Public Accountant in Reno, NV Provides Financial and Tax Organization Tips

Public Accountant in Reno, NV Provides Financial and Tax Organization Tips

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It is important to keep finances organized, whether for an individual person or a business. Many people do not organize their finances until tax time comes. They often find they have a mountain of information to sift through and no idea where to start. Here are some tips on better financial and tax organization from a public accountant in Reno, NV.

Bank Accounts

Bank accounts are crucial money-management tools. Single people should have both a personal expenses and a savings account. Families should have a family account, which wage earners can deposit money into for household bills. They should also have individual accounts for personal spending, plus a family savings account. A self-employed person or small business owner needs to keep their company’s expense separate. This will keep personal and business matters from mingling. A public accountant in Reno, NV can help set up a plan for how to contribute to each account.

Keep or Throw Out?

Many financial records can be thrown away after a time. Any papers about major expenses (a vehicle, appliance, investment, etc.) should be kept forever, or at least until the item is no longer in use or needed. Anything about taxes and personal or investment income should be kept for at least 3 years, although six is advisable in the event of an audit. Credit card and bank statements, receipts, and utility and other bills can be thrown away annually once taxes have been filed with a public accountant in Reno, NV. Streamline your life and save paper by scanning and saving these papers.

Paper Organization

An individual can use a simple, low-tech paper filing system. Set up files according to the area of expense: loans (mortgage, car, etc.), bank and credit card statements, insurance, household expenses (groceries, gas, clothing, etc.) and bills. Public accountants advise that certain tax-deductions need their own files, like education, health care spending, travel, charitable donations, investments, etc. Keep a box in a visible place to put all receipts and bills into when you empty your purse or briefcase. Reconcile the box’s contents weekly when balancing bank statements.

Computer Organization

Self-employed people and small businesses should organize their financial records with a computerized system. This minimizes missed payments and keeps the volume of paperwork down. Important items can be scanned into the computer and saved onto a disk for your public accountant to use at tax time. Dates such as quarterly tax payments and payroll can be set ahead of time. Linking a business’s bank account with the software can result in payments being automatically deducted. All these measures reduce hassle and increase efficiency.

Tax Time

Individuals can pay their taxes once yearly on or before April 15. Businesses should make quarterly or bi-annual contributions to a tax account. This keeps the amount owed from becoming unmanageable. Any time taxes are paid, a payment for work or a service or a money gift is received, or a life insurance or other investment dividends report arrives, the paperwork should go right into the tax file for the public accountant in Reno, NV. They should get all the information you have well before tax time, in order to get the best tax deductions possible.

Careless record keeping can result in missed deadlines and payments. A certified public accountant in Reno, NV can give valuable advice on how to streamline your tax and financial organization. Everyone should review their own procedures periodically and see how they can improve them.

Reno’s Best CPA,
Tim Nelson

Public Accountant in Reno, NV Provides Financial and Tax Organization Tips2016-09-22T18:27:40-07:00

BestCPAReno.com Showcased At Reno-Tahoe Wordcamp 2011

Our website, BestCPAReno.com was showcased at the Reno-Tahoe Wordcamp 2011. An excerpt from the press release is below, to read the complete press release for Evans Nelson & Company CPAs, CLICK HERE.

“BestCPAReno.com, which is a WordPress site featuring the Thesis Theme demonstrates the customizationavailable to WordPress users. Evans Nelson & Company CPAs are able to promote their business througharticles, blogs, and videos. They provide financial resources and links and offer a free tax organizer. All ofwhich is possible by the use of a website designed in WordPress.”

Reno’s Best CPA,

Tim Nelson

BestCPAReno.com Showcased At Reno-Tahoe Wordcamp 20112016-09-22T18:22:27-07:00

A Reno Accountant Talks About the Different Types of Businesses

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There are many things to consider when starting a business. One of the first concerns should be organizing the business itself. There are many ways to organize a business in the United States. Each type of business has its advantages and disadvantages for taxes and operations. Here is some business tax advice from a Reno accountant about making the right choices for your company.

Sole Proprietorships

The Sole Proprietorship is the most common kind of business in the US. In this type of business, one person is responsible for everything. This includes daily tasks, owning assets, profits, losses and taxes. The owner would need an accountant to give business tax advice. The advantages of a sole proprietorship are that it is easy to set up and run, the profits do not have to be divided, and the owner calls all the shots. Disadvantages are that the business and its owner are inseparable according to the law. This means that if the business gets into legal or tax trouble, your personal property could be forfeit.

Partnerships

Another common business type is the partnership. Partnerships involve two or more running the company and sharing responsibility. As in proprietorships, the partners’ personal property can be forfeit if there are problems with taxes or lawsuits. Partners need to have clear legal agreements, to prevent disagreements about profit sharing, personal contributions, and inheritance. An accountant will tell you that partnerships’ advantages are that the work and troubles of running the business are shared, as are the taxes. Partnerships are usually short-lived, ending with the death or departure of one partner.

Corporations

The corporation is a more complex way to organize a business, but it has many advantages over other models. A corporation is an “entity” that is formed and registered in its home state. A business charter sets forth the corporation’s purpose, as well as whom its shareholders, or owners, are. The shareholders elect a corporate board, which directs the company’s operations. A Reno accountant is needed to give corporate business tax advice and to ensure that state and federal tax laws are followed. Taxes are generally higher. Corporations allow the owners limited legal and financial responsibility in lawsuits, debts or even bankruptcy.

Limited Liability Companies (LLC)

The LLC is a newer business class that works like a hybrid of a partnership and a corporation. LLC owners are listed as “members” and organizational paperwork is filed that sets out its purpose and terms. The main tax benefit for an LLC is that it is taxed at individual rates instead of higher corporate rates. Members also have limited legal and financial liability. An LLC cannot have more than two corporate features, like continuity of the agreement, management centralization, asset ownership, and ownership transferability. If it has more than two of these, it is re-classified as a corporation.

Before starting a business, talk to a Reno accountant about how to begin. Get good business tax advice and figure out your goals. If you have modest goals and do not want to share profits, a sole proprietorship is best. If you and someone else share the desire to make a business work and are committed to it, a partnership could benefit you. More upward-minded businesses should organize into corporations or LLC’s, depending on how they want to structure operations. Remember to ask about taxes, as each method’s tax liability varies.

A Reno Accountant Talks About the Different Types of Businesses2016-09-22T18:11:52-07:00

Reno’s Best CPA Featured in NSBDC E-Newsletter

I sat down with Chuck McCumber of the Nevada Small Business Development Center (NSBDC) and talked taxes. The interview was featured in the NSBDC’s monthly e-newsletter. Here is one quote from our conversation:

“It’s also one of the best times,” said Tim Nelson, “because when the economy is down it stirs people to be more creative, entrepreneurial.”

To read the rest of the interview CLICK HERE.

Reno’s Best CPA,

Tim Nelson

 

Reno’s Best CPA Featured in NSBDC E-Newsletter2016-09-22T18:09:02-07:00

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?2016-09-22T17:54:41-07:00

A CPA In Reno Discusses Cost Behavior

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Cost behavior is an important tool for businesses to examine their success and actual profits. It can be used for many purposes, including strategic planning to determine effective price points that are above the break-even point. A qualified CPA in Reno can help a business use this principle to manage budgets more effectively.

What is Cost Behavior?

Cost behavior is often explained by CPAs in Reno as the study of how costs change in a business when there is a change in the activity level. Every company has a variety of costs, although there are four types that come up the most. Cost behavior analysis is used to predict costs over time and can help a business in many areas. Typically, businesses of all sizes hire a CPA to manage this aspect.

Variable and Fixed Costs

Variable costs are usually defined as those that change depending on the level of activity. A good example of a variable cost in a business is sales commissions paid to employees of the store. Because employees earn a percentage of the sales, the cost is variable based on the total sales in the store. Fixed costs, on the other hand, will not change with a difference in the level of activity. Examples of fixed costs in a business include rent and insurance premiums.

Step Costs and Mixed Costs

The step costs of a business are unique because they stay the same for a certain amount of activity. When the level of activity is surpassed the costs jump. These costs don’t apply to every business, but an example is payment to a service representative that has reached their maximum number of customer calls. At this point, a new employee must be added, and the cost of compensation jumps. Mixed costs, however, are a combination of variable and fixed costs. An example of a mixed cost is a telephone bill for the company. Generally, the charge is always the same unless the level of service is exceeded. At this point, an additional variable cost is added.

Why Cost Behavior is Important

A trained CPA in Reno can help a business fully use cost behavior for a number of purposes. Cost behavior is usually used for strategic planning in a company and is the only way to accurately predict cash flow over time. A CPA can also use this idea to determine the company’s break-even point for any cost, allowing management to create a proper selling price. Other uses in the company’s strategic planning include the determination of dividend payments and the preparation of budgets.

Every business has a variety of costs it incurs regularly. Understanding and planning for these costs is vital to ensure the company maintains profits and grows over time. All businesses should consult with a CPA to analyze the cost behavior of their company. A good analysis can lead to everything from the right selling price for goods to accurate dividend payments for stockholders.

Reno’s Best CPA,

Tim Nelson

A CPA In Reno Discusses Cost Behavior2016-09-22T17:42:09-07:00

An Accountant in Reno Explains Synergy In Relation to Business

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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 Business2016-09-22T17:38:04-07:00

A CPA In Reno Explains How Getting Married Changes Your Tax Situation

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So your big day has come and gone, now what? You have made it through the chaos of the wedding and I am sure taxes are not on your mind, but it is important to understand how getting married can change your tax situation. A married couple should take some time to sit down with their CPA in Reno to discuss how their tax situation will change now that they are married.

Don’t Forget The Little Things

After the marriage, there is usually a move. Whether it is one part of the couple moving in with the other or the couple moving into a new place, a new home means a new address. It is important to remember to update your employer, the post office and even the IRS of your address change. You want to make sure that all of your tax information will arrive at the proper address.

Another thing that commonly happens after marriage is the changing of a last name. Whether a spouse changes their last name to the other’s or adds a hyphen between the names, it is important to remember to notify your employer, the post office, the IRS and, well, everybody. The last thing you want come tax season is confusion over who you are.

Filing Jointly

After getting married, the couple usually files their taxes jointly. By filing a joint tax return, the couple doubles the limitations and deductions that you otherwise would get if you filed two single returns. However, there are certain differences in the tax code where the “marriage penalty” comes into play.

This is a situation where filing jointly causes higher tax than you would pay if you filed two single returns, even though the taxable income is the same. This has largely been eliminated for the lower income tax brackets through 2010, but would apply once you reach a taxable income of $137,300 (in 2010) or higher. For example, assume that a married couple earned $120,000 for one spouse and $100,000 for the other, then the tax as a married couple would be $44,607.50. If they each filed single, the total tax would be $43,782.50, or $825 less than joint filing. The “penalty” increases with the amount of taxable income earned as the couple.

When In Doubt Ask For Advice

After getting married, you do not need the added stress of taxes on your plate. If you are concerned that you may have missed something or just want clarification on how you should file as a couple, you should contact a CPA in Reno. Depending on your tax situation, the CPA will be able to tell you the best way to file. The CPA in Reno will also be able to talk you through the name change and address change process. They may not be able to help you with the actual steps, but they will able to remind you of anything you may have missed.

Reno’s Best CPA,

Tim Nelson

A CPA In Reno Explains How Getting Married Changes Your Tax Situation2016-09-22T17:32:13-07:00

A Reno Certified Public Accountant Discusses Divorce and Taxes

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Going through a divorce is a very stressful time. You need to figure out child custody, child support, division of property, etc… However, there is one thing that may have not made it on your list of things to remember-taxes.

Marital Status on The Last Day Of The Year Determines Tax Filing Status

Many things come into play as far as taxes are concerned when going through a divorce. The first thing to know is that you are supposed to file based on your status on the last day of the tax year. That means if you get divorced on December 28, you file single for the entire year! Similarly, if you get divorced on January 2, you will need to file jointly (or married filing separately) for the prior year.

Don’t Forget About Alimony

Alimony may be a factor, and is governed by the divorce decree or separation agreement. Note that if you get into a situation where Spouse A owes Spouse B for alimony, and Spouse B owes child support back to Spouse A, do not NET them! The IRS only allows you to take the NET amount as alimony. If you pay the entire amount, and get a separate check back, you can take the FULL amount.

Refund Checks Can Be Tricky

Refund checks (or direct deposits) are always an exciting factor. If you are due a refund with your former spouse, make sure it goes to a neutral party who will give you ONLY the refund you are entitled to. If your former spouse gets you to sign on the back of the check and cashes it into their account, you may never see the refund! Similarly, do not direct deposit it into an account you do not have control of! My recommendation is to have a check sent to the Certified Public Accountant’s office. Then have both spouses come in to sign it. The CPA can then cash the check and remit the appropriate amounts to each spouse.

Get Help!

Even before you get divorced, it is important to get advice to determine the tax issues at hand. For example, what if he gets the primary residence and you get the rental house to live in? The tax bases are likely very different, and you will end up owing tax on a gain of a former rental that he can exclude from his residence since it qualified as a primary residence. There are many other factors to consider in divorce taxation. The IRS publication number 504, Divorced or Separated Individuals, deals with many of these issues, but it is important that you discuss all of these with your Reno Certified Public Accountant before they bite you!

Reno’s Best CPA,

Tim Nelson

 

A Reno Certified Public Accountant Discusses Divorce and Taxes2016-09-22T17:23:20-07:00

Join Team Evans, Nelson & Company, CPAs for the Northern Nevada Susan G. Komen Race for the Cure

Join Team Evans, Nelson & Company, CPAs for the Northern Nevada Susan G. Komen Race for the CureI would like to invite you to join Team Evans, Nelson & Company, CPAs for the Northern Nevada Susan G. Komen Race for the Cure. I am a new member of the Northern Nevada Affiliate’s Board and so would love to see all of my friends, family and co-workers come out on Sunday, October 2nd to Run, Walk or Sleep in for the Cure!

We are working on getting t-shirts for our team and hope to have a good show at the event for “Team ENCPA’s”. If you would like to join the team, click on the link below and then click the “Join Our Team” link.

CLICK HERE to join the team!

If you are unable to attend the event, but would like to be a part of the team anyway, you can choose to Sleep in for the Cure or you are welcome to make a donation on behalf of our team – all proceeds stay in Northern Nevada! Also, please feel free to forward this to your friends if you think they might be interested in participating.

Please let me know if you have any questions or difficulty registering for the Race – we look forward to contributing our efforts to this very important cause.

Thank you,
Emily Evans Nelson
Evans, Nelson & Company CPAs
50 Continental Dr.
Reno, NV 89509
775.825.6008 phone
775.825.6606 fax

Join Team Evans, Nelson & Company, CPAs for the Northern Nevada Susan G. Komen Race for the Cure2016-09-22T17:00:34-07:00
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