FREQUENTLY ASKED ACCOUNTING QUESTIONS

 

Do I need an accountant if the industry is unregulated?

Yes. There are many advantages to using an accountant to file your tax returns. The greatest advantage is having your taxes prepared properly, so you don’t end up overpaying. Other advantages include:

■ Audit services, which only accountants can provide. 
■ Business valuation and restructuring advisory services.

It doesn’t matter if you're struggling or successful, it’s important to consult an expert, especially when dealing with money; the person that can do this best for you is a Certified Accountant.

 

Does my accountant need to be designated or certified?

Yes. We understand saving money is appealing, but if you don’t use a designated or certified accountant, you may be losing more money if you have to overpay on your taxes. Most small business owners try to save money by using so-called accountant firms where none of the staff are designated or certified accountants. These companies usually mean well, but haven’t been properly trained. It takes years of study in this industry to be properly trained and the smallest mistakes could result in you either overpaying taxes or underpaying. This could lead to eventual issues with the IRS and attract some of the highest interest rates and penalties in the US.

 

Does my accountant work for me or the Internal Revenue Service (IRS)?

Sometimes it can be difficult to tell. Rather than telling you the proper way to account for expenses they ask you what you've been doing and account for that way of doing it, which is not always in your best interest. Your accountant should always advise you on the most tax effective way of doing things so that you... STOP OVERPAYING YOUR TAXES!

 

Does my business's corporate year end tax return need to be filled out and submitted by a chartered accountant?

No. Anyone can fill out your tax returns, however, not everyone can fill out tax returns properly. Thus, we often find an average of $3,000 per client when we go back and look at their three previous year's filings.

 

If my accountant has a designation should I automatically trust them?

No. There are varied designations one can obtain in university. CA is Certified Accountant, CGA is Certified General Account, CMA is Certified Management Account and CPA is Certified Professional Accountant. Each accountant, after receiving their designation, will gain experience in a specific discipline – which may not be specific to business tax preparation and filing.  

 

Should I accept management fees from my accountant?

Management fees are an acceptable way for business owners to take compensation when an accountant completes their tax year. It used to be common practice for this to happen on the tax form with no further paperwork.

 

 

I pay a lot of tax every year – what can I do?

It is imperative to review both the business operations as well as your personal tax situation simultaneously to properly balance the amount of tax you pay in both areas, so you never pay tax unnecessarily. Some of the options we may explore are paying your spouse and paying your kids. Often times they provide infrequent support to your business with no compensation. They should be paid for their “part-time” assistance, and if their tax base is low – they may get all their tax back. 

  

 

My business is incorporated; do I need a business bank acccount?

Yes. Any income that is NOT deposited into your business bank account could be perceived as your personal income and would then be taxed at your personal tax rate. A business bank account and its fees are an expense to your business and can be deducted within your business taxes.