CPA Pro Business Blog
http://www.cpa-pro.org/blog/
News and Commentary for small business professionalsen-usIt's Tax Time Again!
http://www.cpa-pro.org/blog/item-43.htm
This time of year in small business and among individuals is like a race against the clock. We will spend a good amount of time locating, organizing and filing tax documents to the Internal Revenue Service. <br />
<br />
Many small businesses enlist the help of an accountant to help navigate the maze of tax filing. However, the IRS provides a <a href="http://www.irs.gov/businesses/small/">one-stop tax information center</a> to help small businesses and the self-employed properly file their taxes. Of course, accountants will find these resources quite helpful too with up-to-date tax rules and regulations.<br />
<br />
Learn about filing requirements for both self-employed individuals and small businesses with employees.<br />
<br />
Find out what business expenses are tax deductible and how you can benefit from depreciating capital equipment purchases. <br />
<br />
Short audio and video presentations help you easily learn about the complex subject of business taxes.<br />
<br />
Visit <a href="http://www.irs.gov/businesses/small/" target="_blank">http://www.irs.gov/businesses/small/</a> and learn all the facts so your tax filing will go smoothly.<br />
business-articlesNathan2009-02-05T03:23:01-05:00Business Tax Ratings: Which States will you pay the Least
http://www.cpa-pro.org/blog/item-42.htm
The share of small business profits and personal income you are required to give the state in the form of taxes is a big consideration. <br />
<br />
See where your state ranks and which provide the best business tax climate in the 2009 State Business Tax Climate Index. Recently released by the nonprofit Washington research firm The Tax Foundation, this report examines unemployment insurance, income, property, business profits and sales tax rates.<br />
<br />
Of course, other factors contribute to a state's overall business climate - labor force, the market for products and services, proximity to suppliers and quality of life are just a few.<br />
<br />
For 2009, the following are the 10 best states in the rankings:<br />
<br />
1. Wyoming <br />
2. South Dakota<br />
3. Nevada<br />
4. Alaska<br />
5. Florida<br />
6. Montana<br />
7. Texas <br />
8. New Hampshire<br />
9. Oregon <br />
10. Delaware<br />
<br />
The 10 worst states in 2009 in regard to their tax climate are:<br />
<br />
41. Minnesota<br />
42. Nebraska<br />
43. Vermont<br />
44. Iowa<br />
45. Maryland<br />
46. Rhode Island<br />
47. Ohio<br />
48. California<br />
49. New York<br />
50. New Jersey<br />
business-articlesNathan2009-01-21T02:22:15-05:00Tax Issues in the 2008 Election
http://www.cpa-pro.org/blog/item-41.htm
Across America, people are going to polls in record numbers to elect a new president. Accounting firm RSM McGladrey has produced a great <a href="http://www.rsmmcgladrey.com/Services/Tax-Services/updated-candidate-tax-proposal-comparison-10-28-08/updated_candidate_tax_proposal_comparison_10_28_08.pdf">scorecard</a> detailing the two major party candidates' tax proposals. <br />
<br />
But in 23 states, voters will also be deciding on various tax issues, which could have far reaching implications.<br />
<br />
Probably the most significant is in Massachusetts, where a measure is on the ballot to get rid of the state's income tax by 2010. If it passes, Massachusetts will become the 10th state without an income tax. <br />
<br />
Other big tax proposals are on the ballot in North Dakota, where voters will decide whether to lower the state's corporate tax rate by 15% and the personal income tax rate by 50%. In Oregon, voters will decide whether to lift the cap on the federal income tax deduction they can take on their state income tax return. <br />
<br />
Tax Foundation counsel Joseph Henchman has produced an overview of all of the <a href="http://www.taxfoundation.org/publications/show/23887.html">proposals</a> across the country, summarizing pros and cons of each. <br />
<br />
Check back soon for results and analysis of their implications!<br />
Nathan2008-11-04T10:30:52-05:00Financial Bailout Legislation Resolved Some Tax Issues, Leaves Others in Question
http://www.cpa-pro.org/blog/item-40.htm
The Emergency Economic Stabilization Act of 2008 was hastily passed through Congress and signed into law by President Bush on October 1st. Some <a href="http://www.webcpa.com/article.cfm?articleid=29460&page=1">tax provisions</a> were included as parts of the final bill to help it win passage in the House, but other important issues were left to the next Congress to grapple with.<br />
<br />
The American Institute of Certified Public Accountants (AICPA) has lobbied Congress heavily for some of these provisions, which have been included in other tax bills passed by Congress but never signed into law since agreement could not be reached on how to pay for them.<br />
<br />
One example included in this new law is a provision equalizing the penalty provisions for tax preparers and tax payers, which AICPA vice president of taxation Tom Ochsenshlager commented "We finally got across the finish line," alluding to the fact they have lobbied heavily for it this year. <br />
<br />
Other, more popular tax policies were also included in the bailout bill, most notably the exemption of 20 million taxpayers to the Alternative Minimum Tax, or AMT, which many see as an important tax fairness issue. The budgetary headaches were left for the next Congress to deal with however since it is not expected much will done in the upcoming lame duck session after the election.<br />
<br />
Technology companies will also see some benefit with the extension of the expired research and development tax credit. <br />
<br />
Since it is retroactive, the immediate benefit will be additional cash flow for companies according to Tony Mondoro, national director of research credit and technology at Ernst & Young. "With the credit crunch, a number of companies feel that they should plow the money from the credit back into their research" commented Mondoro. <br />
<br />
Congress also increased the alternative simplified credit from 12 to 14 percent. One proposal was to increase it to 16%, which may happen next year. <br />
<br />
Besides the budgetary matters mentioned before, Congress did not approach other tax issues that will expire in 2010, namely the estate tax cut, capital gains tax rates, and income tax rates ushered early in the Bush years. If they are allowed to expire, rates will return to their pre 2001 levels.<br />
<br />
Tax legislation next year will, of course, hinge upon the outcome of the upcoming presidential election, but the faltering economy will certainly be the elephant in the room. "For sure there will be some major tax changes no matter which candidate is elected president. Hang onto your hat next year," Ochsenchlager warned. <br />
business-articlesNathan2008-10-13T10:57:18-04:00Hiring Professionals for Tax Preparation and Bookkeeping
http://www.cpa-pro.org/blog/item-39.htm
Don't be tempted to do your own bookkeeping and tax preparation advises Portland tax professional Joseph Anthony. Small business startups with a few partners may decide to do everything they can themselves and contract out the rest. However, just because you can do something, doesn't mean you should.<br />
<br />
Most do not consider indirect cost such as their time and supplies they had to purchase when doing something that should be done by someone else. Anthony advises at some point early on, a small business should hire a professional for their tax returns and at least some of their bookkeeping.<br />
<br />
One main reason is that tax professionals are more than just preparers. It is important to consult with an accountant outside of the crunch of filing season to be sure you are doing what you can to reduce the tax bill. For instance, many small businesses can benefit from creating a SIMPLE retirement plan for their employees. But, it generally has to be done by October 1 in order for there to be tax benefits for that year.<br />
<br />
Keeping your bookkeeping accurate and in good order is not only smart business but also can keep you from having legal problems. A professional, either in-house or hired from the outside, needs to have knowledge of such things as double-entry and how to make a journal entry. Also, your books need to be as organized as possible so the tax pro can do their job effectively and in the least amount of time.<br />
<br />
Probably the biggest thing is to be sure your tax pro and bookkeeper work together on your behalf. For instance, a bookkeeper will not know how assets are being depreciated or written off, the accountant will have to advise on that. Bookkeepers and tax pros serve two purposes; they keep you out of trouble and allow you to focus on running your business rather than getting bogged down in financial matters.business-articles2008-05-22T11:05:04-04:00Don't Forget to Pay the Most Important Bill of All
http://www.cpa-pro.org/blog/item-38.htm
By Martin Lukac<br />
<br />
What is the one bill that you often forget to pay? You may be thinking that you pay all of your bills, but you are missing one.<br />
<br />
You need to pay yourself.<br />
<br />
The correct way to manage your finances has you building a greater net worth each year. You have more money this year than you did last year. However, many of us simply use every cent we have on new cars, clothes and things that don't last.<br />
<br />
You are letting one bill go long overdue. It is the bill for your future. The longer you put off this bill, the more it will cost you in the long run. If you ignore it, you will eventually face paying big time. And not just in money.<br />
<br />
You will gladly begin to pay off your debt. You will gladly take on more debt. But think about what you are really paying for. Are these items that you will have in 30 years from now? Your fun now is costing you a comfortable retirement later.<br />
<br />
You can't count on Social Security or Medicare. They are probably not going to be around in 20 years. The only thing you can depend on is your savings.<br />
<br />
You are the only one that can make it happen. You can give yourself and your spouse the greatest gift of all -- a comfortable and secure future. Or you can sabotage it. But you can't just ignore it anymore. Because I'm telling you that there is a better way.<br />
<br />
Start by eliminating your debt. Every dollar you are paying in interest is taking hundreds of dollars away from your retirement. Think I'm just blowing it all out of proportion? Run a few online calculators to see 1) how long it will take you to get out of debt and 2) how long it will take you to save for retirement at your current pace. If you aren't saving anything and have no plans to do so, you are planning on working until you die. No getting sick, no rest, no breaks. Because there will be no money.<br />
<br />
It is a challenge. Every financial decision you make now will affect you for years to come. That is why the way you spend your money is so very important. Pay off your debt, don't incur new debt and save aggressively for your retirement. In this day and age, it is common to work for thirty years and then live for thirty years in retirement. You may think that thirty years is a long time to save, but remember that thirty years is a long time to not have any money. Prepare for your future.<br />
<br />
Simply keep in mind how great it would be to retire comfortably. You can do that if you start now. If you have thirty more years, then great. You have time to really build up your worth without sacrificing too terribly much. Just avoid the bad debt of credit cards and unwise auto purchases. If you only have ten or so years, then you are going to have to sacrifice, but it is still possible. The key?<br />
<br />
Start right now. Pay yourself and your future.<br />
<br />
Martin Lukac represents <a href="http://www.RateEmpire.com" target="_blank">http://www.RateEmpire.com</a> and <a href="http://www.1AmericanFinancial.com" target="_blank">http://www.1AmericanFinancial.com</a>, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!<br />
<br />
Article Source: <a href="http://EzineArticles.com/?expert=Martin_Lukac" target="_blank">http://EzineArticles.com/?expert=Martin_Lukac</a><br />
<br />
business-articles2006-08-17T02:31:17-04:00CPA Firms
http://www.cpa-pro.org/blog/item-37.htm
By <a href="http://ezinearticles.com/?expert=Max_Bellamy">Max Bellamy</a><br />
<br />
CPA is short for Certified Public Accountant. There are many CPA firms that are some of the most reputed and well-established companies in America. A CPA firm performs many functions and has many specialties including auditing and attestation, accounting systems, taxation, business valuation, management consulting, forensic accounting, information systems consulting and information systems auditing. This is why they are so important to successful businesses and entrepreneurs. These businesses and individuals count of a CPA firm to keep them financially on track and ahead of the game.<br />
<br />
Successful CPA firms are always on the lookout for the right people for the right job. Usually partners in a CPA firm are highly skilled, well educated individuals who play key roles in the successful growth of their company. To keep their skills honed, many firms require that their staff stay continuously informed by attending courses on a regular basis.<br />
<br />
CPA firms must have established standards, procedures and policies relevant to many areas in order to facilitate the volumes of reports they must produce. These can be as specific as maintaining cash flow, billing, recovery and software. All CPA firms make these policies known to their employees through written content and training. Technology and the Internet are also used for educational purposes. Above all, CPA firms must constantly grow with clients and meet their ever-changing needs. They must remain relevant and important for their clients. For those looking to work or even establish a CPA firm make sure that it meets all the above standards.<br />
<br />
<a target="_new" href="http://www.CPA-source.com">CPA</a> provides detailed information on CPA, CPA Exam, CPA Review, CPA Firms and more. CPA is affiliated with <a target="_new" href="http://www.e-expensereports.com">Expense Report Software</a><br />
<br />
Article Source: <a href="http://ezinearticles.com/?expert=Max_Bellamy" target="_new">http://EzineArticles.com/?expert=Max_Bellamy</a><br />
2006-06-19T09:02:46-04:00Tax Haven Raises 2006 Entry Price
http://www.cpa-pro.org/blog/item-36.htm
by Roger Munns<br />
<br />
While Monaco is a well known European tax haven, Andorra has remained little known outside of the financial community - despite enjoying the same tax advantages and arguably more private banking than her better known rival.<br />
<br />
In contrast to the similar financial benefits both Monaco and Andorra residents enjoy, the two small countries have quite different climates. <br />
<br />
Monaco has good all year round weather and is located next to the French Riveria, while Andorra is in the Pyrenees and between early December and late April attracts nearly ten million tourists for ski holidays. Monaco has year round tourists, peaking twice a year in May for the Grand Prix, and September for the Yacht Show.<br />
<br />
Neither Andorra or Monaco have their own airports ? Nice airport has a helicopter link, a ten minute ride direct to Monaco, Andorra is not so fortunate and the nearest airport is Barcelona, a three hour drive away from the principality.<br />
<br />
Both countries have opted to stay out of the EU, preserving their ability to maintain a no income tax policy.<br />
<br />
The biggest difference is the entry price for becoming a resident ? which entails buying or renting a house or apartment.<br />
<br />
One bedroom apartments in Monaco start at 800,000 Euros, but in Andorra the same size apartment starts at less than a third of the price at 250,000 Euros. And while a house in Monaco is a rarity, there is a good choice of houses for sale in Andorra, with prices starting at under a million Euros.<br />
<br />
Rising Prices<br />
<br />
Given Andorra's property price advantage for would-be residents choosing between Europe's primary tax havens, it has come as a surprise to many that the closing costs for buying a property in Andorra has not only been less than half that of Monaco, but also less than buying a property in many other mainland European countries at around four and a half per cent.<br />
<br />
But Andorra has just raised property closing costs by introducing a three and a half per cent sale of goods and services tax on property purchases from January 1, 2006 - bringing the tax haven more in line with neighboring France and Spain.<br />
<br />
Demand for property in Andorra and Monaco is unlikely to be affected by the recent increases though, according to European tax haven specialists Tribune Properties.<br />
<br />
'Andorra and Monaco have historically seen an increase in property activity and residency applications when taxes are increasing elsewhere. The new German government has recently increased the top rate of income tax and the United Kingdom has seen an increase in the number of indirect taxes, making the zero per cent personal income tax both Andorra and Monaco offer an attractive preposition to high income earners.<br />
<br />
Andorra's property inflation has been over ten per cent annually for the last three years, and when the 2005 figures are released we would expect it to be four years in a row, with no sign of a leveling off of demand for the year ahead.<br />
<br />
With Andorra and Monaco's high speed cable and broadband internet access more and more company owners are moving their residence to low and no tax countries and running their companies from a distance geographically, while being able to share information with their head office in real time'.<br />
<br />
As well as buying a property in Andorra or Monaco, both countries require residency applicants to establish a local bank account and deposit around 50,000 Euros (Andorra) or 100,000 Euros (Monaco), take out private health insurance, and to live there for six months of the year.<br />
<br />
--- <br />
For an on-line guide to Monaco and Monte Carlo including a map, the weather, flights and Nice Airport information visit <a href="http://www.yourmonaco.com" target="_blank">http://www.yourmonaco.com</a>2006-03-23T03:59:14-05:00It's A Taxing Time Of Year
http://www.cpa-pro.org/blog/item-35.htm
by Stephanie Foster<br />
<br />
Yes, that's right, it's that time of year nobody loves - tax time! No, this is not too early to think about it, especially if you have money coming to you. <br />
<br />
All right, so it's not fun to think about doing your taxes. But there is a distinct advantage to getting an early start - it's a reminder to be more organized in this regard in the year to come. Make this as pleasant as possible next year. <br />
<br />
Now, if you and your spouse each have jobs rather than businesses, your employer has handled the bulk of the paperwork as far as paying taxes goes. You just have to know what your deductions are. If you're only taking the standard deduction, you may be paying too much, sometimes quite significantly. If you aren't sure what all you can take a deduction on, consult your accountant, or, if you do your own taxes, go to <a href="http://www.turbotax.com/" target="_blank">http://www.turbotax.com/</a> and see what they suggest. You may get a pleasant surprise. They links to tax tips right on their front page. <br />
<br />
Of course, if you have a home business, you have more paperwork and more deductions to consider. This is why many home businesses prefer to use an accountant. It saves a lot of worry and can be worth the expense. You can deduct in many cases for your home office, business supplies and more. Consult with a tax professional, and be sure you have receipts for everything in case you are unlucky enough to be audited. I am not a tax professional, so I really cannot give you better advice than that. <br />
<br />
Now, if you've done your taxes and find out you're getting a big refund, it's time to celebrate, right? Not really. If you're getting a big refund, that means you gave the government an interest-free loan. You need the money more than they do, right? If you are overpaying to avoid underpaying (and who likes paying more at tax time?), put the excess you were thinking about paying into some kind of savings account. Even a plain savings account in a bank pays more than nothing, and you're still getting the advantage of money saved up. This is far harder to do, of course, since the money is nicely within reach, but it's a good practice in general to have some money you rarely touch anyhow. <br />
<br />
Getting your taxes under control now can save you a great deal of trouble next year and in future years. Build good filing habits so that if you are ever audited you can easily justify your deductions. And finally, consult with a tax professional to get the most out of your tax return. <br />
<br />
---<br />
Stephanie Foster is the owner of <a href="http://www.homewiththekids.com" target="_blank">http://www.homewiththekids.com</a> and offers free resources for parents who want to find real work at home opportunities. For more work at home advice, visit <a href="http://www.homewiththekids.com/wah.htm" target="_blank">http://www.homewiththekids.com/wah.htm</a>2006-03-23T03:49:49-05:00
http://www.cpa-pro.org/blog/item-34.htm
business-articlesseostone2006-03-08T03:19:26-05:00