cpa audit firms

What Are CPA Audit Firms?

CPA Audit Firms

CPA audit firms provide accounting, auditing, tax planning, and business consultation services. Their most sought-after services remain accounting, tax planning, and auditing. Every business needs an auditing service, be it a private business or a public entity.

In addition, CPA firms possess special skills and qualifications to provide accounting and auditing services that ordinary accountants cannot offer. Public accounting differs in several ways from ordinary accounting services. Although accountants can also provide accounting, taxation, and financial management services. However, some limitations are likely.

For this reason, a CPA firm must have at least one qualified certified public accountant. That’s why CPAs are the most sought-after credentials for accounting firms.

What are CPA Audit Firms?

CPA Audit firms come with qualifications for the public accounting domain. A CPA audit firm must have sufficient qualified personnel to offer public accounting services. These professionals are called Certified Public Accountants (CPAs).

The most common distinction of a CPA audit firm from an ordinary accounting service is the ability to perform financial statement audits. All companies need to comply with the requirement of financial statement audits. However, public companies are bound by law to provide audited and reviewed financial statements by certified auditing firms such as a CPA audit firm.

CPA audit firms also enjoy the distinction of qualified audit and tax representation. For instance, a CPA firm can represent your business before the IRS for tax audits. However, an attorney or an enrolled agent can also present before the IRS.

CPA Audit Firm Services

CPA audit firms provide a wide range of services to public and private companies. For instance, a CPA can provide the auditing and review of financial statements. Likewise, auditing remains a key service offered by these firms for public companies. However, all private companies also need to comply with accounting and auditing standards.

Let us briefly discuss some key services offered by CPA auditing firms.

Audit and Assurance Services

CPA firms offer external auditing services to public companies. Financial statement audits are required by regulatory authorities. External audits can only be performed by public accounting firms.

Assurance provides comprehensive risk assessment and action plans for a business. It requires careful planning for governance, compliance, and internal controls.

Internal Auditing

Companies can also outsource their internal auditing services to CPA auditing firms. Internal auditing covers financial statement audits, internal controls, governance, risk management, and compliance segments of a business.

The internal auditing function is concerned with the implementation of effective governance procedures. Furthermore, CPA audit firms ensure a business is fully compliant with the internal controls.

Special Audits and Forensics

A business may need to conduct a special audit such as an IT system audit. In general, a business may need to perform a comprehensive forensic audit to unveil misconduct, theft, corruption, or fraud inside the business operations. Moreover, a CPA audit firm can offer special audits and forensics services.

Risk Assurance

Risk assurance services range from risk assessment, identification, controls, implementation, and review process. Identification and measurement of key risk areas are critical for the success of any business. Thus, a CPA audit firm can offer risk management and assurance services to offer enhanced controls for a business.

Digital Audits and Cybersecurity

Digital auditing relates to auditing services offered for any digital asset. For example, these audits may range from IT system audits, cybersecurity challenges, digital banking risks, cloud accounting risks, and so on.

Also, digital audits remain a key challenge in the modern business world. CPA audit firms offer digital auditing services through skilled auditors and forensic experts.

Employee Benefit Plan Audits

In short, employee benefit plan audits are meant to safeguard the most precious asset a business possesses i.e., Human Capital. In addition, employee benefit plans require regulatory compliance. These plans are often offered through third-party service providers. However, a CPA audit firm ensures the business remains compliant with statutory requirements of employee benefit plans.

CPA Firms Beyond Auditing

CPA audit firms can offer a wide range of services beyond auditing as well. You can expect advisory and business consulting services from these professional firms. Moreover, these services can range from accounting, taxation, and bookkeeping to financial management.

Here are some key advisory services that you can avail from a CPA auditing firm.

  • Accounting and Bookkeeping
  • Financial Management
  • Business Planning and Consulting
  • Tax planning
  • Payroll
  • Auditing and Assurance
  • Budgeting and Cash Flow Management
  • Risk Management
  • Transaction Advisory Services
  • Business Valuation
  • Debt Restructuring
  • Digital Audits and Cybersecurity

Contact Ash CPA to learn more about audits and other financial services. Call (617) 462-6651 or book online.

cpa tax specialist

Difference Between a CPA Tax Specialist and a Seasonal Tax Preparer

CPA Tax Specialist

CPA Tax Specialist | Tax planning and filing is a year-long activity. Many businesses and individuals make the mistake of leaving the task to the end. In the tax season, they have to rely on seasonal tax preparers. It can save you on professional fees but the consequences of filing tax returns in a short period can be costly.

Seasonal tax preparers are also qualified tax professionals. Usually, enrolled agents work as seasonal tax preparers. Some accountants and attorneys can also represent you as a seasonal tax preparer. Their job is to offer services in the busy tax season to businesses and individuals with IRS tax preparations, filing, and representation in some cases.

There are some key differences in services offered by a CPA tax specialist and a seasonal tax preparer. Let us briefly look at which option is the right one for you.

What Does a Seasonal Tax Preparer Do?

Seasonal tax preparers are qualified professionals who are familiar with tax laws, regulations, and procedures to file tax returns with the IRS.

The primary role of a seasonal tax prepare is to facilitate clients in busy tax season in IRS tax filings. These tax professionals are fully qualified to prepare, file, and represent your tax returns with the IRS.

Some key services offered by seasonal tax preparers include:

  • Advice on tax preparation
  • Advice on accounting and bookkeeping records
  • Tax filing for individuals, businesses, corporations, and other entities.
  • IRS audit representation
  • Representation in the IRS appeals and refunds

Seasonal tax preparers are experienced and well-versed with IRS tax regulations. They can represent and file your tax returns in a busy tax season. They also keep themselves aware of regulatory changes that may affect your tax returns.

What Does a CPA Tax Specialist Do?

A CPA tax specialist can assist you with tax preparation, planning, filing, and the IRS audit representation as well. CPA tax specialists are qualified for other fields of business as well.

In addition, a  CPA tax specialist can offer advice on accounting, finance, business consulting, payroll, tax, and transaction advisory services to name a few. Thus, the role of a CPA tax specialist widens to business consulting services than merely tax representation.

CPA tax specialists can work with you throughout the tax year. They can offer advice on tax and business management that affects your tax filing at the year-end. Hence, you can work with a CPA tax specialist to prepare a comprehensive tax plan that fits your needs.

Here are some key services offered.

  • Accounting and Bookkeeping
  • Tax Planning and Compliance
  • Business Consultation
  • Budgets and Cash Flow Management
  • Debt Restructuring
  • Financial Management
  • Transaction Advisory Services
  • Payroll Management
  • Retirement, Succession, and Estate Planning

The role of a CPA tax specialist includes a wider scope of services. It takes the role of a leader and advisor. A CPA tax specialist can also come with industry specialization that offers added advantages to clients. For instance, a dental CPA tax specialist would offer tailor-made tax advice to dental practices.

When You Should Hire A Seasonal Tax Preparer?

Both tax professionals offer some benefits in different scenarios. You can choose a tax specialist depending on your needs and the availability of the professional. If you want someone to file for tax returns in a tax season only, a seasonal tax preparer is your go-to person.

You should hire a seasonal tax preparer when:

  • tax filing as an individual or a small business
  • short on time
  • need only tax representation before the IRS
  • want to consult a tax professional for seasonal provisions and changes in tax regulations
  • revenues are smaller and do not require comprehensive advice
  • regular accountant or CPA is unavailable

When Should You Hire?

As we discussed above, a CPA tax specialist can offer a wider range of services than a seasonal tax pro. You should carefully evaluate the needs for tax preparation, business consulting, and financial management before deciding on hiring a tax professional.

You should hire a CPA tax specialist if you are in one of the following situations.

  • need a comprehensive tax strategy and planning
  • You need tax restructuring
  • selling or buying a new business during the tax year
  • revenues are larger and complex
  • need advice on financial management
  • want tax liability reduction and compliance
  • business owns large value assets (tangible and intangible)
  • You need a professional to work with you year-round
  • need transaction advisory services such as a dental practice transition

Contact Ash CPA to learn more. New clients are always welcome.

CPA Tax Specialist

Why You Should Choose a CPA Tax Specialist

CPA Tax Specialist

CPA Tax Specialist | You can do the tax filing by yourself or using tax software. For some individuals and small businesses, it can be a viable option. For businesses with complicated tax filing needs, it can be a risky endeavor. The costs associated with tax filing are not just limited to the IRS penalties. It can affect your business strategy.

Hiring a tax specialist like a qualified CPA can bring you more benefits than tax savings. Let us discuss some benefits of hiring a CPA tax specialist.

What CPAs can do for you

Tax preparation is only one task that a CPA can do for you. From a business perspective, you can expect more than tax preparation from a CPA tax specialist.

A CPA tax specialist can offer:

  • Preparation of accounting and payroll records
  • Preparation and reconciliation of financial statements
  • Tax Preparation and Planning
  • Business Advisory
  • Tax audit representation
  • Payroll taxes

Qualification and Expertise

CPAs need to earn the qualification through state licensing. They are highly qualified professionals with licensing requirements at the state level. They need to work with one of the big four firms to earn their credentials.

CPAs also come with expertise in taxation and compliance that is essential for tax preparation services. As far as qualification is concerned, CPAs remain highly qualified professionals. They bring unique skillset and experience with them as well. It makes them ideal advisors for your business and taxation purposes.

Tax Advisory Services

A CPA can work with you as a tax advisor. It takes strategic tax planning to bring long-term savings through tax deductions and credits. Although many insist on short-term tax deductions only.

When planning for tax purposes, it’s important to understand the business needs first. For instance, you can plan for a depreciation strategy on buying new equipment for your business. Employee contribution plans, investments, and financing costs are important business decisions that impact tax obligations directly. A CPA can best assist you in finalizing these decisions to create maximum tax savings without compromising on business objectives.

Reachable at Will

When you hire employees, you certainly want them to be available during duty hours. Similarly, you would like to reach out to the tax advisor at will whenever you need them. There are a number of reasons you might need to talk to the tax consultant.

A CPA can be reached during the year for tax consultation issues. There are real-time business decisions that require an expert opinion, something a tax software cannot offer.

CPAs can Handle Complex Tax Issues

The tax regulatory environment is rapidly changing. For instance, there are several changes to tax brackets and provisions due to covid-19 relief efforts for the current tax year. You’ll need to adjust for these provisions accordingly.

Seasoned CPAs stay abreast of the tax regulatory changes. Only then, they can advise you on the best option for maximizing tax savings. It can save you enormous time and money by reaching out to a professional with hands-on experience.

CPAs are Equipped with Better Technology

CPAs also require tax software and programs to complete tax preparation tasks for their clients. But they have access to far better software packages and technology than you can afford as an individual. More importantly, they know how to utilize their resources to create the best outcomes.

CPAs are well equipped to capture information and make decisions on your tax calculations than you can do with free software access. Access to better technology alone can save tremendous time and money for you.

CPAs can Represent you

The prime job of a CPA would be to prepare your tax returns. They’ll do so by preplanning and carrying out the routine tax tasks. However, in some cases, you may get an IRS audit call as well. CPAs can represent you in IRS audits. You’ll definitely want to work with a tax professional CPA that can represent you in a crunch time.

Continuous Professional Development

As discussed earlier, CPAs need to stay abreast of the regulatory environment. They do so by focusing on their continuous professional development. Certification bodies for CPAs require them to complete the CPD requirements regularly. It makes them ideal candidates for your professional tax consultant job with up-to-date knowledge.

Learn More

Contact Ash CPA to schedule a consultation.  Call (617) 462-6651 or book online today.

best tax professional | tax document

How to Find the Best Tax Professional

Best Tax Professional

Business taxes are complicated and require the expertise of the best tax professional. This is a year-round job for your business. Unlike a common notion, business taxes shouldn’t be left to the tax season only. From a tax professional, you’ll need a tax advisor that works with you as a strategist rather than just number cruncher.

If you look for a tax professional, look for the right person to do taxes for you. A tax professional can best serve you than a seasonal tax preparer.

Here are a few quick tips for you to find the best tax professional.

Look for a CPA

If you are looking for a tax professional to help you file business taxes, look for a CPA. Certified Public Accountants are the best professionals to help you with taxes. Of course, you’ll consider the costs associated with hiring a professional like a CPA.

You can look for a seasonal tax preparer or an accountant who can file taxes for you. That can’t come in handy if there are frequent tax regulatory changes. For example, the current tax year has seen several provisions from the IRS due to pandemic hardships. A professional like a CPA can keep you updated on these regulatory changes. Above that, a CPA can best advise you on implementing these provisions to make the most of them.

CPAs are passionate professionals for business taxes. You shouldn’t compromise on the quality by filing taxes yourself or through a seasonal tax preparer.

Look for a CPA with Tax Expertise and Industry Experience

We suggested to hire a CPA over a seasonal tax preparer. The prime reason behind that is the expertise and experience that a CPA brings to your business consultation. A professional like a CPA can bring vast industry experience as well as expertise in tax filing. You cannot expect that from generalists.

CPAs come with the highest qualification. They come with a starting work experience in one of the big four firms. They also need to continue their educational knowledge through continuous professional development programs. Hence, CPAs offer through educational qualification and experience that non-qualified tax preparers cannot.

Seek an Advisor who is Conversational with You

When you are looking for the best tax advisor, look out for certain traits in them. One key trait will be the conversational nature. They’ll ask questions about your business and individual tax planning.

Do not fall prey to tall claims of non-professional tax preparers. A professional tax advisor will never commit to something unachievable or unlawful. A professional will objectively define the tax planning outline to you without making tall claims on tax savings.

Tax savings require thorough planning. You’ll need to follow a long-term plan to achieve effective tax savings. You’ll also need to connect the individual and business tax-saving plans. A professional tax advisor will always ask questions to you on these topics.

Avoid Seasonal Tax Preparers

It’s a common mistake that most individuals and small business owners make. Some businesses require sophisticated industry knowledge. For instance, if you are in the dental practice business, a dental CPA would be the best-suited option to file your tax returns.

Accountants and seasonal tax preparers can obtain a PTIN from the IRS. They can do the job for some individuals or small businesses. However, most business taxes are a sophisticated task. Some businesses require in-depth industry knowledge as well. A CPA with industry knowledge comes in handy in the business advisory as well as harnessing tax savings.

Seek a Tax Strategist

That’s right! Look for a tax professional that becomes a strategist for you. Tax planning is a long-term strategic task. You cannot implement effective tax planning overnight.

Investing in an advisor can save you more than you expect. For instance, a CPA saves you $10,000 yearly in tax returns. Compare that against the annual charges you pay to a professional, plus the investment gains that you’ll get.

Learn More

Trust Ash CPA as your best tax professional. Call (617) 462-6651 or book online today.

tax preparation services

Choosing Professional Tax Preparation Services

Tax Preparation Services

Tax Preparation Services | You have to share a lot of personal and business income details with a tax preparer. These professionals can help you file tax returns for your business and individual taxes. In turn, you should also seek clearance on the process and credentials of a tax specialist like a CPA.

Many taxpayers do not explore the credentials or relevant experience of the tax professional they hire. It’s hard to do it with guesswork though.

Here is our quick guide for you to help you choose the best tax preparation services.

Understand 

Before you hire a tax preparer or consult any professional services, know what you need from them. Different business entities or individuals require different tax preparation services. If you are filing as an individual, self-employed, or a sole proprietor, your business taxes will be different from those of a corporation.

You can find seasonal tax program agents that can prepare your tax returns. However, professional tax preparation services like a CPA can be your best option. A CPA can offer you tax advice on tax planning and preparation as well as filing returns.

Ask for Credentials

Registered and professional tax preparers have a PTIN from the IRS. Though it is relatively easier to obtain. Accountants and seasonal program agents can register for a PTIN as well.

Your best option would be to ask for professional credentials and track record from your tax preparer. Again, depending on your tax preparation requirements, you can choose to hire a professional like a CPA.

Attorneys and CPAs remain at the top of the hierarchy for tax preparation services. A CPA is an ideal option for your tax preparation services with in-depth knowledge of taxes as well as business operations.

Compare the Service Charges

Just like you shop for any services for your business, you can compare packages from tax preparation services. Professional tax preparation services will never hide their costs. They’ll also transparently discuss their pricing plans with their clients.

Some tax preparers charge a flat fee for tax filing, others charge an hourly rate. You can compare the service charges from different CPAs to get an idea of what you’ll pay. Importantly, a professional tax preparer like a CPA will always disclose the service charges to you transparently.

Industry Specialization

CPAs have developed expertise in tax preparation services. Tax compliance and regulatory changes have been evolving rapidly. It has become harder to keep up with the changes holistically. Just like any other profession, CPAs also specialize in these services.

A specialist CPA that has expertise in a particular industry can best advise you on the business operations as well. For instance, a dental CPA will be in a better position to understand your business needs and tax planning than a general tax preparer.

Industry specialization for tax preparers has become important. It helps you prepare tax returns by understanding your business requirements. Business strategies directly affect the tax returns by the year-end. However, blindly persisting on tax deductions or cost-reductions can harm your business practices. Hence, an industry specialist like a dental CPA can offer the best tax preparation planning services.

Get to know your CPA

You can set up an interview, a telephonic conversation, or an e-mail to know more about the tax professional you’re hiring. You can also ask for referrals from your personal and professional networks.

Make sure the tax professional is available when you need to discuss something important. As you may need the advisory services throughout the year for different reasons. Again, partnering with a professional like CPA can help you with that.

Representation in Tax Audits

When you explore different options to choose the best services, include this quality check in your query list. A professional tax preparer will always back you in the IRS audits. Audit representation isn’t required for all business tax filings. However, in some cases, the IRS may send you an explanation or conduct an audit.

Choosing a professional tax preparation service is an equally important task as preparing the tax records. Always consider a professional tax preparer like a CPA who can best advise you professionally on tax and business processes.

Learn More

Contact Ash CPA to learn more about tax preparation services. New clients are welcome. Call (617) 462-6651 or book online today.

business tax returns

How to Prepare for your Business Tax Returns

Business Tax Returns

Business Tax Returns | All businesses need to pay taxes of several kinds including state and federal taxes. You do all the hard work to get the business running smoothly. Keeping your business tax compliant is an equally important statutory requirement.

You can file for your individual or business taxes electronically, but there are several complications with business taxes. You’ll always need expert advice on filing for business taxes correctly. Before you can task a business tax specialist, you must prepare your records.

Here is a quick guide for you to prepare for business tax returns.

Know the Due Dates

Small businesses file income taxes along with individual tax returns. The due date set by the IRS is April 15. However, under certain circumstances that date can change. For instance, the tax filing date for the tax returns of 2020 has been extended to May 17, 2021.

Businesses need to file for estimated taxes and quarterly taxes as well. Knowing your tax due dates can save you from penalties and non-compliance.

Understand your Business Entity

You probably would have already discussed different entity structures with your tax advisor. If you haven’t, get to know your right business entity type.

Sole proprietorship, freelancers, and self-employed persons file business income taxes along with individual tax returns. Corporations and Partnerships have tax liabilities structured differently than individuals. Understanding the entity type and tax liability will help you prepare for tax returns smoothly.

Keeping the Business Records in Order

Record-keeping is the most important aspect of tax preparation for any business. You’ll need to maintain the records for accounting accuracy and tax compliance consistently.

Here are a few key business records to keep in order:

  • Tax Filing Records for the previous years – for existing businesses
  • Bank Account Statements for business and personal accounts
  • Business Revenue and indirect income records
  • Cost of Goods Sold Statement
  • Expense Records for Tax Deductions
  • Employment Contribution plans, tax deductions, and other relevant information.
  • Information of tax deductions such as business use of home, travel, gifts, or charity donations.

As a business owner, you need to pay estimated taxes. You’ll need to comply with the annual tax filing requirements by matching these tax returns accurately. Remember, you cannot claim a tax deduction or tax credit without keeping proper records. Gather your expense receipts to claim the deductions or back your claims through bank statements.

Gather all the Relevant Information

Apart from business revenue and expense records, you’ll also need to maintain other financial records. For instance, if you have gone through significant business ownership changes during the year. Perhaps, you have purchased large business assets or sold one during the tax year.

Prepare your business records for any significant business changes that may have happened during the tax year.

Understand the Taxes your Business need to Pay

Now that you have prepared the bookkeeping essentials, it’s time to know what taxes you owe to the state or federal agencies. All businesses pay several types of taxes.

Here is a quick list of business taxes that you need to pay.

Income Taxes

All businesses must pay income taxes. The filing of these taxes depends on the entity structure of your business. Even if you incur losses, you’ll still need to file for income tax returns. However, you can adjust business losses against other income taxes you owe the IRS.

Estimated Taxes

You pay estimated taxes on a basis. You need to file estimated taxes for withholding income and employment taxes quarterly. Knowing the quarterly due dates for estimated taxes can help you stay compliant and reduce the tax liability. 

Employment Taxes

You’ll need to pay the employment taxes if your business has hired employees. Your employment taxes include income tax withholding, social security and medical contribution, and Federal unemployment taxes.

Sales Taxes

Sales taxes are collected indirectly. Your business may need to charge customers for sales taxes. You’ll need to pay sales taxes in most states on products and services offered to customers.

Excise Tax

Some businesses need to file for excise taxes on the use or consumption of certain types of items such as fuel. You can file for excise taxes quarterly.

Property Tax

If your business has purchased property during a tax year, you’ll need to pay the property tax as well. Your business will pay the property tax on any owned building to the local tax collection authorities.

Preparing for business taxes can be a daunting task. You can seek professional help from a seasoned tax specialist. Compliance with tax requirements can save your business from penalties and audit issues.

Learn More

Contact Ash CPA to prepare and file your business tax returns today. Call (617) 462-6651 or book online.

stimulus check

$1400 Stimulus Check Update: New Income Limits

Many Americans have been waiting on the third round of stimulus checks. This past weekend, the Senate voted and passed the American Rescue Act Plan of 2021, which includes the $1400 stimulus checks.

We now await for the House’s final approval and for President Biden to sign the new plan. 

Those with an adjusted gross income of up to $75,000 for individuals, $112,500 for heads of household and $150,000 for married couples that filed jointly are granted the full $1400 checks. Keep in mind that the government is reviewing the latest tax return on file. For instance, if you have not filed your 2020 taxes yet, they will review your 2019 taxes instead.

Those with higher income are likely to receive reduced payments. However, there is a cap. Under the new plan, those with adjusted gross income of $80,000, heads of household with $120,000 and married couples with $160,000, will not receive any portion of the stimulus check.

When will I receive my stimulus check?

If the House makes the final approval soon, Americans could start receiving the checks this month. And like before, those who already have direct deposit setup with the IRS, are likely to receive their checks first. Paper checks and prepaid debit cards are likely to follow after.

Do you qualify for the stimulus check?

Use this calculator to see if you qualify.

Learn more

Learn more about the upcoming stimulus check and how to file your taxes with Ash CPA. We have over 20 years of experience in tax services, accounting, and bookkeeping. Call (617) 462-6651 or request an appointment online.

Business Tax Preparation | Checklist

Business Tax Preparation | A Checklist for Your Business

Business Tax Preparation

Business Tax Preparation | Filing for your business taxes can be a daunting task. Owners don’t like being distracted from the core business activities. Tax calculations do not come naturally aligned with many business owner’s interests. Although automation has helped many small business owners, it can’t solve all tax issues like a consultant.

Here is our guide on a checklist for your business tax preparations.

Confirm your Business Tax Due Dates

Confirming the due dates of your business taxes mean preparing yourself in advance. You shouldn’t wait for a year-end reminder. Business tax due dates can be different for many businesses depending on the legal structure. For S Corporations and Partnership entities, it is March 15 every year. For Sole Proprietors and C Corporations, it is April 15.

You’ll need to file for monthly estimated taxes as well. The year-end exercise will be calculating and consolidating your business tax returns as well. Therefore, it will be a wise option to consult a professional on your tax planning.

Gather Business Documents

Keep your business ownership and incorporation documents in order all the time. If it’s a new business you should keep in order the article of incorporation and partnership agreements.

For a continuing business, you’ll need to keep last year’s tax returns as well. Previous year’s tax returns can be a good starting point for your new tax preparations as well. You can compare key accounting figures and estimate the due taxes.

Here are a few key information points to remember:

  • Federal tax ID number
  • Article of incorporation
  • Partnership agreements
  • List of partners and ownership details
  • Previous year’s tax returns
  • List of offices
  • Changes in partners’ shareholding

Accounting Records of Business

Your business accounting records form the basis of tax returns. Likewise, the IRS would want to know the income resources of your business. Ideally, your mentioned sources should not raise a red flag, the IRS will verify the statements independently.

For instance, keep these key accounting records in order:

  • Financial statements of your business – Profit and Loss, Balance Sheet, and Cashflow Statements.
  • Accounting records for your business income including:
    • Sales records
    • Returned inventory records
    • Interest earned and tax refunds
    • Other income sources
  • Accounting records for your business expenses including:
    • Cost of Goods Sold
    • Overheads 
    • Insurance, utilities, payroll expenses, professional fees
    • Taxes paid, tax breaks, and credits.
  • Records of combined personal and business income/expenses.

Bank Statements

In short, bank statements will help you keep your business accounts in order. You can prepare the income and expense records from scratch too. If you have kept the records, do the conciliation with the help of bank statements.

Bank statements will help you identify the business income and expenses, and personal and business records as well. In other words, it will help you ratify any mistakes in the accounting records such as omissions and repetitive entries.

Also, keep a copy of your credit card statements. You would have paid many bills through business or personal credit cards. Reconcile these paid bills against the credit card statements for consistency. Furthermore, remember accounting figure mistakes can get you IRS penalties and tax audits.

Payroll Reports

Preparing the payroll reports correctly can help you a great deal at tax-filing time. If you haven’t already, start an employee contribution plan. Maintain records of employee tax filings for both State and Federal filings. For instance, you’ll deduct any employment taxes and contributions from the business tax filings. Importantly, it will help you analyze the monthly and yearly tax filings correctly.

Details of Assets

In short, business assets and changes through sale or disposal are key figures that affect your business taxes. Long-term business assets are depreciated over a long period. Moreover, you may choose a depreciation method of your liking, but it must be consistent with the accounting methods.

Prepare the key asset information including the sale or purchase of new asset. In addition, vehicle loans and market valuations are important. Keep the assets in balance and include information on the accumulated depreciation costs, remaining period, salvage value of assets, purchase or sale price, and dates of transactions.

Gather Correct Tax Forms for Your Business Tax Preparation

Your business’s legal structure and operations will decide the types of forms you need. In addition, make sure you file the correct types of forms and send the right information to the IRS.

You may need different tax forms, generally, a business will need the following types of forms:

  • 1040 or 1040-SR
  • 1120 or 1120-S
  • 1096
  • 1099-R

Learn More About Your Business Tax Preparation

Find out what your business needs to file taxes. Call Ash CPA at (617) 462-6651 or request a call online for your Business Tax Preparation.

tax specialist | Tax clock

What to Consider in a Tax Specialist?

Tax Specialist Framingham

If tax preparation is a complex task, finding the right tax specialist is even harder these days. You can find tax preparers and agents with no qualifications and experience offering tax consultation services. You can hit the google with a search “tax specialist near me” and see the results in thousands. Not all of them are qualified though, it’s hard to differentiate between them.

You can file your business taxes by yourself, but it will take enormous time and effort that you should spend on the business activities otherwise.

Here are a few important points to check before you hire a tax specialist for your business taxes.

Check Credentials of the Tax Specialist

First thing first, you should always check the credentials of your tax specialist. Do not shy away from asking the tax service provider whether they have any legal authenticity to file your taxes or not.

A simple tip is to ask for the IRS Preparer Tax Identification Number (PTIN). Temporary and volunteer tax preparers do not get the PTIN. A tax specialist with a PTIN will be a professional doing the work as a serious business.

Check Qualifications of your Tax Specialist

Do not rely on the search results of “tax specialist near me” only. A tax preparer can have a PTIN, and yet may not be fully qualified as a professional. Check the qualifications of your tax specialist. A qualified tax specialist with a CPA or a Law Associate can be a better option.

One advantage of partnering with qualified professionals is their continuing education requirements. IRS also needs these professionals to stay abreast of the latest tax regulations and changes. A professionally qualified tax specialist can work with different business models. Their professional qualification and training let them handle different tax preparation challenges.

Ask for References

Not every specialist can be experienced, someone starts the journey someday. If your tax specialist is experienced, it is an added advantage. There is no reciprocal of experience in any field, as well as in tax advisory services.

One way of compensation for the lack of experience is to present the references genuinely. Ask for references from your specialist. A tax specialist with experience will provide key references straight away. Even a young professional wouldn’t hesitate to provide some qualified references. Remember, professionally qualified CPAs require work experience to complete their qualifications.

Compare the Fees – Packages

Tax advisory services can’t be offered through a one-fits-all solution. The IRS regulations and tax deadlines are the same for everyone though. Yet each business comes with unique needs for tax preparations.

Do not hesitate to ask for the prices from your tax advisor. They know you’ll hit the search of tax specialists near me right after talking to them. However, a professional will keep the fee structure transparent. They’ll not keep you in grey areas. Moreover, they’ll be open to offering you a customized package for accounting, bookkeeping, and tax consultation services.

Will your Tax Specialist Represent You?

One key advantage of a qualified specialist is the IRS representation. General tax preparers with PTIN cannot represent you against tax audits. Not all tax specialists will offer the services of audit representation either.

Even if you hire a tax professional, you may receive an audit mail from the IRS. Tax regulatory changes and errors can lead you to wrong tax filings. It will give you peace of mind to check with your tax specialists if they’ll be at your back with audits.

Professional tax specialists will lead you through the tax preparation, filing, refunds, and follow-ups. They will be available at your call even after the tax season to answer your queries.

Tax Specialists as an Advisor

 A key trait of good tax specialists is their long-term approach to tax planning. They’ll keep the business strategy and objectives at the core of their tax strategy. Often a solution to a tax problem can be conflicting with the business strategy.

For example, you started a business as an entrepreneur without any partner. A tax preparer will advise changing the entity structure to save taxes. From a business point of view, it might not be the best solution as you’ll need at least one partner. A professional tax specialist will create a balanced approach with the tax strategy.

Learn More

Contact Ash CPA to learn more about filing your taxes. Call (617) 462-6651 or request a call online.

cpa audit firms

What are CPA Audit Firms?

CPA Audit Firms

The scope of CPA audit firms varies by their partner client. The public accounting firms provide services in the public and corporate accounting sectors. These services include financial reporting, accounting, bookkeeping, audit and assurance, and corporate governance advice to name a few.

Auditing firms provide specialized review services on an organization’s internal controls and corporate governance. Modern CPA audit firms cover each aspect of business risk and not just financial risk.

Public accounting firms offer a wide range of services to individual and business clients. Some broader categories of services on offer by CPA audit firms include:

  • Financial Reporting
  • Audit and Assurance
  • Taxation and compliance
  • Corporate governance and Ethics
  • Financial planning and strategy
  • Business Valuations
  • Credit and finance structuring services
  • Management accounting

Compliance with corporate governance and accounting standard remains the biggest responsibility of the CPAs. The CPA audit firms partner with businesses to achieve effective results in compliance with international accounting standards and regulatory compliance.

Partnership with CPA Audit Firms

When you hire a CPA or consult with a CPA audit firm, they term the relation as a partnership. It means CPA audit firms would own your business as much as you, so they provide the best services as if it is their business.

CPA Audit firms will play an active role in your business decision-making process. With competitive qualifications and expertise in the field, CPA firms offer valuable insights into your business strategy.

CPA Audit firms provide diverse services for both individuals and businesses. CPAs merge the valued information from financial and non-financial data. They provide innovative and forward-looking solutions.

Modern CPA firms have adopted the role of business consultants. They offer advice as a business leader, from business planning to accounting, auditing and internal controls, and forecasting Cashflows. The diverse range of fields covered by CPA firms makes them valuable business partners for the business of any size.

Key Role of CPA Audit Firms

Public accounting services include various business segments. Audit and assurance, tax compliance, and financial reporting remain the most sought after services. However, CPA audit firms provide many other services too.

Audit and Assurance:

Auditing of accounting records, reviews, and fair opinions on financial statements, and assurance engagement with business are the key tasks under the audit section.

Financial Management

Finance is the blood that runs any business. CPA audit firms provide the most valuable services in achieving efficiency in financial management. If you do not know the flow of money in your business, no matter how effective the strategy you make, your business wouldn’t succeed.

Financial Reporting

Accuracy of financial and accounting records forms the basis of the solid finance function. The CPA audit firms vigilantly offer accounting and financial record-keeping services. The task for CPA firms here is to liberate the business owners from the tedious work to let them focus on core business activities.

Taxation Services

Taxation services include advice on tax preparation, filing returns, and representation in case of audits. Compliance with changing and complex tax regulations is a challenging task. The CPA firms offer valuable taxation services to prepare documents, lodge applications and represent their clients with regulatory authorities.

Financial Planning

Financial planning services include investment, debt and credit financing, retirement plans, and other financial counseling. Other prominent areas can include advice on strategy formulation, budgeting, cash flow forecasting, internal controls, and acquiring resources for business development.

CPA firms provide similar valuable services to individuals as well. These services include estate planning, wealth management, investment advice, tax planning, and retirement planning.

The role of CPA audit firms has evolved from auditing and accounting firms to strategic partners. The diverse challenges of modern business require a comprehensive and innovative approach by public accounting firms.

Future Challenges

A rapidly changing economic and business environment calls for a robust response from CPA firms. The flow of information and rapid rise in AI-empowered digitization of businesses has made the adaption inevitable. The future of financial management has changed. So does the future challenges for the CPA firms.

The new dynamics of business communication and digital business conduct has accelerated the pace of business activities. The financial and accounting records will require modern tools to analyze the information. The most critical task ahead for CPAs remains to adapt to the new technologies.

The advent of big data and real-time processing of business activities have made it possible to process large volumes of data. Providing valuable analytical and foresight for business has become challenging for modern CPA firms.

These challenges provide new opportunities to CPA firms too. They have been the catalysts of change in public accounting in the past too. The modern CPA firms are well equipped to adapt to the challenges of the future. Their prime challenge will be to remain relevantly forward-looking and provide useful insights for business decisions.

Contact Ash CPA to learn more. We offer a variety of financial services including audits. Call (617) 462- 6651 today.