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Business Trends

Entrepreneur Wants a CPA In Miami

Entrepreneur Wants a CPA In Miami

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A great CPA In Miami will have a solid understanding concerning general accepted accounting practices (GAAP) and also the flow of transactions of your particular company. Additionally, a specific comprehension of what is one of the asset, liability, income & expense accounts is crucial.

  1. Your CPA In Miami has to be competent in making use of a computerized accounting software like Quickbooks, Quicken or even MS Excel to capture transactions and in generating month-to-month financial statements.

 

  1. An experienced CPA In Miami will usually consult with you for any deals or account that he or she just isn’t clear on. You don’t want a CPA to dump everything right into a Assorted account?
  2. A professional man or woman will invariably keep the documenting of financial transactions kept up to date. A CPA In Miami will request consistent input and very accurate information, to enable them to produce the essential financial reports by the due date.

A CPA In Miami with industry experience definately will make suggestions and easily keep all transactions in order without any problems. In setting up a company, one has to decide upon the financial record keeping belonging to the monetary aspect of the company. For those who are not proficient in accomplishing this task, you will need to retain the services of a bookkeeper, CPA In Miami who is competent considering the profession you intend to create. Maintaining your small business financial transactions could be the base for a great company to grow from.

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Business Trends

Outsource Your Bookkeeping and Focus on Selling

Outsource Your Bookkeeping and Focus on Selling

Our Miami Bookkeeping Services handle all your daily accounting needs: invoices and statements, accounts payable, cash receipts and disbursements, payroll, bank reconciliations and recurring reports. Your bookkeeper will be in contact with you daily by Instant Messenger, email or phone with any questions or concerns. All under the supervision of our accountants in our Miami CPA Firm.

Accounts Receivable

Get your invoices out promptly and send monthly statements on the date of your choice.

We offer two options:

  • We prepare your sales invoice from information you email to our bookkeeper. We email you the final invoice for approval.
  • You generate invoices and statements through time and billing software. Your bookkeeper posts or imports the invoices into your accounting software.

Whether we prepare your invoices for you or you generate them yourself, we can print and mail or email customer invoices and statements on your behalf.

Accounts Receivable reports for collection and cash flow management are prepared and delivered to you on a schedule of your choice. Finance changes are assessed on overdue invoices based on your company’s payment terms and conditions, and statements can be initiated and transmitted on a schedule of your choice.

Accounts Payable

Invoices you receive from vendors will need to be scanned and emailed to us. We provide a scanner with PaperPort scanning software at no cost.

This process is as simple as 1-2-3:

1. Insert the invoice into the scanner then press the Scan button.

2. Name the file that appears on your screen (give it a unique name)

3. Click the email icon to create an email, attach the file and send.

That’s it! You’re done! Your vendor invoices for the day are on the way to us for recording into your accounting file.

Alternately, you can have vendor invoices mailed or emailed directly to us for processing.

On a schedule determined by you, we will email you a report of all open vendor invoices. Just indicate which invoices you want paid, then email the report back. We will set up the requested bill payment checks in your accounting file.

Once the checks are ready to print, we offer two options for printing:

  • You or a designated staff member can log into your accounting software and print checks directly to your local printer.
  • We can print the checks and mail or deliver them to you.

The printed checks are signed and mailed from your office. You maintain full control over your funds.

Cash Receipts

Prior to taking deposits to the bank, you will scan the deposit slip and each of the items to be deposited. Then create an email and upload the file at your convenience. We will post the customer payments against the appropriate customer invoices and record the bank deposit.

Payroll Services

We either processes payroll or makes the necessary entries to record payroll processed by a third-party provider. In either case, payroll entries will include complete recording of gross wages, employer taxes and other payroll expenses, and payroll liabilities, and quarterly and annual reconciliation of general ledger balances to payroll returns. If needed, we can also initiate transfers from your operating bank account to your payroll bank account to cover payroll if these accounts are held by the same bank.

We do recommend direct deposit of employee paychecks whenever possible.

Banking Activities

We will have access to view and download transaction history and bank statements, and, if desired, to transfer funds between business accounts at your bank. We will not have the authority to sign checks or to initiate electronic payments that have not been pre-approved by you or a designated staff member.

Bank account activity is updated daily in your accounting file, so that you always know your available cash balance. Transactions that appear in your bank account that we have no knowledge of will be posted, but we will inform you of these transactions and request supporting information by email. Bank account balance notifications and cash receipts and disbursement reports can be emailed to you daily, weekly, or monthly as desired.

Banking, credit card, and loan accounts are reconciled to the corresponding statements each month, and the reconciliation reports are emailed to you promptly. When emailing the reconciliation report, we will call your attention to old outstanding items that require resolution and will also provide a list of any missing check numbers for security and control purposes.

Bank Reconciliation

Reconciling your business checking account each month allows us to keep your bank account, accounting, and taxes up-to-date.

Having us reconcile your account each month allows you to…

  • Identify lost checks, lost deposits and unauthorized wire transactions.
  • Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
  • Detect and prevent embezzlement of funds from within your company.
  • Know how your business is doing. You can’t really know unless all accounts are reconciled and properly accounted for on your financial statement.
  • Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.
  • Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
  • Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

Compiled Financial Statements

You’ll get a complete set Compiled Financial Statements of on either a monthly or quarterly basis (you’re preference). The financials will consist of a Balance Sheet and Income Statement also known as a Profit & Loss. We will set up a Web Conference to review your financial results each quarter. This gives you and us a forum for Q&A and advisory type services.

 

 

Categories
Tax

Tax Preparers Miami Must Adapt to Change

Tax Preparers Miami Must Adapt to Change

Tax Preparers Miami Must Adapt to Change and are working harder nowadays to keep up with a changing profession, an official with the American Institute of CPAs told Miami CPA Firms attendees at Accounting Today’s Growth & Profitability Summit.

AICPA director of taxation Jina Etienne said in a keynote speech on Monday that many Tax Preparers Miami Must Adapt to Change are now using social media such as Twitter, Facebook, LinkedIn and blogs. But while Tax Preparers Miami Must Adapt to Change are using technology, they’re not always adopting technology in the most effective way. “It’s having an impact on our tax services,” said Etienne. “Revenues are staying consistent, but we’re working harder to keep those revenues.”

She noted that accounting is becoming more international. At the AICPA’s Fall Meeting of Council last week, AICPA president and CEO Barry Melancon talked about International Financial Reporting Standards and the new Chartered Global Management Accountant credential that the AICPA and the Chartered Institute of Management Accountants are jointly offering. This is now the first year of renewals for the CGMA credential, and the AICPA has already hit its target for renewals.

Meanwhile, the Internal Revenue Service announced a delay in reporting for the Foreign Account Tax Compliance Act last week, Etienne noted, because it takes time for taxpayers and CPAs to get their arms around the new requirements. There has been a blowback in IRS enforcement, with some families finding out for the first time that they have a foreign bank account after Swiss banks like UBS are forced to disclose the accounts to the IRS.

CPAs also need to protect clients from the increase in phishing attacks and tax-related identity theft. The IRS reported more than 641,000 taxpayers were affected by tax-related identity theft in 2011, Etienne noted.

The fiscal cliff is also looming large, with a host of tax provisions expected to expire at the end of the year, along with steep spending cuts in Washington due to the “sequestration” that was part of the debt ceiling deal. “How do we do year-end tax planning when we don’t know what the tax law will be?” Etienne asked.

She noted that tax preparers  are calling the AICPA every day asking about what they should do, while insisting that the Institute should have told the IRS to do something about various issues, as if it were up to the AICPA to determine tax policy. “We are in a tremendous period of uncertainty,” she said.

Health care reform is also adding to the uncertainty and placing new burdens on the IRS to help manage the program. “Tax compliance isn’t just about income taxes anymore,” she said.

Meanwhile, the IRS has been heightening the new requirements for tax preparers. “Under Circular 230, you are now required to have quality control procedures in place to ensure compliance with Circular 230 provisions,” said Etienne.

The IRS is also visiting Miami CPA firms to see how they’re doing at tax preparation and making sure their clients fully comply with the tax laws. “The IRS is putting more pressure on you asTax Preparers Miami Must Adapt to Change, pulling you over to their side to make sure you’re doing tax compliance,” she noted.

The AICPA is trying to respond to the changing demands for tax preparers . The CPA Horizons 2025 project came up with a list of key insights for how the CPA profession needs to adapt over the next dozen or so years. The AICPA is also offering a Tax Preparer Toolkit with preformatted messages and even tweets that CPAs can send out on a seasonal basis to stay engaged with clients. In addition, the AICPA is providing customizable marketing tools that CPAs can use to advertise themselves as tax Preparers with years of experience and distinguish themselves from the IRS’s new Registered Tax Return Preparer designation.

“The CPA credential is the most valued,” said Etienne. “The public trusts us. They want to trust us.”

In addition, the AICPA recently introduced an online Total Tax Insights Calculator to enable taxpayers to estimate the amount they pay each year for the most common federal, state and local taxes.

“Familiarity with technology is baked into the CPA profession now,” said Etienne.

Categories
Accounting

Cash Accounting A Simpler Method for Miami CPA Firms

Cash Accounting is A Simpler Method for Miami CPA Firms But Not Necessarily Better

A number of Miami CPA Firms testified or submitted statements recently at a hearing of the House Committee on Small Business Subcommittee on Economic Growth, Tax and Capital Access titled “Cash Accounting: a Simpler Method for Small CPA Firms?”

The American Institute of CPAs, the American Bar Association, the National Conference of CPA Practitioners, and the National Association of Enrolled Agents were some of the groups represented that weighed in on the expansion of the cash method of accounting as a way to simplify tax complexity facing small business owners. Chairman Tom Rice, R-S.C., a former tax attorney and CPA, noted that the cash method of accounting offers a simple, straightforward solution for entrepreneurs to record business income and expenses.

“In cash accounting, a business records income and expenses at the time the funds are received or paid, just like with a personal checkbook,” he said. “And, it makes it fairly easy to track cash flow—the life blood of many entrepreneurs. Perhaps because of this simplicity, it is the preferred method of accounting for small businesses.”

The AICPA supported expanding the availability of the cash method of accounting in testimony submitted for the hearing. “We wholly support the expansion of the number of taxpayers that may use the cash method of accounting,” the AICPA said in its written statement. “The cash method of accounting is simpler in application, has fewer compliance costs, and does not require taxpayers to pay tax before receiving the income being taxed.”

The AICPA also expressed its opposition to any legislative efforts to limit the use of the cash method for small and service businesses, including those businesses whose income is taxed directly on their owners’ individual returns, such as S corporations and partnerships. “We have confidence that forcing more businesses to use the accrual method of accounting for tax purposes would increase their administrative burden, discourage business growth in the U.S. economy, and unnecessarily impose financial hardship to cash-strapped businesses,” the Institute stated.

Likewise, the American Bar Association submitted a statement noting the advantages of the simple cash method of accounting used by most law and accounting firms and expressing serious concerns over legislation that would force many firms to switch to accrual accounting and pay taxes on phantom income they have not yet received and might never receive.

The draft tax reform proposal released by House Ways and Means Committee chairman Dave Camp, R-Mich., and a similar draft bill prepared by former Senate Finance Committee chairman Max Baucus, D-Mont., would require all personal services businesses with annual gross receipts over $10 million to use the accrual method of accounting rather than the traditional cash receipts and disbursement method. “As a result, many law firms, accounting firms, medical firms and other personal service providers would be forced to pay taxes on income long before it is actually received,” the ABA said.

Don Williamson, professor of taxation at American University’s Kogod School of Business and executive director of the Kogod Tax Center, described the burden placed upon small businesses when they are required to be on the accrual method of accounting. “Even where the law permits a small business to use the simpler cash method of accounting, the general requirement to maintain inventory records creates burdens that may influence by only a few months the timing of a small business’s taxable income,” he said.
“Therefore, we urge Congress to not only expand the number of businesses eligible to use the cash method of accounting but to also enact a ‘simplified’ cash method of accounting for small businesses that would further reduce unnecessary record keeping and compliance burdens,” he said.

Williamson outlined a “Simplified Cash Method of Accounting” (SCM) which he said “will reduce time-consuming, expensive administrative burdens on small businesses in keeping records and reporting their income and expenses on their returns, thereby unleashing resources that will create more productive, job creating activities.”
Under the SCM, the computation of taxable income is reduced to the following formula: Cash Receipts Less Cash Expenses (including inventory, prepayments, materials/supplies and depreciable property) equals Taxable Income.

“In short, the derivation of taxable income is based solely on amounts actually received or paid during the tax year, by means of examining the business’s checkbook for when checks were cut and deposits made,” said Williamson. “Under SCM, income consists only of cash, property or services received during the tax year without regard to imputed income under the constructive receipt, cash equivalence or economic benefit doctrines.”

“Any timing advantage to businesses from not being subject to the judicial doctrines just mentioned would be minimal given that small businesses cannot, as a practical matter, defer recognition of cash by more than a few months without creating severe cash flow problems for the payment of their own bills,” he said. “The complexity of the judicial doctrines does not warrant their application to small businesses.”