Payroll

[John Evans]

I use a local payroll company that cuts a monthly pay check for myself, and files all of the tax forms with payment to the feds and state government. This service cost about $40.00 per month. Annual tax returns are additional through our accountant. I use Quickbooks to record income and pay bills.

[Rick Maday]

Originally Posted by Steven C. Meyer

ONE: You do not need a CPA!!! Expensive. A local accounting service would meet your needs. Or, get Quicken quick books, or any good accounting program and do your own accounting.

Horrible advice!

Much more expensive is going through an IRS audit and losing! Penalties, intrest and an accountant to guide you through a very prevenatble mess is all much, much more expensive in terms of real dollars and time.

If you do your own accounting without an extensive background in accounting and tax law, you have a fool for a client.

Quick books is good for keeping track of everything, but I like the idea of having someone to turn to (ie blame ) if the ***** hits the fan.

It is simply a cost of doing business (like tools, insurance, etc) and I believe - but ask your tax professional - tax deductible.

[Rick Maday]

Originally Posted by Steven C. Meyer

Try not to intermingle business account and personal account, makes it much easier at tax time.

How about just don't.

[Rick Maday]

Originally Posted by Steven C. Meyer

ONE: You do not need a CPA!!! Expensive.

I do have an accountant/CPA...

[T.J. Christopher]

Pay myself, what exactly is that, I thought I was a non-profit org....Seems like it anyway .........

[Steven C. Meyer]

I do all my day to day accounting on quick books, print out, give to CPA/Accountant does the filings. I have NEVER been audited by IRS.

For a full service accounting service on the west coast, for full business accounting here is $150 $200 a month.

As long as CPA is doing the filings, he goes over your information, and you get all the deductions you are entitled to, and he checks (audits) your information.

I see no reason to pay for full accounting service, when all a small business needs to do is keep track of daily activity, then turn that info over to your accountant.

I am a firm beliver in keeping costs down. Yes, the accounting service is tax deductable.

Originally Posted by rmaday

Horrible advice!

Much more expensive is going through an IRS audit and losing! Penalties, intrest and an accountant to guide you through a very prevenatble mess is all much, much more expensive in terms of real dollars and time.

If you do your own accounting without an extensive background in accounting and tax law, you have a fool for a client.

Quick books is good for keeping track of everything, but I like the idea of having someone to turn to (ie blame ) if the ***** hits the fan.

It is simply a cost of doing business (like tools, insurance, etc) and I believe - but ask your tax professional - tax deductible.

[Rick Maday]

Originally Posted by Steven C. Meyer

I do all my day to day accounting on quick books, print out, give to CPA/Accountant does the filings. I have NEVER been audited by IRS.

For a full service accounting service on the west coast, for full business accounting here is $150 $200 a month.

As long as CPA is doing the filings, he goes over your information, and you get all the deductions you are entitled to, and he checks (audits) your information.

I see no reason to pay for full accounting service, when all a small business needs to do is keep track of daily activity, then turn that info over to your accountant.

I am a firm beliver in keeping costs down. Yes, the accounting service is tax deductable.

Maybe I'm missing something but your original post said

Originally Posted by Steven C. Meyer

ONE: You do not need a CPA!!! Expensive.

[Steven C. Meyer]

That statement was that you do not necessarly need a CPA, when a tax accountant can do the same for less. Unless you just want to brag about having your own CPA.


Unless your federal tax return is is highly complicated, you do not need a CPA. For a small business, an accountant (or accounting service) is able to take care of your needs. A CPA demands (and gets) a much higher hourly fee than an accountant. HI business just not that complicated it is gross sales, less expenses, equals net taxable. It's not rocket science. Any good tax accountant can do the year end final tax return.

Would you hire a $200 an hour attorney to fight a $10 parking ticket? I doubt it.

I do all my own day to day accounting entries in quick books, do my own quarterly returns.

I use a CPA for year end tax returns, and he can check for any errors, and due to the fact that I have income from several other areas and trusts, rentals, Tax free investments, etc. So, a CPA is the best (and most knowledgeable) person to address those issues.

Any good tax accountant take care of your needs, for considerably less than the a CPA.

Originally Posted by rmaday

Maybe I'm missing something but your original post said

[Rick Maday]

Steven,

I believe that one should have a professional review and file their necessary paperwork. Especially if one does not have an accounting background.

I stand by my stance that your statement "do your own accounting" is horrible advice.

I still am confused about some of your statements, highlighted in red. Do you or don't you need a CPA?

Originally Posted by Steven C. Meyer

That statement was that you do not necessarly need a CPA, when a tax accountant can do the same for less. Unless you just want to brag about having your own CPA.

More on this in a min.

Originally Posted by Steven C. Meyer

Unless your federal tax return is is highly complicated, you do not need a CPA.

Complicated is a very subjective term. With your background, accounting may be "easy" but it very well may be difficult/confusing for someone without that background. A blanket statement that "you do not need a CPA" and "do your own accounting" may not be the best advice for people/businesses whom may not posess the proper skill sets to do that effectively.

***Side note***
Our whole business is based on the fact that we have knowledge and skills that the general public does not (LIke a CPA). Don't clients pay us for the special skills and knowledge? Some of which can be "expensive" (another relative term). I sure wouldn't want anyone telling my clients that they don't need an inspector because they're expensive! Or a real estate agent, or a doctor, or a lawyer, or an auto mechanic, etc..

***back on topic***

Originally Posted by Steven C. Meyer

For a small business, an accountant (or accounting service) is able to take care of your needs. A CPA demands (and gets) a much higher hourly fee than an accountant. HI business just not that complicated it is gross sales, less expenses, equals net taxable.

That may look like a foriegn language to some.
Which system does that work for? Cash or accrual?

Originally Posted by Steven C. Meyer

It's not rocket science. Any good tax accountant can do the year end final tax return.

I thought you suggested "do your own accounting"

Originally Posted by Steven C. Meyer

Would you hire a $200 an hour attorney to fight a $10 parking ticket? I doubt it.

Apples to oranges.
I would hire the best professional that I could to help me in matters that could run into the 10's of thousands of dollars if not done properly.

Originally Posted by Steven C. Meyer

I do all my own day to day accounting entries in quick books, do my own quarterly returns.

It's good you have those skills, others may not.

Originally Posted by Steven C. Meyer

I use a CPA

is this the bragging you were talking about?

Originally Posted by Steven C. Meyer

for year end tax returns, and he can check for any errors, and due to the fact that I have income from several other areas and trusts, rentals, Tax free investments, etc. So, a CPA is the best (and most knowledgeable) person to address those issues.

So should one, or should one not use a CPA?
Seems the answer lies within each individual situation.

Originally Posted by Steven C. Meyer

Any good tax accountant take care of your needs, for considerably less than the a CPA.

But YOUR needs require a CPA?

Some of this was done in good fun (see emoticons).

Each person should asses their own skills and hire the appropriate professionals when needed.
The blanket statement "you do not need a CPA" (especially with the logic that they're "expensive") and "do your own accounting" - while applicable to a few, is horrible advice for the many.
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[Steven C. Meyer]

RICHARD

Finance and accounting was my minor in college. In business I have always done my own accounting. And that was way before computers. It was the old hand done double entry accounting system. Computer programs have now made it a piece of cake.

My point is that a tax accountant can do the same service for a small business. And for less cost.

A CPA has considerable more education, in more complicated areas of tax law. Thus, with the CPA designation, they can and do charge more for the same service. And if you have a complicated tax return, with many income issues, different tax laws for each income issue, then a CPA is worth it.

I use a CPA for my final tax returns due to other income streams I have. I do not have the time to stay up to speed on the ever changing tax laws, so for that reason, the CPA is the best bet. I know my limits!

It amazes me the amount of people who go to H & R Block to file the simple 1040A short form!

Small business accounting is just not that hard, end of year filing, use a professional to review your books, and find any possible mistakes.

If a person is not that comfortable with doing his/her own daily bookeeping, then put everything in that shoe box and take it to your accountant or CPA.

[Rick Maday]

Originally Posted by Steven C. Meyer

If a person is not that comfortable with doing his/her own daily bookeeping, then put everything in that shoe box and take it to your accountant or CPA.

And we have agreement!