Frequently Ask Questions
We know that you have many accounting and financial questions. We aim to answer some of the most common ones here, but if your question isn't answered please consider giving us a call! Our team would be happy discuss what's on your mind.
What is the difference between an accountant and a CPA?
To be a CPA, one must first obtain the DBPR license and complete at least 40 hours of continuing education in order to maintain their qualifications. They also have an extensive background or training related with Auditing/Accounting for those who specialize it most. They can also represent you in IRS cases. An accountant, by contrast is not nearly as regulated and may have limited knowledge of the law.
How long should I keep my financial records?
That ultimately depends on your situation, but generally speaking you'll want to keep them until the period of limitations—that is time during which an individual can amend their tax return-runs out. General limits include:
- You can be financially sanctioned for not filing a tax return or submitting an incorrect one.
- The seven years elapsing after you filed a claim for loss—specifically, either in bad debt deductions or from worthless securities.
- You can get six years if you didn't report income that should have been reported.
- Four more years of employment tax records.
- Three years are penalties if you file for credit or refund after filing your taxes, but keep records nonetheless.
You should also keep copies of all tax returns themselves, since they can help with your financial situation in the future.
How to prepare your tax returns correctly?
The best way to ensure that your company is operating smoothly and employees are happy, it's important for you as the business owner or manager have payroll systems set up correctly. This will help avoid any potential problems with W2s and 1099s.
How can you help me manage my cash flow?
With our help, you'll be able to create a budget for your business and track the monthly changes in that financial plan. We can work with an accountant who may only offer bookkeeping services or provide more proactive assistance by providing insights into how best handle upcoming expenses so they don't impede on current revenue streams.
How can I tell if I need a bookkeeper or an accountant?
Keeping track of your business transactions is a critical part in running any successful enterprise. That's why we offer bookkeeping services, which involve actually analyzing the information you've collected and using it to inform decisions about how best run things. When it comes to running your business, you'll likely want a bookkeeper if you want assistance with payroll and keeping track of expenses. An accountant would be helpful in preparing financial statements or executing other tasks that require analyzing data.
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