Jump to content
Sign in to follow this  
One Tough Pressure

Accountants

Do you use an accountant?  

19 members have voted

  1. 1. Do you use an accountant?

    • Yes
      14
    • No
      5


Recommended Posts

There was a recent thread and someone mentioned they have an accountant. Someone else wondered why and what the point was.

So I got to thinking, why not? I have used an accountant since year one. When I was just working a job, I did my own taxes since I was a teenager, but with all the legal hoopla in business write offs, I seeked out helped from the beginnning.

For the amount that I spend, which is usually around $500.00 a year, I get advice whenever needed, full write offs that I may have overlooked and the accountant himself is a write off too. It makes perfect sense to have one.

So why would you not have an accountant?

Share this post


Link to post
Share on other sites

Ive thought about it, but have no idea where to look for one. I dont make a ton of money, and I dont want to be spending a lot for an accountant. Plus if I was an accountant Id be chasing the larger companies, not a one man show like myself. How do you find someone who specializes in small home bases businesses?

Share this post


Link to post
Share on other sites
Ive thought about it, but have no idea where to look for one. I dont make a ton of money, and I dont want to be spending a lot for an accountant. Plus if I was an accountant Id be chasing the larger companies, not a one man show like myself. How do you find someone who specializes in small home bases businesses?

Ask other contractors in your area who they use. My accountant does accounting for anyone but over half his work is for contractors. I was real small and he didnt charge much at all and he still is reasonable

Ask around and if you go to one and it seems to high$$ or he doesnt know constuction trades go to another. Ask him questions, whats this going to cost and what he offers or recomends. Interview him

I would never go without an accountant, he saves me money every year and I'd probably beig going to jail with out him LOL

Share this post


Link to post
Share on other sites

If you don't know anything about taxes, then get an accountant. After the first or second year, you should be able to take what you've learned and look at the accountants work and apply it. Now some of you think that doing your own taxes is best left to a professional and you'll rot in prison if you even think about it. Accountants get the same information everyone else gets and all they do is read the instructions. It's real simple, they (IRS) numbered the questions and used Letters from the alphabet on each sheet so you wouldn't get lost. It only took me 2 hours last year. I cleared off the kitchen table, spread out my papers got out the calculator and went for it. If you're unsure about your work, you can have an accountant check it. Who's beat down with work in the middle of January any way?

Share this post


Link to post
Share on other sites

Operating without an accountant is like walking a high wire without a net in my opinion. We have used a CPA since the companies inception and he has provided us with valuable advice and direction in many areas concerning money and investments.

Another benefit to using an accountant is that the IRS does not flag these types of filings for audit as often as those who do their own taxes.

As others have mentioned, an accountant has to keep up with all the tax laws and changes which can affect your business so they can help you to get the most out of your return and also keep you from making some of the mistakes that the IRS looks for to justify an audit. They can audit you anyway but they are most likely to go after the questionable ones. Status quo.

Rod!~

Share this post


Link to post
Share on other sites

I believe in accountants and am sure that they add "value" to any business model. We have had bad luck over the years as it relates to getting our accountant to do the work that was necessary for him to do. We fired him and hired another one only to fire him also 30 days into our contract.

Share this post


Link to post
Share on other sites

They say CPA is only way to go for actual setup of the daily stuff and then after a time you can move to the payroll companies or do yerself.... how certified them payroll companies are I do not know.

I'v done my own taxes with the turbotax software for decades now..is good stuff..

Rod, Have heard more then once the opinion from professional investment advisors (like Bob Brinker) that one of the worst things is to take investment advise from a CPA. They claim it is simply not their fortay and they would not be a CPA if they were any good at it.

"Another benefit to using an accountant is that the IRS does not flag these types of filings for audit as often as those who do their own taxes."... have heard lots of audit flags from ex IRS agents and layman over the years but never picked up on that one. Did you hear that from a CPA or?.. I really would like a reference source to that if you by chance have one. Them ex agents do say there are flags that are not talked about outside the top people in the agency.

Share this post


Link to post
Share on other sites

I dont know much about it, but I did hear that flags are almost double if your numbers on the tax forms are even. If you list your income as 40,000 they know something isnt quite correct

Share this post


Link to post
Share on other sites
Who's beat down with work in the middle of January any way?

I am, commercial work year round.

I dont know much about it, but I did hear that flags are almost double if your numbers on the tax forms are even. If you list your income as 40,000 they know something isnt quite correct

5 years and no problems. My guy rounds everything to even. Many CPA's will specialize in small business. With your mindset on the big companies, then why would anyone use you vs a large pw company?

Funny how we wonder why the average homeowner will do his own house to save a buck over a pro wash job, then we try to save a buck doing our own taxes. Doesn't make sense.

Who claims mileage vs actual expense and vehicle depreciation? If you do not understand the difference, their is a good reason to seek professional advice.

Share this post


Link to post
Share on other sites

Rod, Have heard more then once the opinion from professional investment advisors (like Bob Brinker) that one of the worst things is to take investment advise from a CPA. They claim it is simply not their fortay and they would not be a CPA if they were any good at it.

Ok, I will clarify: by investments I was referring to new equipment purchases and whether or not to lease or buy outright. My apologies for the misuse of the word.

"Another benefit to using an accountant is that the IRS does not flag these types of filings for audit as often as those who do their own taxes."... have heard lots of audit flags from ex IRS agents and layman over the years but never picked up on that one. Did you hear that from a CPA or?.. I really would like a reference source to that if you by chance have one. Them ex agents do say there are flags that are not talked about outside the top people in the agency.

This is truer than not. One of the popular tax preparation companies has mentioned this as a statistic way back and yes I was parroting it here.

Overall, the fact as it is a popular opinion is an accountant is a smart business choice and one that can help to avoid the pitfalls of tax reporting and filing which in my opinion is too complex and involving to keep up with. I would rather outsource it and tend to my customers and let the pro's do what they do best. I am too out of touch with all the tax laws and lingo that is used and only find myself like many others in a state of despair at the thought of trying to do our company taxes on our own. The money spent on the accountant is worth the bottles of pain killers for the headaches I would endure and the frustration that would only impinge upon my business negatively.

Rod!~

Share this post


Link to post
Share on other sites

Imagine if you will...

January, northern Wisconsin 20 below outside. The sun is just coming up and there is a light snow, beautiful. Snuggled up in a warm blanket with my hot coffee at the table I start my taxes. 2 hours later and I just saved $2,900 by not going to an accountant...it seemed to make sense to me. I also claimed my mileage b/c I own my older vehicle... So, to conclude our journey I have some choices on what to do in this January day. Go ice fishing, work on tanning some deer hides, or help the neighbor with something. It's just so tough living in the most beautiful place on earth "The Northwoods".

Share this post


Link to post
Share on other sites

A good accountant will tell you based upon your company's situation, if you should buy outright or lease, and if leasing which type of lease. They will also set up a schedule of depreciation for you.

Best money we spend each year is with our accountant. Would never dream of not having one. Our accountant has never missed the credits we were due, and has found some we were not aware of. Like other types of professionals, there are bad ones, good ones and great ones. Be sure to shop, and it doesn't hurt to ask for references for other small business owners who use the service.

Beth :groovy3: :island: :sunshine:

Share this post


Link to post
Share on other sites

John,

You sound like my neighbor who pressure-washed his house with an electric washer on a ladder for two solid days. Then he climbed on the roof and leaned over the eave to clean the exterior of his gutters with a bucket and brush (they still look grey). He obviously had plenty of time on his hands too.

I can't imagine not using an accountant.

I have a traditional 401k, a Roth IRA, a 457 deferred compensation plan, a kid headed to college, pay income taxes in two states (thanks to my lovely wife), have bought and sold real estate, and run a small business in addition to a full-time job.

Sorry John, but I don't believe for a second that by reading the tax code I could be as proficient as my accountant who studied it for years, and spends countless hours each year on learning the changes that are made. Do you remember the one time changes that the Fed's made with regard to depreciation schedules on major equipment purchases a few years ago. Did you do calculations to see how you might benefit from investing in new equipment vs. retaining your old stuff on it's current depreciation schedule? I know guys who bought multi-million dollar airplanes to take advantage of that deal.

True story...a friend of mine recently graduated with a degree in accounting and went to work for a local accounting firm. He picked up the business of another friend of mine who had been using a tax service. When it was all said and done, he got him over $15,000 back that this national tax service had missed as deductions over the three previous years.

...and I can't believe a CPA would miss a credit like the one you mention. Even H&R Block would fire that guy!

Share this post


Link to post
Share on other sites
Oh...

The $2,900 I saved would've been from the child tax credit the accountant would've missed which he didn't deduct for my wife's neice. And not to mention his fee.

Why did they miss it? My accountant is given all the info he needs for my deductions. If I claim something that is not right, he will tell me so.

Share this post


Link to post
Share on other sites

$2900!!! WOW. Does he use a superduperdiscombobulatedfantasmagoricalalgorythmdetensifiedtrigonomical Hydrogen/Ion nucular powered calculator to do it with? :lol: Sorry jk, couldn't resist.

That is expensive to say the least. Heck, I might be inclined to do the same at those prices but still I would prefer to do other things when it's cold out and not numb my brain with something I will only use once a year. It's just not a priority for me to learn.

[nondescript mumbling: sheesh, $2500 bucks ..... to do taxes,..... must be nice ... probably....has a captured audience....no one else to turn to.....only one in town I bet...] ;)

Rod!~

Share this post


Link to post
Share on other sites

I doubt the route to the savings mentioned can be attributed to the 'child tax credit' alone. The 'earned income' credit is perhaps the main savings/refund vehicle and relies on income fugures. The child tax credit is different and only partial contributer if any..I would question that as applicable. Taxes paid in coming back on top of EIC can be a real hefty refund for many folks.

John,

It scares me that you would spend two hours and then not name the main credit correctly. Please verify.

My thoughts to you are -You have a computer, please consider buying the tax software next year as they will allow you to do the numbers correctly in less than an hour... They usually get everything when you follow the programs Q&A methodology.

Share this post


Link to post
Share on other sites

My accountant on average has saved me well over $10k a year, and costs me about $800. Every time she calls I answer the phone telling her how beautiful she is. (I Love called ID and she is also a personal friend.) Even if something happened that she decided to give up accounting, I would still have one, though I may not tell him or her that he or she is beautiful.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Sign in to follow this  

×