You may not have asked yourself that question in so many words, but you may have wondered what sets CPA’s apart from other financial professionals. The answer in short: A lot. We typically begin our careers with years of college and graduate education. To become licensed,  we must take the demanding Uniform CPA Examination, which tests our knowledge on a wide range of business topics over a total period of 14 hours. In addition, we have to meet an experience requirement and then be licensed by a State Board of Accountancy to practice. But it doesn’t stop there. Once we become CPA’s, we also must meet continuing education requirements to update our knowledge of new business developments as well as commit to a strict code of ethical standards. Armed with this rigorous training, we’re on the job year round, ready to help individuals and businesses address their own unique challenges.

Many clients see their CPA’s at tax time, when the main focus is on completing and filing their tax return. As a result, they may not take the opportunity to ask questions about long-term tax planning or about other important financial concerns. The good news is that we are available to you all year. We have a full- time, year-round staff of experts with extensive expertise in a broad range of financial areas. We’re ready when you are to take some time reviewing your financial situation, helping you understand your options and make the best decisions. We’re also here in an emergency to help address unexpected financial concerns. So, give us a call to discuss your important financial issues whenever they arise.

We Can Help You Address the Issues that Keep You Up at Night

Where will your business be in five years? Would strategic budget cuts in some areas improve your company’s health? Are there ways you can boost revenue? If you’re nearing retirement, is there a buyer or successor in the wings? These are the kinds of questions that keep many business owners up at night. Fortunately, as your CPA, we can probably help you sleep a little easier. Our firm is made up of highly qualified and educated professionals who work with clients like you all year long, serving as trusted business advisers. We act as coaches, guides and trainers for our business clients, helping them chart the best route to success. So be sure to turn to us with all your business questions or concerns.

Article from the AICPA Business Insider by Kelly Burch, October 2019

I insisted on doing my own taxes for years — until a CPA saved me $4,700

For years, I have filed my own taxes. As a child I watched my mom with stacks of receipts spread across the kitchen table, typing in numbers to file taxes for the interior painting business that she and my dad owned.  When I began filing my own taxes, it made sense to follow her lead and do them myself, rather than hiring a professional. I signed up for Turbo Tax, the same e-filing program that my mom used, and filed without any trouble for years.

That is, until I was hit with a nearly $5,000 tax bill that was wholly unexpected, and, it turns out, wrong. Here’s what happened, and why I’ll be hiring a tax professional in 2020 and beyond.

An unexpected bill

I used to roll my eyes a bit when people stressed about filing taxes. Doing my own taxes was straightforward, I thought, even though I am self-employed with a sole-proprietorship business.  I put in my income and expenses, and Turbo Tax would generate a Schedule C with my self-employment income. I filed online and digitally paid whatever I owed. Eventually, I started paying federal tax quarterly, as my business grew. Simple.

Then, last year, I got a surprise. I live in New Hampshire, a state with no personal income tax. And yet, Turbo Tax calculated that I owed $4,700 in state business tax from my work as a writer. I was frantic.

I had paid federal taxes quarterly and did not have money saved for this added expense. And yet, when I googled and read up on tax law, it all sounded legit: Unbeknownst to me, New Hampshire has an 8.2% business profits tax that kicks in when the gross business income exceeds $50,000, a threshold I crossed last year.

I knew I should talk to a tax professional, but it was high tax season, and everyone was booked weeks out. Plus, my husband and I were trying to buy a new house, so I wanted our latest tax returns wrapped up as soon as possible.  From my small amount of research the bill seemed in line with state law, so I assumed Turbo Tax was correct. I submitted a check for $1,200 to the state and set up a payment plan of $700 a month until the remainder was paid off.

Professional insight

Although I was able to make those monthly payments, I couldn’t afford to pay my back tax and still save for my 2019 tax bill. I was stressed about falling into a cycle of being behind on taxes.

To complicate things even more, my husband and I had started renting out our home, and I didn’t know what impact that would have on our taxes.

I decided to get ahead of the game. In September I started calling tax professionals, or CPA’s (Certified Professional Accountants). One droned on, asking me few questions. The second person I talked to politely interrupted me when I said I owed money to the state.

“You shouldn’t have owed anything,” he said firmly. “Was your bill around $4,700?”

I was impressed that he knew the figure without me mentioning it. He explained that while the state does tax businesses, there is a $75,000 reasonable compensation deduction. Since I earned less than $75,000 in profit, I didn’t owe anything.

I was incredibly relieved. Within two hours of our phone call the CPA had filed an amended return. His fee was $125. The next week, I received a $3,000 check from the state, a refund for everything I had paid thus far. I literally skipped up my driveway with the check in hand, feeling like a kid on Christmas.  The refund was great, but the real relief was knowing I wouldn’t owe a similar amount in 2019 and future years.

Admitting that I need help

Since the CPA found such a large mistake on my 2018 taxes, I asked him to review 2016 and 2017 as well. It turns out, I was doing everything right those years. My gut feeling that filing taxes wasn’t too complicated was, on some level, correct.

Still, I realized that my taxes had become more complicated over time. This year my writing business will gross about $100,000, so I likely will owe state tax. Then, there’s the income I’ll generate from my rental. Filing my taxes is no longer as simple as plugging in a few numbers.

The CPA charges hourly, and he estimates it will cost about $500 to do my taxes this year. Considering I spent about $200 on Turbo Tax’s self-employed program last year, the CPA’s rate seems entirely reasonable.  As a professional, I’ve realized where my limits are, and from now on I will be delegating tax preparation to other professionals who I can trust.