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A Reno CPA Is A Translator

[youtube]http://www.youtube.com/watch?v=kN07UjFU_2g[/youtube]

When you think Certified Public Accountant, what comes to mind? Numbers? Taxes? Financial advising? How about translator? As a Reno CPA, I am often asked what exactly a CPA does. After thinking about it, I have come to the conclusion that we are translators.

We take a language that is foreign to you, but that we, CPAs, are fluent in and explain it to our clients in plain English. That’s right; we look at all the numbers, tax codes, and statements. Break down exactly what they are saying, and then explain it to you in an easy to understand way. I call this financial translation.

How can you, as an individual or a business owner, make financial decisions if you do not fully understand your current financial situation? The answer is you can’t. You need to consult a Reno CPA who can help you truly understand your financial situation and make an educated decision.

Taxes and the IRS are two categories that without proper translation can break your bank account. When it comes time to file your taxes, it is important that you understand all the aspects of them. You need to be able to understand what the tax form is asking for, and how to get the most advantages.

In addition, when dealing with the IRS it can and will seem like they are talking to you in another language. They may ask for certain forms, or information and you will not understand them. Sometimes this is just miscommunication. Other times, it is the IRS’s way of trying to take advantage of your lack of understanding.

In both of these situations, you will benefit from working with a Reno CPA. We will help you understand the tax forms and the IRS, and make sure you take the appropriate steps. Why would you want to miss something or be taken advantage of?

A Reno CPA can also help translate your goals and ideas into functional plans and projections. Furthermore, we can also help you express your ideas to business partners and/or employees. A Reno CPA will help you understand and express your financial situation.

Reno’s Best CPA,

Tim Nelson

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Certified Public Accountant In Reno Discusses The Hope Credit

[youtube]http://www.youtube.com/watch?v=aJ_38L982Yg[/youtube]

One of the largest credits available for college students is the Hope Credit. This credit applies to your first two years of post-secondary education and is just one of the many credits available. To make sure you are getting all the credits available to you call a certified public accountant in Reno today.

According to the IRS “you can claim the Hope Credit if all three of the following requirements are met: You pay qualified tuition and related expenses for the first two years of post-secondary education. You pay the tuition and related expenses for an eligible student. The eligible student is you, your spouse, or a dependent for whom you claim an exemption on your tax return.”

The eligible expenses for the Hope credit are tuition, activity fees, books, school supplies, etc… The basic way to decide if something qualifies is that it has to be paid to the institution because of enrollment. Thus, books and supplies can be included if they are necessary for a class.

If you are a college student or one of your dependents is a college student, then you need to make sure you think about the Hope Credit when it comes time to file your taxes. You can deduct up to $2,000 for your college expenses.

On top of this, there are some modifications to the credit, which are provided by the American Opportunity Tax Credit. The IRS states that for tax years 2009 and 2010, the American Opportunity Tax Credit modifies the Hope Credit as follows:

1. The maximum amount of the credit is increased to $2,500.00.

2. The credit can now be claimed for the first 4 years, not 2, of postsecondary education.

3. The modified adjusted gross income limitations are increased.

4. Qualified expenses include course materials.

5. Generally, 40% of the Hope Credit is now refundable (up to $1,000).

If you are a college student, or one of your dependents is, then you need to contact a certified public accountant in Reno today and start deducting your college expenses.

Reno’s Best CPA,

Tim Nelson

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Certified Public Accountant In Reno Discusses New Year’s Resolutions

At the end of one year and the beginning of the next, many individuals and businesses set New Year’s resolutions. Some of these are to live healthier, others are to spend more time with the family, but many of them are about getting finances in order.

As a certified public accountant in Reno, I think it is great to have finances on your list, but there are things you need to consider.

Be Reasonable

The first piece of advice that I have is to be reasonable. Do not set a goal that you know you will never obtain. You need to have thought about what it will take to reach your financial goal, and make sure that it is something you can do. If you realize that your resolution may be a stretch, then it is a good idea to scale back. It will be better for you to have a goal that you know you can reach.

Write It Down

Do not just spew your goal out at the family’s or office’s New Year’s Party, write it down. You need to have your goal in writing. There is a different level of commitment when you write your resolution down. This will allow you to keep your resolution in front of you, whether you post it in the car or on your bathroom mirror.

Make a Plan

Now that you have a reasonable resolution written down, you cannot just forget it. One way to make it easier to reach your resolution is to create a “to do list” or a “map” on how to get there. If your resolution is to have a certain amount in savings or to pay off a part of your debt by the end of the year, than you need to make a plan of actions on how you can reach those goals. As a certified public accountant in Reno, I think planning is an essential step.

Work Together

My last piece of advice is to share your resolution with someone and then provide support for each other. Find a family member or friend that you trust and let them know what your resolution is. In turn, have them share theirs with you. This provides some support when you start drifting away from your resolution. Together you stand a better chance of reaching your resolutions than if you tried to do it on your own.

As a certified public accountant in Reno, I like to see New Year’s resolutions that are based on finances. Have a wonderful year and best of luck with your resolutions.

Reno’s Best CPA,

Tim Nelson

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An Accountant In Reno Talks About Coupons

Since one of your New Year’s Resolutions might be about finances, I thought now was an appropriate time to talk about coupons. As an accountant in Reno, I think it is important to manage your finances each year. One of the best ways to save money and allow for more saving is to shop smarter. The easiest trick to shopping smarter is using coupons.

How and Why

Every Sunday the Reno Gazette-Journal is stuffed full of advertisements. Along with these advertisements are those valuable coupons that many people seem to be overlooking. Today’s society is all about speed and therefore, taking the time to look through coupons and change your shopping habits to match the stores with the cheapest products seems too time consuming. However, the time it takes to get the coupons together could save you 20 to 50 percent on your shopping bill.

They Make You Plan

Besides for the obvious financial benefits from using coupons, is the fact that is makes you plan. As an accountant in Reno, I always encourage people to learn to plan. If you can plan, then you will be able to take the necessary actions to get your finances in order. Sometimes you will come across coupons for things that need to be bought in bulk or some that require you to buy two or three of something. If a coupon has a stipulation then you need to plan that into your shopping list.

Don’t Get Caught

Although coupons can save you a lot of money and teach you to plan, you need to be careful. You mistake that some people make, is that they spend too much. Just because you are saving a lot on two items, does not mean you can buy more. If you truly want to save, you still need to exercise self-discipline when you get into the store. Stick to your list, use your coupons and then put the savings into your savings account.

If one of your New Year’s resolutions is to get your finances in order, then it is a good idea to contact an accountant in Reno today. They will be able to help you evaluate your current financial situation and to make plans for 2011.

Reno’s Best CPA,

Tim Nelson

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What is the Difference Between A CPA and a Financial Advisor

As a certified public accountant in Reno, I am often asked what the difference is between a CPA and a financial advisor. Because of the frequency of this question, I thought I would take a second to discuss the similarities and differences.

Stockbroker versus Financial Advisor

First, I want to talk about the difference between a stockbroker and a financial advisor because people often think they are one in the same. A stockbroker buys and sells things (stocks, bonds, mutual funds). On the other hand, a financial advisor will do trading, but also look at other ways to invest.

What is a Financial Advisor?

Along with trading, a financial advisor will look at estate planning. They will also have their clients look into gold and foreign currencies. They have a short-term and long-term view on their clients’ money and want to help them prepare for retirement.

How is a CPA different?

A certified public account is better known for handling taxes. Along with taxes, they are known for dealing with audits whether they audit a business or represent a business in an IRS audit. Some CPA’s are trained and qualified in offering business advice on where to cut costs and how to turn your business around. With that said, it is important to remember that this is not a standard among CPAs, you need to make sure you ask your potential CPA about their background before taking too much advice from them.

Can They Be the Same?

The part that confuses people is that a good and experienced CPA can overlap with a financial advisor and vice versa. The best way to remember the difference is to think about the real numbers and current state of things when thinking about a CPA and the long-term “if” and “then” ideas when thinking about a financial advisor. If you are not sure if a CPA in Reno can suit your needs please give Evans Nelson & Company CPAs a call today (775-825-6008) and we will help you find the right person to help you with your financial needs.

Reno’s Best CPA,

Tim Nelson