Knowing how often to meet with your Reno CPA will help you maximize your CPA’s services. Many people look to Reno CPAs as a kind of history service that goes back and reviews, and then prepares. This is somewhat true, but you need to be aware of the fact that you will benefit more by understanding how a CPA can help you with preparation and timely decision-making. By only meeting in the crunch time just before April 15th, you miss out on any potentially beneficial tax and financial decisions that can be implemented during and prior to the end of the year.
Knowing what to have prepared before meeting with a Reno CPA or accountant is important. Being prepared will save you on preparation fees, and potentially increase your deductions. Although it may take you a little extra time to get prepared, it will only help you in the end. Gather any medical documents for medical deductions and also items like property tax documents. Bags of grocery receipts (which you don’t need) and important tax documents (which you do) all jumbled together will only be a costly and time consuming waste–separate and organize!
When is the best time to hire a Reno CPA? The simple answer is now. Establishing a relationship with an experienced CPA in Reno can significantly help you with your personal and business tax preparation, financial and business planning, and help you plan and maximize your financial goals. It is also better to hire a early on, rather than after you get a notice from the IRS (“love notes” I like to call them!).
When you are faced with an IRS business audit, you are most likely going to be stressed and overwhelmed. Hiring a Reno CPA to help you is the best decision you can make. IRS auditors are trained at asking the right questions to get the most money from you. During this stressful situation, play it safe and smart– have a CPA on your side. They have the experience you need.
Many ask about the difference between a Reno CPA and a bookkeeper. In fact, many individuals think they are one and the same. However, there are many differences between a CPA and a bookkeeper, such as the higher level of education and continuing education requirements, successful completion of the CPA exam, and much more. Both are important to a business; however, a Reno CPA can help you and your business with a far wider range of abilities.
One of the first things people want to know about Reno CPAs is how much does their service cost. Unlike other professional services, there is no set amount. It varies on how organized and prepared you are, the complexity of the return, and the overall time it is going to take to prepare your taxes. It is important to remember that you are hiring an expert who can save you a lot of time, questions, frustration and money. This should be factored into your decision to hire a Reno accountant or CPA, because your savings will likely be larger than the initial cost.
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,
Everything today is moving online, and the way you file your taxes is no exception. More and more returns are being filed electronically today. As a Reno CPA I have to let you know that if you file electronically, it is going to save you time and is going to be a lot faster in many different ways. When it comes to tax preparation, you need to know your options.
Usually if you were to send in your paper tax return, it would take three to four months for you to get any acknowledgement from the IRS. With electronic filing, you usually get acknowledgment within 48 hours. This is great, because you don’t have to spend months worrying about whether your return was filled out correctly.
Along with electronic filing comes an option for direct deposit. This is the really cool part about how technology has played into taxes. You go through the work of filling out your return and then you have to play the waiting game. Well not any more, yes you will still have to wait, but with direct deposit, your money will be deposit sooner and there is less chance of your check getting lost in the mail. Some people worry about the safety of providing the IRS with your bank account information, but as a Reno CPA I want to let you know it is just as safe as your check going through the mail.
You also have to consider the time you will save by not having to go to the post office to send in your return. The trip to the post office alone can take a lot of time out of your life.
Lastly, an interesting fact is that the IRS is pushing for electronic filing. Next year a CPA who files 100 tax returns will be required to file most of the returns electronically. If you are still wary about technology and electronically filing, I understand. You need to contact Reno’s Best CPA for more information and to get help with your tax return.
Until Next Time,
Reno’s Best CPA
One topic of discussion I have encountered recently is debt forgiveness. Is debt forgiveness taxable, does it have to be included with my income? As a CPA in Reno, I wish I had a general answer, but it is a very complex topic.
The IRS Website states, “The tax impact of debt forgiveness or cancellation depends on your individual facts and circumstances. Generally, if you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the canceled amount in income for tax purposes.”
When looking at debt forgiveness, you have to take into consideration mortgages, credit cards and many other types of forgiveness. As a CPA in Reno, the best advice I can give you is contact an accountant if you are in this situation. The topic is very complex, definitely unique to each individual case and must be handled by someone with experience.
You do not want to get in trouble with the IRS for not including forgiven debt on your tax return. In addition, if you do need to include information you may need the lender to take certain actions. The sooner you figure out what needs to be done, the sooner the process can be started. If you need a lender to take action, it is better to give them plenty of notification, that way you are sure that your return is complete.
The last thing you want is the IRS hounding you. Therefore, call Reno’s Best CPA today and get help with how to handle your forgiven debt. Taxes are a very complex topic, but when debt is involved they can become more complex. Make sure you are being proactive. Once the IRS finds a problem, they will try to get the most money out of you as possible.
Until Next Time,
Reno’s Best CPA
If you decide to fill your tax return out by yourself, you may be missing tax deductions. Reno Accountants have educated themselves and have hours of experience in handling various types of returns. This allows them to find more deductions for you.
One of the most missed deductions is car and travel expenses. You may think that since you don’t own a business you may not be eligible for travel deductions, but that is not the case. There are travel deductions available for medical visits and charity work. Make sure to ask your Reno accountant about all the possible ways you can save on your next tax return.
In regards to medical, there is a standard rate that can be deducted for your travel expenses to and from the doctor. Although this may not seem like a lot, it all adds up in the end. Your volunteer work with charities is another opportunity. Yes, you can write off your donations, but you can also get a deduction for your travel expenses to and from the charity or charitable event. Every time you are in your car, it is important to ask yourself whether you can write of your mileage.
Another commonly missed deduction is job reimbursements. There are many times throughout the year where you may need to buy something or drive somewhere for your job, but you are not reimbursed. If you have expenses like these and your employer did not reimburse you, then you can deduct these business related expenses on your tax return.
These are just a couple of the many tax deductions available to you. To make sure that you are deducting everything that you can talk to a Reno accountant about your next tax return.
Until Next Time,
Reno’s Best CPA