When and Why People Work With CPAs
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- Äas pĹidĂĄn 22. 08. 2024
- #CPA #Taxes #
Chapters (Time Stamps):
0:41 Real example of when someone sought me out to be their CPA
2:43 What is a CPA?
8:00 When do you actually needs a CPA?
11:04 The primary benefits of working with a CPA
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What is a CPA?
â˘A CPA has a formal education in the field of accounting that encompasses both a college education and real-world work experience.
â˘CPAs typically understand multiple disciplines that most commonly include accounting, taxes, audit, and a broader understanding how businesses operate.
â˘The ability to move beyond data entry and reporting into the realm of consulting and advising.
â˘The type of license they hold allows them to prepare various levels of financial statements.
WHY Do People work with CPAs?
ď Time
ď Peace of Mind
ď Wealth preservation
ď Trusted Advisor
When Do People Need CPAs?
A few examples:
-They are starting a business or currently have a business.
-They are planning to invest in real estate or currently own rental properties.
-They are investing in crypto currency or have other unique investments that are outside of retirement accounts.
-Large fluctuations in income generate the need for tax planning.
-They have estate related issues and need help with their fiduciary income tax filings.
-They are receiving IRS notices.
-They made errors on a previous return and need help.
-They are not sure which entity structure is best for their business.
Why People choose to work with me
-They want effective communication with their accountant and their current accountant is not living up to the clientâs expectations.
-They need advice and guidance but are often turned away by CPA firms because they are considered too small of a client. I will work with clients who are a bit smaller and just starting out in business.
-My experience, I have been performing this type of work for over 12 years now.
-I take time to educate clients.
-They need more than just compliance work performed they want a trusted advisor.
-I willing to work with other professionals for the best interest of the client.
-I can do more than just taxes.
-I am not going to send them surprise bills
-I value the relationship the client and I build together.
A great client for me:
Usually has a business or starting business
Needs help with fiduciary income taxes
Wants to expand their wealth and is expanding into real estate, virtual currencies need tax planning
Someone who just has a W-2 and 1099 and not looking to invest or start a business
A client who needs payroll, sales tax, business property and 1099 related services.
A client who is only looking for consulting related services and nothing else is not the ideal engagement for me. It is more challenging and riskier to offer guidance when you do not have a complete picture of the clientâs situation.
If you are seeking accounting, tax preparation, tax planning or advisory services you can reach me through my website. www.mikekellycpa.com/ My cutoff for 2021 tax preparation without an extension of time to file is March 26th. I have also began onboarding clients for tax year 2022 which will occur in 2023. Thank you everyone for watching and your continued support :)
Thank you Mike's friend for asking him to make this video!! Amazing points Mike. You are a mentor to me by your videos and information. Always keeping you in mind â¤đ
Hey thanks Maria! I'm going to share you comment with them :) Honored to be considered a mentor. I usually think oif myself as a guy who "nerds out" on taxes and money matters ;)
@@MoneyandLifeTV I would trade you any time!! I honestly thought preparing taxes was easy as you stated put in system and done. But as I continue to grow I get new situations that require more experience and or knowledge So I always go back to your videos and know I'll find something will help me out. And for that I thank you!!
Awesome, so glad to hear that :)
Good video, Mike. The very small business I used to work for always had a CPA. I knew them quite well. I used to ask my boss to withhold extra from my pay. The CPA caught that and told me. I told her that I had lots of investments and I used that method instead of quarterly payments.
In other news.... I'm getting lots of practice doing tax loss harvesting since the beginning of the year. :(
Thanks for sharing Dave. It is always nice when you can learn something about finances or taxes while on the job. I hear you loud and clear on the tax loss harvesting . Markets are very choppy.
I love your tax videos because you can explain the numbers through laws and tax concepts by using tax forms. Yes ! you can make your client to be rich by your deep knowledge, too.
This is an awesome video! Iâm glad you did a video to explain the difference of CPA and a Regular accountant.
When I step foot in my job now (in a CPA firm) I did not know what CPA stand for. My knowledge of accounting was taking accounting 1 class that I took when working on my associates degree. I went in for the job interview to help file documents etc non accounting work, so I thoughtâŚ. But I was wrong. My boss hired me knowing that I didnât have any accounting background. Once I start I slowly learn every aspect of what a CPA can do. Now, I will be done with my bachelors degree in accounting in 7 weeks.
Many clients come to us from a regular accountant, the work that a regular accountant do versus a CPA work is different!! We tend to pick up and clean up mistake from regular accountant. CPA are more knowledgeable due to continue education! Make your decision wisely! đĽ°
That is awesome Lina, thank you for sharing this experience. The technical aspects of this profession are extremely diverse. I am still amazed by how knowledgeable CPAs are with 30 years of experience. Learn more every single day and without that knowledge people don't know what they don't know. It is like learning a different language. Congrats on the accounting degree!
Tax season is over Mike !! We need more content đđđź
Haha thanks brother it is finally going to coming. Hopefully for the rest of the year đ
A great video explaining what a CPA is and what we offer to the community.
One thing will add is our clients often help build our experience and steer our practice in a particular direction.
Another great video offering a lot of great information. Thanks.
Thanks Dan!! That is so true. The experience of the CPA is often molded by the clients they serve.
Chapters (Time Stamps):
0:41 Real example of when someone sought me out to be their CPA
2:43 What is a CPA?
8:00 When do you actually needs a CPA?
11:04 The primary benefits of working with a CPA
Great Video Mike.
Hey Etienne, thank you sir!
As a CPA, I have reviewed a lot of tax returns prepared by non CPAs. They are awful. Even basic tax return these "professional" would screw up. I agree, they don't know what they don't know.
Itâs nice to know the value of your job thanks!
The true value of my job is helping others gain more value from theirs.
My definition of a CPA... somebody who is unfortunate to have a state Accountancy Board treating him like an unethical crook, when he is not.
Oh no very sorry to hear that.
Thank you đ for a better understanding of CPA ! đ¤đ¤đ¤
Happy to help! Most people work with tax preparers and assume they are CPAs which is not the case.
As a CPA-Every $100 you spend on a good CPA, you will get back at least $100 or more. So you are not losing any money paying a CPA in the long-run. Trust me on this.
That is a great way to put it Tony! I love that.
@@MoneyandLifeTV Sounded like propaganda as a CPA LOL
đ
Great information! đ
Thank you! đ
Real estate Investing tax strategies for my 3 rental SFHs is my ongoing need.
Thank you Nello! Real estate is an area I am beginning to specialize in. High demand area and everyone wants to learn more about it. I am currently in the process of onboarding a few real estate clients for tax year 2022 as we speak. If you ever need help or thinking about switching accountants you can reach me on my website at www.Mikekellycpa.com
Very good information.
Thank you Judy!
Good to know, I think I learned something about CPAs. I'm thinking about buying the big div payers RYLD and XYLD and thought I may need a pro tax to handle the more complex tax code involved. Like 3 or 4 different tax levels including something called ROC. Confused about maybe the cost basis when selling if it changes at all?
Hey Gary! Glad you enjoyed the video. www.mikekellycpa.com is best way to reach me if you ever need to me prepare your taxes or have other accounting matters. I am in the process of onboarding several clients right now for tax year 2022.
I was looking for your video on Mega Backdoor Roth IRA but could not find one. Can you make video when you get chance. Thanks!
Thanks for your information pinned above!
My pleasure Kate :)
@@MoneyandLifeTV I was looking for an tax preparer/ adviser for my near retirement . I live in San Jose, Ca.
The distance isn't a problem, I guess. Possibly for 2022. Thanks.
Sounds great Kate, I will be onboarding for tax year 2022 throughout this year. If I can be assistance please let me know. You can contact me at www.mikekellypca.com I work with several clients already located throughout California.
I have a question and will appreciate your help. I bought a house under an LLC mid last year and rented for a couple months. Is under renovation and u might sell this year after reno or continue to rent. Do I file a schedule E this year using the cost of purchasing the house and the rent income or do I not file this year and rather file next after I sell. That is if I sell?
A subscriber and follower, thanks for all the amazing content and education.
Hey Mike, just seeking some advice for a college student who wants to get into accounting and get into the public accounting industry. Currently in Southern California and was wondering if a internship would be the best place to start?
Hi Daniel, Internships are a great way to start. In fact that is how I originally started.
Hey Mike
Long time no see.
Quick question-
I didnât have taxes taken out of my unemployment checks in 2021 and looks like I may owe a lot now.
Can I do a payment plan with the IRS and make payments?
Also why canât I find mileage deduction as an option in expenses on turbo tax? Itâs my best deduction
Hey Tyler, yes. What you need is an installment agreement with the irs. I have video on this if you search my video library.
@@MoneyandLifeTV thanks Mike
Also how do I find a good tax professional? Are you available and how much would you charge ?
I mean I gave a lot of money to the church last year and it didnât even move the needle as far as deductions. I know Iâm going to owe because of all the unemployment I took in â21 but I want to make sure Iâm doing my taxes right so I donât miss anything
đź Checkout some of our most popular INVESTING and TAX related videos
â Earn $100,000 a year in dividends: czcams.com/video/DWu3oU6dcBs/video.html
â Dividend Investing Pros and Cons: czcams.com/video/3gmbrO_PUt8/video.html
â Our Dividend Income Year 6: czcams.com/video/ppwnTGWNcUY/video.html
â Best Investments for each account czcams.com/video/WjlOmA-xWAU/video.html
â Calculating dividend tax rates: czcams.com/video/ldZaDdmcWtg/video.html
â Making your dividends qualified!: czcams.com/video/YmYcxDLzXyY/video.html
â How to save taxes on stocks: czcams.com/video/_gaJ6jXgGb4/video.html
â Capital Gain Taxes Explained: czcams.com/video/BCQYorPgDKs/video.html
â New Tax Laws for 2020 Explained: czcams.com/video/ewhbBCRvIO0/video.html
â Dividend and REIT Taxation: czcams.com/video/Y0OxeCS3_H4/video.html
â How to fill out the new 2020 W-4 czcams.com/video/_VPjX0dDTgs/video.html
I own dividend paying stocks, dont earn a lot yet. Think its worth having a cpa? I earn like 50k plus dividends, and some crypto.
Hi Phillip, great question, probably not quite yet unless you are looking to get away from doing the tax prep yourself. . If you are doing mining in a business capacity I would say yes, but if you are just buying and selling crypto probably not as long as you feel you understand the tax laws. I feel a CPA is most important before you make a major financial move like starting a business or buying investment property, etc. Hope that helps.
Wait! Iâm a tax preparer with H&R Block. I took a federal and state exam to get my license. Also I have to take continuing educating hours each year. Can you explain why youâd say that thereâs no needed license?
Hi Lazette, what license do you hold? Not all people who work at H&R block or an accounting firm for example are licensed. H&R Block is good in a sense that it does have a rigorous training program for their employees, but not all of their employees are CPAs or enrolled agents. That isn't a knock on H&R, because the same can be said for accounting firms. Correct me if I am wrong, but people whom I have met who used to work for H&R Block shared this information with me. To prepare taxes though a license is not actually required.
@@MoneyandLifeTV ahhh. I did a little more research, and I need a license because I live in one of the 7 states that requires a license: Maryland! I definitely learned something today. :-) Thank you for your content. It's great information for me to listen to as I stay abreast of changes. đ
Cheers, best of luck and lets hope we survive another tax season :)
When are you gonna be able to help us ? People from outside Cali?
Hey Edgar! I am actually working with clients outside of California as we speak. If you would like to reach me visit www.mikekellycpa.com