Accounting News and Notes

Is Your CPA Technically Proficient?

How Do I Find a Good CPA for My Gwinnett/Atlanta Business?

Our world has become one of intense specialization as you have had to hone and perfect your craft and you will want to find a business CPA whose dedication and ambition matches that of your own.  To that end, recapped below you will find several issues to contemplate as you make one of the most important decisions that will impact your business success and your family’s financial future:

• Work a CPA who has at least ten years of varied experience.  CPA’s, like doctors, have extensive training requirements that are important and a prerequisite to even obtaining one’s CPA license.  Just as you would not necessarily prefer to be an oncologist’s first patient, so will you want to find a well skilled and trained CPA.  One of the first places to look would be to ask to see a potential accountant’s resume.
• Work with a CPA who graduated at the head of their class.  Accordingly when you are going to soon have a major surgery would you prefer to have a physician from a top school whose honors are most likely the best indicator of future success or would you prefer to find someone who failed to excel and graduated at the tail end of their class?
• Work with a CPA whose goal is more than just tax returns.  As a business owner, you will want to find someone who has a heavy emphasis on tax planning, a wise and judicious planning style, retirement planning, as well as a broad based understanding of all types of medical, liability, property and other specialty lines of insurance.  Often a well-placed word of advice is all a good listener and seeker needs to hear.
• Work with a CPA who cares more about the world than his business.  Although attentiveness to your needs and responsiveness to you are critical to your success, our work lives are not how we are all going to be remembered.  Is your CPA regularly involved in giving back to the community, do they have an active local or overseas ministry that they actually participate in and support?  Do they help the elderly or oppressed in the community, are they involved in the local PTA are they centrally involved in striving to make this world a better place for us all?

Work with a CPA and make the best decision for your business. Seek the counsel of others as you seek a CPA, you make one not only for yourself but those who are depending on you as well.  These people include not only your family but also the family of your employees as your business and your own financial success depend on it.

Evaluating a client’s prior personal income tax return a CPA can gain much guidance and information about a particular taxpayer. However there is no substitute for a CPA being keenly aware of all information that they receive from a client. The below is a sample letter that we might send to a client to ensure that all of the information for their personal income tax return is received to ensure that a timely and correct return is prepared thereby ensuring that only the lowest legal possible tax is paid:

In preparing your 2010 personal income tax return I noted that you: 

Listed 8,000 of business miles and $2,000 of Unreimbursed Employee Expenses. Please confirm that these were not included in the corporate expenses as listed on the corporate return. If they have not yet been reimbursed I suggest you turn in an expense report to gain reimbursement, if you believe this an economically viable option, as this will gain you full reimbursement for the monies, rather than a tax deduction. Please be reminded that tax law requires you to keep by a day log to support your business miles, in the event of an audit or that the IRS requests.  

It appears as if you received a premature distribution from an IRA, please get to me a copy of the Form 1099-R. 

Please get to me a recap by category/type of your revenue and expenses for all of your rental properties. For any new properties purchased during the year, please be sure to forward a copy of the two page settlement statement where it was purchased so that I might properly record the depreciation on the properties. 

Do not yet have the real estate taxes or mortgage interest on your personal residence. 

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

 John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    (All Rights Reserved) To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

Be Sure You Rely Upon a Professional CPA to Prepare Your Corporate Income Taxes

Tax law treats partnerships/LLC’s/LLP’s and partnerships as disregarded entities. In layman’s terms this means that the entities income flows down through the entities owners and each individual shareholder/partner is then responsible for the payment of respective taxes. Thus, it becomes imperative to not only consider the overall taxable income of the entity to which you belong but also the taxes which will be due on the tax items flowing down to the individual owners.

As each owner’s situation varies dramatically, great care should be afforded in closely held business to ensure that taxes have been appropriately considered for all. When there is more than one partner, it may be wise to consider assisting in making shareholder/member distributions at the highest partners marginal tax rate to ensure that everyone gets at least enough to cover their respective tax obligation. Each of these entities will issue a K-1 to each individual shareholder to reflect their corresponding share of entity profits.

Although S Corporations have to issue K-1’s and make distributions based upon stock ownership percentages, partnerships, LLC’s, and LLP’s are allowed by law to issue K-1’s and member distributions based on any method that all owners agree upon. This is a distinct advantage partnerships, LLC’s and LLP’s have as agreeing members have the ability to do what they will with the profits whereas S corporations are required to issue distributions and K-1’s based upon each shareholder’s ownership percentage.

Critiquing a client’s prior tax return a CPA can gain much guidance and information about a particular taxpayer. However there is no substitute for a CPA being keenly aware of all information that they receive from a client. The below is a sample letter that we might send to a client to ensure that all of the information is received to ensure that a timely and correct return is prepared thereby ensuring that only the lowest legal possible tax is paid: 

For your corporate return I need ASAP: 

To get a copy of where the IRS accepted your S election. 

To know if you have filed the applications I forwarded on October 15th for you to sign and return to me so I can file to get your company a State/GA Withholding number and to register your company with the Georgia Department of Revenue. 

Please forward to me the 2010 beginning and ending cash balance per your checkbook. 

Please advise if you have retained a payroll service for your 2011 payroll tax needs. 

Please advise as to what the $1000 Miscellaneous Items is so that I might list it properly on the tax return.

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

 John Dillard, CPA of His CPA, PC (An Atlanta  CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/    (All Rights Reserved) To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales, Forensic Accounting, Business Valuations and Bookkeeping.

 Christian Author’s Four Books Are NOW Available

John Dillard – Author…A Message from John Dillard CPA

After publishing Overcoming Life’s 9/11’s, I was honored to be nominated for the Georgia Author of the Year Award for 2009 by the Georgia Writer’s Association. The publication of A Voice of One earned me the honor of being nominated for Georgia Author of the year for 2010.

Over the years I felt a tugging on my heart to write. For a great while I did not know what my subject was to be about but eventually, the Holy Spirit revealed what he wanted for my life and for me. My first book was a Christian Fiction/Romance/Murder Mystery titled Charleston Dawn and is about romance the way God intended. After I wrote my first book, I felt God prompting me to write Low Country Calling which is an action packed thrill a minute ride as an F-18 Super Hornet fighter pilot bravely faces near disaster over the air and on the desert floor in Iraq. After his narrow escape from death, our pilot is eventually called to be a pastor in the Low Country of Charleston, South Carolina.

One of the talents God alone has blessed me with is one of exhortation. Over the last thirty years of my life, my focus has been predominantly on the New Testament. As I have grown both in my walk and my study of the Bible, I have discovered the richness, body and compassion of the Old Testament. No longer do I see an angry God but how much he loves each and every one of us deeply and whose undeniable commitment to his people is frequently missed amidst many of the Old Testaments tribulations. Thus, I set out to write the Inspiration Series!

After several months of prayer to discover what it is God would have me write, I opened my Bible to the first page of the book of Nehemiah in the Old Testament. There I discovered fresh revelations of which I had never before heard or seen. Discovering God’s grace and compassion, I studied and as God divinely guided my hand, I wrote A Voice of One and how Nehemiah, a layman, steps out to accomplish great things in God’s name. I had my own “Nehemiah type” experience as I was led to change Georgia law requiring restitution for medical and counseling care to be paid by the guilty party to the victims of felony crimes.

Soon afterward, I wrote Overcoming Life’s 9/11’s as God revealed his truth to my heart and mind. Learning new truths from scripture, I discovered God’s hand both in my life and that of others. Studying in the Old Testament the book of Job, we come face to face as we learn God will never forsake us or give us more than we can bear. I also wrote Overcoming Life’s 9/11’s as a result of two prolonged illnesses that included four major surgeries, cancer, diverticulitis, and six weeks of hospital stay.

Though God’s word can never be summed up in any less than the Bible, which is God’s ultimate love story to his people, A Voice of One & Overcoming Life’s 9/11’s are a manual Believers will be able to review again and again each time gaining fresh insight to their walk. In my own life I have learned through careful study and analysis that we all need a spiritual road-map to guide us along life’s way. Through this study and effort, I have learned much of what I feel led to pass along to others as they seek God’s will for their lives.

I believe that God has specifically called me to this place and time and to share His word and love with all that I encounter. I have learned that through diligence, perseverance, and faith that we indeed can do great things in His name. Our task is simply to be obedient and to perform the tasks He set out before us while leaving all the results and all the glory to Christ. John strives to live by his pastor’s words, “We should all dare to accomplish something so great that it is doomed to failure lest Christ be in it!”

No one, no not one of us is given a spirit to timidity, we are to go out and to live our lives as Jesus would boldly stepping out in faith to lead others in love to a closer relationship with Christ. John’s favorite Apostle was Paul who suffered gladly claiming the name of Christ for all of his doings while taking no personal credit all the while fervently spreading the Good News of the Gospel. Paul counted it great joy in all his sufferings and in his weakness he found the perfect strength of our Savior. Paul indeed counted it great gain to die, as he knew that he would join Christ in the heavens and would live with Him forever!

John’s favorite Bible verses are used in his writing and are some of the many of God’s promises that he clings in his own walk with Christ. This effort has been one of love, one to share who God is and can be in your life while telling you of how much God loves you and wants you to accept his calling. God wants to be the true center of your life. All you have to do is believe and to have faith. Reach out for Him in all that you do and Christ will find you in a deep and meaningful way!

“A Voice of One calling: ‘In the desert prepare the way for the LORD; make straight in the wilderness a highway for our God’” Isaiah 40:3

To read about our other published works visit http://www.john-dillard.com/

“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”

 John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097  Phone 770-814-9304   http://www.hiscpa.com/     (All Rights Reserved) To retain John Dillard CPA (An Atlanta CPA) for your business group or church congregation, you can contact him today at 770.814.9304. To discover John Dillard’s Published Books and their vision visit  http://www.john-dillard.com/

Let Others Know How Much You Love Christ…Taking Christianity Into the World 

The below is a recent example of a note we might receive from a Believer in Christ. Are you letting others know how much you love Christ? 

His CPA PC…A Different Kind of CPA Firm 

News You Can Use From a Christian Accountant 

Frequently we receive responses off of our web site that are much encouraging. The below is a sample of such: 

Hello, Firstly let me say how wonderful I was to come across your website. I never thought or would have thought it possible for this CPA firm to exist as I myself am a Christian Accountant..but your firm is a true testament that there’s nothing God can’t do…To God be the glory!!  

The below is my response: 

Telling the Good News of Jesus Christ…Taking Christianity Into the World

Over six years ago we established a different kind of CPA firm — one that would bring the principles of Jesus Christ to the practice of Accounting. Being a Christian accountant who believes in Christ’s principles allows us to tap into the power of God in our daily and work lives as we assist entrepreneurs with their business accounting, personal financial planning, and tax preparation needs.

Here is John Dillard’s testimony on how he was led to create a Christian CPA practice to serve Atlanta and America as  CPA:

Having managed my own successful CPA practice in Metro Atlanta for over twenty years, I continued to feel God’s calling on my heart and his desire for me to be more about Him. I had always felt it was my mission to witness to those I came in contact with in both my business and social contacts, but God continued to lay it on my heart that He wanted much more.

Although I was willing to share my Christian faith with people to whom I came in contact with, God was calling and he wanted me to be much more overt, but loving, to share the love of God. Having practiced the Golden Rule in my CPA firm for years, God was calling to be the true center of my life and not just a major player.

With my new bride that I had met some few years ago, we set out on a journey that has led us on mission trips, publishing books, changing Georgia law, and starting a new accounting firm, His CPA, P.C.

Although we wanted to start the company at the beginning of the year God made it necessary to start the firm immediately as He wanted it done then and not later. To this end we have been faithful and continue to spread the Good News of our faith and Christianity to anyone who would like to hear.

Our faith and our lives intersect. Though we still have much to learn to grow to be like Him, we have studied his word and continue to work in Bible studies to share his love with others. My CPA firm is committed to the One who made me and we act on this daily by “Serving HIM by serving You…one tax return at a time”.