I’ve gotten questions about the difference between the EA (Enrolled Agent) and the CPA (Certified Public Accountant) and I’d like to answer those now.
The short answer to this is no. However, it really depends what characteristics you’re looking at. continue reading this article »
I came across this list of items that the Tax Court has, in various rulings, declared as “not a business”:
The straight answer to this is: no, probably not. But the good news is: they’re not outsourcing it like you fear. (Although, some CPAs will outsource outside of the country. On occasion, it’s even being outsourced to the tax-prep chain down the street.) Who’s doing your taxes, then? I hate to say it, but it’s people in the same position that I was in when I was an intern: the backroom.
You see, there are different tiers of folks out there who prepare taxes. Usually, in a medium to large office, there is a person who meets with you (a CPA), they talk with you, take notes, and tell you when to expect your taxes to be completed. As soon as you leave, though, they go back to their offices, and drop your taxes off along the way at the desk of an assistant. That person has the job of preparing your taxes. At that point, they might go back to the CPA for review, or they may go to a supervisor, who is not a CPA, but is a more experienced preparer, for review. He or she will look over the work that the the preparer has done and if it needs fixing (review notes) then it’ll go back to the preparer. continue reading this article »
I could begin this post with the classic “So you think you want to work for yourself?” But let’s skip that. It’s overused and it’s lost meaning. Instead, let’s take a look at the questions you have to ask yourself before you start your business.
Sure, your family tells you that your product or service is good–but is it outstanding? Are you one of the more skilled people in your market? If you take a look at your work, determine what makes you stand out. Have a good portfolio, if it’s designs you’ve done, applications you’ve written, or accomplishments that you’ve achieved in the workplace. Make a list of the answers to these questions.
Who is your competition? Who are your clients? Why would your client choose you over the other options in the market? Is there a demand for your services or product? What are your weaknesses and how do you intend to turn these into positives in the market? (This, along with your answer to question 1 should be the basis of your marketing pitch or the information that you provide to potential clients.) When we considered moving to another town I looked at competition. Who was working in taxes and business consulting? How much of a market was in that town? If I could figure in the nearby towns as potential client base, what would have to be done to have folks from that town come over to my town to get business or tax advice? It was the same thing I did when I research “virtual accounting.” What services did I offer that were unique to others? Sure, I specialize in small businesses that were online, but what differentiated my services from the competitors?
Networking is all the rage today–as well it should be. A few well-connected contacts can make your business profitable. continue reading this article »