Most business owners understand that they’ll face accounting errors at some point. Yet, those errors can come with a meaningful financial or labor cost.

When quarterly tax filing time rolls around, accounting errors can make you overpay. That deprives your business of networking capital that can always go to better use.

When the errors cause discrepancies in the paperwork, it can take a lot of hours for your bookkeeper or accountant to find and fix the problem.

Keep reading for seven accounting errors you should avoid if at all possible.

1. Flawed Recordkeeping

Maintaining good financial health begins with maintaining good records. Even with technology that streamlines recordkeeping by digitizing receipts and documents, you still need records management.

For example, does anyone follow up with employees about their digital receipts? Maybe they lost one before they could record it on that last business trip. Then, by the time they get back, they don’t remember the lost receipt.

Without that receipt in the records, any third-party audit will show variance between your supposed expenses and expenses you can back up.

Small variances won’t necessarily create a major problem. However, such variance can escalate into a real problem if flawed recordkeeping is the norm.

2. Not Reconciling

It’s easy for a business owner to fall into the habit of assuming in-house information matches up with bank or credit card statements. If you keep flawless books with everything applied correctly, that might even prove true. Unfortunately, flawless books are a very rare bird.

Reconciling acts as a sanity check and early warning system. If everything matches up, it’s a good sign that all is well with your finances. If things don’t match up, it means a problem exists that you must address.

Finding and fixing that problem sooner will spare you a lot of headaches in the long run.

3. No Redundancy

Maintaining multiple copies of your data is one of the critical elements of business disaster recovery plans. It lets your business restart quickly.

Of course, most business owners interpret this as meaning things like customer data or digital products. It should also include your financial records.

Let’s say that you keep your financial records stored on the computer in your office at work and nowhere else. That can feel safer because your computer is password protected and in a locked building.

What happens if someone breaks in and takes all the computers in the place? You get stuck trying to reconstruct weeks or months of recent financial data. Plus, you lose all of your historic data.

With encrypted cloud storage an easy option, there is no reason not to maintain a backup copy that updates daily.

4. Insufficient Oversight

Another hallmark of good financial management is good oversight. Even in a small business, it’s never a good idea for anyone other than the owner to get unrestricted control of the finances. It’s an open invitation for fraud.

If you’re not excellent with numbers, there are a couple of steps you can take. Separate the person who keeps the books from ever handling actual deposits. Do the deposits yourself and then, as mentioned above, reconcile your statements.

You can also bring someone in for a periodic audit. Knowing that you run audits on the books encourages good recordkeeping. It also discourages fraud.

5. Incorrect Revenue on the Books

Do you issue invoices? Do you give customers thirty or sixty days to pay those invoices?

Neither of these things presents a problem in themselves. They’re common business practices after all.

The trouble shows up in how they get recorded. Accounts receivable isn’t the same thing as revenue, although it is an asset. Until you get actual money from your customer, it’s just an open invoice.

If your bookkeeper applies open invoices as revenue, it can dramatically throw off your books. These kinds of errors are how you end up overpaying on your quarterly taxes.

6. Undeposited Payments as Revenue

Some small businesses, such as consulting, might only work with a handful of clients. Those clients send checks to your office.

Let’s assume you don’t empower anyone else to make deposits, but you do have a bookkeeper on staff. Whoever goes through the mail hands the checks off to the bookkeeper. The bookkeeper diligently enters the checks into records… as revenue.

Let’s also assume that you’re out of town for two weeks on a consulting gig. For those two weeks, you’ve got those checks on your books as revenue and not as undeposited payments.

Until you get back into town and take those checks to the bank, they’re not revenue. If this coincides with tax filing, you can overpay for the money you don’t actually have yet.

7. Not Updating Your Books

This problem is common in small businesses where the owner handles the books. Business owners get busy writing schedules, meeting with customers, and negotiating with vendors.

Updating the books with daily transactions is just a bridge too far for many of them. Yet, it’s all too easy for a day to turn into a week, and then for a week to turn into a month. All of a sudden, you face days of bookkeeping instead of hours.

You need a firm schedule for updating your books at least once a week. This keeps the books mostly current. It also prevents stress-filled weekends of trying to catch up.

Minimizing Accounting Errors

Minimizing accounting errors doesn’t boil down to any single action. It’s about adopting a set of actions that support sound financial management.

Updating your books on a regular basis keeps your information current. Good recordkeeping avoids variances and encourages accountability. Reconciling accounts helps expose errors promptly.

Make sure undeposited payments and open invoices don’t get recorded as revenue, so you don’t overpay on taxes. Keep backup records so you don’t need to reconstruct the records after a disaster. Apply some oversight to your accounting process with periodic audits.

Struggling with the accounting for your California business? White Nelson Diehl Evans specializes in business accounting services. Contact WNDE today for questions or more information.

Are you looking for a professional tax company to work with?

Most businesses don’t have the skills to make the most of various tax incentives and end up paying more than they should. A professional tax company can help to bring your tax bill as low as possible. But not all tax companies will bring these benefits to your business.

We are here to help. Read on for the 7 qualities you should look for in tax firms in Orange County.

1. Has Experience

To ensure your tax accountant can handle your needs, you want one with experience. If they have experience with similar accounts to yours, that’s even more of a bonus.

The best way to find an experienced tax firm is to check out their website. If they don’t have a website, that’s a red flag. They’re definitely not the firm for you.

If they do, check out their “About Us” and testimonial pages to learn more. Any tax firm you consider should have testimonials, or they should be able to give you references if you ask.

Then, if you like what you see, arrange an initial consultation to ask about them in more detail. What do they specialize in? Have they worked on accounts like yours in the past? What specifics can they bring to the table for you?

You need a tax firm that can cater to your specific needs and tailor a package for you. Experience is vital to do this. You want to look for a firm with hands-on background knowledge relevant to your accounts. They also should have the drive and energy to get the best job done.

2. Works in Your Industry

It’s crucial you find a tax firm whose experience and knowledge are relevant to your industry. The best firm will have experience across many different industries. This gives them broader knowledge and understanding they can apply where it fits.

But a must-have is that they’ve worked in your industry before. Tax and accounts regulations vary from sector to sector. An accountant only handling healthcare and medical firms won’t be familiar with real estate accounting. This is a critical question you need to ask before hiring anyone.

For any specialty or niche needs, it’s even more important you find an accountant that can handle that area. Having an accounting firm that is familiar with those niche intricacies will be more beneficial than one who has thousands of clients.

3. Keeps Updated with Industry Changes

Any good accounting firm in your industry will keep abreast of all industry changes. You need your accountant to know all new financial regulations and tax codes applicable to you.
It’s also vital they know the latest industry trends. For example, things like:

• Salaries
• Outsourcing
• Employment statistics
• New legislation
• Recent acquisitions and mergers

Keeping up to date on information relevant to your specific business accounts is a must. It makes sure you’re always ahead of the curve and complying with everything you need to. There won’t be any nasty surprises.

4. Works with a Range of Business Sizes

You may find a firm that only works with huge, international organizations. Or, they may only have experience with small startups.

Any accounting firm you choose must be able to deal with a range of business sizes. This is important because it means their service can financial regulations as you need it to.

You don’t want the hassle of finding a new accountant if a sudden growth spurt means you outgrow the current one. You’ll want to stick with the same accountant if you branch out into another start-up spin-off venture.

As well, you’ll find it useful if they understand international markets and settings. For example, say you grow to the point where you’re considering a Paris office. You’ll have an edge if your accountant understands the American and European markets.

5. Uses Latest Technology

So, you’ve found a firm with a diverse background but experience in your industry. What will make them even better is if they apply the latest technology to make things more efficient.

It will save you money long-term and reduce the risk of accounting errors. You’ll also be able to stay updated in your industry, and a step ahead of the competition.

A firm that’s keeping their tech up to date will handle it all for you. You don’t need to invest in the programs yourself. You want someone who goes above and beyond to give you streamlined service and do the best job possible.

6. Has Proper Certifications and Continues Education

To provide the best service, an accounting firm must hold the right certifications. They should also encourage and undertake continued education in their field. This is a must-have for any accounting firm you’re looking to hire.

Make sure they have a great network with program and platform administrators. Their staff should be well-trained in how to use the latest technologies too.

They should also undertake any new courses or certifications when available. The more qualified they are, the more knowledge they can bring to the table. Compliance is key to staying above board.

7. Protects Your Confidential Data

Any good business keeps strict controls on access to their order book, filings, and inventory logs. So when you provide this to a tax firm, you need to know that it is secure.

A data breach can be devastating to a business, so a quality tax firm will make sure that this data is always safe. They will take all possible steps to reduce the risk of human error and cyber-attacks.

Finding the Right Tax Firms in Orange County

As you can see, there is a lot to think about when looking for tax firms. Not every firm is the same. In order to bring your tax bill down, you need to choose the right tax firm. Look for a firm that has experience in your industry, and keep on top of legal changes and working practices.

If you are looking for tax firms in Orange County, contact us today at White Nelson Diehl Evans LLP. With nearly a century of experience in business taxation across multiple industry sectors, we are uniquely skilled in helping businesses reduce their tax liability.

Are you tired of your budget being too tight from month to month? Does the worry of not having enough saved up for the future overwhelm you? If so, then it’s time to regain control of your finances.

While we know that this is easier said than done, it can be brought to fruition through successful financial planning. What are the steps of such successful planning, though? How can you prepare for the future when you have debts to pay right now? How can a financial planner possibly help?

See below for an in-depth guide on financial planning and why it’s so beneficial for those who choose to dedicate themselves to the cause.

What is Financial Planning?

Many of you have heard of financial planning services before, but aren’t entirely sure what they do. You might not be entirely sure what “financial planning” means. Not to worry! Everyone has to start somewhere.

In a nutshell, financial planning is when you implement a strategy (usually with the help of a professional) to take care of both immediate and future financial needs.

The difference between financial planning and budgeting is that financial planning prepares you for different costs and market fluctuations. If these incidents come up, you can adapt and overcome.

Such good planning helps you make the most of whatever income you have. You take the income and build a plan around it, maximizing your savings, paying off debt, investing in an IRA, and assigning duty for every single dollar that you make.

What Are the Benefits of Financial Planning?

Just as important as knowing what financial planning is all about is figuring out how it can help you achieve your goals. In other words: what’s in it for you?

1. An Expert’s Opinion

Possibly one of the biggest reasons you’re behind on your financial goals is because of all of the other things you have going on in your life. You have a career, a family, and more to worry about than just what’s written on your budget.

Although it shouldn’t, budgeting often seems to take the back seat. That’s where financial planning offers the most benefit. Rather than being ignored, your finances are now under the care of a certified professional.

A financial planner will use their experience to help you build a successful financial plan for the future. They’ll be able to explain things like Roth IRAs, mutual funds, and 401Ks in a way that you will understand.

The more you push off preparing for the future, the worse shape you’ll be in. Financial planning helps you to buck that trend by putting it in the hands of a trusted professional.

2. Clear and Concise Goals

One of the biggest causes of financial failure is lack of goal setting. If you don’t have goals in place, you have nothing to achieve. This will lead to you lacking the motivation to monitor your finances in the first place.

Setting goals such as paying off your student loans, saving to retire early, or buying a house in the next five years are goals that grant you direction. Such goals offer you a focal point to fixate on that allows you to stick to your budget.

Your financial planner will help you talk through the goals that you have set and give you recommendations on how to move forward.

For example, if you tell them you want to start a business within the next five years, they can give you information regarding how much you should save and which costs you should prepare for.

3. Quicken Your Savings

Perhaps your biggest financial regret has been putting off your savings for too long. You have put yourself in a situation where you won’t be able to retire with as much money as you’d hoped.

Joining forces with a financial planning service will quicken your savings and help you get back on track. They can help you use different strategies to prioritize your savings and get you into a comfortable position.

Not only will you save quicker, but you’ll also be able to pay off debt faster, thus giving you more money to play around with each month.

What Services Do Financial Planners Offer?

While many of them have their specific areas of expertise, financial planning offers a plethora of different services.

Financial planners can help you learn and begin to invest in the stock market by helping you build an investment portfolio.

Financial planners can also help you monitor insurance needs, save for college, save for retirement, plan for taxes, estate planning, and more.

The initial meeting with your financial planner will map all of this out. You can start by talking through the different goals that you have along with a timeline to achieve them.

No matter what you’re starting out with, a financial planner will use their services to improve your finances in every facet. Whether you’re wanting to improve your personal finances or finances for your company, they’ll be able to help you out!

Invest the Time and Money in Financial Planning Today

Now that you’ve read many different aspects of financial planning and how it works, it is time for you to find the financial planning services you need!

Be sure to read how the second wave of coronavirus might shape the stock market in the near future if you’d like to learn more.

For more inquiries, please be sure to reach out via our contact page and we’ll be happy to assist you further!

In today’s world, transparency and accountability are at the center of all public activity and operations. That’s why government audit is needed to make all processes transparent and accountable. In doing so, government agencies are able to maintain the social and political status quo.

The federal government awards grants, loans, and interest subsidies to corporations, institutions, and non-profit organizations yearly. All these awards are subject to compliance audit requirements to ensure that public funds are being used appropriately.

This month, we’ll be highlighting the different types of government audits and the various steps involved. This way, you can know what to expect should you ever be audited.

Consulting Services

Consultation services are advisory in nature and remain somewhat detached from the auditing process. The purpose of such services is to add value or streamline the auditing process. This will minimize any risk to your business. Audits can be very disruptive to standard operations and proper consultation can lower this disruption.

Assurance Services

Assurance services are comprehensive assessments of the different operational and financial systems of the organization in question. These services affirm the independence of the process by providing an objective review. In such a review, consultants look at:

• Reliability of the financial and operational systems
• Safeguarding of crucial assets
• Clarify and completeness of the policies
• Compliance with federal law and other governing bodies

Lastly, the services also ensure that the organization in question achieves the complete scope of their financial goals and objectives.

Special Investigations

Special investigations refer to the search for any unethical or underhanded business practices that compromise the integrity of an organization. The auditing firm will look into any misconduct or irregularities within the company’s operating procedures.

These investigations set the groundwork for any legal follow-up to the unethical practices. They also substantiate whether the allegations are true, and gather any evidence for following up with the proper authorities.

Follow-Up Operations

These operations involve the formulation of plans of action to follow up after any of the above-reported conditions. These plans depend on the result of the audits. Such follow-ups take care of any financial or operational processes that need correction.

Types of Government Audits

Government audits are objective and are based on authentic financial statements and documents. There are two main types of government audits.

Financial Audits

Financial audits are the most popular type of audit, and as the name suggests, such audits center on an organization’s finances. There are two types of financial audits.

The first type of audit, the financial statement audit, is an in-depth look at an entity’s financial statements. Auditors investigate whether the financial statements have logic and whether they abide by accounting principles. They also identify any inconsistencies with financial records and statements.

The other type of audit, called an audit of financial affairs, is an audit of the financial operations of a particular organization. It checks whether these financial operations comply with all legal requirements.

Management Audits

A management audit is a comprehensive audit that looks at the use and distribution of financial resources and the performance of key administrators in the organization. These look into whether the administrators or officials are handling funds appropriately and gauge their overall performance. This audit also investigates any fraudulent activity or unethical practices amongst organizational officials.

Features of a Government Audit

The auditing process is logical and systematic. There are six characteristic features of any audit.

Systematic. The auditing process is sequential and comprised of logical steps. The steps are structured and organized to ensure efficiency.

Subject Matter. An audit can center on a single subject matter or multiple concerns, depending on the subject of the audit.

Concerned Parties. A typical audit involves three parties: the shareholders, managers, and auditors. The process does not work without all parties present.

Evidence. At the core of every auditing process is the evidence. This is what substantiates the reports that will be delivered at the conclusion of the audit. This evidence does not always have to be in the form of financial documents or records.

Auditing Criteria. The auditor must carry out the auditing process in line with certain criteria and standards as prescribed by the governing body. For government audits, the yellow book outlines standards and procedures.

The Opinion. Any good auditing process concludes with an opinion from the auditor about the assurance of financial statements. For management auditing, they must opine on the confidence of the officials in question.

These features of audits determine the objective, as well as the effectiveness, of the audit. Depending on the type of audit, the audit process could be quite lengthy and very disruptive. It’s a good idea to make prior arrangements so that the audit doesn’t interfere with very crucial company operations.

Audits Enhance Transparency and Accountability

A government audit is not an intrusion of privacy into sensitive data or personal information. Contrary, it’s a way to ensure the transparency of financial transactions and the operations of an organization. An audit is nothing to worry about unless you have engaged in underhanded dealings.

For an audit to be comprehensive and effective, you need the right auditor to do your budding. If you need expedient and comprehensive auditing services, then contact us today and we’ll take care of you.

Is it time for your business to outsource your accounting needs? All businesses can benefit from seeking accounting help, especially in light of the fact that 82% of businesses fail due to cash flow problems.

An accountant can assist you with bookkeeping, budget development, tax preparation, and more. These services will allow your business to stay compliant and will enable you to make more sound financial decisions.

However, not every two accountants are the same. You need to ensure that when you embark on your search for an accountant, you choose someone reliable, with the proper experience and certifications.

If you’re struggling to find quality accounting firms in Irvine, here are the seven best qualities that make for an ideal accountant.

Certifications

The best accountants have certifications that allow them to meet all state requirements. First, you’ll want to look to ensure that your accountant has a degree. This degree program requires field experience and qualifying examinations.

In California, CPAs must meet specific requirements to achieve their degree:

• Completion of undergraduate education, equaling one hundred and fifty academic credits
• Twenty-four academic credits in accounting and business topics
• Successful completion of the Uniform CPA Examination
• Successful completion of the Professional Ethics Examination for CPAs
• One year of experience in accounting that is supervised by a licensed accountant

Some CPAs will have additional certifications if they have chosen to specialize in a particular field. For example, the Certified Management Accountant, or CMA, handles a business’ internal financial demands.

Other common certifications you might see could include the Certified Valuation Analyst, or CVA, Accredited in Business Valuation, or ABV, and the Personal Financial Specialist, or PFS.

Size

There are many different firm sizes. They can range from an independent practice firm to a major national brand hosting multiple CPAs. While this shouldn’t impact the quality of your service, you will want to decide what size of the firm will be best suited to your needs.

Many businesses trust the reputation that comes with hiring a major firm. You’ll receive high-quality work and larger companies are reliable. Because they are able to host many CPAs with a variety of specialties, you can ensure that all of your needs will be competently addressed.

Industry Experience

Not all industries are alike, and none of them have identical accounting needs. Your accountant should have experience handling the finances for businesses in your niche. They may also hold specific certifications that demonstrate their dedication to learning more about your unique industry.

Reputable accountants provide a list of industries in which they have experience. Some may even offer information regarding the specific services they offer for each industry.

Some accountants work exclusively in one industry while others work across the spectrum of businesses. Decide if your needs call for a specialist or a generalist.

Referrals and Reviews

The best accounting firms have devoted clients who use their services frequently. If you’re struggling to find a good accountant, reach out to colleagues in your industry for recommendations. If that doesn’t yield the results you are looking for, research reviews.

Experienced accountants have honest reviews from past and current clients. Some even make this information available on their website.

If you’re reading reviews on a third-party source, make sure you read both positive and negative reviews to get a holistic understanding of the accountant you intend to hire.

The Services You Need

There are different accounting services, from tax preparation to budget development. Before choosing an accountant, think about what your business needs.

If you need an accountant for basic needs, such as bookkeeping and preparing your financial statements, find an accountant who works primarily with these services. On the other hand, if you need an accountant with intricate knowledge of payroll processing, take a look at their website to ensure they offer these services.

Fees

Every accounting firm will have different fees and payment structures.

For example, some accounting firms charge a set pay rate. This usually only occurs when you need a particular, fixed service, such as tax preparation or creating financial statements.

If you need more services or will use accounting services regularly, other firms may develop pay structures, such as a monthly rate. These structures are not only easier for you to manage, but they may help your business save money longterm.

Fees aren’t the only indicator of quality. You’ll want to take timeframes, consistency, communication, and honesty into consideration when weighing out different fees and prices.

Availability and Flexibility

Your accountant should be flexible and willing to communicate with you. This can include answering simple questions or more detailed calls for advice. With this in mind, how often you plan to see your accountant can be an important factor to consider.

Do you only plan on meeting with your accountant periodically to handle taxes and financial statements? Or do you want an accountant who is available any time you call? Make sure you know what you expect from your accountant and you communicate your needs accordingly.

Reliability is also a major factor. If you make an appointment with your accountant, they should be available. If they must reschedule, it should be with proper notice and professionalism. If an accountant is inconsistent or unreliable, you’ll want to hire another one.

We Are One of the Best Accounting Firms in Irvine

There are many accounting firms in Irvine, but not all accountants are the right fit for your business. Whether you need help with settling and maintaining a budget, or you need accounting for a specific niche, we have an accountant to fit your needs.

If your business is based in Irvine, you don’t have to look farther to find a great accountant. Contact us to see how we can help.

Are you interested in hiring a certified public accountant, or CPA, for your business located in Irvine, California, or the surrounding area? There are a variety of reasons you might be seeking the help of a CPA in Irvine.

Maybe you’re looking for someone to audit your company’s operations so that you can cut wasteful spending. Perhaps you’re wanting someone to help you prepare for the tax season before it begins, to ensure there are no unpleasant surprises later. Whatever the reasoning, you want to make sure you find the best CPA for the work at hand. Use the questions below to help find the best CPA fit for your company.

1. Do you have a specialty?

Even though many CPA’s choose to serve a broad variety of industries, you want someone who has the most experience in your industry. A CPA who works in your specific industry will be able to pinpoint irregular expenditures and find tax breaks with a finesse that someone with broader experience might not be able to.

If the industry your CPA has experience in is not your primary concern, you might want to search by accounting-related specialty. For example, you might hire a CPA to try and pinpoint the source of irregular spending from one of your employees.

In that case, you would want a CPA that specializes in audit and review services. This tells you that your CPA has worked on cases similar to yours and is highly qualified to manage your case.

Even if you are looking to benefit from a CPA with broader experience, knowing about their past work will help you gauge their level of expertise, as well as the room that your CPA offers to grow with your as your business expands and evolves.

2. How long have you been in business?

One of the first questions you should ask any service provider is how long they’ve been in business. In this case, there are two different ways you can frame this question.

First, you can ask how long the company through which the CPA has been in business. Next, ask them how long they have had their individual CPA certification.

The longer the company has been in business, the more you can trust the judgment of the CPA’s they’ve chosen to hire to work in their firm. Firms with more than fifty years of experience, like White Nelson, have a higher standard for the CPA’s they hire.

Experience matters, especially in accounting because it ensures that the CPA has experienced a variety of technical intricacies. Take an audit, for example. An experienced auditor will be able to identify certain trends that they’ve seen in the past, thus connecting the dots with more success.

3. Who will I be working with?

An accounting firm is likely to have several qualified CPA’s that can help you with different accounting aspects of your business. Each CPA will have their own strengths and weaknesses.

It is possible that the option will present itself to work with the same CPA throughout your time with a firm or to work with several different CPA’s within the same firm. These options can depend on your needs as well as the workflow of the firm you hire.

If you’d like to work with the same CPA the entire time, your firm is likely to accommodate. However, working with a team of CPA’s can also yield results, as you get to benefit from the strengths of each CPA–your own financial wonder team!

4. What are the fees for your services?

There are many, many different ways that CPA firms charge their clients. Because of this, you will want to ensure you understand a firm’s fee structure prior to choosing to retain their services.

Some will charge a pre-set rate on a task by task basis. Others will charge down to the very minute that they service your account. Neither way is right or wrong, but you’ll want to be clear on how you are being charged to prevent any miscommunications later.

Feel free to ask how CPA’s track their minutes when you are not around, or what their fixed-rate price offerings are. Asking these questions will help you decide which way you’d prefer to be charged, in order to continue on the path to meeting your financial goals.

5. Do you work locally?

If your business is in, or near, Irvine, California, then you’ll want to hire a CPA firm that can say the same. A local firm can ensure you are following federal law, state law, and local ordinances that out-of-town CPA’s are unlikely to be aware of. Some cities even offer tax breaks, and you will certainly want your CPA to be up to speed on those!

More importantly, their proximity to your business will mean that you will always remain a priority. You’ll always be able to meet in person and benefit from conveniences like being in the same time zone.

Ask These Questions to Find an Irvine CPA Firm

Now that you’ve gathered multiple questions to ask while searching for the perfect CPA firm in Irvine, California, it’s time to head out and find the right fit for your needs, as well as the needs of your company.

For more inquiries, please feel free to reach out via our contact page. We will be happy to assist you further!

As many as 400,000 small businesses are opened annually.

As these businesses grow, so too will the complexities of their day-to-day operations. At some point, owners have to start delegating some of the tasks they’ve been handling themselves in order to focus on continuing to grow their business.

One of the most important tasks a business owner will delegate out is the financial management of their business. If you are located in Irvine, evaluating local, Irvine-based CPA firms is a great place to start. Read on to learn the signs that you need help from an Irvine CPA firm.

You Want to Save Time and Money

Consider how much time and energy you are currently spending on managing your books, staying on top of accounts payable and receivable, and filing your taxes. As a business owner, you need to spend time running your business. Focusing on increasingly complex financial tasks takes away from your ability to focus on the work that matters.

Beyond that, unless you are a professional accountant, it’s completely likely that you are losing money by doing your own taxes and bookkeeping. For example, you’re likely too busy during tax season to go through each individual write off that you have the ability to claim. There might be deductions available for depreciation, home office space, or out-of-pocket business expenses. An accountant can help you identify these and other deductions throughout the year and complete your taxes with accuracy while saving you money.

A certified public accountant can also help you measure business metrics that affect your bottom line. For example, do you know what your ratio of revenue to employees is? Numbers like these help you make strategic decisions to enhance your business practices.

You Want to Regulate Your Business Practices

Some businesses are required to follow stringent government tax or special reporting regulations. In those cases, you should consider a CPA firm with the qualifications and experience to handle those tax requirements. They’ll keep you compliant and find ways for you to save money.

But even normal tax regulations can be difficult for the inexperienced to keep up with. Tax laws change every year and it’s important to keep up-to-date with those changes, or you run the risk of making big and expensive mistakes. Misfiling can not only lead to a huge tax bill and penalties you wouldn’t otherwise be expecting, but it can also be cause for an audit.

Your Business is Growing

If you started off small and expanded your business over time, you may be accustomed to handling the financial needs of your business independently. However, once your business reaches a certain point, you won’t be able to go it alone.

Even bookkeeping or well-constructed financial software is only meant to be utilized for minor tasks. When accounting tasks that should be given to a CPA are attempted without their guidance, money, time, and opportunities for growth are lost.

A certified public accountant will not only handle the day-to-day things like record keeping, regulatory items, and tax planning, they’ll also create reports that help you save money, operate more efficiently, and grow your business.

CPAs will be able to help you with things like pulling reports, which can be incredibly important when it comes time to set a budget or buy more inventory. On top of that, a bigger business means more employees and perhaps even expanding your operation into new facilities–a CPA will be able to advise you on organizing your paperwork and your payroll.

You’re Looking for Investors

When you’re looking for financing from outside investors, you have to have demonstrated that you take your business seriously. Even the best salesperson in the world can’t sell on hope alone.

In order to attract investors and sell them on your business, you need predictions and business plans that consist of hard financial data. You need to show how you’re going to frow and how you’re going to turn a profit that fills their pockets.

A certified public accountant can help you write that business plan. They’ll use sophisticated, state-of-the-art software to help make projections and reports. They’ll give you the hard data that makes you look more realistic and professional.

You Need Compliance Advice

Companies are held to a variety of compliance standards that impact how they do business. If you’re a sole trader, for example, you might be invoicing under your own name. If this is the case, you can probably deduct some living expenses or even the cost of a home office from your year-end taxes.

However, this legal structure also makes you personally liable for business-related obligations such as defaulting on debts or failing to pay a supplier. In these cases, you could lose personal property to pay your debts.

Before you choose your legal structure, you should talk to a CPA. They will advise you on the best compliance choices for your business according to the benefits and consequences of each. It’s best to do this before you even go into business so that you can be confident that you have made strong financial decisions from the start.

Ready to Hire an Irvine CPA Firm?

When you first start a business, it’s easy to think you can handle many of the daily tasks thereof without delegating or hiring outside of the business. However, if you have an entrepreneurial spirit, and you want to see your business grow, you’re going to need the help of a CPA.

Beyond the daily tasks of record-keeping and tax filing, they can help you with financial reporting and data-based decision making. They can offer advice on what structure to take and even help you attract investors.

If you’re ready to hire an Irvine CPA firm to help you grow your business, then look no further. Contact us today to get started.

In 2019, the global market for accounting services grew to almost $574.4 billion. By 2023, that size is anticipated to reach $734.7 billion. The impressive growth of the public accounting industry over the years is proof of how crucial the accounting services sector is in today’s economy.

A reliable certified public accountant (CPA) can significantly boost your business’ revenue. Few entrepreneurs start their journey in business with a good grasp of how to organize and manage business finances. Almost every business owner can avoid common tax preparation mistakes by working with a seasoned Irvine CPA.

In this comprehensive guide, we tell you all you need to know about selecting the best CPA for your business.

What is a Certified Public Accountant?

A certified public accountant, or CPA, is an accounting professional who has successfully passed the CPA exam. Besides passing the CPA exam, a CPA must have fulfilled the state education and work experience requirements before they’re licensed to become certified public accountants. All standards CPAs must meet are set by the board of accountancy in their state.

CPA firms in Irvine CA help all kinds of businesses achieve their financial goals, from small businesses to multinational corporation.

What Does a CPA Do?

CPAs do a variety of jobs in accounting firms in Irvine, CA. Read on to learn more about some of these unique roles a certified public accountant can take on.

Auditing and Review

One of the primary jobs of a CPA is to audit your company’s financial statements and issue an expert opinion of those statements. As an unbiased third party, the CPA reviews and evaluates your business’ financial statement after they’ve been prepared by the management. Then, they give an opinion of the financial statements and disclose whether they’ve found any financial misstatements.

Tax Preparation

One of the most challenging things business owners encounter entails tax preparation. Fortunately, CPAs are experts when it comes to the preparation of various types of tax forms, from income taxes to property taxes. A reliable CPA will also advise you on what tactics you can use to structure your company’s affairs and reduce tax burdens.

Consultation Services

Public accounting firms are constantly engaged in consulting services to help companies determine business problems and conduct their operations more effectively. A CPA can offer consulting services by evaluating your company’s internal controls and suggesting operational improvements.

Forensic Accounting Services

Instances of employees embezzling money from businesses are quite rampant, with US businesses losing about $50 billion annually to workplace crime. In many cases, it takes months to uncover sophisticated embezzlement schemes.

A seasoned CPA can dig through your company’s financial records, identify any stolen money, and inform you of any fraudulent activities that may be happened without your notice.

Litigation Services

CPAs may not be licensed to practice law, but they can help discover and prove evidence as expert witnesses in the courtroom.

How Do You Select an Irvine CPA Firm?

With more than a million actively licensed individual CPAs in the US, selecting the ideal one to work with is easier said than done.

Check out the following list of six top tips to help you make the right decision regarding your choice of CPA firm.

Have a Clear Picture of Your Business’ Finances

Before you can begin interviewing CPAs, it’s important to know what your individual needs are. Take the time to gather your company’s accounts and keenly examine your finances. This way, you can figure out the kind of financial assistance you require.

How big is your business? How many employees do you have? What’s your budget?

The answers to these questions can help you choose a certified public accountant who is most qualified to meet your needs. For example, at White Nelson Diehl Evans, our CPAs specialize in a variety of industries, allowing them to hone their work to their clients’ exact industries.

Determine Which Services You Need

Few professional licenses are more highly regarded than the CPA license. However, no CPA can handle every accounting need out there. That’s why you need to determine what kind of tax or accounting advice you need before hiring the right person for the job. Hiring someone to manage your taxes annually will demand a dramatically different relationship than the person who handles the day-to-day finances of your business.

Value Experience Aligned to Your Industry

The best CPA for you is one with considerable experience in doing returns for your specific industry. You don’t want someone who has never heard of the type of work that you do to file your tax returns, especially when you run a big company where the task will be a demanding one. Sure, a more experienced CPA will probably charge a higher rate, but getting the job done right is worth every dime.

Consider Using a Local Firm

The benefits of working with a local CPA are many, with the biggest one being the ability to meet with your CPA in person and discuss your personal needs. Generally, you want to make sure that your initiatives are in line with your overall business goals.

Of course, there’s convenience in holding remote meetings in this day and age. Choosing a local firm means that even if you’re meeting virtually, you won’t have to work to shuffle your respective timezones, thereby providing an additional layer of convenience.

Seek Referrals from Your Peers

The best accountant is someone you can trust and feel comfortable working with. Arguably the best way to find such a professional is through referrals.

Talk with friends, colleagues, and relatives to find certified public accountants they’ve worked with previously. If they’ve had a good experience with a certain CPA, chances are you’ll have the same. Of course, you can also check out online reviews to get an idea of what to expect from a particular CPA.

Find a Personality Match in Your CPA

A good certified public accountant can become a great business partner. You want a CPA who will be able to advise you on how you can set goals and grow your company.

During your interview, find out about their communication preferences and work schedule. Also, consider personality fit and determine whether they’re really interested in working with you.

The Right CPA Can Make a Tremendous Difference in Your Business

There’s a lot of value in hiring the right Irvine CPA for your company. Not only will they take the stress out of filing taxes, but they also provide valuable guidance on how to make your business more successful.

Are you looking for reliable tax and accounting services for your business? Please contact us today.

You’re the expert in your niche. However, you might not be an expert in taxes, financial statements, or bookkeeping. That’s where an Irvine CPA, or certified public accountant, can come in handy.

Without accurate, timely books, you can’t make accurate financial decisions, and you might make mistakes that cost you in penalties and regulatory issues.

Finding good accountants to help you establish effective accounting practices can simplify your financial management. Small business accountants can help you do your own books or handle all the nuances of your finances, depending on what you need.

Check out these seven tips on how to find an accountant for your small business.

1. Find Irvine CPA Recommendations

You can research potential accountants online, and you should. But hearing directly from real people who have used certain accountants can be an effective way to find a quality option.

Think about what you need from an accountant. Then, find other business owners with similar accounting needs.

Ask those business owners which accounting firms they use to handle their books. Find out what types of services they have available and how satisfied the business owners are with their services.

If you don’t know other business owners, check with local business associations for recommendations. If you’re looking for a CPA firm in Irvine, business groups in the area will be familiar with the options.

2. Check on Experience

Your business isn’t the same as other businesses. Because of this, you might have specific financial concerns. Your industry might require extra regulatory activities related to finances.

If you run a nonprofit organization, you will likely have concerns regarding funding, board governance, and tax laws. On the flip side, if you’re in the healthcare industry, you’re likely to be concerned with regulations, unpaid claims, and bills. Still yet, you might use a 1099 tax form for independent contractors who do work for your business. Ultimately, each industry has unique concerns and regulations.

Choosing an accounting firm with experience in your areas of need increases the accuracy of your books. You can avoid penalties and learn how to maximize your company’s finances with experienced accounting help.

Not all accountants specialize in certain industries. You should still look for an accounting professional with experience working with small businesses. This ensures they know how to handle situations unique to your company size.

3. Verify Accounting Credentials

Ask about your accountant’s credentials before you begin hiring.

Choosing a certified accountant can protect your interests. Credentials from regulated professional bodies show that an accountant has met certain professional standards. If you choose a certified public accountant, you get the peace of mind of knowing they’ve completed a degree program and meet the competency requirements.

Certifications often mean a higher degree of experience, knowledge, and expertise in the accounting field. That experience not only increases the chances of having accurate accounting records, but it’s also beneficial if you’re looking for advice. Accountants often provide advice on business finance situations and taxes. You want advice from someone with extensive experience.

4. Clarify Available Services

Not every accounting business offers the same list of services. The easiest option is to find one firm that handles all of the accounting services you need, so you can keep your finances in one spot.

Keeping everything with one accountant also reduces the risk of mistakes. The bookkeeping that takes place year-round is important for tax preparation. If your accountant has handled your books all year, they can more easily and accurately prepare your taxes.

Knowing what you want your accountant to do is the first step. Do you just want basic bookkeeping services or do you need monthly audited financial statements? Are you also looking for tax planning advice and tax preparation services? Review the accountant’s available services to ensure they have what you need.

It’s also important to think about your company’s future growth. You might need just basic accounting help now, but when your company grows, you could need additional services. Finding an accountant that can grow with you means you won’t have to look for a new firm in the future.

5. Consider Personality Fit

You want a company with strong accounting skills, but don’t forget about the personality fit. You don’t need to choose someone you would want to be friends with or hang out with on a Saturday night. But your personalities should be compatible.

If the straight-shooter, no-nonsense approach doesn’t appeal to you, find someone who’s more personable, for example. Communication is important in staying informed about your finances, even if your accountant handles most of the work. You want someone who communicates in a manner that suits you.

6. Look at Technology Used

Accounting technology continues to change and improve. You want a firm that uses secure, advanced technology to achieve the best results. Ask each accountant what type of software they suggest for clients. Choosing a firm with experience in different types of software, including cloud-based options, gives you more flexibility in how you handle daily financial tasks.

Using an accounting firm that uses the latest technology means that, ultimately, you will have more access to convenient features. Many newer programs offer integration between your accounting and point-of-sale software, for example. Automation features in newer accounting software can save you time and reduce the chances of errors.

7. Review Fees and Contract

Understanding how your accountant’s fee schedules work is important for budgeting. It also helps you compare the different options to verify that you get the best deal. The way accountants handle fees can vary.

Accountants might charge an hourly fee. This can be challenging for budgeting until you get an idea of how long it takes your accountant to do the work. Some, on the other hand, charge monthly or annual fees that include your regular bookkeeping plus tax preparation.

Another consideration is the contract. Review the terms to ensure you’re not locked into a questionable agreement. Look at the length of the contract. Some accountants might require long-term contracts. This forces you to stay with them even if you’re unhappy with the services or your needs or financial situation changes. You might consider an option that gives you the flexibility to change your arrangement as you see fit.

Finding Good Accountants

Choosing good accountants to handle your personal and business finances makes your job easier. It can also cut down on future mistakes and ensure you stay in financial compliance. If you need tax or accounting services, contact us today for more information.