For married couples who live together and share finances, tax season can bring with it a lot of questions about how you should file and why. In this month’s blog post we briefly dive into what couples need to know before filing their taxes and how they can determine if they should file jointly or separately.
Married Filing Jointly
Your filing status determines your tax rate and the amount of deductions you can qualify for. For most couples filing jointly is the best option for several reasons. Basically, married couples can continue to qualify for a lower tax rate despite having a higher taxable combined income. This tax break in addition to one of the largest standard deductions offered by the IRS makes filing jointly the best option for the vast majority of married couples.
Married Filing Separately
The circumstances in which a married couple would benefit more from filing separately are far and few between. They mostly include situations where one spouse has outstanding deferred debt that needs to be collected promptly. Examples can include having large amounts of student debt or costly outstanding medical bills. Filing separately is also the best option for couples who are expecting to get divorced within the year.
Final Thoughts
If you’re still unsure of which status makes the most sense for you, call on a highly qualified and experienced CPA. One tax service does not fit all so it’s important to turn to a professional who is committed to finding the absolute best option for you and your family. Contact the experts here for a variety of services including forensic accounting, tax services, financial consulting, bookkeeping, and much more.
There are a wide variety of types of court cases that can require the additional support of a CPA. Oftentimes in civil and business litigation, courts and powerful legal teams will require a CPA to weigh in based on their expertise in finances and accounting. Follow along with this blog to learn about the types of cases they typically work on and how having a CPA on your legal team can help you get the case results you seek.
Forensic Accounting
While forensic accounting may sound like a job reserved for detectives or the secret service, it is broad term used when a certified accountant applies the theories and principles of accounting in a legal setting. A CPA hired for litigation support purposes will review bank statements, receipts, time sheets, and any other necessary financial documents involving the case.
Business and Civil Litigation
Too often complex
accounting, appraising, and tax issues find their way into business litigation.
A certified public accountant with litigation support experience most often
work either for or against a business to prove or disprove alleged disputes. For
example, forensic accounting can either make or break cases involving bankruptcy,
fraud, data analysis, damage evaluations and more.
In addition
to business litigation, civil litigation cases will often require the additional
support and expertise of a CPA as well. Most often their role in court will be
as a consultant, but there are times when they are asked to stand as an expert
witness too. Civil cases that could benefit from a CPA’s support can include
those involving marital settlements, taxes, valuations and more.
Conclusion
When litigation is simply unavoidable, ensure that you have a solid legal team working in your favor. A CPA working to support your case will able to provide a judge and jury with indisputable evidence and facts that less qualified individuals wouldn’t have been able to uncover. For a CPA who’s highly experienced in providing top notch litigation support and forensic accounting services, contact us today!
When it comes to our finances, there is no such thing as too
much organization and attention to detail. The notion of having our money taken
care of and kept in the right places can do wonders for alleviating our stress and
allow us peace of mind. One of the best ways to ensure our financial security
is by hiring a professional. The only tricky part of bringing in a certified
personal accountant (CPA) is finding one you can trust with your livelihood.
Keep reading to learn some tips on how to spot a qualified CPA and help you
keep the money rolling in smoothly.
They Are Always
Communicating With You:
One of the most vital aspects to a good CPA is their
communication skills. If your accountant isn’t keeping you in the loop about
what’s going on with your finances, that’s not a great sign it will be a smooth
working relationship. The ability to articulate information to you about the
state of any aspects of your portfolio, from your assets to your investments or
liabilities, is paramount to your future and the reason CPA’s are hired in the
first place.
They Plan Your
Finances Throughout The Entire Year:
While this statement seems to be a no-brainer, you would be
surprised to find out how many accountants struggle to focus on your long term
futures and securities as opposed to more immediate financial management
strategies. One of the best upsides to having a CPA you can trust should be the
knowledge that they are spending time planning your financial strategy
throughout the entire fiscal year or even longer, as opposed to advising you on
week to week transactions. Keeping an eye on the future while managing the
present is always the best way to grow your personal wealth, so finding a CPA
that understands that can be crucial.
They Give You Tips On
How To Budget:
Hiring a personal accountant that cares more about coming
in, doing the basic necessities of their job each day and then clocking out
will never bring you the returns that you are looking for. It is often hard to
see from the outside if your accountant is going above and beyond or not, but
one of the best indicators of this is the advice they give you and the
regularity with which they give it. Daily, weekly and monthly budgeting tips,
while not a requirement, should be expected from any CPA. The more any client
knows about their finances, the better it will work out in the long term.
Whether it’s merely calling to advise against a trend of purchases they see you
making or providing a helpful way to save money in an area they see you are
spending too much, a CPA is your financial lifeline, which means they should
always be there to have your back on any financial matter.
They Don’t Mind
Explaining Anything To You:
To most people, this seems like a relatively simple and
obvious task for a CPA, because it merely requires them to not find your lack
of knowledge about intricate financial matter frustrating. However, it is
shocking how many CPA’s believe relative autonomy is the way to go when it
comes to your money, which is a relatively absurd notion. While it’s true that
any CPA should have deeper knowledge of your financial situation, there needs
to be a consistent dialogue between them and their client that centers around
informing them as much as they can about any financial matter. The more a
client knows, the better they can work with their CPA to ensure they flourish
when it comes to short-term and long-term financial goals.
Conclusion:
There are so many factors that go into choosing the right
CPA for you. It’s important to feel safe and secure leaving your finances in
another person’s hands, so why not know you are getting the best person for the
job right from the start? With Mariela Ruiz, CPA, there’s nothing
more important than the financial success of clients, so schedule a
consultation today and take that first step towards a more prosperous future!
When it comes to accounting and bookkeeping, there are many
differences. While these careers have many similarities and common goals, they
are there to support your business in very different ways and for different parts
of its business operations. Simply put, bookkeeping is more transactional and
administrative while accounting is there to give you proper business insights
based on bookkeeping information. We understand that you might not know the differences
between these careers; we hope the following blog will give you all the
information you need.
Accounting
As previously stated, accountants take care of the big
picture by providing you with business insights based
on bookkeeping information. An accountant will process all the financial
information that was brought to you by the bookkeeper or business owner. From
there, he or she will create a financial model using that information. Accountants’
analysis should inform you on business trends and growth opportunities.
Accounting Duties:
Analyzing costs of operations
Aiding in the understanding of the impact of
financial decisions
Completing income tax returns
Preparing and adjusting data entries
Preparing company financial statements
Bookkeeping
Bookkeepers, on the other hand, will play more of an
administrative role in the business. They are more focused on recording
financial transactions. This will help
build a business to be financially successful. The bookkeeper is on the ground
floor, managing your daily transactions and looking out for changes to the
organization or significant financial events that should be addressed
immediately.
Bookkeeper Duties:
Completing payroll
Maintaining and balancing subsidiaries, general
ledgers, and historical accounts
Posting debits and credits
Producing invoices
Recording financial transactions
Businesses will succeed more often than not when they have a
complete picture of their finances, and bookkeepers and accountants each look
at a business’ numbers through different lenses. In order to receive the best
advice for your business, it is essential to have both an accountant and
bookkeeper by your side. If you are looking for someone you can trust with your
bookkeeping or accounting services, you can count on MARIELA
RUIZ, CPA, PLLC. No matter what you are looking for, we have got you
covered.
All business audits share things in common, but do you
know what they entail? The auditor, whether someone within your business or an
external auditor, will do a thorough evaluation of your accounting books and
financial statements. They usually check an entire year’s worth of financial
data, including income and expenses. If you’re a small business owner, or maybe
just curious about the auditing process, keep reading to learn about the
different audits for businesses.
Internal Audit
An internal audit is a
self-audit that’s scheduled and conducted by a representative of your own
company. Many businesses do an internal audit once a year to ensure the
accuracy of their books and financial statements. An internal audit
is for your own purposes, and to check for errors or other issues.
Larger companies usually
have audit departments, but a smaller business might employ just one or two
people to conduct audits. Internal auditors don’t just check business finances;
they also check company policies, procedures, and processes to check compliance
with internal guidance and federal, state, and local laws.
External Audit
An external audit, also
known as an independent audit, is an audit conducted by someone outside the
organization. This is called an independent audit because the auditor has no
loyalty or responsibility to the business that could create a conflict of
interest. In their report, they’ll have to provide an opinion as to whether
your company passed the audit. An auditor might take one of the following
stances in a business audit:
Clean
opinion – The business’s books and financial statements accurately
represent the company’s financial position.
Qualified
opinion – The auditor disagrees with parts of the company’s financial
records, but the audit was too limited in scope or access to come to a
definitive conclusion.
Adverse
opinion – The auditor found that the business financial records materially
misrepresent the company’s financial position.
Disclaimer of
opinion – In this type of report, the auditor doesn’t give any opinion on
certain financial records.
IRS Audit
An IRS audit occurs when the IRS finds potential
errors in your tax return. Usually, the IRS schedules audits for tax
returns that were filed in the last three years. A few factors can trigger an
IRS audit. For example, if you claim losses for multiple years in a row or
report high income levels, you may be subject to an IRS audit.
Conclusion
As you’ve read above,
small businesses go through the audit process to check on financial records and
other important documentation. Whether it’s an internal or external audit, it’s
best to let a professional do the job. At MARIELA RUIZ, CPA, PLLC, we
have the audit services you need to keep your business in check. Contact our
team today!
