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THE SMART BUSINESS OWNER’S LIST OF TAX DEDUCTIONS

For a business owner, taxes can be overwhelming and cumbersome. Tax deductions allow you to save thousands of dollars each year on your taxes and make tax filing a much more bearable experience. In this post, we'll list some of the tax deductions you can use to...

The Smart Business Owner’s List Of Tax Credits

One of the best ways to cut costs as a business owner is to take advantage of all the tax deductions and tax credits for which you're eligible. As a business owner, you're concerned with the bottom line--increasing your net profits. That probably means you spend most...

PRESS RELEASE: Cassidy Jakovickas, CPA of Fresno, CA Appointed to Intuit’s Accountant Council

Select Panel Advises on Products and Services that Accountants and Their Clients Want Most             FRESNO, CALIFORNIA – June 4, 2019 –Today, Intuit, Inc (Nasdaq: INTU) announced that Cassidy...

Beyond The Numbers: What We’ve Been Reading

Although our team loves using numbers and spreadsheets to help our clients make the best financial decisions, we also enjoy reading great books. Staying well read on both fiction and non-fiction books helps us hone our imagination and introduces us to new, sometimes...

Looking Back At April

It’s hard to believe that we’re at the end of April, but it’s true! This month, we helped our clients wrap up another great (and busy) tax season. There was, as always, a lot of paperwork, emails, and nail-biting involved in the days preceding April 15, but that’s all...

5 Last-Minute Tips For Filing Taxes in 2019

Well, April 15 is almost here, and the tax-related panic is thick. If you haven’t filed your 2018 tax paperwork and are rushing to get your taxes in by the deadline, we’ve decided to give you some last-minute tax advice that will hopefully help ease your stress....

An Introduction To Cybersecurity for Business Owners

Keeping your sensitive business and customer data secure has never been more critical. Whether you are a small business or a national corporation, you can't relax your defenses against those criminals seeking to take advantage of lazy cybersecurity policies. Virtually...

March News Roundup

Wow! It seems like we just started March and we’re already moving into April! As we move into the final stretch of tax season, we’re recapping this month’s news for you, just in case you missed it amid the tax-related hubbub. MBS Accountancy: November Review This...

4 Key Changes To Depreciation Under The TCJA

As the Tax Cuts and Job Act (TCJA) continues to be unraveled by tax professionals, it’s important to review the changes and their implications on business operations and tax strategies. In this article, we’ll highlight TCJA’s changes to first-year bonus depreciation,...

3 Ways A CPA Can Make Your Business Successful

It can often seem unnecessary to hire a certified public accountant (CPA) since bookkeepers and accountants are frequently believed to be the be-all-end-all for a business’ finances. However, there are certain advantages to having a CPA by your side. While we...

Is it a Requirement for a Small Business to have a CPA?

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Is it a Requirement for a Small Business to have a CPA? 1
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Accountant Vs. CPA

First, it is important to distinguish the difference between a CPA and an Accountant. In general terms, an accountant is a professional who follows specific rules and regulations, including Generally Accepted Accounting Principals (GAAPs), which are rules set by the FASB (Financial Account Standards Board).
CPA’s are accountants who have passed a licensing examination in a particular state. Therefore, in other words, all CPAs are Accountants. Not all accountants are CPA’s.

Requirements vs Reasoning

Generally, as small business is not required by law to have a CPA, however most small businesses engage and consult with a CPA to review their internal records and controls, manage accounting software, receive tax advice and what not.
However, the reasoning of hiring a CPA almost always outweighs the latter option for small businesses.

Licensing

A CPA is licensed by a state and must always keep up with current tax laws in order to maintain their license in good standing for that state. Accountants are not licensed. In order to get licensed as a CPA, an accountant takes a vigorous CPA exam over several days that include many facets of financial law. Once they receive their license, CPAs must also continue with the education requirement set by the state. Here are more about the standards that CPAs must follow at the AICPA.

Tax Laws

It is not necessary for all CPAs to understand and specialize in small business taxes, but most CPAs are much more familiar with tax laws than accountants. Understanding the tax code is a large piece of the CPA licensing exam and many CPAs take additional courses annually to keep up on the tax code. The tax laws in California change by the board of equalization.
While an accountant legally can sign and prepare your tax return, the designation of accountant does not provide assurance of certification, nor does it provide you with the ability to be represented before the IRS, even is this person is an accountant, as the IRS classifies this person as ‘unenrolled preparer”

The IRS requires are tax preparers to have a prepare tax identification number and the IRS is clear about the distinction between ‘enrolled agents, CPAs, attorney and unenrolled’.

Internal Financial Analysis

A bookkeeper does regular day to day activity of record keeping by inputting of business income and expense into a financial program, accountants review this input and prepare and analyze the financial reports and CPAs do more detailed analysis and advise on tax and financial matters. While being a CPA does not mean that sound advice is being provided, you should evaluate a CPA based on their reputation.

Finding the Right Solution for You

Find a CPA firm that includes bookkeeping and accounting services, and then you can separate the routine financial jobs from the tax and financial analysis done by the CPA.

Ready To Talk? We Are Too!

If you’re ready for comprehensive accounting services aided by superior technology, we are eager to work with you.

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