Millions of people fall victim to scams and fraud every year. It occurs when someone uses deceptive, misleading or illegal means to cheat you out of your money or jeopardizes your financial health. Financial fraud has increased by 70 percent during the past year, costing people billions. The threat can arrive in a variety of forms, via video, text, phone, mail and email. Artificial intelligence is exacerbating the problem.

Charity

Scammers often utilize names similar to authentic charitable organizations. The scams are especially prevalent during holidays, after a natural disaster or emergency.

Debt Collection

Fraudsters pose on the phone or via a letter, claiming you owe a debt that you don’t or one you’ve already paid.

Mortgages

The unscrupulous will ask for an upfront fee to provide a loan modification, prevent foreclosure, or for closing fees on a home.

Grandparents

One of the most effective scams targets grandparents with calls or messages saying a grandchild needs money for bail or other reason.

Imposter

A scammer pretends to be a trusted friend or family member. Sometimes it’s an authority figure threatening jail.

Lookalike Logos

Letters and websites. often contain official looking logos and insignias to confuse the unwary.

Jobs

Ads promising online employment or work from home jobs turn unsuspecting people into money mules that do the scammers’ work for them. They’re often not aware they’re being used.

Money Transfers

The availability of money apps makes it easy for scammers to conduct the fraud.

Lottery or Prize

In this scam, the perpetrator contacts you in any number of ways to say you’ve won a lottery or other large prize. You can only receive it after paying a fee.

Romance

Millions of people are looking for love and that’s how scammers find their victims. They steal images and profiles to commit the crime. They always need money to escape a foreign country, pay a fine, cover medical expenses, or other fake need.

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 (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

The tax laws in the U.S. seldom make sense to most people. Taxes are complex, complicated, and individuals feel there are too many tax breaks for the wealthy and corporations, while the poor and middle class are being taxed to the point of poverty.

An increasing number of people feel they’re experiencing taxation without representation, despite electing the members of Congress that enact tax law within the Internal Revenue Service (IRS). Warren Buffet, chairperson of Berkshire Hathaway, famously said he paid less in taxes than his secretary due to tax breaks.

A Tilted System?

Tax laws have been written in favor of the wealthy for decades, by people who are themselves wealthy. The reasoning is that tax breaks for the highest earners give those launching their own business something to which they can aspire. Once business owners make enough, they can take advantage of the same tax breaks as a form of reward. However, that doesn’t take into account the millions of Americans who will never own their own enterprise or be able to take advantage of those tax breaks. The most common are:

• Depreciation
• Deduction of business expenses
• Hiring their children
• Selling inherited real estate
• Earn income from investments
• Deduct business expenses
• Roll forward business losses
• Purchase whole life insurance
• Purchase multiple homes or a yacht
• Contribute to a health savings account (HSA)
• Open a solo 401(k) Plan

There are a wide variety of more complicated methods and strategies that the wealthy can employ to reduce their tax burden.

That’s not to say that low- and middle-income earners don’t receive some credit or deduction opportunity on their taxes. They just aren’t on the same scale and include:

• Earned income tax credit (EIC) if they qualify

• Child tax credit (CTC)
• Child and dependent care credit
• Lifetime learning credit
• Adoption credit
• Student loan interest
• Medical expenses exceeding 75 percent of adjusted gross income
• Charitable contributions

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 (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Consumer debt is at an all-time high and continues to rise as people use credit cards, payment plans and payday loans to make ends meet. Debt management is essential for maintaining financial health, but too many people don’t know where to start to achieve that goal. Good debt management increases your credit score and can open new avenues of opportunity. It also nets lower interest rates.

Pay Bills Promptly

Pay them as soon as they arrive. You won’t accidently forget a payment or incur late fees.

Prioritize Debt

Make paying high interest debt a priority. You’ll avoid exorbitant late fees. You can put that money on the next highest card when it’s paid off or into an emergency fund.

Always Pay at Least the Minimum Amount

You’ll avoid late fees that adds more to your debt. It pays the interest, but nothing on the principal, while demonstrating you’re trying to meet financial obligations.

Create An Overview

List all your debts and the monthly amount. Include credit cards, loans, car payment, mortgage or rent, and utilities. This tells you how much money you have going out each month. Compare it to your take-home pay.

Emergency Fund

An emergency fund is essential for eliminating unnecessary spending, debt, and to handle unexpected expenses such as medical bills, job loss, or home or car repairs Experts recommend saving 3 to 6 mos. worth of living expenses.

Pay What You Can Afford

If you can afford to pay more on credit cards or loans, do so.

Track Spending

Monitoring expenses tells you where money is being spent. unnecessarily.

Set Up Alerts

Sign up for low account alerts if your bank offers the service to avoid overdraft fees.

Bankruptcy

This is an option of last resort. It stays on your credit report for 10 years and will affect your ability to buy a car, rent or buy a home, and even obtain employment

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 (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

People have become accustomed to hearing the term forensic in connection with everything from elections to DNA results. Forensics also exists in the field of accounting

How is it Used?

Forensic accounting is utilized to investigate embezzlement or fraud, along with analyzing financial data. Forensic accountants use their powers of research, discovery and problem solving to detect irregularities, always keeping the intended goal in mind.

Famous Cases

Forensic accounting has solved dozens of crimes throughout history. Some of the most notable were the Bernie Madoff Ponzi scheme, Enron scandal, and the Barclays Bank fraud case. The accounting practices have been utilized to convict those involved in the banking, pharmacy, healthcare industries, and laundering of COVID-19 funds. Infamous Chicago gangster, Al Capone, was caught through the efforts of forensic accountants – he committed income tax fraud.

Early Beginnings

The art of forensic accounting was known and used in ancient Egypt by the pharaohs. The father of modern-day forensic accounting is credited to CPA, Frank Wilson, who was working for the Internal Revenue Service (IRS). He was charged in 1930 with investigating the financials of Al Capone.

Multiple Categories

The use of forensic accounting can be found in multiple areas encompassing securities and tax fraud, breach of contract or warranties, and insolvency, bankruptcy and reorganization. It also comes into play in cases of business valuations, money laundering, fraud risk assessments, and computer forensics.

Special Certifications

Those working in the field of forensic accounting in the U.S. have earned the credentials of Certified Forensic Accountant (CRFAC). Candidates for the certification must have a bachelor’s or master’s and be a licensed certified public accountant (CPA) or an international equivalent.

Forensic Professionals Needed

There will always be a need for forensic accountants, as there will always be those that seek to cheat and defraud. The demand for the professionals continues to grow and offers opportunities with highly sophisticated data analytics, machine learning, and artificial intelligence tools.

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 (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

There are many subfields and specialties within the accounting industry. However, there are 4 basic types that individuals will encounter.

Individuals that operate a business or are self-employed may have an accountant that maintains the records for their business and personal account.

Financial Accounting

This has a focus on reporting the financial information of an organization. Statements are prepared for regulators, investors and suppliers.

Management Accounting

This is for internal use by management. It has an emphasis on analysis, measurement and reporting.

Tax accounting

In this type of accounting, the professional prepares tax returns, payments, and ensures that tax deadlines are met. They do this for individuals, small businesses, large corporations, and organizations. This is the type of accounting with which most individuals are familiar.

Cost Accounting

The accountant focuses on determining a company’s variable costs for production and services based on its organization’s structure.

Why Accounting is Important for Businesses

For an enterprise to survive and grow, owners must know how much they’re spending for expenses that include labor, production costs, overhead, and liabilities. These expenses determine profit and losses. An accountant keeps clients advised of these essential numbers, allowing them to control costs, make informed decisions and plan for the future.

Accounting for Individuals

Individuals don’t have to own a business to benefit from the services of an accountant. The professional is able to help clients take advantage of all the credits and deductions to which they’re entitled, thereby reducing the amount of taxes they owe.

Tax Preparers vs Accountants

A tax preparer isn’t necessarily an accountant. Tax preparers can’t perform all the same services as an accountant. Kiosks spring up everywhere during tax time. While these tax preparers are capable of completing and filing taxes for the average person, people with a business or are self-employed should consult an accountant.

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 (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

The world discovered during the pandemic the integral role that supply chains play in delivering goods around the globe. They also discovered the disastrous consequences when those supply chains are disrupted. Your accountant can play a major role in the management of your personal supply chain network.

Acquisition and Distribution

An effective supply chain management system for any business relies on three elements. The first is reducing costs, followed by increasing the speed of products from the source to the customer, and finally, compressing that cycle of acquisition and distribution. A variety of factors at any point in the process can affect any company’s bottom line, though it will hurt smaller enterprises first.

Accounting, Costs and Logistics

Accounting is a critical component of logistics, whether you’re operating a small mom-and-pop business or a billion-dollar company. One of the many services your accountant provides is helping you to lower your costs and operating more efficiently, which can be accomplished through supply chain management. The result is cutting of expenses, getting products from vendors to you quicker, and out to customers faster and at a lesser cost to you.

Good supply chain management reduces your cost, helps you remain competitive, and increases profitability.

Strategic Planning

Your account will provide you with analytics, an economic perspective, and help you create strategic financial plans – all from an objective viewpoint. You can then evaluate the information, anticipate challenges, and prioritize opportunities.

Final Outcomes

The ultimate decision on your supply chain is always yours. The job of your accountant is to assist you in reducing cost and waste, while increasing financial flexibility. Your accountant will provide you with the information you need to make informed decisions that are best for your company.

Some accountants also have specialized expertise in supply chain management. It enables them to be an active partner with others in the supply chain for its establishment and implementation. Most importantly, your accountant will provide you with options to reduce costs, operate more efficiently, and boost revenues.

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 (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Rental properties have always been a popular method of building wealth and creating an income. The cost of rent has increased significantly since the lockdowns of the pandemic ceased. That increase has motivated many to invest in rental properties of their own. However, before becoming a landlord its critical that individuals explore the pros and cons. Most people new to the rental industry don’t examine both side of the equation. It’s important to understand that operating rental properties is a business and is going to require the services of an accountant if the enterprise is to be profitable.

The Benefits

Being a landlord is a great job for those who are people persons. They interact with an array of interesting people. It’s also a good business for those who are retired. Benefits of a rental business include:

• Nearly passive income
• Long-term investment
• Tax deductible business expenses
• Can be operated in addition to a “day job”
• Can pay for itself on a monthly basis
• Property value increases
• Equity accrual

The Disadvantages

Operating rental property has some definite disadvantages, the most obvious of which are destructive or constantly complaining tenants. Other considerations include:

• Must be operated as a business
• Maintaining compliance with the law
• Tenant screening
• Time consuming investment
• Yearly upkeep and maintenance
• Tenant safety and security
• Appliance replacement
• Cost of contractors to perform repairs

Perhaps one of the most unpleasant tasks of a landlord is evictions. It can be a difficult, costly and time-consuming process, during which time the structure isn’t earning any income.

An Accountant Can Help

An accountant that specializes in real estate tax accounting is invaluable. He or she can help improve profitability, file accurate tax accountings, and do so at the appropriate time. The accountant can help property owners plan for the future and establish online rent paying. They’re experts at assisting rental property business owners minimize their tax liability, stay updated on pertinent laws, and maximize their business structure.

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 (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

The profession of accounting is one of the oldest in existence. It’s been practiced for centuries and can be traced back to the 13^th century

where it was being used to great benefit by the Venetians. However, Italian mathematician, Luca Pacioli, was the first to describe double entry bookkeeping in his 1494 book. The method was in use by the Venetians during the Italian Renaissance. That publication earned him the appellation of “Father of Modern Accounting.”

Earliest Accounting

Even before Pacioli and the Venetians, a rudimentary form of accounting was being used by the Mesopotamians in 7500 B.C. They used a system of clay objects, each of which represented a specific type of goods, the number and their financial worth. The Mesopotamians even kept an account of labor and costs.

Pacioli Taught de Vinci

The mathematician lived with Leonardo de Vinci and instructed him in math. Pacioli was also known as Luca di Borgo in reference to his birthplace of Borgo, Sansepolcro, Tuscany. He was educated in what was required to be a merchant.

Pacioli’s Knowledge

In his book, Pacioli described the use of ledgers and journals, emphasizing the need for balancing credits and debits at the end of each day. Also included was the information on recording assets, accounts receivable, expenses, income, capital, and inventory. In his book, he introduced the rest of the world at that time to income statements and balance sheets. Pacioli also proposed a code of ethics for accountants.

Pacioli’s Impact on Accounting

His description of double entry accounting revolutionized the way that businesses began overseeing and managing their operations. It improved the efficiency of enterprises and helped owners achieve greater profitability. The essentials of double entry accounting have changed little over the centuries. The information contained in Pacioli’s book is still relied upon today by lending institutions, investment agencies, not for profit organizations, and businesses – a gift to the financial world from the “Father of Modern Accounting.”

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 (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!