What do I do? What does my CPA do? - Posted by Brian(md)

Posted by Al (Wi) on July 03, 2003 at 18:22:37:

You collect every scrap of paper that remotely resembles a tax deduction for your CPA to review. You can put it on a spreadsheet and total up (what you think belong in various categories) and your CPA will charge you less because you did the arithmetic for him.
His job is to interpret tax law and apply it to each receipt (or summary page if you use Quikbooks or a spreadsheet).
He can’t do this if you don’t spend some time every day during the year collecting the data for him to interpret at the end of the year.
Every expense you incur with the intention of making a profit is a legitimate deduction. Record where, when, what who and why for each receipt and you will be well documented.
I use a Microsoft Works database (like a spreadsheet). I know I don’t miss any deductions (I’ve had rentals since 1985), keep all cancelled checks, will not do business with a bank unless I get canceled checks back from them, save every receipt, restaurant stub, etc. etc.
I still go to a CPA because he knows more about depreciation and tax loss carry forward than I do.
If your CPA dosent have at least 10 R/E investors as clients, find one who does. Every legal loophole your CPA dosen’t know about will increase your tax bill.

What do I do? What does my CPA do? - Posted by Brian(md)

Posted by Brian(md) on July 03, 2003 at 08:52:32:

I am in the beginning stages of wholesaling rehab properties and am looking to make my first check in the next few months.
I am in the process of looking for a CPA as well a method to manage my business funds.

I don’t understand quite what services the CPA I find will provide. If I get Quicken or Quick Books, to help manage my numbers, how do I coordinate that with the services my CPA gives?

I need a quick crash course post that describes my responsibilies in managing my expenses and what my CPA’s responsibilities are.