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Accounting question

 
Old 02-07-2019, 11:51 AM
  #21  
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Originally Posted by Tri-Tip View Post
The real question is can you afford to NOT have an accountant.

The cost of a PROFESSIONAL to do your taxes can save you SEVERAL TIMES what their fees are.

For years, my father did the personal taxes for him and my mother. My dad was a controller all his life, so he knew his way around bookkeeping and accounting.

Then one year, he decided to have an CPA do his taxes, this was back in the early 80's, and it cost him $125. He had already prepared the forms himself as he wanted to see how he did in comparison to a pro, and even after paying the CPA's fee, he saved over $500 in taxes over what he prepared himself based on his knowledge and background.
There is a lot to this statement. One screw up can cost a small business a fortune in fines and penalties, ask me how I know

Too many small businesses don't learn this crucial step until its too late. I was one of them. It cost me mid six figures when all was said and done. My accountant now rapes me, but we have an iron clad agreement, professional insurance coverages, and more importantly, peace of mind.
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Old 02-07-2019, 11:58 AM
  #22  
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Originally Posted by PKguitar View Post
No, all about my schedule D.

I know it sounds "rare" when you read that half a percent of returns get audited in a given year, but that means that 1 in 200 get audited. I'm sure that almost all of the people I know make between $100K and $500K per year, so if I know 200 families, that means in any given year, someone I know is likely getting audited. It's really not as rare as people think.
Once you get audited, regardless of wrongdoing or not, you're on "the list"
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Old 02-07-2019, 01:31 PM
  #23  
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Originally Posted by K-Spaz View Post
I have no interest in google having that information.
If you are using CC for all purchases than that info is out there.
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Old 02-07-2019, 03:26 PM
  #24  
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Originally Posted by PKguitar View Post
My 2016 Federal return got audited, I made less than $200K that year.
You probably did the math wrong.
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Old 02-07-2019, 03:28 PM
  #25  
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Originally Posted by K-Spaz View Post
For no more money than one of those crates at Staples and a box of Pendaflex folders you can set up a filing system adequate for a one man operation. A spreadsheet would be fine, there's absolutely no need to pay Intuit the ransom on their software.
And GNU Cash is free.
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Old 02-07-2019, 03:38 PM
  #26  
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A good accountant is worth every penny.
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Old 02-07-2019, 04:08 PM
  #27  
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Good CPA's love to be interviewed and love more to flex their ideas for you. Find a CPA who is also a tax attorney and allow them to create a tax plan .. in other words they will get you ahead of the game instead of you playing catch up every year. This might cost $2k but it's likely you will save multiples of that each year. They can help you see you business and life with a broader perspective in light of the new tax law. These guys live to apply the tax law to your advantage.
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Old 02-07-2019, 07:29 PM
  #28  
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I'm using the online version of QuickBooks self employed because it has the ap - the one that takes pictures of receipts and uploads, etc.

I just don't see what benefit qb might be other than importing relevant info directly over to TurboTax self employed. This is why I was saying I was not sure if I should continue to pay for it.
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Old 02-07-2019, 07:43 PM
  #29  
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Originally Posted by J S Machine View Post
I'm using the online version of QuickBooks self employed because it has the ap - the one that takes pictures of receipts and uploads, etc.

I just don't see what benefit qb might be other than importing relevant info directly over to TurboTax self employed. This is why I was saying I was not sure if I should continue to pay for it.
The benefit is it has no monthly fee and your data isn't public.
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Old 02-07-2019, 07:51 PM
  #30  
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Originally Posted by Donuts View Post
Good CPA's love to be interviewed and love more to flex their ideas for you. Find a CPA who is also a tax attorney and allow them to create a tax plan .. in other words they will get you ahead of the game instead of you playing catch up every year. This might cost $2k but it's likely you will save multiples of that each year. They can help you see you business and life with a broader perspective in light of the new tax law. These guys live to apply the tax law to your advantage.
This man knows what he is talking about. I have described some of my tax strategies on the board in the past. I don't implement ANY of them without vetting with a tax attorney first. Those who use a CPA as the sole source of tax advice are well-advised to observe the rule of "caveat emptor".
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Old 02-07-2019, 08:11 PM
  #31  
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Originally Posted by PKguitar View Post
This man knows what he is talking about. I have described some of my tax strategies on the board in the past. I don't implement ANY of them without vetting with a tax attorney first. Those who use a CPA as the sole source of tax advice are well-advised to observe the rule of "caveat emptor".
And yet you both need to realize that there needs to be a dollar volume of the business, commensurate with the cost of services. I probably opted in at a point where it was questionable if the advice was worth it for someone at my income level, but, now it's well worth it for me to pay the tariff. At the stage of the Ops business and total volume, I'd be skeptical of paying the sort of annual accounting fees I pay and say they could "Save" me as much as their fees. There's a question of how complicated the business is, what other advice you can get for free. But applying a one-size-fits-all answer and saying he needs a guy at $300-$500/hr to keep track of his knife business just shows that you guys are not in touch with reality. That's not to say a good accountant isn't worth a lot, mine has paid for his fees for the rest of my life. BUT, let's also not overstate the benefits.
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Old 02-07-2019, 10:38 PM
  #32  
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Originally Posted by K-Spaz View Post
And yet you both need to realize that there needs to be a dollar volume of the business, commensurate with the cost of services. I probably opted in at a point where it was questionable if the advice was worth it for someone at my income level, but, now it's well worth it for me to pay the tariff. At the stage of the Ops business and total volume, I'd be skeptical of paying the sort of annual accounting fees I pay and say they could "Save" me as much as their fees. There's a question of how complicated the business is, what other advice you can get for free. But applying a one-size-fits-all answer and saying he needs a guy at $300-$500/hr to keep track of his knife business just shows that you guys are not in touch with reality. That's not to say a good accountant isn't worth a lot, mine has paid for his fees for the rest of my life. BUT, let's also not overstate the benefits.
Here's some reality.. a CPA/tax attorney is as smart of an investment as any small business owner could ever imagine. Reason being is that the tax attorney can visualize situations, advantages and remedies that the small business owner didn't even know existed and that broadened perspective takes the small knife business to another level. This said professional sees the bigger picture and that's priceless to a business owner that's buried in the trenches of day to day survival.

Last edited by Donuts; 02-07-2019 at 10:44 PM.
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Old 02-08-2019, 09:04 AM
  #33  
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Originally Posted by Donuts View Post
Here's some reality.. a CPA/tax attorney is as smart of an investment as any small business owner could ever imagine. Reason being is that the tax attorney can visualize situations, advantages and remedies that the small business owner didn't even know existed and that broadened perspective takes the small knife business to another level. This said professional sees the bigger picture and that's priceless to a business owner that's buried in the trenches of day to day survival.
You're preaching to the choir here, I've already got this covered. As I stated above, mine can bill me for the rest of my life and I'm still ahead. And while the ideas he's given me are fairly simple, it's like you say, I simply don't have time to wade through all that crap to know where the benefits are. And, he's dealing with 100s if not 1000s of situations every day all day, dealing with all sorts of nuance there's no way I'd ever research. I get it. But I'm also saying, at the stage he's at, and for the volume he's doing in a side business, (he works full time and does this on the side) some consultation is probably in order, but paying thousands annually for tax prep and advice may not be in the cards given his gross volume. My own costs are about $1800-1900 annually and that consists of some emails, maybe 1-2 hours of phone calls discussing strategies, and doing my returns. I think I get a pretty good deal, and I suspect he's not yet to a point where spending thousands on tax prep is financially wise. I doubt he can get someone truly worthwhile, for much less.
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Old 02-08-2019, 10:26 AM
  #34  
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Originally Posted by K-Spaz View Post
You're preaching to the choir here, I've already got this covered. As I stated above, mine can bill me for the rest of my life and I'm still ahead. And while the ideas he's given me are fairly simple, it's like you say, I simply don't have time to wade through all that crap to know where the benefits are. And, he's dealing with 100s if not 1000s of situations every day all day, dealing with all sorts of nuance there's no way I'd ever research. I get it. But I'm also saying, at the stage he's at, and for the volume he's doing in a side business, (he works full time and does this on the side) some consultation is probably in order, but paying thousands annually for tax prep and advice may not be in the cards given his gross volume. My own costs are about $1800-1900 annually and that consists of some emails, maybe 1-2 hours of phone calls discussing strategies, and doing my returns. I think I get a pretty good deal, and I suspect he's not yet to a point where spending thousands on tax prep is financially wise. I doubt he can get someone truly worthwhile, for much less.
why wait until you might reach that sweet spot to justify the investment?? What if by waiting he doesn't realize a savings that otherwise might put him on a different course ? Also, he doesn't have to "subscribe" he can for a years tax planning that can carry him until the law should change again or until he experiences enough growth to need the retainer.
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Old 02-08-2019, 10:30 AM
  #35  
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Originally Posted by Donuts View Post
why wait until you might reach that sweet spot to justify the investment?? What if by waiting he doesn't realize a savings that otherwise might put him on a different course ? Also, he doesn't have to "subscribe" he can for a years tax planning that can carry him until the law should change again or until he experiences enough growth to need the retainer.
I'm just extrapolating from info he's already offered up in the past that he's got a sizable investment he's already made up front and volume was difficult enough to find that he went back to a full time job. This wasn't that long ago so I'm assuming there's not been a huge influx of cash and plunking down 1000s more isn't an option. If the cost of the software is a concern, I'm fairly confident I'm assuming correctly. I'm not disputing what you're saying, just saying the timing may not be so good.
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Old 02-08-2019, 01:54 PM
  #36  
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Old 02-08-2019, 05:55 PM
  #37  
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Originally Posted by KarlK View Post
Once you get audited, regardless of wrongdoing or not, you're on "the list"
Well, I guess we will see. I passed the audit with no additional tax levied. My 2017 Schedule D was even woolier than the 2016, and no questions on it yet.

Originally Posted by dvarapala View Post
You probably did the math wrong.
The IRS doesn't think so, well, at least not anymore.
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Old 02-08-2019, 05:56 PM
  #38  
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Originally Posted by Humanoid 2.0 View Post
Not a Trump quote. That one came from "The Queen of Mean".
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