Graham Adams - Certified Public Accountants

1. What is a CPA, and how is it different from an accountant?

A Certified Public Accountant (CPA) is a licensed professional who has passed the CPA exam and met additional state education and experience requirements. While both accountants and CPAs perform similar tasks (like preparing financial statements or managing tax filings), CPAs are authorized to perform specific tasks that other accountants cannot, such as representing clients before the IRS during audits.

2. What services do CPAs provide?

CPAs offer a wide range of services, including:

Tax preparation and planning: Helping individuals and businesses file their taxes and develop strategies to minimize tax liabilities.
Financial planning: Providing advice on savings, investments and retirement planning.
Business consulting: Advising businesses on financial strategies, budgeting, forecasting and tax efficiencies.
Audit representation: Assisting clients with IRS audits or reviews.
Bookkeeping and payroll services: Managing financial records and payroll for businesses.
Estate and trust planning: Helping individuals with wealth transfer, reducing estate taxes and managing trusts.

3. How do I know if I need a CPA?

You may need a CPA if you:

Are self-employed or run a business.
Have complex tax situations, like investment income, rental properties or multiple streams of income.
Need help with long-term financial planning, retirement or estate planning.
Are facing an IRS audit or tax dispute.
Want professional advice on managing your finances and minimizing taxes.

4. How can a CPA help me save money?

CPAs can help save you money in several ways:

Tax deductions and credits: They help you take full advantage of available tax deductions and credits.
Tax planning: They create strategies to reduce your overall tax burden by deferring income, maximizing deductions or choosing tax-advantaged accounts.
Financial efficiency: They help you optimize your business and personal finances, reducing unnecessary costs and improving profitability.
Avoiding penalties: They ensure that your taxes are filed on time and in accordance with IRS regulations, helping you avoid penalties and interest.

5. Can a CPA help me if I get audited by the IRS?

Yes, one of the key benefits of hiring a CPA is that they can represent you if you're audited by the IRS. CPAs are authorized to act on your behalf during an IRS audit, respond to IRS notices and ensure your tax filings are accurate. They can also help you gather the necessary documentation and communicate with the IRS on your behalf.

6. How do I choose the right CPA for me?

Choosing the right CPA depends on your specific needs:

Specialization: Make sure the CPA has experience in the area you need help with, whether it's personal taxes, business finances or estate planning.
Certifications: Verify that the CPA holds a valid license in your state and is in good standing with the state board of accountancy.
Reputation: Look for recommendations from friends, family or colleagues. Online reviews and professional referrals can also be helpful.
Compatibility: Ensure that the CPA communicates well and understands your financial goals. It’s important that you feel comfortable with them handling your finances.
Graham | Adams meets all the above criteria – and more. Contact us to learn how our experience and expertise will meet your needs.

7. How do I prepare for a meeting with a CPA?

To make the most of your meeting with a CPA, come prepared with relevant documents:

Personal Identification: Social Security numbers for you, your spouse and any dependents.
Income Information: W-2s, 1099s or any other records of income.
Deductions and Credits: Receipts for charitable contributions, medical expenses or educational costs.
Financial Statements: For business owners, bring profit and loss statements, balance sheets and other business records.
Previous Tax Returns: If you're meeting for tax planning or preparation, provide your previous years' tax returns for reference.

8. How often should I meet with my CPA?

The frequency of meetings with your CPA depends on your financial situation:

Annually: At least once a year for tax planning or preparation.
Quarterly: If you're self-employed or own a business, you may want to meet quarterly to review estimated tax payments, financial statements and cash flow.
As needed: If you have major life changes (such as a new job, marriage or purchase of property), consider meeting with your CPA for guidance on how to adjust your financial strategy.

9. Can a CPA help with retirement planning?

Yes, CPAs can help you plan for retirement by advising you on:

Retirement accounts: Choosing the right tax-advantaged accounts like 401(k)s, IRAs or Roth IRAs.
Investment strategy: Making sure your retirement portfolio is properly allocated and tax efficient.
Required Minimum Distributions (RMDs): Ensuring you follow IRS rules for withdrawing from retirement accounts once you reach a certain age.

10. What happens if I make a mistake on my taxes?

If you make an error on your tax return, a CPA can help you file an amended return to correct the mistake. They can also assist in dealing with any penalties or interest that may have accrued because of the error. If you’re audited, a CPA can represent you to explain the mistake and work with the IRS to resolve it.

FAQs