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!

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!

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!

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!

Tax day is a highly stressful event for many people, prompting them to procrastinate as long as
possible. Waiting to file yearly taxes can result in mistakes, missed deadlines and financial
penalties. Armed with a personal checklist, individuals will have the documentation they need,
filing will be easier, and tax day will be far less stressful.
Keep a Folder
Create a physical folder and place all documentation inside as the information arrives. Many
individuals use home accounting software and print-outs of pertinent information can make
filling out tax forms much easier.
Personal Information
The IRS wants very specific information about individuals. To fulfill those requirements, the
following information is required if applicable.
 Social Security numbers and birthdates for all filers and dependents
 Statement of earnings from all employment
 Social Security received
 Pension income received
 Earning information from side hustles or the gig economy
 Unemployment benefits
 Investment income
 State and local refunds
 Alimony paid or received
 Business or farming income
 Property taxes paid
 Home office expenses
 Any miscellaneous income from sources such as gambling
Adjustments
There are several ways to reduce tax liability and the amount owed. Some of those include:
 Student loan interest
 Education expenses
 Health Savings Account
 IRA contributions
 Self-employment health insurance expenses
Credits
Tax credits also help people lower their tax burden. Individuals will need documentation of:

 Child care expenses
 Adoption costs
 Home mortgage interest paid
 Charitable donations
 Insurance reimbursements
 Work expenses such as uniforms and union dues
 Medical-related expenses
 Energy credits
Taxes Already Paid
These can include personal property taxes, real estate taxes, and fees for vehicle licensing,
along with state and local taxes.
Miscellaneous Information
Individuals will need information about their bank accounts – both foreign and domestic – and
bank routing numbers. The IRS will need to know what account from which to deduct any taxes
owed or to deposit a refund.

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!

Accounting professionals use a variety of terms and acronyms that are common within the
industry. However, those terms may sound like a foreign language or a magical incantation to
those that aren’t familiar with them. Typically applied to businesses, they can also be relevant
in relation to individuals.
Accounts Receivable
Often abbreviated as AR, it’s the money that customers owe a business for products or services
that have been provided/delivered.
Accounts Payable
Abbreviated as AP, it’s the money a company or business owes their suppliers and vendors for
goods or services.
Assets
An asset is anything that has current or future monetary value, such as rental property, patents,
vehicles, and equipment.
Balance Sheet
It’s a financial report providing a summary of what a company owns, owes, and shareholder
equity.
Capital
Known as CAP, it represents the value of an asset such as goods or cash.
Cash Flow
CF is the revenue and anticipated expense a business expects to generate.
Equity
Referred to as QE, in its simplest form, equity is what a company has when debts (liabilities) are
subtracted from assets.
Liability
There are both long-term and short-term liabilities. A short-term liability (STL) is money owed
within a year. Long-term liabilities (LTL) are money owed over multiple years.
Limited Liability Company
LLCs have a business structure in which owners/members can’t be sued for debts or liabilities
the company incurs.

Net Income
Net income (NI) is also known as net profit. It’s the money a company makes after subtracting
all expenses from all income generated.
Return on Investment
ROI is the amount of financial gain/profit that’s expected to be made compared to the price
that was paid (invested).
IRA
An IRA or Roth IRA are retirement savings accounts. Individuals can divert pre-tax money to an
IRA and the funds aren’t taxed until they’re withdrawn. A Roth IRA isn’t tax deductible, but
funds aren’t taxed when withdrawn.

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!

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!

An accounting service provides a variety of services that are an integral part of operating a financially solvent business and maintaining compliance. It’s essential that Individuals speak with several firms before choosing one to ensure that it will be able to meet business needs.

Some accounting firms offer a comprehensive range of services, while others specialize in one or more areas. Business owners may have requirements beyond bookkeeping, payroll and tax filing. It’s critical that the accounting service provide the services unique to a particular business operation.

Bookkeeping and Payroll

Owning a business doesn’t automatically mean that the owner is good with the financial responsibilities of operating an enterprise. Accounting firms can process payroll, issue checks, and provide the appropriate forms for onboarding new employees. The firms help business owners monitor cash flow and may offer services for accounts payable, receivable and past due.

Taxes

An accounting service will provide advice and assistance in planning for tax time, prepare the necessary documents, and file federal and state taxes. The firm can also represent a client in IRS audits and reviews. Accounting services work closely with clients to identify beneficial strategies and business structuring to take advantage of tax laws. Services ensure that clients are in compliance with state and federal regulatory and tax laws.

Valuation and Financing

Businesses want to grow and that may include obtaining a loan to purchase new equipment or expand a facility. It can also encompass mergers and business buyouts. An accounting firm can provide the documentation to prove the company’s valuation, worth and growth for banks or investors.

Estate Planning

Businesses have needs for estate planning that are unique An accounting firm is adept at identifying those needs. The firm will work with an attorney skilled in estate planning to establish a family trust or business ownership transfer.

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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A W-2 is essential for filing taxes, but in the frenzy to collect all the necessary documentation needed to file each year, the form can easily become lost. It’s not uncommon for the forms to get lost in the mail. It’s a very good reason why individuals should have a filing system and not wait until the last minute to file their federal tax return.

Contact the Employer

If the employer has already mailed a W-2 to an employee, the individual can contact their employer, human resources, or the person in charge of payroll to get a duplicate. It’s typically the easiest and fastest way to obtain a duplicate copy. The form may be mailed, but a copy may be able to be immediately supplied.

Online Access

In some instances, employers utilize systems that will allow an individual to access their own information, see their W-2 online, and download a duplicate copy. Employees may be required to contact their employer or the payroll service to get access. If all attempts to obtain a duplicate W-2 from an employer has failed to produce results, it’s time to contact the IRS.

IRS Website

Businesses must also file tax returns. That includes information about employees and their earnings. If the employer has already provided that information to the IRS, individuals may be able to obtain a transcript of the data. Individuals will need to visit the official IRS website, click on “Get Your Tax Record,” and complete the required IRS form online.

Be prepared to answer questions. In addition to the individual’s contact information and employment dates, they’ll have to provide an estimate of their wages and taxes withheld. Employer contact information will also be required.

Alternative Form

Individuals will still be required to file their federal income taxes on time and pay any amount they owe. The IRS has a “Substitute for Form W-2 Wage and Tax Statement” that can be filed. If a W-2 is received after the person has already filed their taxes and the information is different, an emended tax return must be filed.

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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The tax code is highly complex. There are ways in which individuals can reduce their tax burden, many of which they’re unaware. Anyone can save themselves a significant amount of time, money and stress by hiring a tax accountant.

However, the tax professionals provide far more than assistance at tax time. Tax accountants help clients attain their financial goals, recommend tax strategies, and ensure taxes are filed accurately and on time. More than 74 million individuals and business owners received assistance from a tax professional in 2020. There are 3 essential questions to ask when hiring a tax accountant.

Self-Employment Taxes

Many individuals are operating side hustles and working in the gig economy without realizing that the IRS considers that self-employment. That makes earnings subject to additional taxes. Individuals should ask their tax accountant if they’re paying self-employment taxes and if there’s any way to reduce the amount.

Self-employment taxes include Social Security and Medicare, along with state and federal taxes on income. There are ways to reduce the tax burden and a tax accountant will know how to accomplish that.

Payroll

Business owners need to ask their tax accountant about placing themselves on the company’s payroll in the future. There’s a tax deduction that can be taken by doing so. Not all business entities are able to do this and a tax accountant will know if the client qualifies. For those that do qualify, it’s viewed as a distribution for IRS purposes and owners will be taxed as an employee.

Estimated Taxes

Many small business owners encounter problems during their first years of operation because they don’t budget for their taxes or fail to make estimated tax payments. A tax accountant will be able to provide sound advice and guidance on whether individuals should be making estimated tax payments.

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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