Author: Tony Novak
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How to get the most from the five levels of business accounting services
A business accountant typically provides up to five distinct levels of service. While each accountant and client business may customize the service arrangement to meet their own specific situation, it helps to begin with a recognition that an accountant’s services fall into these general categories: Bookkeeping and compliance – meeting the requirements of running a…
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My first business
A friend’s social media post caused me to reflect back to my days as a young farmer. I had a sweet corn farm in the 1970s, my first business, at age 16-18. It started with about 3 of dad’s acres and peaked at about 8 rented acres. Dad had a John Deere 2010 model tractor…
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Small business accounting updates
Advancing technology continues to change our small business accounting systems at an ever increasing rate of change. Here are two major recent items: PAYMENT SYSTEMS: Last year I set a goal of moving all payment systems to EFT ((Electronic Funds Transfer) and away from paper checks by postal mail. There are many advantages: improved speed,…
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What to do if you receive a ‘Notice of Intent to Levy’ from IRS
Beginning tomorrow, the IRS intends to dramatically increase the number of aggressive enforcement action notifications. Thousands will receive these scary notices within the week. Collections using new technology and aggressive techniques will likely continue to ramp up over the next few years. If you receive a collection notice, I strongly recommend: don’t panic, most tax…
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Is it political? Is delayed prosecution for financial fraud unethical?
Twenty plus years ago when I worked as an accountant for contractors documenting various types of financial fraud committed by the Trump organization for civil cases, the decision to not charge him criminally clearly was political. Civil courts in hundreds of cases found evidence of fraud, yet criminal charges were never filed. Politicians in New…
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The misunderstood CPA
An influential accountant asked in an online discussion how I identify within the profession, adding that the term “CPA” is misunderstood by many. Some prefer “accountant” or “tax preparer”. The American Institute of Certified Public Accountants and state CPA societies, including the New Jersey Society of Certified Public Accountants, spend much time, money and effort…
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Shockingly poor IRS customer service (and what to do about it)
We knew from earlier IRS statements that about one million tax returns from 2019 remain unprocessed and I’ve covered that in earlier blog posts. Many of these are paper filed returns. But now we hear that 16 to 17 million tax returns for 2020 are backlogged and many of these people are waiting for refunds.…
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What’s the difference between a tax preparer and a tax adviser?
A tax preparer looks at the facts and tries to determine the appropriate reporting usually at the time of rushing through the tax season preparing multiple client tax returns. A tax adviser looks at the tax theory that most benefits the client and then looks at the facts, regulation and case law history for evidence…
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Recognizing Black CPAs
Yesterday the Journal of Accountancy podcast focused on the journey and accomplishments of black CPAs in the 20th century, featuring the testimony of two CPAs who witnessed black CPA history firsthand: Ruth Harris, the first black female CPA in Virginia, and Frank Ross, one of the founders of the National Association of Black Accountants (NABA).…