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!

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!

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!

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!

Most people hear the term entrepreneur and immediately envision a startup company in the tech industry or similar field The truth is that there are millions of entrepreneurs, many of whom are operating businesses in the gig industry. Whether an individual is a first-time business owner or a serial entrepreneur, there are some essential accounting tips they need to know.

Expenses

Create a budget. Cash flow is the life blood for an entrepreneur. Cash flow issues are the primary cause of business failure. It’s essential to keep careful watch over expenses. Use bookkeeping software to make the process easier.

Cash or Accrual

A cash-based accounting model records expenses and revenue when the money is paid. It’s good for small businesses, those that offer professional services, and businesses that don’t maintain an inventory. An accrual model records revenue when it’s earned instead of actually received. It’s a better solution for larger companies, those that are more complex in nature, and businesses that keep inventory.

Write-Offs and Deductions

Maintaining receipts ensures entrepreneurs receive all the write-offs and deductions to which they’re entitled on their taxes. That can include vendors, transportation, and monthly bills associated with operating the business. Be sure to categorize expenses.

Credit

Don’t rely too heavily on credit cards It’s easy to use credit as a means of supporting the business, but entrepreneurs can easily find themselves so far in debt they’re unable to even make minimum monthly payments on their card.

Predict the Future

Keep an eye on financial trends. A realistic financial forecast is essential to plan for future sales, expenses and income.

Separate Accounts

Never combine personal and business accounts. Its easier to monitor business health and prevents entrepreneurs from being responsible for business-related debts.

It’s the Law

Entrepreneurs need to know and understand the law regarding the type of business they have. Anyone in business for themselves will have tax responsibilities and expenses that hourly or salaried employees don’t. Hiring an accountant is a smart strategy. Individuals can benefit from an accountant’s experience, knowledge, and the professional can help keep a new business on track for success.

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 terms business, company and corporation are often used interchangeably by the general public. However, there are some significant differences and definite benefits.

Most Important Benefit

Corporations enjoy a variety of benefits and perks. The greatest benefit of all is limited liability. It means that stockholders can reap the benefits of profits through dividends and stocks, but they can’t be held personally liable for the company’s debts or a product problem. The only real risk to stockholders is losing the money they invested in the corporation.

What it Is

A corporation is a legal entity that’s often referred to as a “legal person.” It’s completely distinct and separate from the founders or owners. The Supreme Court ruled in 1886 that corporations were entitled to many of the same rights and responsibilities as an individual under the Fourteenth Amendment. Corporations can:

• Pay taxes
• Sue and be sued
• Own assets
• Enter into contracts
• Loan and borrow money
• Hire employees

Anyone Can Form One

Individuals or a group of people with a shared goal can form a corporation. To be recognized as a legal entity, it must be incorporated. Most corporations are for the purpose of making a profit, but there are also profit and non-profit organizations, along with charities that operate as legal corporations.

A corporation can conduct business under its own name, but it can also conduct business under a completely different name or have subsidiaries with other names that are owned by the parent company.

The Definition Varies

Corporations are created under the laws of the state in which they’re formed, but the exact definition of a corporation can vary among jurisdictions. The founders must file articles of incorporation and issue stock. Stockholders must also elect a board of directors during an annual meeting. The Securities and Exchange Commission (SEC) and federal law regulate public corporations.

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 most important reason you need a certified CPA is that they can save you money. Tax
preparers typically undergo a basic course before embarking on tax preparation services. A
certified CPA has years of specialized education and experience to draw upon. There are many
levels and specialties in the realm of CPAs and its important to find the right professional for
the task.

More Money
A certified CPA utilizes specialized, sophisticated software and is cognizant of the changing tax
laws. They’re knowledgeable in credits, deductions, extensions, and amendments of which the
average individual wouldn’t be aware. They can even amend returns from previous years. The
experts are able to identify errors that could result in higher taxes or an audit and maximize
refunds.

IRS Representation
Everyone fears an IRS audit and it’s difficult to justify a tax return when you’re in a panic. A
certified CPA has the authority to represent you in an audit. The professionals deal in facts,
figures, and speak the same financial language as the IRS.

They can also aid in lowering the financial cost of an audit and negotiate on your behalf if the
findings go against you. Just remember that even if the return is completed by the CPA, you’re
still responsible for the information that it contains.

Confidentiality & Documentation
Home filing systems can be haphazard, incomplete, and completely unsuitable if they pertain to
a business endeavor. A certified CPA retains your records and treats them with the utmost
confidentiality.

Future Planning
A certified CPA is a licensed professional qualified to prepare your taxes, plan for future tax
returns, retirement, investments, and business success.

Peace of Mind
Tax returns are complex and complicated. The peace of mind that comes with a certified CPA is
worth the extra cost. Consumer software and even online preparation sites are essentially a
one-size-fits-all solution for “easy” tax returns. They don’t provide the same level of experience
and expertise that’s provided by a certified 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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