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Archives for March 2022

accounting

Services Offered by Accounting Firms

An accounting firm offers an extensive array of services to meet a multitude of needs. They have highly trained CPAs that provide personalized guidance in financial matters of all types to maximize client profitability. They assist clients in creating strategies for the future, meeting financial goals, and minimizing tax liability.

Tax Services

Tax services encompass far more than simply filing taxes with the IRS at the appropriate time. Accounting firms help clients develop strategies and plans to reduce taxes on income, investments, and retirement distributions. An accounting firm will also assist clients in reducing taxes on gifts and their estate, along with optimizing available financial opportunities.

Accounting

Startups, established enterprises and sole proprietorships can all benefit from the services of an accounting firm for budgeting, corporate tax planning, and accounting systems. Many businesses provide profit sharing plans and employee benefits to attract and retain the best workers. An accounting firm will help clients establish those benefits in a cost-effective way.

Payroll

One of the biggest expenses for any company is its payroll and records must be kept meticulously. Accounting firms prepare payrolls, handle direct deposits and ACH payments, and take care of federal and state tax payments. An accounting firm will also prepare W-2s, 1099 statements, and provide clients with monthly and quarterly payroll reports.

Consulting

One of the many services provided by an accounting firm, and one of the most valuable, is consulting. Accounting firms help clients focus on what’s most important to them to achieve their financial goals through forecasting and cash flow budgeting. They create personal financial statements, provide ledger services, and clients receive litigation support.

Attestation

Individuals should choose an accounting firm that offers all three levels of attestation – audits, reviews and compilations. The firms conduct in-depth audits to confirm inventories, transactions, and account balances. Reviews are provided to ensure the integrity of information and compilations prepared for internal management.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

 

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accoutant

The Difference Between CPAs and Accounting Firms

One of the most pressing questions for individuals and businesses is whether to hire a certified public accountant (CPA) or an accounting firm. The most important difference is that CPAs are allowed to sign tax returns for clients and represent them during a tax audit. Accountants don’t have the same standing with the IRS. All CPAs are accountants, but not all accountants are CPAs. A CPA has an advanced level of rigorous training, expertise and certification.

The success of any business relies on its financial health and individuals need to choose the right professional for their needs. The terms CPA and accountant are often used interchangeably, but there are distinct differences.

Accountant

An accountant provides basic bookkeeping tasks and can verify the work of an in-house bookkeeper.  They create reports and analyze those documents to generate long-term business plans. The professionals file tax returns and provide tax planning advice. An accountant can perform cash flow management and provide projections, along with bookkeeping services.

Accountants record, maintain and interpret financial records. They ensure the accuracy of financial documents, evaluate operations and can recommend best practices for clients. Accountants can create forecasts, perform risk analysis, and provide guidance on reducing costs and enhancing revenues.

CPA

A CPA provides all the services of an accountant and more, especially forensic accounting. They’re able to detect irregularities ranging from embezzlement to tax evasion. In addition to passing the stringent CPA certification exam, to keep their license, CPAs must also complete yearly educational requirements.

CPAs can legally represent clients before the IRS in the event of an audit. A CPA can file taxes and they utilize the most advanced financial software on the market that’s not available to the average individual. They’re experts in financial planning, provide clients with profit and loss statements, and can assist with profit-sharing and employee benefit packages. CPAs provide the data that business owners need to make sound decisions for the future of their company.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

 

Contact Us Today

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accounting firm

How to Choose an Accounting Firm

Choosing an accounting firm to handle business interests, personal finances and/or taxes can be confusing. Compounding the problem is the inability to discern which financial services are actually needed or an insufficient budget to hire an accountant. Instead, people often try to navigate their financials on their own and leave money on the table.

Identify Needs

Private individuals and businesses will typically have vastly different needs, though they can intersect. The same is true for startups, established businesses and sole proprietors. Cryptocurrency investors, those with lottery winnings, stocks, and rental properties will need an accountant with experience in those areas.

Qualifications

An accounting firm should be willing to provide their qualifications and areas of specialization in the services for which they’re being hired. Don’t be hesitant about asking questions to discover if they’ve been involved in audits and the outcomes. Seeking referrals from family, friends and/or other business owners is a good way to learn about accounting firms that may be right for an individual’s needs. Don’t forget to contact the Better Business Bureau to determine if there have been any complaints about the firm.

Experience and Support

Having experience in the specific areas for which an accountant is hired can’t be overstated. They’ll know about tax laws, deductions and credits available within specific industries. They’ll also have the expertise to assist with future planning and goal setting. Audits are always a potential event and the accountant should provide support and services that represent the client’s interests in that eventuality.

Near or Far

The location of the accountant relative to the client is important. Individuals may not have the time to drop everything to meet with their accountant. That’s especially true for people that frequently travel or have overseas holdings.

Making Connections

Clients should feel comfortable discussing any facet of their financial or business interests with their accountant. If they don’t, it’s time to find a new accountant. The chosen accountant should be able to explain things in clear and understandable language without jargon specific to the accounting industry.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

 

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tax deductions

What Charities are Tax Deductible

Charitable organizations rely on the generosity of sources ranging from grants and bequests to personal donations. However, when it comes to tax time, individuals and businesses will want to be able to deduct those contributions. Child, animal and veteran’s organizations are three of the most popular choices for charitable donations. They range from small, local organizations to those based in the U.S. with global reach.

There are thousands of deserving and qualified organizations to which donations can be made, provided it qualifies under IRS rules as a tax-exempt organization as defined by section 501(c)(3). However, it’s important to know that an organization can have non-profit status, without meeting the 501(c)(3) specifications. That distinction is the difference in whether a contribution can be claimed on income taxes.

A major consideration is if the funds will be used generally or specifically. For instance, people can make a donation to a cemetery and it will be tax deductible if the money will be used for general upkeep and maintenance for the entire cemetery rather than a specific gravesite or mausoleum. If the individual received something in return for their donation, such as tickets, merchandise, or a dinner, it won’t be fully deductible.

Contributions to organizations such as the Red Cross and Salvation Army are tax deductible, but not when designated for a specific individual or family. Donations are tax deductible for museums, non-profit educational agencies, and for some religious organizations. Donations to volunteer fire departments and organizations that maintain public parks are also tax deductible, as are private foundations. Many animal shelters and organizations hold 501(c)(3) status.

Use Caution

Holidays and natural disasters are always prime opportunities for scammers to seek donations. There are numerous legitimate organizations that accept monetary contributions. It’s up to each individual or business to ascertain if the organization meets 501(c)(3) qualifications if they want to claim their contribution on their taxes.

It’s also a good idea to ask how much of the contribution will actually go toward the organization for the maximum good. Many people are surprised to learn that a scant 10 percent actually goes toward the organization. The IRS has an exempt organizations tool to help individuals and businesses identify qualifying organizations.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

 

Contact Us Today

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