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Tax Terms You Should Know

Too often we have situations where we have others take care of our paperwork and when we have to go and sign it we have no idea what that paperwork is talking about and essentially, we have no idea what we are signing. This is very true for those of us that file our taxes. You should always know what youre signing and have at least a general idea about what you are reading. We are going to start with some terms that are beneficial to know when filing your taxes.

Basis: This is a value or asset that is used for calculating a loss or gain when the asset is sold. Here is an example, if you have bought stock in a company over 5 years ago and you just sold the stock this year, you need to know its value (basis), or what you paid for it at the start and this will be how you establish the loss or gain on the sale for your tax purposes.

Capital Gain: If you get rid of a capital asset like a bond, real estate or stock and you receive a profit because of this, which is your capital gain. You will need to pay taxes on the amount that you gained from the sale which will be fifteen percent for the average tax payer and those that are in the higher bracket will have to pay twenty percent.

Dependent: A person that is not yourself or your spouse and you can claim them on your taxes. For a person to be your dependent you must take care of them financially at least 50% of the time and this can be your child or a qualified relative that does not have to be child.

Exemption: An exemption is the amount that the taxpayer can claim for a spouse, dependent, and themselves. The total amount that you receive for your exemption is taken from your adjusted gross income before taxes are figured on the remaining taxable income.

Standard Deductions: Those that choose to not have itemized deductions on their returns should choose the standard deductions because those are the only options. Standard deductions are a set of dollar amounts that vary based on if you are single, married and filing jointly or head of household.

If any of these situations scare you don't be affraid to reach out to a personal accountant to have them help you understand how to deal with your particular issue and get the most tax benefits possible for your business.

Applications Of Texas Ethics Cpe

For more than 100 years, the Texas State Board of Public Accountancy has set standards for professional accountants. Making a professional class out of a necessary trade skill, accountants play a crucial role in society. One aspect of their training is ethics courses. A part of continuing professional education (CPE), accountants and other professionals take courses to stay up to date on the best possible practices. Below we briefly review Texas ethics CPE to see just how ethics courses help make accountants better at their jobs.

The CPE Model

Whether it is in accounting, architecture, or engineering, continuing professional education (CPE) courses ensure that professionals never stop learning. Well after they leave the classroom and become fully certified and licensed, CPE courses help to make sure that they know up to date information on their profession. CPE courses can cover a wide range of topics. One important topic for many professions is ethics.

Texas Ethics CPE

In Texas, every accountant must also legally be a certified public accountant (CPA.) A requirement of the CPA is that every member must take ethics courses every other year. This amounts to a 4-hour course where the basics of ethics in the profession are reviewed. Texas ethics CPE is an easy way to make sure accountants know about changes to the law that may affect how they interact with their clients or what their clients can do financially. It helps to keep the accountant working within the confines of the law, allowing them to provide the best possible accounting assistance.

Ethics is a subject rarely covered in most professions. Until recently, it was considered a low priority when compared to factual information designed to make professionals better at the jobs. However, over the past two decades there has been a movement to ensure that more and more professionals have ethics training. While only 4 hours every other year is spent on the subject, it is still a good reminder to professional accountants what they can and should do in certain situations. In addition to providing answers to direct and tangible issues, they also create the framework for identifying and resolving issues that are harder to figure out.

Where Does That Leave Us?

Texas ethics CPE is the best way to ensure that accountants have professional competence. With a standard requirement for all accountants in the state, the board in charge of mandating ethics courses can ensure that every CPA member will be equally capable of dealing with ethics challenges during in their work.

Migrating From Myob To Xero

Are you looking to migrate from MYOB to Xero accounting software? NBC Xero Accountants are the perfect choice, ranking in the top 5 Xero Gold partners in Brisbane.

If you’ve already migrated to an online accounting option such a MYOB (Mind Your Own Business), then you’re well aware of the benefits of this way of accounting.

Many clients are recognising the benefits of Xero Accounting Software and if you’re ready to do the same, Northern Business Consultants are there to help and make the process as seamless as possible. From setting up your files to training and support, NBC are there to help.

First let’s make sure we understand the concept of Cloud Accounting.

Cloud Accounting may seem like a foreign and possibly complicated term but it is actually a way of making accounting easy, especially for smaller business where resources are often limited. This system allows you to use the internet to access software.

So no more installing software to your company’s computers and having to purchase upgrades or wait until data is manually updated to get an accurate view.

An example of cloud computing is for example your Yahoo account – the data and software is stored remotely but allows you to access it from any computer, whenever you wish. Cloud Accounting is the same concept and Xero does it best.

So to make it easier to understand, another word to describe cloud accounting is online accounting.  Cloud computing runs on remote servers and allows you access via the internet.

Companies are benefiting in time and money because no longer do they need to purchase costly hardware and software. With the Xero software you can access your data any time of day from whichever device you choose, even your mobile phone.

Your accountant/bookkeeper can access the information from wherever they are in the world and give you advice in real time. Information is more accurate because it’s updated automatically – the system can link with your bank account, credit card and Paypal so that any transactions are recorded on the Xero system.

The information is therefore more accurate and because it is updated automatically and there is only one ledger kept, there is significantly less room for errors, something that can prove costly in accounting.

So now your accountant can provide advice immediately, you don’t have to send them the file and then wait for them to receive, download and review it. They can access the same data as you in real-time.

Another major benefit is that with cloud accounting like Xero, the software is automatically updated which negates the need to download updates which can be so time-consuming.

Xero can be integrated with other cloud applications allowing you to sync information like client details, sales info etc.

Speaking to one of the NBC team is the first step in revolutionising the way your company does business. Like over 600,000 other business owners around the world, it will be the best move you can make for your business. 

Nh Accounting Services Help You With Your Taxes

As you work from day to day, there are a lot of things you need to worry about. Money is one of them, and it is an important thing to keep track of. Unfortunately, if you are pressed for time, keeping track of your financials may fall by the wayside. That is where accounting services come in. You can outsource this work and ensure it gets done without worrying about making time in your busy schedule to handle it.

When looking for an accountant to hire, you should know that there are many specialty areas to choose from, so choose based on what your needs are. If you are looking for financial help that is for your household, a personal finance specialist is what you need. If you are looking for someone to help with your business, there are both small business experts and larger business accounting pros that can help.

Instead of personal, if your need for guidance and help revolves around a business, then you may want to seek out a different type of accountant. If you own your own small or medium size business, there are accountants who specialize in that type of company. If you own or work for a larger company or even a multinational conglomerate, then look for that kind of specialist.

No matter which kind of pro you settle on, they all can help you get your books in order, and especially help you with your taxes. Tax season can be a really stressful time, especially if you own your own business, because then you must do your own taxes in addition to the ones for work. Outsourcing this stressful job ensures things get done accurately and in a very timely manner that meets any new tax laws that may have sprung up.

The first thing that the pro you hire will tell you is that the biggest obstacle to keeping your records straight is finding the right kind of bookkeeping method. You may do things by hand now, but there is likely a method or software program that is much easier and more efficient than what you currently do.

There are two types of audits that an accountant can help with, and they are both different. One is the dreadful IRS government audit, which an accounting pro can help you avoid by ensuring your taxes are done right. The other is a business audit where they look at your books and make sure that there are no financial discrepancies that are costing your company money, such as bookkeeping errors or unneeded expenditures.

Decide whether you need a personal financial expert, a business one, or both for your needs. Then look online to find out if there are any complaints or positive reviews regarding this person's work. This helps you ensure you are getting the right person or company for the job. Look at their list of fees and decide if this fits into whatever budget you can afford for this service. If everything looks good, then hire them.

Sure, hiring a CPA in NH, like Pappalardo and Merrill will cost you money, but think of what it will save you in the long run. Time and money are both valuable for busy people, and an accountant can help save you lots of both.