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What Kind of Spender are You?

People generally fall into 1 of 2 categories when it comes to spending – impulse or deliberate. Both types of spending have an important impact on your personal and/or business finances. The truth is that everyone makes an impulse buy from time to time. It’s only when it’s a consistent habit that you need to be concerned.

Impulse Spending

This is the type of spending that’s not pre-planned. An example is going into a store to buy a loaf of bread and leaving with $10 or more – usually more – of other items. Impulse spending it typically triggered by a reaction to something seen or an emotion. The mind is an expert at justifying these types of purchases.

Impulse buying is often a type of “retail therapy” to make yourself feel good. Try to find other activities that elevate your mood such as meditating or taking a walk. Impulse buying makes it more difficult to manage your money, can lead to excessive credit card debt, and leave you with insufficient funds to pay essential living expenses. It can lead to the failure of a business.

Deliberate Spending

These are purchases that are pre-planned, made with forethought, and for a specific reason. It applies to everything from food to office equipment if you have a business. You buy only what you need and with the features you’ll actually use.

Breaking the Habit

Kicking the habit of impulse buying can be extremely difficult. It can be very helpful to make a list and stick to it when you go shopping. It can take time to learn to be a deliberate spender. When tempted toward an impulse buy, take a step back and examine why you want to buy a specific item.

Your Accountant Can Help

An accountant is a valuable ally in helping you control your financial health. They can assist with personal and business finances, along with guidance on purchasing decisions. He/she can help with investments, savings income issues, and budgeting.

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!

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Getting to Know Your Accountant

You’ll have a wide variety of questions to ask any accountant you’re thinking of hiring. While many people feel self-conscious about asking questions, it’s important to remember that he or she will be responsible for ensuring business taxes are completed and filed on time to helping you reach your financial goals. Never hire an accountant without getting to know more about them.

Tell Me About Yourself” Isn’t Intrusive

You’ll want to know if they’re licensed, have any special skills, their work background and experience. It’s an opportunity to learn why he or she became an accountant and the most gratifying part of the profession for them.

Software

If you’ve been using one of the consumer software programs available, you’ll need to know if your software is compatible with the accountant’s. You may have to print out and provide paper documents for transfer to your account if you decide to hire him or her.

Range of Services

Accountants can provide a wide range of services besides filing your taxes. They can provide guidance to assist you in attaining your financial goals, help you in operating more efficiently, and develop strategies for your changing needs. An accountant can be your trusted financial adviser from startup to retirement.

Clients and Reputation

It’s a good idea to find out the type of clients and companies with which the accountant normally works. Don’t hesitate to ask for references and to explore the professional’s social media accounts and website. A good accountant isn’t difficult to locate, but a great one will have earned a reputation for excellence.

Fees, Charges and Outsourcing

How an accountant calculates fees is also a critical question. An accountant is supposed to simplify your financial life, but fees and charges shouldn’t outweigh the benefits. You’ll also want an accountant that tends to your financial health personally, not one that outsources the job.

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!

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tax accountant conway south carolina

Top 5 (Most Important) Questions to Ask Your Accountant

Your accountant does much more than just file your taxes. He or she performs a wide variety of services to help you reach your business and financial goals. There are some essential questions you should ask your accountant each year to help maximize your business.

What Financial Goals Should I Pursue

Your financial goals will change over time as your business grows and your needs change. You may want to lower tax liability, increase profit margins, operate more efficiently, or be seeking an exit strategy. It’s important to talk to your accountant each year to ascertain what your primary goals are for the year.

Cost Saving Strategies I Can Use

Every business owner should be concerned with how to save their business money. Doing so can mean reducing overheat costs, waiting on expansions or upgrades, re-evaluating partnerships, or simply spending less. Your accountant can guide you in all those endeavors.

Tax Liabilities and How to Reduce Them

Knowing your liabilities will ensure you have enough money set aside to pay your taxes each quarter with no surprises. The information will tell you where funds should be dispersed or invested for greater profitability.

Which Financial Reports are Most Important

Your accountant tracks and monitors a variety of information. You need to be informed about every facet of your enterprise, but there are some reports that can be more important at any given time. Don’t be reticent about asking your accountant which reports of which you should be most aware. Doing so will keep you informed of current and future business trends, allowing you to make highly informed decisions about every aspect of your business.

Where Can Automation be Employed

Whether its payroll, machinery and equipment or customer service, there are a wealth of ways in which businesses can automate services and processes. Some enterprises are more automation friendly than others and can result in considerable savings. Automation is a topic that should definitely be discussed with your accountant each year.

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!

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What is a CPA?

CPA stands for certified public accountant. The professional designation is earned by accountants that have obtained a higher level of education in multiple areas that includes accounting, auditing, finance, taxation, and other areas of financial expertise. They’re licensed, trusted and highly-trained professionals that assist clients in attaining their financial goals. All CPAs are accountants, but all accountants aren’t CPAs.

What They Do

A CPA provides consulting services and helps clients create strategic financial plans for the future. The professionals file taxes, maintain financial records, provide litigation consulting, and assist clients with retirement planning and exit strategies.

They work with individuals, businesses, multiple industries, education, government, and a wide variety of non-profit organizations to keep clients informed of their financial standing. A CPA can represent a client during a tax audit only if they’ve qualified as an Enrolled Agent and received the right to practice from the U.S. Government.

Some CPAs choose to specialize in fields ranging from environmental issues and agriculture to forensics. The professionals work for clients ranging from athletes and celebrities to some of the largest corporations in the world, along with small business operators. CPAs are committed to continuing education to provide the most effective and efficient services for their clients. A CPA utilizes highly-sophisticated and specialized software to ensure accuracy.

Ethics

CPAs have a code of ethics. The information between clients and CPAs remains confidential. A CPA in Florida is required to complete a minimum of 4 hours of board approved ethics every 2 years.

Selecting a CPA

It’s critical for individuals to choose a CPA that they trust, since the professional will have access to personal and sensitive information. The CPA should also have expertise and experience in the client’s particular industry. It can be helpful to ask family, friends and peers for recommendations based on their personal experiences. The IRS also maintains a directory of credentialed professionals. CPAs are financial professionals and are available to answer any questions that may arise. Individuals need to feel comfortable taking any financial matter to their CPA.

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!

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Choosing the Right Accountant for Your Business

Choosing an accountant isn’t a task to be taken lightly. An online search can be helpful for accountants in your area, but you’ll have no point of reference. It can be helpful to seek referrals from family, friends and associates when seeking an accountant. You’ll want an expert that’s nearby, responsive, and available to answer any questions that may arise. The professional will play a vital role in your business and should be selected carefully.

Know Your Needs

A small business or one that’s newly established will have very different needs than that of a larger and more complex enterprise. It’s important that you take a good look at your business and understand the services you need before hiring an accountant.

You may need bookkeeping, payroll or tax preparation services. An accountant can provide all of that, keep you informed of financial trends, identify inconsistencies, and aid in maintaining cash flow. He or she can also assist in helping you create business strategies, investment opportunities for the future, and a business structure that best benefits you.

Certification

Only work with a certified public accountant (CPA) and one with experience in the same industry as yours. The professionals have the extensive training and expertise required to assist with bookkeeping, tax preparation and planning to help you attain your goals.

Ask Question

Narrow down your candidates and set up a meeting to talk with each one. Ask about their qualifications, services offered, and how much they charge. Determine what types of businesses they work with and how they can help your company grow and thrive. One of the primary questions should be their recommendations for saving your company money.

Take your time choosing an accountant. He or she may be an integral member of your business for many years to come. The right accountant for your business will be one of your greatest assets.

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!

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Who Uses a Forensic Accountant?

Most people would be very surprised to learn the extensive variety of industries in which forensic accountants are employed. They analyze data and determine through irrefutable numerical facts if and where a crime has been committed. They work in multiple industries where individuals and criminal enterprises may be involved.

Forensic consultants are primarily employed in white collar crime cases to determine if a crime has been committed. They also perform routine forensic services to ensure the honestly of companies and organizations in multiple industries. The specialists produce numerical evidence and may be required to testify in court. A forensic accountant is a certified public accountant (CPA) that has earned credentials as a certified fraud examiner (CFE).

Financial Institutions

Banks, credit unions and community development lenders all use forensic accountants, along with brokerage firms and savings and loan associations. Government lenders also employ the specialists, including those that make loans to veterans, homebuyers and students.

Insurance Agencies

Insurers are a prime target for fraud, making the companies a natural environment for forensic accountants. The professionals are kept especially busy after a natural disaster, as they sort through the myriad of real vs fraudulent claims that are made.

Government Agencies

Forensic accountants are employed by local and state governmental entities. The professionals also work at the federal level, including the Federal Bureau of Investigation (FBI), Central Intelligence Agency (CIA), and Internal Revenue Service (IRS). They also work with the Bureau of Alcohol, Tobacco, Fire Arms and Explosives (ATF) and the U.S. Securities and Exchange Commission (SEC).

Law Enforcement

From the local to federal level, forensic accountants work in conjunction with law enforcement. They handle a variety of cases in which a crime involving money is concerned, such as murders when a huge insurance policy is at stake and bankruptcy court.

Companies and Security

Risk management and security service agencies employ forensic accountants to aid in preventing crimes such as embezzlement and to strengthen corporate policies. Forensic services are used in the credit card and utility industries.

Phone and Internet

Computer applications, phone fraud and telemarketer fraud are all within the investigative abilities of a forensic 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!

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Role_of_Forensic_Accountant

What is the Role of a Forensic Accountant?

There’s been much in the news about forensic procedures ranging from police work to voting machines. A lot of misconceptions surround forensics in the field of accounting. A forensic accountant is a certified public accountant (CPA) who looks for evidence of a crime.

Forensic accountants typically work for financial firms, insurance companies, government entities, a wide range of law enforcement agencies, and even consulting companies. CPAs earn certified fraud examiner (CFE) credentials to be a forensic accountant.

The professionals often collaborate with other investigative teams, primarily to identify where a crime has been committed. The legendary criminal, Al Capone, is an example of someone who was taken down for tax evasion by forensic accountants in conjunction with law enforcement.

Skills

A forensic accountant has advanced skills in data analysis and is knowledgeable in the many ways that fraud can be hidden. They’re also highly experienced with the myriad of schemes criminals use.

What They Do

Forensic accountants perform a variety of highly-regarded and valuable tasks. They trace and conduct research into where funds and assets are going – known colloquially as “follow the money.” They prepare in-depth reports of their findings and may testify in court about the data when required. They typically work on white collar crime cases that include the following areas.

  • Money laundering
  • Insurance fraud
  • Securities fraud
  • Credit card fraud
  • Bankruptcy fraud
  • Locating hidden assets
  • Computer applications
  • Telemarketing fraud
  • Legal system procedures
  • Misappropriation of assets
  • Violations of generally accepted accounting practices (GAAP) or generally accepted auditing standards (GAAS)

Opportunities

Fraud is a crime that never takes a vacation, with new schemes and variations occurring every day. It’s significantly increased the demand for forensic accountants and created new and expanding opportunities in the field. Fraud is a crime that individuals take great lengths to hide and for which forensic accountants are uniquely qualified to ferret out.

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!

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Accountant Software

Accountant or Accountant Software?

It’s understandable that people want to save money, whether it’s on individual federal taxes or when keeping records for a business throughout the year. Many individuals are seriously debating whether to purchase professional accountant-level software or to hire an accountant. There’s really no comparison – hire an accountant.

Tax Accountant

Hiring an accountant minimizes the potential for an error and significantly reduces the danger of getting audited. Those with highly complicated tax situations involving stocks, bonds, investment income, dividends, and even cybercurrency are best served by an accountant. Professional accountants have worked with industry-grade software for years and even decades. They know exactly how and where to enter figures, and are familiar with all the terms used.

Tax accounts are highly trained professionals. They’re knowledgeable about all aspects of tax law, have the benefit of experience, and continuing education. They can provide advice about investments, credits, deductions, and tax planning to lower an individual’s tax burden, while helping clients to more effectively manage their finances. Accountants are available throughout the year to offer advice and answer any questions clients might have as they arise.

Tax Software

Many individuals believe that if they have accounting software like professional accountants use, their problems are over. Accounting software like the experts work with varies widely in cost. Some have a one-time cost per user of up to $999 per year. That’s just for the software. It doesn’t include licensing fees.

There’s also a steep learning curve for a non-accountant. Professional accounting software is highly sophisticated, with terms and abbreviations with which the average individual won’t immediately be cognizant.

Individuals trying to use accountant software can easily find themselves in the 4 percent of taxpayers that are audited. The risk of an audit is elevated if an individual has income exceeding $200,000 per year, is a sole proprietor of a business, or has foreign assets. Non-accountants trying to use professional accounting software are increasing their risk of an audit.

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!

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Tips on Effective Debt Management for Consumers

April is National Financial Literacy Capability Month and a good time for consumers to educate
themselves about how to manage their debt. There are strategies anyone can use to pay down
debt, without considering a consolidation loan.
Stop Spending
The first step is to stop additional spending. It’s only adding to your debt problem. Take a hard
look at where your money is going. Eliminate non-essential expenses and look for other ways to
save, such as cheaper phone plans, stop eating out, and forego costly morning coffee.
Budgeting
Compile a list of what you make each month and a list of all your debt. Add up the minimum
payments. It can be helpful to divide the debt total by the 4 weeks of the month and keep an
equal amount out of each paycheck.
Credit Cards
Pay down the smallest credit card balance first. When that one is paid off, take the money you
were paying on the small balance and add it to the payment on the next smallest balance. It can
be helpful to switch a balance from a high interest card to one with a lower interest rate.
Call Creditors
Call the people you owe money to – explain that you’re having trouble paying what you owe
and why. Ask if there’s a way your payments can be reduced or if they have an available
payment plan. Some companies are willing to work with you.
Collection Calls
If you receive a call from a debt recovery company, make sure its legitimate. There are
numerous scams operating and the debt may not even be yours. Mistakes do happen.
Never make an immediate “first” payment over the phone. Ask what creditor the agency is
representing. Never make payments unless you know the creditor for which the collection
agency is working. Call the creditor to see if they’ve sent the debt to collections.
Keep a Log
Keep a log of the collection agencies that call, the date, time, and name of the person you
talked to. It's illegal for collection agency representatives to intimidate, threaten or use bad
language. Send a request via certified mail with return receipt requested, indicating they should
stop. If the agency continues to call, report it to the Federal Trade Commission.

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!

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What are the Best Accounting Practices to Use for an Online Business?

Low overhead costs, greater scalability, and the ability to work from anywhere desired makes
an online business appealing. However, online business owners are subject to the same
requirements as brick-and-mortar stores.
Hire an Accountant
Many people are good at operating a business, but lack money management skills. Meeting tax
deadlines and having up-to-the-minute financial details are just some of the benefits of hiring
an accountant. The professionals have experience, strategies and highly specialized software.
They provide multiple financial services, relieve stress on owners, and enables individuals to
focus on operating their business.
Budgeting
A realistic budget is an integral part of operating any business endeavor. Doing so will tell
owners if they’re overspending, if collections are slow, and allows individuals to make
adjustments as needed.
Business Software
For those determined to take care of the financial aspects themselves, there are business
accounting software programs that can be used. However, they don’t have the specialization of
those utilized by accountants.
Entering Data
It’s critical to enter receipts, invoices and all transactions immediately to ensure accuracy. It’s
necessary to track income and expenses for tax purposes. It provides a record of business
health. Payroll will also need to be addressed if the business has employees.
Taxes
Business owners need an excellent grasp of their tax obligations and filing deadlines. There are
self-employment taxes and other expenses for which business owners are liable and for which
they must plan.
Financial Changes
Tax laws change quickly and they can adversely affect any business owner that doesn’t see
them coming. Staying informed of those changes will help individuals protect their enterprise.
Business owners must stay informed of issues affecting their industry.
Follow the Financials

Go over financial statements monthly to understand the financial state of the business. Those
statements will indicate areas where the company is doing well and where improvement is
needed.

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!

 

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