Hi Guys, sorry for the old thread getting archived before I could respond to everyone.
Took a visit to the vet with the new puppy, pic is of him.
If you posted and I didn't respond previously, you will find those responses here.
Green Text will be the questions:
>>>1216466 (OP)
>what's the best ways I can write shit off as a >small business owner?
>What are some cool things that I didn't know >I could write off.
1) You can write off what you spend as business expenses. The most commonly missed ones are mileage traveling for work (not commuting, but to vendors, from one business location to another, etc).
2) Nothing "Cool" you can write off really, but, I will give you the best advice as a small business owner. Become an S-Corp. I will briefly explain why. In an S Corp, the K-1 profits are passed through to the owner, and the owner pays taxes on them (no tax at the corporate level). However, these profits are NOT taxed with Social Security and Medicare, just straight income tax (that's 7.65% in your pocket).
Now, the IRS requires that you take a fair and reasonable salary. So, if you profit $50,000, you can give yourself a $20,000 salary, and save FICA taxes on $30,000 ( $2,295 dollars saved).
>Sophomore in College studying Accounting and hoping to be a CPA. What is some advice/stuff you wish you would've done in college to prepare yourself for the workforce. Also what is the best way to get your foot into the door at an Accounting firm?
1) Read, read, read. You see all those 1,000+ page books you get, but only read parts of? Read the whole thing. Re read those books. Know your shit so well that anyone could quiz you 100 different ways and you will not only be correct, but confident you are correct.
That is invaluable.
2) Best way to get your foot in at a firm? Big 4? network network network. Find out where they are going for job fairs, get your resume and cover letter up, practice your public speaking and go out and contact them.
>I moved to CO from IA at the end of 2010. Didn't do my 2009-2013 taxes until last year. Years ago IA said I owed them like 1.5K for 2009 (for the taxes I never did). Ignored it. Ignored it. They then sent me a letter claiming I owed them state taxes for 2009-2013 (for income earned in CO). Like 11K.
>Called IA Dept of Revenue. Since I never filed any returns they think I was still a resident of IA. I never got a new driver's license and mostly used my parent's address (forwarded things from there). That didn't help. Explained to them that I haven't lived in Iowa for 4 years and obviously been working in CO. They said I could be working there yet still a resident of IA. Don't really remember what was said beyond that, but I haven't heard anything. I haven't gotten any letters in about 1.5 years.
>How likely is it that this has just gone away? Does filing all of my old returns last year help clear it up?
1) Chances it is just away? 0. The statute of limitations for collecting or auditing a tax return doesn't start until you have actually filed your tax returns.
For a matter like this, I suggest either doing the reserach yourself on IA state tax laws (could take you a long time) or hire an Enrolled Agent or CPA to represent you.
They are correct about being able to tax your income if you were in CO, but a resident of IA. Except you get a credit for taxes paid to another state (which they would have no idea about, since you never filed your return letting them know that).
I would prepare all your returns. Figure out how each year should have been, then submit them and go from there.
Filing the old returns will not toally clear up the issue, but it will start the statute of limiations for them to change the return and to collect $ from you.
>How does one make a living as a CPA. I only see you guys actually working during tax season. How do you get paid the rest of the year?
Well, my friend, there are MANY types of taxes, and lots of people file extensions. In Summary, if you ONLY do taxes (which we do not) you have the following:
a) Federal Income Tax - April 15th extended to Oct. 15th
b) State Income Tax - April 15th Extended to Oct. 15th
c) Partnership Tax - April 15th extended to Oct. 15h
d) Corporate Tax - March 15th extended to September 15th
e) Sales Tax - Ranges from Weekly, semi monthly, monthly, quarterly, and annually.
f) Payroll Tax - each pay period, both state and federal
Now, there are indiviual cases where people have to deal with the IRS and that is whenever it happens.
Also, we do tax planning year round.
Now, small to medium sized businesses we are involved with daily to make sure everything is compliant, and to maintain a high level of planning.
That is just basic tax, there is tax research, tax court, international tax, estate tax, and more.
Other services offered: Financial planning, audits, compilations, reviews, business analysis, business valuations, forensic services, etc, etc, etc.
>What was your process of becoming a CPA? (as in what major and classes you took) How long did it take to where you are now?
>What did you do after you graduated?
1) CPA goes Undergrad in accounting, masters in accounting related topic (I did taxation). Take 4 tests, pass all with at least a 75. 1 Year work experience under a CPA, then Presto, NY State gives you a license (if you pass ethical interview).
Each state has its own requirements, though all are pretty much the same. I needed 120 college credits (36 being in accounting and 20 being in general business) to sit and take the exam, and 150 college credits to get licensed).
2) After I Graduated (and while I was in school) I worked for a CPA firm, left around sohpmore year to take a position as a controller for a media company, then graduated and opened my own practice.
>I've recently incorporated a start up food biz I'm working on. I know I need a CPA sooner or later (still pulling all the parts together, expect to start selling June/July time frame). How soon do I need one? Just saving receipts at the moment. How do I pick one? I've put out feelers but haven't gotten any references yet. What do you think of Quickbooks? Seems like the go to software for small biz. Any questions I haven't asked you feel need answering?
1) The most imporant thing for a start up and small business is to accuratley and correctly keep records of everything.
By this, I don't mean to keep receipts. I mean make a spreadsheet, and keep track of everything. Here is what the format should look like:
Date: Memo (what you bought or $ coming in from): Store (or customer): Amount: Bank Account (or cash):
2) You should talk to a CPA or EA soon, and get a better understanding of your tax requirements (sales tax, payroll tax, unemployment, disability, etc).
>I'm actually going to school for accounting and I plan on getting my CPA, do sometime in public to get a feel for the different types of industries and strike out to start my own business. In your professional opinion what type of business is it easy to get into with the potential of netting me an upper-middle class lifestyle? I know a CPA who got into the telecom business and runs a successful mid-size firm but it seems like that's a crowded field.
Taxes. Hands down Taxes. By far the easiest to get into, little barrier to entry, slow start but the best cash flow for years and years to come. Losing clients is hard (unless you fuck up) and they typically stick with you for 10+ years, making the client lifetime value very attractive. Easy to make $100k a year doing taxes, plus you learn the ins and outs of almost all businesses (since they are your clients).
I took what I learned from my clients mistakes, I'm investing in real estate on the side, and I always, always, ALWAYS have an open mind and try to learn from others/my clients who are successful, and from the ones who are not.
>How do I cheat on the CPA exam?
Let me refer you to the AICPA on this one:
.07501-6—Solicitation or disclosure of CPA examination questions and answers. A member who solicits or knowingly discloses the May 1996 or later Uniform CPA Examination question(s) and/or answer(s) without the written authorization of the AICPA shall be considered to have committed an act discreditable to the profession in violation of rule 501 [ET section 501.01].
Also known as, you will lose your license, and all that schooling you paid for.
Sorry it took so long to get back to you guys, hopefully didn't lose you!
>>1219731
is that an eurasier?
>>1219836
The breed is Leonberger
Assuming that I'm somewhat competent at tax at a Big Four, what are the chances of someone making it to partner if they stick around?
Where do people usually exit to at the senior and above level where pay can ever compare?
>>1219924
>Assuming that I'm somewhat competent at tax at a Big Four, what are the chances of someone making it to partner if they stick around?
>Where do people usually exit to at the senior and above level where pay can ever compare?
Partner <5%
The road to partnership takes 8-15 years, and you have to be charismatic, hard working, and a schmoozer ass sniffer (seriously, the culture is all about networking and sucking up).
Manager - 3 years average pay $100-130k
Senior Associate - 2 years pay 80-90k
Entry Level W/ CPA - 65-75k
Entry Level no CPA - 55-65k
People normally exit after a few years as manager of a small team, or after a few years as senior assoc before making manager.
Partner is $250k+, but you only make what you bring in, so you are constantly working on new business.
>>1219941
Thanks
It seems like the 'talent pool' at a Big Four firm is usually a bit lower than the pool at any ibank. I'm assuming those numbers take that into account. But, my question is where do those people who made it to senior manager and (get passed up?) for partner go?
>>1219968
They stay at senior management and work horrible hours for a decent pay for the rest of their lives and eventually leave from attrition.
or
They go to work for one of the clients they were doing work for as Controller, CFO, CAO, etc etc.
or
They leave and open their own firm.
How do I cheat on the cpa exam?
>>1220057
In the real world everyone cheats. I have yet to see a single company I've ever worked for do things properly. Not to mention the nepotism in the accounting profession.
>>1220068
Cheat, end up at the big 4, work like a slave, suck up to assholes, cut corners, fuck the general population, make ok money, take the chance at the top, <5% make it, enjoy the mediocre life you've had, retire at 55, die at 65 from heart failure
or
Work your ass off. Learn everything you can in the profession. Ace the Exam. Laugh at the peon fucks struggling because they cheated their way thru college and the CPA. Watch them flounder around at the big 4. Watch the idiots at the top, and nod your head to the ones who deserve to be there. Open your own practice. Have your own interns and employees, instill better ethics and goals in your workforce. Have happy clients. Work 20 hours a week off season (or less). Travel the world during off season/ enjoy the summer time and fall. Know you aren't fucking over the general population. Contribute slightly back to society.
You can chose how to live your life. Cheat or don't. It doesn't affect me. Just take it from someone who has seen the end product from both hard work and from cheating in the profession.
Anyone else?
Thanks for posting these threads. I liked the info about the forensic accounting related to divorce cases, seems like it could be a niche area to get into.
I’ve passed all my exams and have finished 1 of 2 years for the work experienced required for my license (from Canada) I am currently working in the private industry in a very cushy job, but I don’t feel like I’m getting as much experience than as I would in the Big 4. I just got a promotion yesterday with a raise but I feel like it will limit me. One day I’d like to open up my own practice doing taxes and other consulting services.
If given the opportunity should I switch to the Big 4 to get the experience?
>>1220151
Yo, thanks for answering my questions earlier
Is there any way you can email me your LinkedIn?
[email protected]
>>1220185
Believe it or not, I don't use linkedin.
Sorry to disappoint. I network in person, and use other apps to maintain contact among my colleagues.
>>1220152
Pros of the Big 4: Network. You will meet key people at large companies depending on what sector you are in (audit, tax, etc) like ING, Goldman Sachs, Google, Apple, Walmart, Etc.
You have the chance to make partner and establish your own client base and great pay and retirement.
Cons: The Hours. Horrible horrible hours. The pay because of hours isn't that great unless you partner/ upper management. The networking is tiresome and you aren't paid for it. You will work with a ton of idiots, and under educated individuals.
>>1220199
>Cons: The Hours. Horrible horrible hours.
hahaha this. My girlfriend's sister's fiance worked for Ernst & Young for a year and had a nervous breakdown. Now he's on anxiety meds
>>1219731
What are the major challenges of obtaining your charter?
I keep hearing about people saying accounting will be automated etc. etc.
What are your thoughts on the probability this can or will happen at some point?
Thanks for answering my previous question by the way
>>1220199
I've heard that Big 4 is overrated and if you got to a mid-size public accounting firm you pretty much get the same experience but without the horrible hours. Is there any truth to this?
I'm in accounting and have been doing pretty bad
About to finish up junior year (3 more semesters to graduate because transfer) with 2.3 gpa
Any tips on what I should do (other than get gpa up because I know that)
I've met with three cpa's and talked with them about industry/tips and work in fundraising for uni so I talk with lots but don't go around saying what should I do if I'm so shitty at student
Sup OP
Senior accounting student here. Took an auditing exam on Tuesday and got a 70...sounds stupid, but a lot of people absolutely bombed. That's besides the point.
I currently work as an analyst for a small bank in my area but it's taught me a lot about banking in general. Is there a career path in banking for one with an accounting degree?
Thanks for taking the time
>>1220255
It will never become automated.
Bookkeeping can become automated, but there is such a high level of judgement for complex tax and accounting topics that sometimes what may seem to be the best solution, isn't.
There is such a level of cross knowledge and application of concepts outside of accounting that influence how to account and how to structure transactions.
>>1220240
What is a charter? My license?
>>1220707
There is some truth. The hours will be a bit less and you will have a little bit more flexibility. The experience will be similar as far as professional learning, but the networking will be a little less ( you will deal with a bit smaller companies, but they are still pretty big) less of a chance of getting hired internally, but better chance of taking clients when you leave em
>>1220707
not OP, but in my experience, associate professionals are treated more or less like slaves in most white-collar environments.
If you want decent hours, go work in-house for a corporation. If you're doing consulting work, you are the product being sold; your time, your expertise, your hourly attention is the work product of your employer. With that in mind, they're always going to "enable"/require you to work hard, and if you work more than 40 hours/week, that's money in their pocket (because you're salaried, and you don't get overtime).
If you're in-house for a corporation, your time and knowledge are still the work product, but your employer has you allocated as a cost center, so as long as the work they need you to do gets done, and you're cheaper than a consulting service, then nobody cares what hours you work. Yeah, you'll have ebbs and flows (some weeks you'll work 60, some you'll work 30), but it's a much better work-life balance because you're essentially a cheap consultant with only one client. Sometimes companies like to take advantage of you by overworking you anyway, but long term they're only fucking themselves because it's easy to find a new job in the accounting profession.
source: my mom is/was an accountant in-house for 5-6 regional firms near where I lived while I was growing up.
>>1220730
GPA doesn't mean anything to me when I hire someone. I am looking at their knowledge by asking them questions in the interview.
Read. Read. Read. Force yourself to read everything. Read every assigned chapter BEFORE you go to class, make sure you understand it before you sit down. Then, when the professor is going over it you will be like "Shit, I know this, I know this" and if you have a question, you will know everything else and then it all will make sense. DO NOT show up and expect to be taught by the professor.
The most valuable thing I can ever tell anyone is learn how to learn on your own. Read the book, do practice problems.
You will learn to figure out tough shit on your own, and that is EXACTLY what an employer is looking for. You tell them you can figure out and handle whatever they throw at you without asking too many questions, and you will be hired on the spot.
>>1221337
Banking has a ton of opportunities to work in as a CPA/Accountant. Branch management is small time, you want to work your way up to the regional level, and deal with either mortgage acquiring, helping with financing M&I, and business loans.
>>1219731
How do you deal with the job being boring?
I dropped out of accounting at university after 2 years because I just hate the living shit out of it.
It's so focused on details rather than intuition, just not for me.
>>1221904
I got into tax law and consulting. It's extreme logical problem solving. I look at an extraordinarily complex situation, analyze it, and develop the best solution then implement it.
Always getting new clients and having new tax developments keeps things fresh and motivating.
