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.

tax preparation services

What Are Tax Preparation Services?

Tax Preparation Services

Certified Public Accountants (CPAs) and other tax preparers mainly offer expertise in tax consultations. Most of the accounting and tax preparation services include various other business support services too. The primary role of a tax preparer remains to offer advice on taxes to its client on compliance and reducing the tax liability legally.

Who is a Tax Preparer?

A Tax Preparer is an individual who analyses, calculates, and files tax returns for clients. Tax preparers offer their services to individual clients and businesses. They have extensive knowledge of tax laws, statutory regulations on taxes and experience to file the tax returns on behalf of their clients.

Tax Preparers can be categorized into credential and non-credential categories.

Credential Tax Preparers are the ones with accredited qualifications and memberships from Internal Revenue Services (IRS) or State boards. These qualified and accredited professionals include:

  • Certified Public Accountants – CPAs
  • Enrollment Agents – EAs
  • Tax Attorneys or an Unlimited Rights holder Representative

Non-Credential Tax Preparers do not hold any certification or accreditations from institutes like AICPA. These tax preparers are usually tax accountants and specialists with expertise in tax filing with knowledge through training.

What is The Role of a Tax Preparer?

Credential tax preparers like a CPA can handle your complex tax issues. CPAs represent their clients with IRS from tax preparation, filing, and appeals. They are certified and possess skills in accounting and taxation. The primary role of a tax preparer like a CPA remains the tax advisory service.

However, including both individuals and businesses, the role of a tax preparer may include broader financial advisory services too. A qualified and skillful tax preparer will offer core expertise in strategizing the tax plan for your businesses.

Some key areas of advisory from a tax preparer include:

  • Advice on Entity Structure
  • Tax Audits and analyses
  • Business financial advice on issues like collections and payables
  • Advice on estimated taxes
  • Employment contribution plans and tax impacts
  • Filing tax returns
  • Appeals with the IRS

Broadly speaking, each financial and accounting practice of a business impacts the tax returns. The role of CPAs does not limit to tax calculations only. Unless you don’t work collaboratively with your CPA, you can’t formulate an effective tax strategy.

Number crunching seems fun, but when it comes to tax returns, these are daunting tasks. The role of tax preparation services is to take you through the imbroglio of the complexity of tax issues. Businesses, in particular, need to follow particular rules regarding every financial decision.

What Are The Tax Preparation Services?

Qualified tax preparation services include several categories from taxation to financial advisory. The services include a range of tasks such as tax preparation, tax credits, and deductions, advice on capital gains, etc.

Partnering with a qualified tax preparer like an industry specialist CPA can offer added value to your business. You should expect good value for money on some core services offered by CPAs.

Tax Strategy

Your business tax strategy starts with the right entity formation. Industry specialized CPAs can offer specialist advice on the correct entity set up. The accounting records and asset valuations, depreciation, employee plans, and other important financial decisions will impact your final tax returns.

A tax preparation service begins with a strategic plan for their valued clients.

Tax Preparation

This is the primary task assigned to the tax preparers. You wouldn’t want to pay a tax penalty to the IRS with miscalculations and late filings, would you?

A few mistakes on carryovers or carrybacks can lead you to a 20% penalty from the IRS. So, better to leave the task to experts.

Deductions and Credits

This is where practically your tax liability is reduced. But you can’t randomly adjust for deductions and credits. For example, you need to file correct estimated taxes based on the data available. The refund filings with estimated taxes or advance premium tax credits must closely match your annual income returns.

Financial Advisory

This is where you’ll get the difference and premium services from accredited tax professionals. An industry specialist CPA will offer a comprehensive financial advisory service for your business. The advisory services take the role of a virtual CFO here for your business.

Representation

Your business will need IRS representation in many situations. Tax filing and delinquent filings often require IRS representations. A qualified CPA and tax preparation services will represent your business with the IRS. However, the job is more often performed by the tax attorneys.

Do Tax Preparation Services Offer Only Tax Advice?

The role of tax preparation services requires a strategic business partnership. The layman’s concept of reducing tax liability with number-crunching has gone obsolete long ago. The modern tax preparers will lead you through every aspect of business that affects your tax planning. Tax filing remains only one important part of the strategic partnership.

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

Financial services accounting

How Professional Financial Services Accounting Benefits Your Business

Financial Services Accounting

The traditional role of professional finance and accounting services has evolved a lot in the recent past. Accounting and finance departments are now more active strategists than preparers only. The partnering trends with professional financialservices and accounting have increased and will see upwards trends for businesses in the future. The advantages of partnering with professional service providers are manifold for any business.

Business Analytics

“Data is the new Gold of the 21st century”, they said a long time ago. In a fiercely competitive business environment, no business can compete without sound data analysis. Financial services accounting does not limit its role to record-keeping only. The partnership will offer insights and analytics for the core business decisions to you.

The analytics will then be derived from accurate accounting and financial records. Professional financial services offer expertise in business analytics. It is one of the key skills that many businesses often overlook.

A slight change in costing formula, a fraction of changes in profit margins, collections, and payables, all finance departments stand above the grounds of analytics. A professional financial service partner will provide key information for your business.

Strategy Formulation

Fortunately, today’s professional financial service accounting service providers have to become proactive in business partnerships. A conventional approach is to analyze the accounting data by the quarter or year-end only. A professional financial advisor would rather take a more proactive approach in helping a business in strategy formulation.

For instance, key inputs from professional financial advisors can help your finance strategy. In addition, building on the historical data analytics, you’ll be able to make ratified decisions for the future. Thus, a professional financial service will provide an essential link in your business performance appraisal and future strategic planning.

Control over Finance Activities

Moreover, this is the core of a financial service accounting function for any business. From record-keeping to tax compliance, and from debt structuring to investment decisions. Likewise, a professional finance service will give you control over each aspect of the finance segment of your business.

  • Some key finance activities to gain control for better business performance include:
  • Accuracy of accounting records from ledgers to financial statements
  • Timely and proactive budgeting analyses
  • Accounting for taxation
  • Business communication linking the finance department with other segments
  • Effective internal and external communication
  • Compliance with audit and taxation regulatory requirements

Accuracy of financial statements provides useful analytics. That makes the strategy formulation and compliance easier for any business. For this reason, you should be looking to partner with a professional financial service that provides you control over finance activities.

Key Finance Decisions

Make a more informed financing decision with professional advice for your business. Small and Medium size businesses often lack the ability in deciding key financial decisions. These decisions include debt financing, debt restructuring, and investments.

Debt financing reduces the tax liability with interest cost deductions. At the same time, highly leveraged businesses incur high-cost debt financing from lenders. Shareholders and lenders seek a balancing side with the financing structure of any business.

Lenders analyze key financial ratios to evaluate the risk involved in a business. In other words, a professional financial service accounting can provide you valuable advice on such key metrics.

Some businesses need to make informed decisions on special financing such as project financing, equipment financing, etc. For high-priced assets, the consideration with lease and buy also plays an effectively cost-benefit decision.

Improved Business Efficiency and Competitiveness

As a professional financial service provider, we say, you should focus on your business growth. An efficient partnership with professional CPAs will improve your business efficiency. It is like optimizing for business competitiveness.

Several reasons may hinder your business growth. One key concern for many businesses to remain is the lack of financial and accounting skills. Timely and accurate accounting reports provide a forward-looking scenario of the business. It removes inefficiencies and errors that improve the overall finance department’s effectiveness.

It often becomes difficult for businesses to invest in newer technologies other than the core business activities. Lack of investments in tech-based financial solutions remains one critical segment too. A professional financial service can reduce that friction without the need for heavy investments in accounting technology such as expensive cloud-based accounting systems.​

Financial Risks

In short, financial risk arises due to several internal and external factors. We have seen many businesses struggling with the lack of contingency planning in the past few months. Nonetheless, lack of adequate tax planning, error-prone tax estimations, and non-compliance with regulatory requirements can all cause major financial risks to your business.

If your debt structure is not optimal, you are losing on effectively higher debt costs. Likewise, every business decision links with financial risk somewhat.

Professional financial and accounting services bring more value to the business than accounting records. Furthermore, they provide you with informed financial reports to formulate competitive strategies, improve efficiency, and mitigate business risks.

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

Tax advisor Framingham ma

Why You Should Consult With a Tax Advisor

Tax Advisor

Tax advisors are professionals with qualifications and expertise in tax laws. They put in their extensive knowledge and experience in formulating your tax strategy. A tax advisor’s role depends on the client’s needs within the tax regulations.

A tax advisor can have a title of a CPA, an attorney, or an Enrollment Agent. The main role of the tax consultant remains to minimize the tax liability of a client within the permitted regulations. Compliance with tax laws is obligatory, not optional, hence is as important as reducing the tax burden.

Who Needs A Tax Advisor?

Individuals, businesses, trusts, and other types of entities, all need to comply with tax regulations. Even if you do not pay taxes, you may still need to file for tax refunds and credits. Individuals with dependents and joint tax filing require tax consultation. The complexities and changing regulations, demand for certain skills. A tax professional is well versed with taxation laws and changing impacts.

Businesses require tax consultation year round not just with the tax season. All businesses need to file for estimated taxes. They need advisory on tax planning, withholdings, VATs, Retirement planning, sales, and corporate taxes. Several financial aspectsrequire expert advice from a specialist.

You need a tax advisor, as an individual or a business owner if:

  • In need of professional advice on tax planning
  • Looking to save costs and time
  • Need to reduce the tax liability with compliance with the regulations
  • Could benefit from a year-round trusted partner
  • Need mitigate the financial risk for your business
  • Require industry specialists such as a Dental CPA’s expertise
  • Want to outsource your tax filing to a trusted partner

Keeping up with the tax regulatory changes isn’t an easy task. For example, many businesses require to comply with current changes in IRS tax regulations with Covid 19 relief packages such as PPP relief options.

Why You Should Consult With A Tax Advisor?

If your business passes on taxes to you as a business owner, you should hire the same tax professional for both tasks. Before that,you should consult an expert on the right entity formation. That’s the reason we say, tax advisory starts well before filing taxes.

You need a tax consultant from tax planning, to the tax filing, and even after filing the returns. IRS may send you an audit mail requiring explanations on certain points. A professional will represent you in the IRS audits and provide the necessary explanations. The audit representations always require expertise and backing of records with proofs.

Here are a few compelling reasons to consult a tax advisor.

You Need Advice on Business Taxes

Business taxation is complex, unlike other laws, small changes in tax regulations may affect your tax returns quickly. Your business tax planning will begin well before the year-end tax season. Estimated taxes are filed quarterly or monthly. Your employer’s retirement plans will affect the year-end tax filings. Your pass-through income will affect your income taxes, and so on…

There are several ways a tax plan can affect your final returns. Say, your depreciation methodology will affect your business costs and returns, hence the tax liability. The itemized deductions and estimates will also affect your net tax returns by the year-end.

You must pay your business taxes as you earn income through estimated taxes. Underpayment of estimated taxes can result in penalties from the IRS. It means you need a dedicated tax professional who can advise you on tax minimization and NOT tax EVADING.

Outsource Tax Filing To an Expert

Well, perhaps you are not as well versed with IRS tax regulations as experts. You need to handle the state and local taxes as well. Then you’ll need an expert to handle the tax filings.

Outsourcing the tax filing remains the most popular choice for the US tax filers. The prime reason behind it is the expertise and skills required to comply with tax regulations are infrequent.

Save the Time, Money, and Hassle

Perhaps you are well versed with the taxation laws with federal and state regulations. Yet consulting a professional tax advisor will save you a lot of time. The final costs with professional fees and tax minimization will be lower. Not to forget escaping IRS penalties for errors in tax filings.

You should focus on the core business activity than tax calculations. As a business owner, you know it the best, “time ismoney”.

Talk to Your Tax Advisor

Finally, you definitely need to consult a tax advisor if you feel comfortable talking to a human rather than a robot. A professional advisor will be there for you whenever you need to consult. The human touch will make a whole lot of difference in your tax consultation program.

Schedule a consultation with Ash CPA. Call (617) 462- 6651.