Frequently Asked Questions
FAQs
How long should I keep my tax records?
Seven years. Your business records must be kept for seven years because the Social Security Administration requires any discrepancy to be resolved anytime within this seven year window. Also, the the IRS and any states agencies will audit within the seven year window. Keep all federal, state and local returns along with all supporting documents for seven years as well. Real Estate and stock market transactions records should also be kept. Consider keeping your files in a safe deposit box or other safe place outside your home.
What kind of record keeping system must I have?
According to the IRS: You may choose any record keeping system suited to your business that clearly shows your income and expenses. The Tax Courts standard for determining that a bookkeeping system is appropriate: “Does the bookkeeping provide sufficient data for the taxpayer to make informed business decisions?” The type of business you are in obviously affects the records you need to keep. A thorough record keeping system should include a summary of your business transactions typically through accounting journals and ledgers. Your books must show your gross income, as well as your deductions and credits. For most small businesses, online systems such as QuickBooks are a great way to connect your bank accounts and track this information.
How can I know which CPA is best for me?
Any professional you choose should not only have the technical knowledge required but should also treat you with respect. Does your CPA and advisor take time to listen to you? Does your CPA and advisor return your calls in a timely manner? Do you feel comfortable asking your CPA and advisor a question? When you need a professional in the region who will make you their top priority, Call The Walls Group Today!
What is the difference between a Certified Public Accountant (CPAs) and accountants?
As required, a CPA has demonstrated professional competence by passing a rigorous examination and meeting high standards of education. In addition to this, they must meet strict continuing education requirements, undergo peer review, and adhere to a stringent set of ethical standards offering a higher standard of services and professionalism.