on a rise in awareness in cloud-based tax technology, particularly among small and medium business markets that are becoming subject to sales taxes for the first time.

These cloud based tax solutions are appealing because of:

Ease of deployment
Minimal initial capital investment

The software vendors in the market constantly update the software to reflect the most up-to-date sales tax regulations and rates.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How Can You Motivate Your Team During The Busy Tax Season?

Wed, 19 May 2021 00:51:34 GMT

It is tax season already. The beginning of a tax season means that it’s showtime for the Certified Public Accountants , and the show must continue. You are the star of this show, and your script keeps changing, which makes it hard to keep yourself up-to-date and focused.

5 Best Ways To Motivate Your Team During Tax Season

How to motivate your team during this busy tax season ? There are many activities and steps that can motivate your team. Here are the five best ways that are crucial for success:

1. Communicate clearly with your team

Problems arise within a firm, which often could be traced back to someone’s miscommunication. Since most of your team is working from home, you need to go the extra mile to ensure your employees know what management is thinking and planning.

Firm leaders must over-communicate as most people are now managing a remote workforce. Keep in mind that communication always goes both ways. Leaders should also be good listeners. Your team’s creativity might surprise you if you seek ideas from them.

2. Set clear expectations for your team

When a person joins a firm, they want to know how the work gets done in a firm. The person wants to learn things quickly and become a valuable asset to the firm. Team members want to determine their career path and what partners expect from them in order for them to advance to senior leadership positions.

Make an effort to be a cohesive firm so that everyone can do client engagements the firm’s way. Set clear expectations for your team by communicating budgets for client engagements . It could be done through the firm’s scheduling system in larger accounting firms . Make sure you clarify working hours for your team.

3. Recognize good work by providing rewards

The annual performance feedback session is discontinued in most progressive firms. Employees now want continuous feedback, but it needs a lot more coaching, training, and mentoring from the leaders. If your team is doing a great job, don’t hesitate to ask them to stretch if necessary.

Ask some high-performing senior even before they are ready to stretch and fill in for the tax manager if you lose a manager. Partners and managers should assign challenging tasks to the team as team members learn when they get difficult assignments. Leaders should recognize good work by rewarding their hardworking employees with bonuses.

4. Create boundaries between work and life

Most firms report that their employees are now working longer hours since they started working from home. When you do your work at home, it can be difficult for you to separate the two. Discuss these things with your team and help them separate work life from personal life. Employees should designate work areas at their homes to create boundaries between work and life .

5. Demonstrate a collaborative culture

Employees will feel engaged when they are a part of a team. Working from home makes some employees feel alone and invisible. Use breakout sessions during the online meetings. In smaller groups, people feel more confident and safer about speaking up.

Take the culture virtual with a full-featured and powerful intranet. It keeps employees on the same page by providing them access to critical firm tools and information. It’s the place to reinforce the firm’s purpose and core values. Employees can use the intranet to:

Find answers
Learn new skills
Share achievements with others

Final Thoughts

It can be relatively easy to motivate your team during this busy tax season if you put in a little bit of effort. If you follow these five tips, you can be sure to have a smooth tax season that will be over before you and your employees know it.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How Can You Navigate The 2021 Tax Season?

Fri, 30 Apr 2021 14:24:28 GMT

Each tax season is unique. There are some new tax rules or technologies to navigate every year. But, 2020 is likely to be in the record books because of its changes in:

Loans
Rules
Tax deadlines
Stimulus payments

As if these challenges were not enough, companies were navigating it with a record number of the employees who work from home.

Some Expected Trends Of The 2021 Tax Season

Here are some of the expected trends of the 2021 tax season:

1. The tax changes will make for an intriguing filing season

The tax reform changed the U.S. income tax code a few years ago, affecting companies and individuals virtually and complicating the filing season as professionals and taxpayers adjusted to the new tax rules and rates.

The 2021 tax season is expected to be similar. Pandemic relief legislation passed in 2020 will significantly affect income and payroll tax filings for companies in the 2021 tax year. Employers will have to navigate:

New retention credits
Delays in the payment of Social Security taxes
Forgiveness on the Paycheck Protection Programs (PPP) loans

Staying on top of the changes and preparing for their impact on the 2020 tax filings is necessary. Many employees are working virtually, and they can be residents of a different state than their employers, which could affect the company's withholding, state income taxes, and unemployment insurance.

2. Technology adoption will continue accelerating

Some finance departments and accounting firms have resisted shifting their critical data and systems to the cloud for years. Among those on the cloud, only a few pushed the adoption of cloud-based systems onto their customers and suppliers. It is now changing because of the COVID-19 pandemic.

In the last tax season, several companies had to send employees into offices to open mail or create lanes in their lobbies so customers can enter and exit when dropping off or picking up documents. In a crisis, companies have to do whatever it takes to get their work done. As the pandemic continues, more companies would implement technologies that allow customers to securely share information digitally.

3. Flexible working and remote working will continue

The COVID-19 pandemic forced companies to switch to remote working overnight virtually. Though the migration went quite well, it will likely take longer than most companies predicted initially.

Following a survey by Willis Towers Watson, employers expect 19% of their employees to continue working virtually full-time post-COVID. It is about half the percentage of employees working virtually in July 2020 (44%), but almost three times 2019's percentage (7%).

Companies have developed the tools and technologies to make remote working successful structurally. But, several companies still have to adapt leadership styles to this new way of working from home. Employers should also focus on employees' wellbeing as the employees continue to face:

Stress
Burnout
Blurred boundaries between work and home
Balancing work with childcare and homeschooling

Conclusion

You can learn many lessons from 2020, but companies would continue to examine what their employees and customers need and then plan for the future. By keeping these three essential perspectives in mind, you can figure out how to navigate the 2021 tax season as efficiently and smoothly as possible.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Tax Deadline 2021: Is The Extended IRS Tax Deadline Enough?

Tue, 30 Mar 2021 18:13:45 GMT

With the pressure almost at the start of tax filing season, the IRS finally agreed to extend the deadline for filing 2020 returns. Some tax community members believe that the IRS has not gone far enough in the tax deadline extension. But most taxpayers would enjoy the extra time. Taxpayers do not have to lift a finger as the extension applies automatically.

What Is The Extended Tax Deadline?

The initial deadline for filing 2020 federal income tax returns was Thursday, April 15. However, on March 17, the IRS announced that it extended the tax deadline for one month until May 15. Since May 15 falls on a Saturday, the actual filing deadline is Monday, May 17. If the taxpayers meet May 17 tax deadline, they will not be charged:

Penalty
Interest
Additional tax

As a bonus for taxpayers, the extension applies to payment of federal income tax liability. Some taxpayers are given even more time to file their 2020 returns. IRS set a deadline of June 15 for:

Residents of Texas
People living in FENMA-designated disaster areas

Why Did The IRS Extend The Tax Deadline?

The main reason for the extension is the COVID-19 pandemic. It is the second year in a row that the IRS extended the tax deadline. In 2020, taxpayers had additional three months to:

file their 2019 returns
pay any resulting taxes

C OVID-19 pandemic continues to be a difficult time for most people. The IRS wants to do everything possible to help taxpayers navigate the unusual circumstances of the pandemic.

The Main Problems In The Extended Tax Deadline

The new extension is not all-encompassing as it does not apply to:

Partnerships
Corporations
Non-profit organizations

Taxpayers also do not get any reprieve from the estimated tax liability. Taxpayers can get an automatic filing extension until October 15 by filing Form 4868 by the new deadline. The first quarterly estimated tax installment for 2021 remains due on April 15.

The IRS would provide guidance on these and other related issues shortly. The IRS extension only applies on the federal level. However, most states are expected to follow the IRS's lead. Although AICPA applauded the IRS change, it also:

pointed out that the practitioners still must calculate their payments by April 15
expressed disappointment that the extension did not cover estimated tax requirements

T he automatic extension will not go past October 15, and this extension only applies to filing returns. It is not yet clear whether the extension would allow taxpayers to make IRA contributions for 2020 after April 15. Practitioners and taxpayers might have to contend with April 15 deadline for state income taxes unless the individual state changes it.

The Takeaway

We appreciate the IRS's recognition that a filing deadline extension is essential. But, the announcement is far too selective about who is getting relief. Taxpayers who will benefit from this extension are those who can meet the original tax deadline. The AICPA has proposed that the IRS further extend the deadline for filing returns and paying taxes to June 15.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Hidden Gems in the Consolidated Appropriations Act of 2021

Fri, 26 Mar 2021 11:25:53 GMT

On December 27, 2020, the President signed into law the Consolidated Appropriations Act (CAA), a 5,593-page combination of coronavirus (COVID-19) relief along with many other provisions that tax preparers will be keenly interested in.

The new law includes several headline provisions—the $600 per person stimulus payment, expansion of the Paycheck Protection Program (PPP) loans, and extended unemployment benefits—that have been well covered in the general press. But beyond these are many extenders, some esoteric provisions, and a few hidden gems amongst everything else.

The extender provisions include five-year extensions for the Work Opportunity, New Markets, and Empowerment Zone credits, as well the ability of employees to exclude up to $5,250 of student loans paid by the employer. The esoteric provisions include tax reductions for wine, liquor, spirits, and beer. And the final “everything else” category includes the following buried treasures.

Employee Retention Credit

The Employee Retention Credit was often forgotten in the original Coronavirus Aid, Relief, and Economic Security (CARES) Act. With the changes in the CAA, employers can receive a bigger payroll tax credit for keeping employees on the payroll.

This is now a 70% credit on up to $10,000 of qualified wages per employee, per quarter, through June 30, 2021. Thus, qualified employers can claim up to $14,000 credit per employee in 2021.

The Employee Retention Credit applies to employers with up to 500 employees. Note that this is a refundable rpayroll tax credit offsetting the employer’s portion of payroll taxes; if these credits exceed payroll taxes, employers can receive a refund.

To qualify, an employer’s gross receipts for the first two 2021 calendar quarters must be at least 20% less than the corresponding 2019 quarter. Alternatively, employers can elect to use the prior quarter’s gross receipts to qualify.

There are various complexities and unanswered questions about how the Employee Retention Credit will impact other wage-based credits in the tax law. Preparers should be alert for further guidance from the IRS and Treasury; a thorough analysis needs to be conducted with each taxpayer’s facts and circumstances before deciding how to best utilize all available credits.

PPP Loans and Expense Deduction

The new law clarifies that business expenses paid with forgiven PPP loans are tax deductible.

IRC Section 179D Made Permanent

The IRC section 179D deduction has been made permanent, representing a significant opportunity for architects, engineers, and contractors. This deduction (up to $1.80 per square foot) applies if these professionals are encouraging the green, energy-efficient design of public buildings. This includes improvements to the building envelope, lighting, heating, cooling, ventilation, and hot water systems.

Although the architect, engineer, or contractor doesn’t own the public building, they could be allocated what resembles a free deduction from the government entity. Because it is calculated based on square footage, a large high school, elementary school, or public library could yield a sizable deduction to the architect, engineer, or contractor. This concept also applies to owners of commercial buildings. IRC section 179D encourages energy-efficient designs while reducing energy costs for all.

Meal Deduction

The 100% deduction for business food and beverage has returned for 2021 and 2022. This includes carry-out and delivery meals.

Charitable Contributions

The law increases the non-itemized, above-the-line deduction for cash charitable contributions to $300 ($600 for married taxpayers filing jointly).

Relief for FSA

Historically, the “use it or lose it” rule has required employees to spend money in their flexible spending account (FSA) for health or dependent care by year end. The old rules did allow a carryover of unused funds of $560 to 2021.

When daycare providers shuttered last year due to COVID-19–mandated closures, many taxpayers frantically wondered if the money set aside in their dependent care FSAs would be lost. A hidden gem in the CAA eliminates the healthcare and dependent care carryover limit. Employees may now carry over any unused amount from either the 2020 or 2021 plan year to the next year.

The Takeaway

Buried within the 5,593 pages of the CAA are many other provisions that will need to be discovered, understood, and put to use. Tax professionals need to be prepared to read and find more hidden gems that could help their clients.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Protect Your Clients From An IRS Audit

Fri, 19 Feb 2021 20:22:12 GMT

IRS audit is a term that strikes fear into the hearts of business clients, especially when they are targeted by millionaires, pass-through entities, and Schedule C filers. While most clients might never undergo an IRS audit, professionals should put their clients' minds at ease, hope for the best, and prepare for the worst.

What Is an IRS Audit?

An IRS audit examines an individual's or organization's accounts and financial information to verify if the reported amount of tax is correct while ensuring that the information is being reported correctly according to the tax laws.

Informational Resources for Audit Guidance

Here are three useful informational resources for audit guidance:

Tax Code
In a case with IRS, rely on the tax code as the best authority. The practitioner can win the case by listing a statute as a back-up that accurately reflects the situation. However, if the case is in direct conflict with the tax code, try to avoid the dispute and settle for the lowest amount possible. Note that sometimes tax code verbiage is too common to fully support tax strategies and may require additional types of back-up authority.
IRS Documentation
The IRS publishes instructions, forms, and other publications that are easily comprehendible. The guides are easy to read for clients, helpful in understanding important information, and not too technical. Since the documents are not substantial authority, the CPAs may need something more to advance a debate with the IRS. It might be a good starting point, as the IRS will likely follow its documentation.
Treasury Regulations
Following Congress's passing of a new statute, the U.S. Treasury Department will issue a temporary regulation valid for three years. Although statutes and regulations have the same authority, a law will prevail when the two conflict. The temporary and final regulations have more power than the proposed regulations. Professionals can rely on the proposed regulations as a statement of the IRS's official position on the case. They can try to persuade the IRS, but not the courts.

Official Pronouncements

The Internal Revenue Bulletin publishes official IRS pronouncements. They are called "the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures."

They are technical and difficult to understand. So, consulting other resources to comprehend may be helpful. The four types of publications are:

Revenue Ruling: A summary of a case transcription explains how the IRS applied the tax law in a particular situation.
Revenue Procedure: Using specific revenue procedures to administer the law by explaining the processes for holding elections or filing forms and updating dollar amounts for inflation.
Notices & Announcements: Information issued by the IRS about their official position on current issues.
Approval & Disapproval by IRS: A statement published by the IRS implying its agreement or disagreement with a tax ruling.

Protect Clients and Avoid Audits

Here are a few things to protect the clients from being audited:

Claim Earned Income Credit (EIC) for the clients.
Keep expenditures consistent, especially for the self-employed and gig workers.
Only list when receipts and paperwork are available for back-up.
Support charitable contributions over $ 250 with receipts.
Make sure to report all income, including stocks, trades, cryptocurrency transactions, 1099s, 1099-INTs, and W-2s.
Note that the IRS will notice if a client's business reports a loss for several years in a row with no other income sources.
Pay attention to the client's marital status. If they are divorced and both are filing for alimony with different numbers, they might hear from the IRS.

The Takeaway

Once the IRS audit results are in, it is important to keep the client calm and help them understand the next steps. In most cases, the client will owe IRS taxes and additional interest. They can often create a payment plan. If the client wants to object to the results, they can do so through the Alternative Dispute Resolution (ADR) escalation process. However, if the case goes to court, the best tax authority resources are regulations, statutes, and previous court cases.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Teach Your Clients the Ways to Send Digital Information

Sat, 30 Jan 2021 18:59:26 GMT

It has become essential for your business and brand to be digital. The digital world is a perfect place to increase your following and build your brand’s reputation. Though social media and online platforms aren’t the only way to build relationships with customers, they can be effective. Digital marketing, if done perfectly, can create lasting and meaningful connections with customers. Companies can offer a robust digital experience to enhance their customer satisfaction that will ultimately build their brand loyalty. Consequently, when digital media sales come out, the customers are more likely to select your brand. It is significant to modify your strategies according to their expectations.

While transitioning your business to a digital firm, you’ll need to capture information in digital format rather than physical document. In this paperless environment, there is no other option than to obtain information digitally. The clients need to provide their information in digital format through email, digital fax, or through a portal. Since now, email has been the most frequent tool for most clients. They are comfortable with attaching spreadsheets and files to emails and sending them to firms. But some security concerns will insist users on the transition towards portals. The industry portals have now become more secure and reliable platforms for sending information. In this method, users can easily access and save files into the firm’s file storage applications.

AAA 2013 Survey shows that “82% of industries request clients to prepare audit documents and deliver them in a digital format.” While clients have no issue sending information to the firm via email, the information is sometimes confidential. Taking such privacy and confidentiality concerns in mind, firms need to create portals for users. The clients should log in to these firm-controlled portals via email passwords or email encryption. According to the 2020 CPAFMA IT Survey, “Applications that encrypt emails such as Citrix ShareFile and paperless SafeSend are a better solution.” A secured connection with the client may be costly, but you can be sure of efficiency and security.

While firm portals are a preferred delivery solution, some clients may bring information in documents or USB flash drives. The reasons can be inadequate internet access or others. Firms should make concrete efforts to stop clients from using thumb drives as they could bring malware to the firm’s network. While receiving physical media, firms should have a procedure to scan the files before loading them thoroughly. After loading files, firms should return media to the clients immediately. The best solution for avoiding any risks or security concerns is to teach your clients how to deliver digitally. Some firms have documented it on their website, while many arrange seminars to provide training.

The Takeaway

While transitioning the business to a digital firm, companies need to receive digital information. Currently, many clients use email as a business tool for communicating digital information. But sending confidential information via email can be of great risk. Most of the firms have created their online portals to receive or convey information. It has become necessary for firms to teach clients to send information digitally through training sessions.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

11 Steps for Handling Client Complaints

Tue, 29 Dec 2020 21:24:18 GMT

At some point, your business is likely to receive a complaint from customers. A positive and constructive approach helps to retain your customers.

The key to handling customer complaints professionally and appropriately is not to be overly defensive. Often, adopting a defensive attitude intensify the situation. Managing customer complaints and resolving them quickly leads to improved business processes and reprise business!

Complaints Handling Policy

Develop a policy for handling complaints. It should include assuring clients that you value their feedback and are committed to solving their issues in a fair, timely and reasonable manner.

The policy should also:

Explain how customers can file a formal complaint.
Identify the steps you will take to discuss, handle, and resolve complaints.
Particularize some of the solutions you offer to resolve objections.
Inform customers of your commitment to continuous improvement.

Here Are 11 Steps Employees Can Take When Handling Complaints To Keep Their Customers Happy And Satisfied!

Your procedure may include the following steps.

Stay Calm: When a customer complains to you, keep in mind that the problem is not personal. Clients are not attacking you directly, but the current situation. There is no point in 'winning' the confrontation.
Listen Carefully: Let the angry customers blow off steam. Do not interrupt. When the clients see you not reacting, they begin to calm down. The clients' needs to be in a calm mood before they can hear your solution - or whatever you say about that issue.
Acknowledge the Problem: Let the customers know you hear what they are saying. If you or your company are at the mistake, acknowledge it. If you didn't make a mistake and there is a misunderstanding, explain it to the customer:
Record The Details of The Complaint: Once you have heard the matter, take the initiative in the conversation. Review the complaint in detail so that you can understand the issue correctly. Keep track of all complaints at a central place or register. That way, you can spot trends or issues.
Get All The Facts: Make sure you have correctly understood and recorded the details of the complaint. Ask questions if necessary.
Discuss Options For Solving The Problem: Ask the customers what answer they are looking for. It could be a repair, exchange, refund, or excuse. Determine if the request is appropriate.
Act Quickly: Try to resolve the matter quickly. If it takes a long time, customers get angrier, making it difficult for you to handle the situation.
Consider Giving The Customer More Than They Want: Remember their investment of time and emotion. Consider the customer's lifetime value to the business.
Fulfill Your Promises: Keep the customer informed if there is a delay in resolving their matter. Do not make promises on things that you cannot deliver.
Compliment The Client: Always thank the customer for bringing up the issue and let them know that management is reviewing the matter.
Follow-Up: Check with the customer to see if they are happy with the way their complaint was handled. Also, inform them what you are doing to avoid any trouble in the future.

The Takeaway

Ensure that your employees are trained to follow your complaint handling process and resolve problems as quickly as possible.

Encourage your customers to provide complaints and feedback so that they can notify you of a problem and allow you to fix it.

After successfully resolving customer complaints, you will better understand their needs, keep them as loyal customers, and promote your business!

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Five Ways for Work Balance During Tax Season

Wed, 25 Nov 2020 18:56:45 GMT

Tax season is associated with long hours and exhausting days for most accounting professionals. It's time for the willing to alter the fact! Here are five ways to see sunlight at the end of the tunnel during the 2021 Tax Season.

Use Technology to keep your Mind Sharp

If you think the corner stone of your tax season life is data entry, manual address changes, or switching in and out of databases, then you're probably right. For some that might sound overwhelming, but the good news is that it ought to be a thing of the past. In recent years, not only has tax software gotten more affordable, but it has also gotten much more effective. Moving data with one click from one return to another is what awaits with one easy implementation of the program.

Feel Easy to Work From Home

Make working from home as productive as from the office to build a seamless auto-scanning and paperless system by integrating the following technology upgrades. And it's just as secure because of a robust VPN system! The only real difference is, today, what pair of short shorts are you going to wear?

Have a Stroll

It is impossible to feel good in the second half of the day as the first. But arranging the time to take a stroll, even if it's just 15 or 20 minutes long can help you to gain good amount of energy. This helps to get your blood flowing and increases your stamina so that you can finish the day high. Staying still would certainly make the days tougher and make the tax season feel longer.

Eat Three Times a Day

Eating three meals a day and providing a protein at each meal is advised by Rosalie Moscoe, Certified Nutritional Counselor Practitioner, stress reliever, and nutrition specialist. She recommends keeping snacks on hand to give you an energy boost when you need them, such as yoghurt, fruit, raw walnuts, pecans or almonds." Having time to eat ensures that your energy won't be drained!.

Should Plan for a picnic after Tax season

During the day and night tax season work the people want to relax for some time to stabilize their health and move to a picnic point to lessen the stress of the work, burden and relax. Without rest, we cannot make work efficiently, and we need rest to relax for some time in the busy tax season.

The Takeaway

Use Tax software to become more productive, these programs makes Moving data from one end to another with just one click and that gives easiness to work. Going for walk even for ten minutes can give boosted energy to complete the day. Having healthy meal and using snacks when needed can help to do work. Having a plan to go out after tax season can keep you motivated till the end.

You can use these five ways to keep you on track for your tax season.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Which Receipts should I Keep for Tax Time?

Tue, 20 Oct 2020 20:07:34 GMT

During tax time, collecting thrown Receipts from drawers or mailboxes is quite frustrating. This problem occurs very often because many people don't know which receipt is to keep for tax time.

Which receipts to keep for tax time?

IRS calls "documentary evidence" for all the expenses you intend to use for Tax credit or deduction. It means you need to keep all those expense receipts.

Include for All of the following receipts:

Receipts for charitable contributions
Health bills including insurance, copayments, medical expenses without reimbursement, examinations, testing, and hospital stay can include an eye doctor, dentist, physiotherapist, dermatologist, podiatrist, psychiatrist, therapist, and several other medical practitioners.
Any medical appointments or treatments traveling and transportation receipts
Bills of Weight-loss program
Bills of the Smoking cessation program
Receipts of Prescription
Receipts of Sales tax
Mileage logs
Receipts of Gas
Student loan bills
Tuition bills
Rent receipts
Childcare bills
Office expense receipts (supplies, marketing, materials)
Self-employment insurance receipts
And All Utility bills.

Don't bother to keep receipts for expenses with less than $75 amount instead of lodging receipts. You have to keep lodging receipts.

What should be on a receipt?

The amount, date, place, and nature of the expense must be on a receipt. You can use canceled checks or credit card bills against receipts as long as they provide the same type of business expense evidence.

After filing, you should keep receipts for at least three years. IRS can audit during this time. In case you have underreported your income or fraudulent returns, IRS can come after you for up to six years, so keep your receipts for at least six years, in some severe cases forever. You should keep Employment Tax records for at least four years.

Besides, you should have tax documents like 1099s and W-2s with receipts. Bank statements and invoices should be with you as a payroll record or evidence of income if you don't have online banking.

The Easiest way to keep receipts is by scanning them and holding in digital form. It would be much easier for you to organize them too.

It would help if you made sure that the digital form is clear enough to read all information, and the hard copy backup is always there.

Most of the receipts and business-related documents should be saved and stored in an easily accessible format and make sense. When in doubt about what to keep, you can always ask a CPA for advice.

The Takeaway

Collecting unorganized receipts is so frustrating during tax time because many don't know which receipts should they keep and throw. According to IRS, you should keep all receipts of expenses for Tax credit or deduction.

Digitizing by scanning all receipts for easy organizing and finding them on your computer when it's tax time is one of our recommendations. Also k eep all receipts for a minimum of three years a fter filing Tax returns.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

How can CPA help me?

Wed, 16 Sep 2020 19:52:08 GMT

CPA helps you do simple math to draft complete financial statements, keep correct records, bookkeeping, financial planning, and prepare financial documents like tax returns and profit-and-loss statements. They minimize your burden throughout the year. CPA reduces financial risks and secure companies from IRS penalties.

Difference between CPA and an Accountant

Not all accountants are CPAs. A Certified Public Accountant (CPA) is an accountant who also meets the educational and experience requirements of the state they live in and has passed that state's Uniform CPA Exam.

Roles CPA can perform in Your Company.

Your running business needs a CPA for the following significant tasks:

Tax Advice and Planning
Audit and Assurance Services
Management and Consulting
Forensic Accounting

Tax Advice and Planning

Taxes are an unavoidable fact of both small and big businesses. And filing your taxes is a complicated process. Therefore, hiring a tax professional to manage your accounting and tax planning is helpful. A CPA helps companies to avoid any taxation delays or frauds.

Engaging a certified public accountant (CPA) with auditing - a trained person who knows about all the latest tax laws – lessens your chances to suffer loss and fines.

Audit and Assurance Services

When it comes to auditing data and taxes - the devil is in details. CPA audits your financial accounts, analyzes various accounting reports, such as your budget, overdue accounts, and tax reports, to make sure you are following the latest laws and accounting methods to run your business. The professional management and evaluation secure your business from risks and IRS penalties.

A better-equipped expert position on the existing financial conditions will assure you to make more reliable decisions.

Management and Consulting

CPA manages and maintains your company's day-to-day financial operations and implements long-term strategic planning. It includes budgeting, managing funds, fiscal planning, and providing financial statements for stockholders, mitigating risk, offering insurance, providing investment advice, and helping with estate planning.

Forensic Accounting

Forensic accounting is investigative accounting or detecting fraud. Your CPA will run through the records and detect any evidence of criminal offenses like theft or tax avoidance. They tell you the nature of financial crime using investigative techniques.

In case of missing funds or you think a business partner is stealing, a CPA will serve you sort all this out.

How else can CPA help you?

Administrating payrolls: A CPA will make sure your employees are paid on time and that all payroll taxes, insurance, and retirement withholdings are deducted correctly. They help you keep track of any expense reimbursements or profit-sharing disbursements.
Bookkeeping: Your CPA will make sure to pay bills, and all overdue customers’ payments are paid on time.
Tax filing: They timely and accurately file taxes to secure you from delay payment penalties.
Financial Advice: While a CPA cannot perform business decisions for you, but can give good advice and help you make the right decisions.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Temporary Relief for Retirement Plan Participants

Sat, 29 Aug 2020 18:10:59 GMT

The pandemic COVID-19 affected human activities worldwide. Countries ordered lockdown to prevent the expansion of the deadly virus. The social distancing measure of stay-home practices create difficulties for the participants and beneficiaries. To witness the physical presence required to qualify the retirement plan and participate in the election. In response to the COVID-19 pandemic, the International Revenue Service (IRS) issued a temporary relief notice on June 3, 2020. The 2020-24 temporary relief allows the retirement plan participants to provide a digital signature instead of a physical presence required for the participant’s witness. The temporary relief is applied for a while from January 1, 2020, through December 31, 2020. There are two conditions in the temporary relief that are

The applicant must provide a witness by a notary public from the state that permits remote notarization.
They are perceived by a plan representative employing particular protections.

There are a few requirements and conditions for the applicants of the retirement plan.

Conditions and Requirements for Retirement Plan Participants

According to the temporary relief for retirement plan participants, few conditions needs to fulfill. These conditions are listed below.

The representative must have an electronic system based on audio-visual (AV) technology to make the participant’s election.
The electronic system must be designed to prevent access to irrelevant persons.
The electronic system must facilitate the individual making the election to evaluate, verify, change, or cancel the terms of the election before it turns out to be successful.
The representative making the election for participant must receive a confirmation of election within a reasonable period through a signed document or any electronic medium that satisfy the requirements of temporary relief regulations.

There are two cases in the temporary relief issued by the IRS. In the first case, the witness deemed satisfied for remote notarization if it is executed using AV technology. This technology must satisfy the 2020-24 requirements and consistent with the requirements of state laws that can vary for different states. The second case is about the witness provided by a plan representative. This witness is deemed satisfied if the live AV conference satisfies the following requirements.

During the live AV conference, the plan representative that is signing the election for the retirement plan participant must provide a valid photo ID. It is not acceptable if the ID is provided before or after the live conference.
There must be a direct interaction between the plan representative and the individual making the election.
A legible document signed by the election making individual must be sent electronically or using any other way to the plan representative on the same day it is signed.
The plan representative must acknowledge that the signature has been witnesses according to the rules and transmit it back to the election making individual when he receives the legible document.

The Takeaway

This temporary relief offer by the IRS for the retirement plan participants can be considered a welcome relief to the administrations and participants. However, this relief notice is future is not known because it is unclear from IRS that whether IRS will make this change permanent or not. However, the plan administrators should continue the process under consideration of the IRS temporary offer. For more information, please contact Cartier CPAs by using the contact details given on the website.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Cash Flow Vs. Profit And Which Is More Important

Thu, 02 Jul 2020 21:53:26 GMT

If you are a business owner the terms cash flow and profit are common, though different and it is vitally important to have a solid grasp of both. Mistaking cash flow for profit, or vice versa could be a serious misstep. Businesses can be highly profitable while having a poor cash flow, while healthy cash flow is not always an indicator of profitability.

What is Cash Flow?

Cash flow is the cycle of funds going into and out of your business bank account from its operations, investing, and financing activities. It’s the amount of liquid cash that you have at your disposal at any given time. Your business can either be cash flow positive or cash flow negative.

Positive cash flow is the result when cash inflows are greater than your cash outflows, or when there is more cash coming into your account than you are spending. Examples of inflow include the sales of services and products provided or money coming in from accounts receivable.
Negative cash flow happens when your cash outflows are greater than your cash inflows. In essence, spending more than you are bringing in. Examples of outflow include payroll, taxes, rent, or inventory.

Cash flow is what allows you to pay your expenses on time, including suppliers, employees, rent, insurance, and other operational costs.

What Is Profit?

Profit, as opposed to cash flow, is the amount of money that remains from your sales revenue after costs have been subtracted. There are two main types of profit:

Gross Profit. The profit made by your company after costs that are directly associated with providing goods/services has been deducted.
Net profit. The profit made by your company after all other costs, including taxes and operating expenses (rent, payroll, etc.) has been deducted.

While raising profits is beneficial for your company’s bottom line, it’s important to remember that new sources of profitability, perhaps the development of a new product, may raise expenses, pushing costs beyond the breakeven point and causing your company to run low on money if operations are mismanaged.

Profit indicates that your business is making more money than it spends to stay in business.

Which Is More Important?

The reality is that both cash flow and profit are needed. It’s not a same-same comparison since profitability is more important over time, cash flow and the availability of working capital is what will affect your daily operations.

The Takeaway

It is quite easy to oversimplify success or failure in business by reducing it to commonplace terms that seem the same but have major differences. There is a misunderstanding among many business owners that profits and cash flow are the same things. Indeed, they are not. In order for a business to thrive, it must generate profits while also operating with positive cash flow. The two terms represent different financial parameters, but in order to succeed, it is important for a business to have a solid system to keep track of both.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Organizing And Document Filing Tips

Thu, 28 May 2020 20:20:02 GMT

If you’re like many people, it can be overwhelming at times with all the paper clutter that seems to accumulate and multiply. There are countless statements, receipts, and tax documents that all pile up and wait for you to get to them.

Needless to say, that is a lot of paperwork to keep track of and a very bad feeling when you need one of the documents and simply can't find them. Time to organize and take the stress out of your filing your personal documents!

Organizing And Document Filing Tips

Sort It As It Arrives . It's easy to bring in the mail and toss it aside or to sort through your computer documents and simply walk away from the computer. Instead, take a moment and sort it right then and there. Separate the important papers and recycle the rest. Find a system that allows you to place documents in order of what they are instead of one large pile. For instance, chose 4 bins and label them for A) Review B) To Pay C) To-Do D) To File.
Schedule A Weekly Time To Review And File . Take an hour each week to review your filing bin. If you make this a habit then it will take less and less time each week. Keep only the documents that are pertinent and discard the ones that are no longer valid. For example, when new insurance documents arrive, remove the one that is no longer valid. At this point take the documents and have clear and labeled sections in each filing compartment. Have folders for home, auto, bills, pets, insurance, and etc... Avoid the dreaded miscellaneous file if possible, as well as having too many folders that hold just one piece of paper.
Create An Emergency Binder . This is also called a bug out binder. It is never a bad idea to collect the documents that you might need in the event of an emergency, for example, a fire. These documents should include but aren't limited to, birth certificates, marriage licenses, social security cards, passports, titles, bank information, current insurance information, and wills.
Chose Fireproof Storage. No one ever wants to think of their lives going up in flames with fire but it is a good idea to chose to be safe when it comes to storing your documents. This should house all of your most important documents including your emergency binder.
Go Paperless. Organizing documents digitally will pose fewer space challenges, and your computer’s search tool can be your best friend helping you find exactly what you’re looking for. Follow the same guidelines for digital labels as for physical ones. Back up files onto an external hard drive or use a cloud storage service.

The Takeaway

Avoid drowning in a sea of paperwork and chose to take the time to become organized. When tax season is upon you and you are looking for the important documents that you need at your fingertips, you will realize how glad you are that you did!

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.New Paragraph

Possible Red Flags That May Trigger A Tax Audit

Tue, 12 May 2020 00:24:50 GMT

The last thing that anyone wants to receive is a dreaded notice that you are getting audited. It can be nerve-wracking, but at the end of the day, an audit is simply an in-depth fact-checking exercise. Although enduring an audit can be time-consuming and inconvenient, you shouldn’t have anything to fret about if you’ve been honest and accurate when keeping records and filing tax returns. While the IRS says that an audit is generally random it is worth the effort to avoid red flags.

Possible Red Flags That May Trigger A Tax Audit

Failure To Report . Failing to report any portion of your income is a possible way to invite an IRS audit. It can be enticing to omit information from your returns, but if you received a Form 1099, or W2 you can rest assured the IRS received a copy as well and knows about this income. Even if you don’t receive an official income form for work you did, you should still let the IRS know about it. You are required to report it and pay taxes on it If your income (after expenses) from a side job is at least $400.
Excessive Losses. Individuals who are self-employed and report too many losses on a Schedule C may easily attract the attention of the IRS, who may read this as an attempt to hide your income. This is particularly true if you report losses while your business appears otherwise stable. Don’t write off impractical items, and make the effort and be honest to avoid a red flag.
Simple Mistakes . It may truly be an honest mistake, but if something looks odd, such as an incorrect Social Security number or calculations that don't add up, you may bring on additional scrutiny from the IRS. Be careful and check your work twice when filing taxes. What was just an oversight can be a costly mistake.
The Use Of Round Numbers. While it’s within the realm of possibility to have your tax return is accurately filled with tidy, round numbers, these clean intervals will make the IRS do a double-take. Even numbers are rare in finance and may invite suspicion. It may seem easier to just round the numbers but being precise is worth the effort.
Charitable Donations. Even though the IRS believes in charity, they do have their limits. If you’re claiming too many charitable donations on your annual returns, especially in relation to your income, the IRS is sure to notice. Make sure you can validate your contributions, and see that your income-to-donation ratio looks reasonable.
Unusual Business Deductions. You are entitled to a number of tax deductions, as a business owner, that ordinary taxpayers aren’t. You can deduct things like office supplies, business travel expenses, and even certain meals. However, there are a host of other business expenses that are questionable when it comes to taking a deduction. For example, except under specific circumstances, you probably can’t deduct tickets to entertainment events, donations from which you personally benefit, commuting expenses, or all those generous cash tips you gave to hotel housekeeping during the year.

The Takeaway

An audit can be a strenuous process that creates stress, frustration, and potential losses. Always take your tax returns very seriously and be mindful of tracking your personal and business expenses and income throughout the year. When you do this, filing your returns will be more straightforward for both you and your CPA and you can be confident that the information on your returns is correct to the best of your knowledge.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

EFMLEA and EPSLA

Wed, 18 Mar 2020 18:15:53 GMT

Contained within the Act are two sections dealing with employee leave rights. Each has its own name, the Emergency Family Medical Leave Expansion Act (“EFMLEA”) and the Emergency Paid Sick Leave Act (“EPSLA”). Both of these laws would not become effective for 15 days after enactment providing employers some limited time to plan for compliance.

The first 14 days of EFMLEA leave is unpaid. Unless the employee elects to use their PTO.
However, employees may use earned any available paid time off but unlike the FMLA the employer cannot mandate the use of available paid time off if the employee elects not to use it.
After 14 days, employers must provide the employee paid leave for two (2) weeks
Sick leave = normal pay
Family leave = not less 2/3 of the regular rate for
After 28 days no paid leave is required.

Payroll Credit for Required Paid Sick Leave:

This section provides a refundable tax credit equal to 100 percent of (Employer’s Social Security Taxes Paid) qualified paid sick leave wages paid by an employer for each calendar quarter. The tax credit is allowed against the tax imposed by section 3111(a) (the employer portion of Social Security taxes). Qualified sick leave wages are wages required to be paid by the Emergency Paid Sick Leave Act. The section makes a distinction between qualified sick leave wages paid with respect to employees who must self-isolate, obtain a diagnosis, or comply with a self-isolation recommendation with respect to coronavirus.

For amounts paid to those employees, the amount of qualified sick leave wages taken into account for each employee is capped at $511 per day.
For amounts paid to employees caring for a family member or for a child whose school or place of care has been closed, the amount of qualified sick leave wages taken into account for each employee is capped at $200 per day.
The payroll credit is NOT a credit for the wages paid, only on the SS tax paid by the employer on the wages paid during the covered time period.

The aggregate number of days taken into account per employee may not exceed the excess of 10 over the aggregate number of days taken into account for all preceding calendar quarters.

10 General Accounting Terms You Need To Know

Thu, 30 Jan 2020 20:13:32 GMT

For many of us, accounting can be a confusing subject but it is also one of the tasks that every business owner has to deal with. Regardless of if you intend to do your own bookkeeping or hire professionals , it is important to become familiar with some of these basic accounting terms.

10 General Accounting Terms You Need To Know

General Ledger. This is the full and thorough recording of a company’s financial transactions over the life of the organization. This is where all business transactions are recorded such as sales, office expenses, credit purchases, and income losses. It is critical to be diligent in recording all transactions in the general ledger.
Assets. Assets are what is known as the wealth that has been accumulated by the business and is owned outright without lien or loan. Examples of assets include; cash, temporary investments, accounts receivable, inventory, long-term investments, land, buildings, tools, equipment, furniture, fixtures, vehicles, goodwill, and more.
Revenue. Revenue is what is known as the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover.
Loss. When a service or product sells for less than what it cost to supply or manufacture it, or when expenses have gone above revenues of a particular asset, it's called a loss.
Accounts Receivable. Accounts receivable is money owed to a company by its debtors as payment for goods or services. A company’s balance sheet will reflect accounts receivable as creditable as it is owed by customers or clients to the business after goods or services have been delivered and/or used.
Accounts Payable. This is the amount of money a company owes creditors or suppliers in return for goods and/or services they have delivered.
Gross Margin. The gross margin or profit is the overall number of sales that have been made, subtracted by the associated costs, such as manufacturing costs, wholesales costs, material, and supplies.
Capital. Capital is the financial asset or the value of a financial asset, such as cash or goods. While money is used to purchase goods and services for consumption, capital is more reliable and is used to generate wealth through investment.
Profit And Loss. A profit and loss statement is a financial statement that is used to summarize a company’s performance and financial position by reviewing revenues, costs, and expenses during a specific period of time, such as quarterly or annually.
Forecasting. Forecasting is the practice of using a company’s historical financial data to predict future business trends. Businesses generally use it to estimate budgets for a specific period, as well as using it to predict things like sales, gross profits, the value of an asset, or how long it will take to pay off long-term debt. Forecasts often include supply and demand figures, sales records, and expenses.

The Takeaway

Entering into the accounting field can be daunting initially with all of the new terminologies to learn. Take a few minutes to learn some of these terms to ensure you don't feel left out in conversations because you aren't sure what someone is talking about.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Preparing For An Accounting Interview

Tue, 26 Nov 2019 20:43:33 GMT

In general, people tend to make two devastating mistakes when being interviewed. The first is, failing to listen to the question. The second is attempting to answer questions with nearly no preparation. Practicing and preparing for your interview is a key component in the application process and can either make or break your chances for getting the job you want

It is best to aim to know your details by memory and practice refining your answers to the behavioral questions listed below. Make sure you prepare well ahead of time, so when the time comes for the interview, all you have to do is relax and show off all your experiences.

Preparing For An Accounting Interview

Why do you want to change jobs? This is one of the very first questions interviewers ask. Be ready for it! Answer honestly and explain whether you are currently in a dead-end position or locked out of advancement opportunities. The interviewer will understand if your job has become routine, and void of learning experiences, or if you feel your present employer is losing ground to competition through no fault of yours. Choose your words carefully; instead of saying that you hate your boss, choose to rephrase it as “unfortunately, the culture of our department has changed.”
Describe a time when you helped to reduce costs at a previous accounting job . Accountants should generally be able to reduce costs and this is a major part of why employers hire them. Describe a time when you reduced costs unexpectedly through your personal innovation or diligence. Know the financial details of your success available in case your interviewer asks you to elaborate.
Be able to outline and explain the three financial statements . 1) The balance sheet highlights a company’s assets, liabilities, and shareholders’ equity 2) The income statement outlines the company’s revenues and expenses 3) The cash flow statement outlines the cash flows from operating, investing, and financing activities.
Provide an outline of an accounting report that you have prepared in the past. Demonstrate your experience in ensuring the upkeep of different accounting principles, practices, and procedures to assure accurate and high-quality financial statements and reporting.
Describe a time when you’ve made an accounting error and how you handled it. Feature a situation where this occurred at your previous firm, regardless of it was a small or large error, and include the lessons learned and how you took responsibility to resolve the problem.
Describe which accounting applications you are familiar with. There are numerous applications out there but Interviewers are looking to see that you're aware of more than one application and have knowledge of the tools of the profession. As well as discussing your preferences you could also talk about recent developments in relevant software.

The Takeaway

Landing an interview is only half the battle, now you really want to set yourself apart from the other accountants, auditors or finance specialists applying for the job. Some questions you'll get when you're interviewing as an accountant, therefore, are industry-specific. But others are common in any accounting interview, regardless of industry. Actively preparing for your interview, including practicing answers to common accounting interview questions, will help you make a great first impression.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Benefits Of Providing Paid Leave To Employees

Thu, 26 Sep 2019 19:28:51 GMT

The Tax Cuts and Jobs Act contains a hidden gem that is in the form of a tax credit for your employer if your employer pays you while you’re out on family or medical leave. If you are fortunate, you might be able to persuade your employer to take advantage of the credit. Here are a few things both employers and employees should know about the new credit.

What Is Regarded As The Credit Of Paid Medical Family Leave Tax?

The credit is a general corporate duty credit open to organizations that furnish staff with paid family therapeutic leave.

Have a composed arrangement portraying the upsides of family leave to get the duty credit.
The arrangement will incorporate in any event two weeks of paid family therapeutic leave every year for full-time "qualified staff" (ace qualified for low maintenance staff).
The installment amount will be at any rate half of the pay rates normally paid to the laborer.
Other arrangement limitations and imperatives include:
As an excursion, individual, therapeutic or wiped out leave, two weeks of paid leave under this arrangement cannot be given.
For this assessment credit, your business can not utilize your present result (PTO) techniques.

What Is The Benefit Of A Family Leave?

For the motivations behind this credit, "family and therapeutic leave" will be left for at least one of the accompanying reasons:

Birth of the child of a laborer and care of the infant.
Placement of a child with a specialist for appropriation or childcare.
An extreme condition of wellbeing that keeps the laborer from playing out the obligations of their job.
Any passing event is attributable to the dynamic obligation or obligation of a worker's better half, child or parent in the Armed Forces.
To think about an individual from the administration who is the partner, child, parent or neighbor of the worker.

Who Is A Qualifying Employee?

A passing specialist is a worker who has been working for at least one years. Moreover, the earlier year's representative pay cannot surpass a specific amount. This total is $72,000 for 2018, contingent upon pay rates for 2017.

In this way, in the event that you have a full-time representative who has been utilized for at any rate one year, paid under $72,000 in 2017, and you paid at any rate half of the worker's ordinary compensation for at any rate two weeks of family leave, you get an assessment credit.

How Much Is The Value Of Tax Credit?

The IRS expresses that while on family and restorative leave, the assessment credit amount is an extent of the number of pay rates paid to a passing laborer. The assessment credit is payable in an expensive year for as long as 12 weeks of paid get-away advantages. The least extent is 12.5 percent, and for every rate point the amount paid to a passing specialist surpasses 50 percent of the representative's compensations, with a limit of 25 percent, is expanded by 0.25 percent. Extra limitations may apply in certain occurrences.

The Takeaway

The new family and medical leave credit does have pros and cons, for both employers and employees. On one hand, an employer who already has or will soon have a paid leave policy in place could see tax benefits thanks to the new credit. And employers who were considering offering paid leave might see the new credit as an added incentive to offer their employees this valuable benefit.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

5 Tax Tips When Selling Your Home

Sat, 14 Sep 2019 19:29:51 GMT

If you own a house then it is important to know how selling your home might impact your taxes. You need to consider this before making your decision to sell your home. Following are some tips which will help you in selling your home and filling your taxes.

5 Tax Tips When Selling Your Home

You may qualify for a reduced exclusion . The total profit might not be subjected to exclusion but some portion of it may be still tax-free. For instance, if you only lived in the house for one year before you decided to sell it then you won't pass the residency test stating that you need to stay in the house for 2 out of 5 years. A reduced exclusion will be available if you sold your house for one of the following reasons, a change of health, A change of employment, A divorce or multiple babies from a single pregnancy.
Not all home sales need to be reported on your tax return . You can sign an affidavit when you sell your home, stating that you haven't received any taxable gain from this sale. This will allow the closing agent to avoid sending the Form 1099-S and proceeds from your Real Estate Transactions to the IRS. This will, in turn, allow you to not report the sale of your house on your tax return.
If you live in two homes, only one is eligible to exclude from your income . The gain from the sale of only your main house can be excluded. This implies the home you live in the most during the year. Your main house is where you receive your mail, the same home address is listed on your billing companies and your identification. This address is also the one which is used for banking and becoming a member of religious organizations or other clubs.
If you didn’t live at the home, you may have to pay tax on your gain. If your house value has appreciated when you weren’t living in it then part of the gain may be subjected to taxes. For instance, if the property was used as a rental house then you can’t exclude any gain from your taxable income starting at the time when you rented it. For determining the amount of gain which can’t be excluded, you need to assume that the property has evenly appreciated while it was under your ownership.
You can choose not to exclude the gain from a sale. If within two years you are expecting to sell another primary home then you may want to consider claiming the gain on the sale of your current home rather than excluding it. Exclusion on the sale of your main home can only be claimed by you once every two years. It may be better to claim the current gain as income depending on the circumstances of your sale. You can then use exclusion when you sell your main home in the future.

The Takeaway

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Home Office Deductions

Tue, 10 Sep 2019 15:36:20 GMT

You may qualify for a home deduction if you are a small business owner. This will help you in saving money on your taxes and it will benefit your bottom line. Today, we will discuss how you can avail these tax deductions.

What qualifies as a business?

Whether your endeavors qualify as a business depends on your circumstances. the more substantial the activities, in terms of time and effort invested and income generated, the more likely your endeavors to qualify as a business.

Making money from your efforts is a prerequisite, but for purposes of this tax break, profit alone isn’t necessarily enough.
If you use your home solely to take care of your investment portfolio, you can't claim home office deductions because your activities as an investor don't qualify as a business.
Taxpayers who use a home office exclusively to actively manage several rental properties they own, though, may qualify for home office tax status—as property managers rather than investors.

Who is eligible for these deductions?

You can avail these deductions if you use a portion of your home exclusively and regularly for any of the following,

As the main place of your business.
As a place of business where you meet your clients, patients, customers. You must meet these people in the normal workflows of your business.
You must use this structure in connection with your business in case it is a separate structure which is not attached to your home.
If this is a place where you store samples or inventory then this place must be the sole, fixed location of your business.
Under certain circumstances, the structure where you may provide daycare services.

What are deductible expenses for business use of a home?

The deductible expenses for using a home for business purposes are,

Rent.
Casualty losses.
Real estate taxes.
Mortgage interest.
Depreciation.
Repairs and Maintenance.
Utilities.
Insurance.

Important Considerations

Some expenses are limited to the net income of the business. Such expenses are known as allocable expenses. These include expenses like insurance, utilities, and depreciation. A business loss can’t be created by the allocable expenses but these may be carried forward to the next year. These expenses are subjected to the same limitation rules in case you decide to carry them forward.

H ow can I calculate and claim the home office deductions?

There are two methods for calculating and claiming the tax deductions for the business use of your home.

Regular method. In this method, you are required to divide the operating expenses of your home between the business and personal use.
Simplified method. This method is often preferred for it reduces the record keeping and paperwork for small businesses. According to this method, there is a set rate of $5 per square foot of the area of a home under business use. This method allows a maximum deduction on up to 300 square feet.

Some Special Cases

There are some special rules for certain small business owners. These include,

Self-employed individuals.
Daycare providers.
Farmers.

The Takeaway

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters and applies to all types of homes.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

7 Identity Theft Security Tips

Sun, 08 Sep 2019 19:27:59 GMT

Identity theft involves stealing someone's personal information without their consent. It is usually done for financial gain. We live in a digital age and with improved connectivity, we are more vulnerable to crimes like identity theft.

You need to be smart and take steps for preventing malicious predators from stealing your personal information and hijacking your life. Here are some ways of protecting yourself from identity theft.

7 Identity Theft Security Tips

Freeze or lock your credit. Locking or freezing your credit are two easy ways for limiting the use of your credit information. Freezing your credit restricts the access to your record so new credit files cannot be opened without you unfreezing your account. There is no cost for freezing and unfreezing your credit. Locking is an easier alternative to freezing your credit. It is the strongest protection to prevent identity theft. You can lock or unlock your credit via the dedicated app on your smartphone. Locking is free as well but freezing offers comparatively more legal protection.
Safeguard your Social Security number. The master key to your personal data is your social security number. You should guard it to the best of your ability. When someone asks for your social security number, you should ask why it is required and how it will be protected. You shouldn’t carry your card with you.
Use strong passwords. Using strong and unpredictable passwords is a good safety measure. Use random combinations of letters, special characters, and numbers. You must ensure that you use a separate password for each account. Using generic passwords like your birthday and your pet’s name are not hard passwords to guess.
Limit how much information you share. Are strangers able to see your birthdate, family members, or full name on Facebook? Would you give personal information to a caller asking the right questions? (Recent research studies found many people are willing to trade that kind of information for a free cookie.) The answer to these questions should be no. Also, you shouldn’t click on any email links if they aren’t sent by a trusted person.
Watch the mail. One of the easiest ways to steal an identity is to steal mail. You should ask for your mail to be held if you are out of town. You should use a U.S. Postal Service-approved lockable mailbox. You can also sign up with USPS for informed delivery, they give you a preview of your mail so you can tell if something is missing.
Make liberal use of a shredder. You shouldn’t put any credit card or bank statements in the garbage for predators might be fishing for them. You should shred junk mail as well especially pre-approved offers of credit.
Protect your mobile devices with passwords . Smartphones are prone to risk especially if they are not password protected. You should keep the operating system of your smartphone updated. You should use very difficult passwords and two-factor identification if available. If you are not using the Bluetooth then turn it off. Others may be able to see your data if you are using public wi-fi. When downloading apps make sure to only download from trusted stores. Apps from untrusted sources may be carrying malware which can put your smartphone at risk.

The Takeaway

Protecting yourself from identity theft begins with a solid understanding of what identity theft actually is, and then ultimately coming up with a forward-thinking plan that aims to wall off identity thieves from your personal data.

Contact us today, at Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service.

Tips for Students with Summer Jobs

Wed, 28 Aug 2019 19:59:26 GMT

Every summer, students turn their attention to get a summer job and make money. However, they won’t get to take the entire amount they have earned. The reason being that their employers are required to deduct withholding taxes from their paycheck. You need to know about this and awareness can help you prevent any problems. Today we are going to discuss some tax tips which you should know if you are thinking about getting a summer job.

Tips for Students with Summer Jobs

New employees. Employers are bound to withhold taxes from the paychecks of their employees even if they are students. Everyone who starts a new job is required to fill out a Form W-4, Employee’s Withholding Allowance Certificate. This form is used by employers for calculating the amount of federal income tax to withhold from the new employee’s pay. You can use the Withholding calculator on the website of the Internal Revenue Service (IRS). It will help you in filling out this form.

Self-employment. You will be considered self-employed if you do odd jobs over the summer for making extra cash. This includes jobs like lawn care and baby-sitting. The money you earn from self-employment is taxable and being a self-employed worker, you are responsible for paying your taxes directly to the Internal Revenue Service (IRS). One way of doing this is that you make estimated tax payments during the year.

Tip income. If you take a job which includes receiving tips like being a waiter or camp counselor then you need to know that the earned tips as part of the summer jobs are taxable. You should maintain a daily log of your received tips hence you will be better able to report the. If the cash tips of any month total of $20 or more than you need to report cash tips to your employer.

Payroll taxes . This tax is dedicated to paying for benefits under the Social Security System. Students usually earn very little from their summer jobs to owe income tax. However, employers are still required to withhold Medicare and Social Security taxes from their pay. If you are self-employed then the Medicare and Social Security taxes will still be due. And you need to pay them directly to the Internal Revenue Service (IRS).

Reserve Officers’ Training Corps (ROTC) pay. If you are in an ROTC program as a student and receive pay for activities then the amount is taxable. The activities usually include summer advanced camp. If you receive additional allowances from your ROTC programs such as for food and lodging then that amount might not be taxable.

Use IRS Free File. You can prepare and e-file your tax return for free using IRS Free File. It is available on the IRS website. You may not earn enough money to be required to file a federal tax return. Even if that is true, you may still want to file. For example, if your employer withheld income tax from your pay, you will have to file a return to get a tax refund.

The Takeaway

Ultimately, there is no downside to a summer job. You get work experience and money in your pocket. Take the time to understand these tips and what having a summer job as a student will mean for you.

At Cartier CPA's our goal is to provide clients with the highest level of respect and quality of service. Contact us today to learn about our services and request a free consultation.

Taxpayers Should Include Tax Plans In Their Wedding Plans

Sat, 17 Aug 2019 16:09:06 GMT

Everyone who wants to get married knows that planning a wedding requires a lot of detail. There are probably a lot of things on your mind right now and you are going to have a long to-do list. But you need to make sure that the first tax return as a married couple is on your checklist along with the gift registry and the cake. The Internal Revenue Service (IRS) has a lot of tips and tools for helping the newlywed couples to figure out how marriage may affect their taxes. Despite that, you might still be confused but you don't need to worry as we have 5 simple steps which will help you in filling your first tax return as a newlywed.

5 Steps To Filling Out Your First Tax Return After Getting Married

Step 1. Every taxpayer should check his/her withholding when their circumstances change or at the beginning of each year. Getting married is a big change in personal circumstances. You should use the IRS withholding calculator as it is a great way for taxpayers for checking their withholding. If you need to change your withholding then you need to complete and submit a new Form W-4, Employee’s Withholding Allowance Certificate to their employer.
Step 2. Sometimes marriage means that the spouses will change their name. If you have recently married and changed your name then it is important that you report this change to the Social Security Administration. Because it is important that the name on your tax return matches the name on your file at the Social Security Administration. If for some reason it doesn’t match then it could delay any possible refunds.
Step 3. Marriage often means that you will be moving to a new house. This indicates a change in the address. If that's the case then the U.S. Postal Service and the IRS need to be notified. If you have been recently married then you need to file a Form 8822, Change of Address for updating your mailing address with the IRS. For updating your mailing address with the U.S. Postal service, you can do so by visiting their local post office or by going to their website.
Step 4 . If you receive advance payments of the premium tax credit then you should report the changes in your circumstances to the Health Insurance Marketplace. Amount of the premium tax credit may be affected by certain changes like household income or family size. This can, in turn, affect the amount of tax owed or a tax refund. You should also notify the Marketplace when you move out of the area which is covered by your existing Marketplace plan.
Step 5. If you are recently married then you need to consider your filing status. You will be considered married for the full year according to your marital status on December 31st. The tax law generally allows married couples to file their federal income tax return either separately or jointly in any certain year. You can use the Interactive Tax Assistant for determining the status which suits you best.

The Takeaway

While planning for a wedding seems to have endless details to manage, it is important to keep in mind the tax ramifications and steps to follow for filling out your tax returns.

If you are looking to acquire the services of a CPA but cannot manage to find a trustworthy CPA firm then you needn't worry. Consider acquiring the services of Cartier CPAs . At Cartier CPAs, our goal is to provide clients with the highest level of respect and quality of service. If you would like to request a free consultation or contact us for further inquiries then feel free to do so. We are hoping to hear from you soon.

4 Last Minute Tax Savings Ideas For Taxpayers

Sat, 10 Aug 2019 16:04:34 GMT

You may feel it’s too late to save any money on taxes. However, even if you’ve already earned most of your income for the year, you can still make some common-sense moves to reduce the amount of tax you’ll owe. If you own a business, you have access to an even greater variety of tax reduction strategies, but even individual taxpayers can take simple steps to reduce taxes.

Defer income

While many factors are involved in making tax decisions, generally, the longer you can wait to pay taxes, the better. Jeff Gonzalez, a CPA and the CFO at Los Angeles-based Electric Entertainment, says employees can ask their employers to help save taxes. “If you’re due a year-end bonus,” Gonzalez says, “see if your employer is willing to defer that payment into next year, rather than paying it this year. The more income you can push into next year, the less tax you’ll have to pay this year.”

Although this strategy can save taxes in the current year, Gonzalez cautions that it may create tax problems the following year, particularly if you find yourself in a higher tax bracket. You’ll have to balance any current tax savings with the taxes you’ll have to pay in the future. However, if your priority is to reduce this year’s taxes, the less income you can realize in the current year, the better.

Make an IRA contribution

Contributions to a traditional individual retirement account can be tax-deductible in the year you make them. While IRS rules on IRA contributions vary, you can generally deduct the full amount of an IRA contribution if you and your spouse aren’t covered by retirement plans at work. If you are, your contribution might be limited based on your adjusted gross income.

If you qualify, an IRA contribution can be a great way to reduce this year’s taxes. For example, if you are in the 35 percent tax bracket and make a $5,500 deductible contribution—the maximum amount for 2017—you can save as much as $1,925 in taxes. Best of all, you can contribute to an IRA all the way until tax filing day, typically April 15. Most other tax-saving strategies must be in place by December 31.

Gonzalez notes that “in addition to providing a current tax deduction, an IRA defers taxes on earnings and contributions until distribution,” which can be a great way to save for retirement.

Take capital losses

If you lose money on a capital investment, such as a stock, you can use that loss to reduce your taxes. But you’ll have to sell the stock at a loss first, a process known as “realizing” a loss. Once you realize a loss, you can use it to offset any capital gains you have. This allows you to avoid paying tax on your capital gains.

If you have more capital losses than gains, the IRS allows you to use up to $3,000 of that excess loss to offset your ordinary taxable income. Coupled with the offset of your capital gains, taking capital losses can wipe out a significant amount of your tax liability.

Gonzalez warns against incurring a “wash sale” if you realize your capital losses. A wash sale occurs if you buy back the same or a “substantially similar” investment within 30 days before or after taking a tax loss. In this case, the IRS will disallow your loss for tax purposes.

Bunch expenses

If you own a business, you can take a deduction for a wide range of business-related costs. If you’re keen on reducing this year’s income taxes, bunch your expenses as much as possible into the current year. “If you have a major capital expenditure coming up,” says Gonzalez,” consider making it at the end of this year, rather than the beginning of next year.”

Other common business strategies include paying your employees bonuses at year-end, rather than at the beginning of the year, and prepaying expenses. For example, if you regularly spend $5,000 per month to buy supplies, consider buying $15,000 worth at year-end to get you through the next three months. By making a bulk purchase at year-end, you’ll get a deduction in the current tax year for that business expense.

New Tax Reform

Sat, 10 Aug 2019 16:01:06 GMT

President Donald Trump signed The Tax Cuts and Jobs Act (TCJA) in December 2017. It was changed and revised a couple of times before it was implemented in January 2018.

Through TCJA, a significant increase has been done in the standard deduction. For head of household filers, it is from $9,550 to $18,000. For single filers, it is from $6,500 to $12,000. And for married joint filers it is from $13,000 to $24,000.

Tax Policy Center

The Tax Policy Center has claimed that the Tax Cuts and Jobs Act promises to decrease taxation for all income groups “on average”. The same statement is given by the Tax Foundation. The important word to consider here is “average”. Some tax filers will get increased benefit from TCJA while others might not be able to benefit at all.

The itemized deductions and exemptions reduce your taxable income. The tax credits are deducted from the taxes owed. For example, if you have an AGI of $100,000 then you owe a tax of $18,289.50. However, if you had an itemized deduction of $10,000 then your AGI would have been $90,000. And you would have to pay a tax of only $15,889.50. So you see how important itemized deductions are when you file your tax.

Implementation of TCJA

With the implementation of TCJA, up to 2% of AGI miscellaneous deductions have been eliminated. While TCJA implements a lower taxation rate for all tax brackets, the decrease in AGI deductions can still make you pay more tax. This is not good news, especially those with a high annual income.

The taxation prior to the TCJA allowed for AGI deduction of the costs of relocating for a new job. TCJA has eliminated this deduction and the distance you are moving doesn’t matter. Because moving expenses won’t be deducted anymore.

Before 2018, if someone paid alimony then the person received a deduction in AGI equivalent to the alimony. According to TCJA, any person paying alimony won’t receive a deduction.

Schedule A Deduction

The implementation of TCJA had limited the Schedule A deduction for state and local taxes (SALT) to only $10,000. SALT includes income taxes, personal property, and real estate taxes. Previously foreign property taxes were also deductible under SALT. However, TCJA has eliminated this deduction. So if you own an overseas property then you will have to pay an additional real estate tax on top of foreign taxes.

Investment management expenses were also deductible previously. These include the fees for investment advice, legal counsel, safe deposit box rental and trustee management. These expenses are no longer deductible from the AGI due to the TCJA.

Tax Preparation Fees

Tax preparation fees could also be deducted before the TCJA. These included the fees of tax consultants, cost of tax software or buying tax publications. These expenses can no longer be deducted from AGI under TCJA.

So if you are a high earning individual than TCJA can make you lose tens of thousands of dollars in itemized deductions. This only gets worse if you have invested in real estate or if you have overseas properties.

Please reach out to us at https://cartiercpas.com/ for more information about the New Tax Reform so we can help you prepare or email us at info@cartiercpas.com.

What services can a CPA provide?

Thu, 01 Aug 2019 14:29:57 GMT

The CPA designation is a versatile and highly sought-after credential for accountants. For becoming a CPA, you must pass a rigorous examination and a CPA is therefore efficient at performing multiple advanced level accounting operations.

What Can A CPA Do That Any Other Accountant Cannot?

Public accounting includes a wide range of auditing, consultation, tax, and accounting tasks for governments, corporations, non-profits, small businesses, and individuals. Any skilled public accountant can perform most of these tasks. But a CPA can do two things which can't be performed by any other accountant:

Preparing reviewed or audited financial statements and then filing a report for the SEC. Every public company is legally required to file audited financial statements with the SEC.
Representing the clients in front of the IRS. (However, an account without the CPA license can also represent the clients but for that, he/she will need to be also an enrolled agent, attorney, enrolled actuary, or enrolled retirement plan agent.

What Does a CPA do When Working for an Accounting Firm?

When working at an accounting firm, CPAs work in one of the following three domains:

1. Tax services

This includes filing and preparing state, federal, and local tax returns. It involves working with individuals and organizations throughout the fiscal year in order to minimize their tax obligations. In the case of a State hearing or an IRS audit, a CPA firm is also eligible to represent their clients.

2. Audit services

This involves operations which aid in improving the context or quality of both the non-financial and financial information for key decision makers. Auditing is an objective evaluation of economic and financial information to ensure that it meets the criteria of GAAP and is correct & accurate.

3. Management services

These services are provided to assist with the management and supervision of an organization's day to day operations. It also involves guidance regarding long term and strategic planning. These include budgeting, preparation of the financial statement, risk management, estate planning, cash management, financial planning, insurance coordination, and investment guidance.

How else can CPAs help?

Many businesses, especially industrial titans and large corporations employ CPAs to handle their accounting operation and fill their management and higher level positions. CPAs may work in domains such as financial reporting and accounting, tax accounting, internal auditing, and management accounting.

CPAs also work for government agencies like the IRS and SEC. They help in investigating financial crimes or other crimes involving corroboration of a financial trail. They also perform compliance, financial, and performance audits of companies who do business with the government and of government agencies themselves.

If you are looking to acquire the services of a CPA but cannot manage to find a trustworthy CPA firm then you needn't worry. Consider acquiring the services of Cartier CPAs. At Cartier CPAs, our goal is to provide clients with the highest level of respect and quality of service. If you would like to request a free consultation or contact us for further inquiries then feel free to do so. We are hoping to hear from you soon.

Please reach out to us at https://cartiercpas.com/ for more information about the New Tax Reform so we can help you prepare or email us at info@cartiercpas.com .

How Tax Reform Changed Deducting Unreimbursed Job Expenses

Thu, 01 Aug 2019 14:26:43 GMT

Most employees deducted their unreimbursed job expenses from their Adjusted Gross Income before 2018. However, after the Tax cuts and Jobs Act (TCJA) this isn’t effectively possible anymore. TCJA like affected many AGI deductions including the deduction of job expenses.

Modifications in the deduction of job expenses

Before the tax reform , you could claim itemized deductions on AGI. There was a miscellaneous AGI deduction category subjected to a 2% limit. The deduction of job expenses came under this category. However, this option isn't available anymore and you can't reimburse these expenses via compensation on the tax return.

The job expenses which were deductible included:

Job relocation expenses
Business Travel
Office Supplies
Office use vehicles
Business trip meals & entertainment
Professional learning material

However, these expenses are still deductible if you can give proof that you are the owner of a small business or if you are self-employed. The course of action, in this case, would be to file these costs in your tax return as your business expenses. This includes all types of self-owned stores, farms, property rentals, small shops, etc. The Tax cuts and Job act only eliminated the reimbursement of job expenses for employees with traditional jobs.

Impact on itemized deductions

TCJA has approximately doubled the standard deduction for tax filers under all taxpayer brackets. The majority of tax filers think that itemizing their deductions isn’t a good option as the improved standard deduction promises to be a better alternative.

The matter of claiming unreimbursed job expenses as miscellaneous deductions isn’t of importance if you intend to not itemize the deductions at all.

Exploring your options

If the sum of your unreimbursed job expenses is quite considerable then you might want to explore other options as well. The first logical thing to do is to reach out to your employers for seeing if they would cover the expenses. All eligible reimbursements of employee expenses can still be deducted by your employer. So you should talk to your employers about this. This way you will be well aware of your employer’s position when the time comes for filing tax returns.

Make sure that if your employer reimburses your expenses then they utilize an accountable plan meeting all IRS requirements. This allows the employer for deducting reimbursed costs and not including that amount on Form W-2 as taxable income. However, if the employer uses some other plan than the reimbursement amount goes on the Form W-2 with your salary.

The other alternative is to find out if you are eligible for working as an independent contractor. If you meet IRS guidelines for being an independent contractor and if you frequently have large sums of unreimbursed job expenses then it is best that you disclose it as an independent contractor. However, make sure that compared to an employee, you get paid a higher sum as an independent contractor. This will be a great substitute for the loss of benefits like Medicare and employer-paid social security.

Please reach out to us at https://cartiercpas.com/ for more information about the New Tax Reform so we can help you prepare or email us at info@cartiercpas.com .

How might the cap on the property tax deduction affect your taxes?

Thu, 01 Aug 2019 14:20:17 GMT

Before 2018, tax filers who own a real estate asset didn't need to pay additional federal taxes if they paid SALT taxes. SALT stands for State and Local Tax and it allows you to itemize real estate deductions for claiming them on your federal tax return. SALT includes property taxes, state and local income taxes and sales taxes.

The limitation

However, the Tax Cuts and Jobs Act limits this option by putting a cap on claimable SALT deductions. This includes property taxes as well. This limit could persuade the taxpayers for reduced itemization.

The limit is that tax filers can deduct a maximum of $10,000 for all state and local taxes if you are a single tax filer. This includes income or sale taxes and property taxes. The limit reduces to $5,000 if you are married but intend to file separately.

Impact on residents of certain states

The high earning taxpayers will be affected throughout the country as chances are that they own high-value properties. However, different states have different state taxation laws. This makes residents of certain states more susceptible to paying large tax amounts.

States with the highest SALT taxes are:

Residents of these states will be the most impacted due to the high tax rates. The inability to compensate the SALT taxes as an itemized deduction is going to be a difficult situation for them.

Measures adopted by the States

The states of New York, Maryland, New Jersey, and Connecticut brought a lawsuit which is intended to overrule the limits of $10,000 and $5,000 for SALT itemized deductions. The lawsuit claims that this imposed cap undermines the tax precedence of 150 years. Which essentially prevented the federal government to interfere with the authority of states over localized taxation policies.

The New York state budget had proposals for allowing the residents to make charity donations to a fund in order to reduce the state tax liability. This is proposed because charity donations can still be deducted from the federal tax returns. An option was also proposed in the budget for implementing a new payroll tax which is aimed at replacing a portion of state income taxes of the employees. This is suggested because as payroll taxes are still deductible for the employers.

Exploring your options

If you will be losing a considerable amount of money in the property taxation due to the limit on itemized deductions then you must compensate for your loss by exploring all available options. Some of which are;

If you are doing an energy efficient renovation of your house then this amount can be deducted when filing for tax returns.

The interest on home equity loans can be deducted if the amount is utilized for building, purchasing or making considerable improvements to your house.

The interest for mortgages before Dec 14, 2017, can be deducted. The limit is $1 million if you are a single tax filer and it is $500,000 if you are married and intending to file separately.

Please reach out to us at https://cartiercpas.com/ for more information about the New Tax Reform so we can help you prepare or email us at info@cartiercpas.com .

Tax reform miscellaneous itemized deductions

Tue, 12 Mar 2019 14:53:24 GMT

The Tax Cuts and Jobs Act (TCJA) also known as simply the tax reform almost doubled standard deductions. It also modified many itemized deductions which could be obtained on Schedule A, Itemized Deductions. This suggests that most people who went with itemized deductions in the past may need to take the standard deduction. Tax filers can only choose the itemized deductions or the itemized deductions.

The Tax Cuts and Jobs Act made the following changes to itemized deductions,

Suspension of overall itemized deductions

The tax reform of 2018 doesn't allow for the income-based itemized deductions. This means that individuals who had limited access to deductions previously due to their income exceeded a specified level can now get more itemized deductions now.

Modification in the deduction for the property, local income, and sales taxes

The reduction in property, local income, and sales taxes for any taxpayer is now limited. The limit is on the total sum of these deductions combined. This limit is $10,000 if you are a single tax filer and $5,000 if you are married and filing tax separately. Any amount exceeding this limit cannot be deducted.

Total qualified residence loan balance has a new limit

The loan for home equity or mortgage can affect the interest amount which may be deducted. If the loan was taken before Dec 15, 2017, then up to $1 million in qualifying debt can be deducted. This limit is $500,000 for tax filers who are married but are filing tax separately. If the loan was taken after this date then this limit is $750,000 in qualifying debt. And for married taxpayers filing separately, it is $375,000.

Modification Home equity interest deduction

If the interest from home equity loans is not paid on loan proceeds for buying, building or significantly improving their residential or second home then this interest cannot be deducted.

For instance, if the interest from home equity loan was utilized for constructing an extension to a current residential home then it can be deducted. However, the interest on the very same loan isn’t deductible if used for paying personal living expenses like credit card debt.

On top of these requirements, the amount of deductible cannot exceed the original cost of the home.

Modification in charity contributions limit

For charity contributions in the form of cash, the limit has increased from 50% to 60% of the taxpayer’s AGI. Meaning that tax filers who donate more to the charity will be now able to deduct more of their contributions.

Modification in the deduction for theft losses and casualty

For claiming the deduction for a tax filer's net theft and casualty losses, the incident must be associated with a disaster declared by the federal administration.

Suspension of miscellaneous itemized deductions

If the miscellaneous itemized deductions exceeded 2 percent of AGI, they were still deductible before TCJA. Expenses exceeding the 2 percent limit cannot be deducted anymore.

Unreimbursed employee expenses like union dues uniforms, business-related meals, entertainment, and travel are included in this. Deductions for safe deposit box fees, investment expenses, investment management fees, and tax preparation fees, etc. are also included in miscellaneous itemized deductions.

Please reach out to us at https://cartiercpas.com/ for more information about the New Tax Reform so we can help you prepare or email us at info@cartiercpas.com .

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