reno – Evans Nelson & Company CPAs

Reno CPA Tim Nelson Describes Why He Became A CPA

A 150 hours of schooling, passing the CPA exam, and continued education… But why did I want to be become a Reno CPA? Better yet, why did I want to open my own office?

Growing up I always had a mind for numbers and was interested in business. I started my entrepreneurial ventures at a young age. When I was 13, my brother, who was good in sports, started playing in Babe Ruth League. Since he was a better athlete than I was, I decided to run the snack bar instead of playing. This was a great way to make money, and learn about profit potential. Now, at this point I did not have a clue that being a Reno CPA was in my future. I just knew that I was comfortable with numbers and enjoyed business.

After graduating from Hug High School, I went on to the University of Nevada, Reno. It was there, in the accounting department, that I was guided into the world of accounting. My professors were great and really did help steer me in this direction. Being a Reno CPA made sense. It was everything I enjoyed, along with the ability to help individuals and businesses.

When I started off, I was working with larger firms, but I started to notice a problem. A lot of the CPA firms that I worked for were all about making sure the numbers were right, but not as worried about the client. I decided that I had to run my own firm and do things in a more personal manner than the larger accounting firms.

As a Reno CPA, I like the mentoring aspect of the business. My personality is such that I really like to, “think outside the box,” it is such a cliché but it really helps them in areas other than accounting and the numbers. Being a CPA is a great way to help people while working with numbers and business. Yes, there was a lot of schooling and a test to get here, and I continue to educate myself yearly, but I love what I do.

Reno’s Best CPA,

Tim Nelson

Reno CPA Tim Nelson Describes Why He Became A CPAencpaswp2022-11-29T14:18:08-07:00

A Reno CPA Is A Translator

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

A Reno CPA Is A Translatorencpaswp2022-11-29T14:18:14-07:00

A CPA in Reno, Nevada Explains The Estate Tax

If you have seen or read the news lately, you probably are wondering what the big deal is with the Estate Tax or you may be wondering what the Estate tax is. As a CPA in Reno, Nevada, I want to take a moment to talk about the Estate Tax. What is it? Why it is making the news?

On the IRS website, the Estate Tax is defined as “a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death. The fair market value of these items is used. The total of all of these items is your ‘Gross Estate.’ The includable property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.” My job as a CPA in Reno, Nevada is to help you calculate all of these things.

This may seem like a lot of work, but do not start worrying yet. According to the IRS, “most relatively simple estates do not require the filing of an estate tax return. A filing is required for estates with combined gross assets and prior taxable gifts exceeding $1,500,000 in 2004 – 2005; $2,000,000 in 2006 – 2008; and $3,500,000 effective for decedents dying on or after January 1, 2009.”

The reason why the Estate Tax is in the news is that this year, is because the tax expired. I had one client come in and ask what he was supposed to do because his father passed away on January 1st at 8:00 A.M. I said, if he would have died 9 hours earlier, we would be done. I would have told him exactly what he would have to do. At that point, all I could tell him was that there is no state tax and that we did not have to do anything. Unfortunately, the proposal in Congress right now is to enact a retroactive estate tax at the beginning of the year.

The proposal for a retroactive tax is what is controversial. As a CPA in Reno, Nevada, all I can do is wait and see what Congress decides and then take the appropriate actions from there.

Visit the IRS’s website for more information about the estate tax, instructions for dealing with this tax and frequently asked questions.

Reno’s Best CPA,

Tim Nelson

A CPA in Reno, Nevada Explains The Estate Taxencpaswp2022-11-29T14:18:19-07:00

Experienced CPA Talks About Claiming A Dependent

[youtube]http://www.youtube.com/watch?v=PwmDh49pgC0[/youtube]

When it comes time to prepare your tax return there are many things that you need to consider. One of the most common questions I encounter as a CPA is who is considered a dependent. Although you make think that the answer is simple, many things determine if somebody is truly a dependent.

Dependency of Children

When it comes to children the best way to determine if they are under 18, live at home and you supply more that 50 percent of their income. From 19 to 24 you can claim them as a dependent if they are living at home the majority of the time and you are still contributing the majority of their income.

The One Up And Down Rule

Although you make think that you can only claim your children, there are other members of the household that can be claimed. If a person is one up or one down from you in terms of relatives than you might be able to claim them. This includes children, stepchildren, adopted kids, parents and stepparents. The general rule is that if you are providing over 50 percent of their support than you can claim them. However, there really is not great benefit to claiming some of these people, because the savings may not outweigh their expenses.

Non-relatives

Claiming relatives is the most common way to claim someone as a dependent, but there are some cases where you may want to claim somebody who is not a relative. If this is the case, you need to contact a CPA. They will be able to help you determine if you can claim each individual in your household. There are a lot more restrictions if the individual is not related to you.

If you have any questions about dependency and taxes, then you need to contact an experienced CPA today.

Reno’s Best CPA,

Tim Nelson

Experienced CPA Talks About Claiming A Dependentencpaswp2016-09-22T21:54:13-07:00

CPA in Reno Explains Offer In Compromise

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As a CPA in Reno, I am often asked what an offer in compromise is and how it works. There is a lot of misunderstanding about what an offer in compromise is and I thought I would take a second to clear up some of the confusion. The best way I know of to explain an offer in compromise is that it is where you make a deal with the government to settle your tax obligations for less than what you actually owe.

Is This Always An Option?

No. Offers in compromise are not always an option. They are based on your ability to pay. The IRS does not like compromising, because they lose money. They will work with you if you have financial hardships and it is clear that there is no way that you can pay them the amount owed.

Can Be Useful With Medical Issues

Say for instance that you have had medical issues and have lost the ability to earn a living and therefor you owe a lot of money, but have no way to pay it back. The IRS will often wave the interest and other penalties. This is one example of a financial hardship. Anytime you are faced with a financial hardship, it is more likely that the IRS will be willing to work with you.

Can You Pay In 10 Years?

The IRS will base your ability to pay on a ten-year mark. They will have you put together a budget and prove to them that you cannot afford to pay them the amount they are asking for. If your income has dropped dramatically and it is going to level out at this new amount, then you can put together a paying schedule based on your new income.

Pets, Coffee and Other Habits

The IRS is really tough with an offer in compromise. Once they have your budget they will ask you about extra spending and may even tell you that you need to cut your extra expenses so that you can pay them back. It sounds harsh, but I have had an IRS collection officer say that my client cannot have pets or they need to stop their daily coffee runs. If they find extra expenses, they will be less likely to compromise.

Every Case Is Unique and There Are Exceptions

With all the above said, every case is unique. Sometimes there are misunderstandings about your tax situation and by exploring these, your CPA in Reno may be able to prove that you do not owe as much as the IRS is asking for. If you can prove there is a mistake then they will work with you to figure out how much you actually owe.

If you are thinking that you may be able to work out an offer in compromise then you need to talk to an experienced CPA in Reno today.

Reno’s Best CPA,

Tim Nelson

CPA in Reno Explains Offer In Compromiseencpaswp2016-09-22T21:49:42-07:00

Ways to Start Talking to Your Children About Financial Planning

[youtube]http://www.youtube.com/watch?v=zocentEI7rQ[/youtube]

After hearing all the news about a struggling economy, I felt it was time to talk about financial planning. More specifically I thought it was time to talk about teaching your children about financial planning.

Too many people seek the help of an accountant in Reno, Nevada because they have no clue about financial planning. That is because they did not learn about it as a child. Parents can make a huge difference in how their young ones view spending, saving, and even giving, by taking a few simple steps. Providing your kids with an allowance gives them the opportunity to learn to budget and to track their spending. It’s never too early to start learning how to manage your money.

Allowances

In order for children to understand finances and learn to start financial planning, they must have access to money. An allowance serves this purpose. It should be just enough to meet the needs of the child, but not every want. This will force a child to make decisions and to see the consequences of their spending decisions. It also allows the introduction of a budget and planning for future purchases.

Spending

The art of spending is a huge part of financial planning. Of course, children love to spend their money, but doing so wisely is a skill that must be taught. They must learn to budget for bigger expenses like special toys or activities they wish to do. Then, a child must also learn to be a smart shopper by learning skills like comparison shopping and understanding unit prices. One good way to do this is to involve the children in purchasing decisions of the family such as meal planning.

Saving

An accountant in Reno, Nevada will advise you that a savings plan is a vital part of financial planning. The same is true for children. The first step is to discuss savings goals, then have the children set aside a percentage of their allowance to meet that goal. This should be done before anything is purchased. For children older than 7 or 8, set up a bank account and make regular trips for deposits. For younger children , invest in a compartmentalized piggy bank. One final note – do not deny the child access to the money; they will become reluctant to make deposits.

Giving

Just like with savings, children also need to make giving a part of their financial planning. Again, a percentage should be determined and set aside for charities of choice. For some, this might mean a local charity or it could simply mean tithing to the church. It is also a good idea to have them participate in fundraisers so that they truly begin to appreciate the value of charity. In addition, make giving presents a part of this plan. Children should budget to buy gifts for friends and family.

Accounting

So, your kids have been taught how to spend and save, but do they know if they are doing a good job? An accountant will tell you that a budget only works if the spender knows where his or her money is going. Children are the same. For young children, have them put their receipts into an envelope for each month. A brightly colored chart that tracks spending can be a great teaching tool for them to see where the money is going. For older children, teach them how to record their spending on a spreadsheet.

As a parent in Reno, Nevada, it is never too early to start teaching children about financial planning. Do not just give them an allowance and expect them to spend wisely, because they will not. Instead, give them an allowance and discuss with them the things they need to purchase versus what they want to purchase. In addition, include in the financial planning discussions on savings and giving. Then teach the children how to track their own budget. As an adult, they will thank you.

Reno’s Best CPA,

Tim Nelson

Accountant in Reno, Nevada

Ways to Start Talking to Your Children About Financial Planningencpaswp2016-09-22T21:47:31-07:00

What Do All The Initials Mean? (CPA, CVA, CFE)

I thought this was a fun question to discuss. I am often asked, “What do all the initials that follow your name mean?” This question is very important. People need to understand whom they are hiring to work with their money and knowing the difference between these different sets of letters will help you make the right choice.

The Easy One- CPA

The CPA is the easy one. CPA stands for Certified Public Accountant and means that you have special training, primarily in accounting and taxes, to help individuals and businesses in their financial dealings. It requires that you pass a difficult 4-part exam, an ethics exam, have at least 2 years of experience working for a CPA, and (under Nevada law) have at least 1,000 hours of looking at companies books and preparing their financial statements. Furthermore, once you become a CPA, you are required to have approximately 40 hours of continuing education each year. I say approximately because depending in which area you practice, it could be substantially higher than that! Most people do not know that each state certifies the CPAs in their state, rather than having a national certification. The requirements in the State of Nevada are more stringent than those of our neighbor to the west, California.

Okay Now For CVA

The CVA stands for Certified Valuation Analyst. It means they have special training in the valuation and determination of value of businesses. It does NOT mean they can do appraisals. I originally used the certification in helping attorneys resolve accounting matters in the court (litigation support). I’ve also used it in estate cases, divorce cases, shareholder lawsuits, mergers with other companies, helping companies determine whether or not to buy a competitor, helping business owners decide whether or not to add a new partner or enter a new line of business, and even in gifting situations where a business owner wants to give part of their company to their heirs. It is extremely technical in nature, and the part I like best is explaining what is going on in easy to understand terms to my clients.

Last But Not Least- CFE

My most recent addition to the letters behind my name is the CFE certification. It stands for Certified Fraud Examiner, and means I have formal training in the research and investigation of fraud and forensic accounting matters. I have been doing this for about twelve years, and love it! The “sleuthing” of accounting really gets me going. I love seeing how the fraudster got away with it, assisting law enforcement in putting away the bad guys, or even resolving how an owner is stealing from his partners! It can be complex, or as simple as fixing procedures around the office to deter employees or customers from making off with the valuable assets of the company.

Before you hire an accountant, make sure you understand what they are certified in and that they can adequately handle your financial needs. Remember, when it comes to your money you need to make the best decisions possible.

Reno’s Best CPA,

Tim Nelson

What Do All The Initials Mean? (CPA, CVA, CFE)encpaswp2016-09-22T21:26:52-07:00

What Are the Different Kinds of Reno Tax Preparers, and What Do They Specialize In?

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Every year in April, everyone begins scrambling to complete and file his or her taxes. Although many people prepare their own taxes, a business owner or someone with significant assets and investments needs to use a professional’s services. There are many kinds of Reno tax preparation services and Reno tax planning professionals. Some of these are Enrolled Agents, CPA’s, and attorneys. What is the difference between a tax preparation service and an Enrolled Agent?

Tax Preparations Services

Most people are familiar with Reno tax preparation services, such as H&R Block and Jackson Hewitt. These services will prepare and file your yearly return for a fee, and often offer refund advance loans. Many smaller such services exist all over the country. Usually they are staffed with certified professionals such as accountants, although some may hire experienced nonprofessionals or accounting students. Be careful using an uncertified tax preparer, because they may not know the tax code well and miss deductions.

CPA’s

Individuals can be certified as tax preparers in many ways, but the CPA is the most common. A Certified Public Accountant has to attend secondary school and receive a degree in accounting. They are licensed by their state, and take yearly continuing education classes for re-certification. Accountants do not just prepare taxes; they also give financial, business and tax planning advice. Some CPAs work for tax preparation services full- or part-time. It is recommended that large businesses keep a CPA on retainer. Any Reno CPA should display their most recent credentials or offer them openly.

Tax Attorneys

Attorneys can choose to specialize in a certain area of the law, just like doctors. Some choose tax law, which can be a very lucrative specialty. Tax attorneys are there to assist their clients in tax disputes, to set up tax shelters, draw up paperwork for corporate tax measures, and more. They are not specialists in filing actual returns. A tax attorney is good to have on retainer for a larger corporation, as they know the tax code well and can advise how to invest and what deductions might be best for the business. Check with the local Bar Association to find out if the attorney you are considering is well qualified.

Enrolled Agents

A Reno Enrolled Agent (EA) is different from a CPA in the scope and training of their job. EA’s are certified by the IRS to represent taxpayers. They do not have a set training course, but do have to pass a certification exam and get continuing education. An EA is a tax specialist who advises taxpayers in audits, investigations, and can prepare taxes. They have client privacy obligations, unlike other most tax preparers. An authorized agent is also the only taxpayer representative designated by the federal government. There are only about 49,000 EA’s in the US, and they should display their credentials prominently.

Different Areas of Expertise

CPA’s are financial jacks-of-all-trade. Their certification exam has 1000 questions, only about a quarter of which deal directly with taxes. Most Reno accountants focus more on actual accounting practices and only actively work on taxes during tax season. Their advice and guidance is very important for running a business efficiently. An Enrolled Agent, however, specializes only in taxes. Their exam covers every part of the tax code and does not include accounting and business principles. They have passed a very strict exam to become an EA in the first place, plus yearly Continuing Education classes and tests.

Practical Application

A company should have a CPA on retainer all year, to give advice on business matters as well as taxation. Their services are invaluable for running a business efficiently and profitably. While an Enrolled Agent will charge slightly less than a CPA, their services are more limited. If you or your business have specific tax problems, it might be best to call an enrolled agent instead of a CPA. They are bound by EA-Client privacy privileges, and are extremely experienced in tax matters, especially audits. A tax attorney should be retained by corporations or people with a high net worth to take proactive measures to shelter their income.

Reno tax preparation services can and do employ all types of tax professionals. When it is time to choose your tax-planning professional, determine the extent of your needs first. If you are an individual with a straightforward return, a tax service or CPA will work fine. If you fear an audit or need special representation to the IRS, employ and enrolled agent. For legal tax matters, hire a tax attorney. Each of these financial advisors can do their job within the scope of their specialization, but are not necessarily interchangeable.

Reno’s Best CPA,

Tim Nelson

What Are the Different Kinds of Reno Tax Preparers, and What Do They Specialize In?encpaswp2016-09-22T17:54:41-07:00

An Accountant in Reno Explains Synergy In Relation to Business

[youtube]http://www.youtube.com/watch?v=3P3mdtbuaXk[/youtube]

Synergy may seem like a strange term to be thrown around in a business conversation, but it has become the focus of many small businesses and financial consulting institutions seeking to improve their total output and product quality. The basic premise of synergy is that by combining two separate companies, the positive qualities of each can be utilized to maximize potential. The concept of small business synergy further acts to increase productivity and financial profits, while also merging with a congruent and complementary business.

Small Business Financial Connectivity

Synergy ultimately acts as a connector for small businesses seeking to grow their companies. By combining two companies, the emerging company that results possesses the ability to access and service all of the combined business contacts. This connectivity not only extends to include the good will fostered between companies, but also reaches out to all of the costumers and connections previously associated with both businesses. Through the momentum of synergy, connectivity is increased and utilized to grow the newly formed business. It does this by extending the reach of its costumer pool to include new contacts, as well as more extensive financial consulting.

Collection of Skills

A major benefit resulting from synergy is the addition of new skills for workers. Through the combination of businesses, employees are introduced to new and more efficient methods of accomplishing the same old task. Overall, these combined increases most often prove to benefit the new company’s productivity and the accountant’s profit margins. Furthermore, without the combined momentum of the newly formed and improved work force each of the individual companies would be unable to duplicate the increased productivity and profits had they remained separate entities.

Elimination of Duplication

As any accountant of a small business in Reno can appreciate, the implementation of synergy enables the elimination and duplication of products and services. Often, when products and services are too readily available, prices are driven down. Through the combined synergy of small businesses, coupled with effective financial consulting, prices become fixed and steady as supply no longer out balances the demand. Accountants in Reno especially appreciate the leveling out of prices as it ensures a company’s continued existence at its current level and provides room for expected future growth.

Leadership Issues

Leadership is a major consideration before implementing synergy within two individual companies. Superiors must take into consideration issues such as rank structure and seniority. Later on, it will become necessary to establish exactly how the new hierarchy of leadership will be determined. In addition, employees and superiors should observe a grace period in which adjustments and kinks can be worked out of the new system. In any business setting, it needs to be understood that companies, which were once separate, are not just going to fall into sync with each other automatically.

Synergy is a genius concept in business that allows small businesses to piggyback off another as they are merged into singular businesses. This springboard effect serves to create a profit for both companies due largely to the combined effort of two workforces coming together as one. It is important to remember that along with continued financial consulting, time is also necessary to establish a new business rhythm. However, the combined financial gains, increased productivity and overall company morale can prove exponentially beneficial in the end.

Reno’s Best CPA,

Tim Nelson

An Accountant in Reno Explains Synergy In Relation to Businessencpaswp2016-09-22T17:38:04-07:00

Reno Tax Preparation Requires Cooperation Between CPA And Client

[youtube]http://www.youtube.com/watch?v=g2thwedROxQ[/youtube]

A Reno CPA or certified public accountant is a huge help to individuals and businesses when it comes time for filing taxes. However, in order for the CPA and client relationship to be successful, communication is imperative. By understanding how communication works best between a CPA and his or her client, you can make sure your relationship with your CPA is solid. In addition, this helps to ensure that filing taxes, keeping records, and all other processes are easier and more accurate.

Don’t Be Afraid to Ask Questions

One of the best methods of communication is asking questions. As a client, if you are unsure of a specific process or you do not know why certain results are the way they are you can ask your CPA to explain it to you. Things like tax preparation, expense records, and loss charts can be very confusing for someone who doesn’t work with those numbers every day. A great accountant will take the time to explain what he or she is doing and why things have to be completed a certain way. Just because you’re not doing the tax preparation or other processes yourself, doesn’t mean you shouldn’t be able to understand what’s happening.

Reports and Information

If there’s something a CPA knows about, it’s keeping records. A great certified public accountant will record everything and provide reports and information to you regarding the processes he or she is going through in order to file your taxes or keep up with your business records. This will allow you to examine the processes yourself, and keep your own records for those processes. It’s also very important for you to keep records and provide your CPA with information as well. Keeping receipts and transaction logs of expenses will allow your CPA to prepare your taxes in the most accurate way. This ensures that your taxes are paid correctly and that you’re on an even ground with the IRS.

Why a CPA is the Best Choice

In addition to learning how to prepare taxes to begin with, a CPA will spend hours each year learning new information about laws that have changed, new stipulations for tax preparation and so much more. Most individuals don’t have the time to spend themselves learning these things, and trusting a professional is the best choice. A qualified CPA understands tax laws easily and in-depth, so they can make sure your taxes are filed correctly and accurately. In the same way that you’d hire an expert cake decorator to make sure your wedding cake is perfect, hiring a CPA ensures that your taxes are filed perfectly.

Overall, by having a great relationship with your Reno CPA, you can be sure that your tax preparation is done accurately and that nothing has been missed. It’s important to trust your accountant and communication is the best way to build that trust.

Reno Tax Preparation Requires Cooperation Between CPA And Clientencpaswp2016-09-22T16:29:02-07:00

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