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Posted on Dec 2, 2017 in Financial

Hiring a CPA for trust planning and administration – Things you should consider

Hiring a CPA for trust planning and administration – Things you should consider

 

While many individuals present plenty of ways of managing and administrating an estate, on a very basic level, the topic of CPAs role in the matter is yet under-discussed. And while many of us can acquire basic information on the topic, it’s considerably more efficient to hire a CPA and let them professionally manage these matters since they certainly have a wider knowledge base and incredible sets of skills. Many seem to outline the importance of hiring a lawyer for estate planning and administration matters, but they seem to neglect the importance of hiring an accountant. Below we have some important information on the topic.

In estate and trust administration, CPAs play a great role

While managing an estate or trust, you may come to a conclusion that the tax requirements in the field are far beyond what you can deal with. In this case, a CPA or certified public accountant will help you. Many consider the option of hiring an EA. But, unlike CPAs, these specialists can only manage taxation matters, while CPAs will successfully deal with all accounting areas, so this comes as a bonus. However, you must remember that both EAs and CPAs are qualified to deal with taxes when it comes to estates and trusts. The main reason for which this happens is that trusts and estates don’t fall under regular public taxation regulations. In trusts’ case, CPAs can act as protectors as well. Consider the services of a specialist from Stephens & Nashland CPAs, when in need.

What is a trust protector?

A trust protector is an assistant of corporate trustees and trust beneficiaries in the process of managing and preparing taxes. Its powers are contractual, as stipulated, and they are described in the trust document. This is a very common practice for offshore asset protection planning and it’s an added safety measure for trustees and trust beneficiaries equally.

What duties have CPAs as trust protectors?

A trust protector has plenty of duties, one of the most important is that they can replace or remove a trustee. They can also resolve disputes between trustees and trusts, and, if necessary, replace the administrative bodies of the trust. Moreover, they can redistribute trust provisions and statuses, based on unexpected events that may appear in the lives of beneficiaries or even unexpected law changes.

CPAs or EAs?

Given the expanded powers of a CPA, specialists advise investing in the services of this kind of specialist. EAs can only manage taxation matters, while a CPA will act as an adviser and protector of trustees, beneficiaries and trust as an entity. As you can easily imagine, hiring a trustee is a far more advantageous solution.

These are some important aspects one should take into account when it comes to trust planning and administration. When in doubt, always opt for the specialist with extended capabilities, as they can help you in unexpected ways. Hiring a CPA for trust protection and administration can prove itself a wise decision. In most cases, trust lawyers must complement the services of a CPA.

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Posted on Oct 31, 2017 in Financial

Criteria you must meet to obtain R & D tax credits

Criteria you must meet to obtain R & D tax credits

Owning a business and struggling with each tax that has to be paid on time? This article is here to present you all the criteria you must meet in order to obtain a Research and Development tax credit. Even if you don’t know much about this topic, if you read the summary of info right here you will start understanding how important obtaining one of these credits actually is. R and D tax credits are supposed to encourage all the companies existent in each field of work to invest in their research/development sector. These kinds of credits were initially introduced in 2000 and since them big and small companies started investing in R&D. If you are interested in obtaining one, keep reading below the requirements you’ll have to meet:

LTD. company

First criterion to take into account is that your company should be a Limited one. Being an autonomous company means that you will gain the Limited suffix right after your business’ name. Your company should own all the existent profits, should be paying all the existent taxes and the rest of the money should be proportionally distributed to the existent shareholders and to the working capital. The main advantage of owning a Limited company is that you can increase your profitability much easier with the help of loans and credits. One drawback would be the fact that each share is sold privately. The raised capital is therefore somehow restricted.

UK registration

All you have to do to register your company in UK is set up the details and register online. When owning a Limited status company you need to pay a small amount of money for registration and it takes as little as 24 hours to have your business registered. You can also opt for registration via any specialist agent or third-party software. Once your company is finally registered you will obtain a certificate to use later on.

UK corporation taxes

Everyone knows that in UK corporation taxes are not something to worry about. The taxes regime is one of the factors that influence the overall economy of a country. As mentioned before, you can deal with paying corporation taxes online, with three months before actually starting your business. Buying, selling and other activities are implied. Register with your UTR number and specify the date where you are going to start working.

GAAP accounts

The Generally Accepted Accounting Principles represent a condition to obtain a Research and Development tax credit. There are three main sets of rules that a company has to follow regarding GAAP accounts: the accounting guidelines, the rules issued by FASB/APB and the industry practices that are accepted in the respective country. Owning a GAAP account means that you are actually respecting all the rules and standards you need to respect, including the accounting methods used.

 

 

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Posted on Jun 16, 2017 in Financial

Essential tips to save on international money transfers

Essential tips to save on international money transfers

 

Whether you send or receive money abroad for your business, you have to make sure that you do not pay a high fee on the transfer. The process does not have to be complicated, because there are so many money transfer services, you can choose one that suits exactly your needs. Nowadays you have the possibility to find all the information you need online, and all you have to do is to make time to check the articles posted on specialized websites. You even have the possibility to compare money transfer websites and providers. If you want to make sure that you will get the best rates on your money transfer, then you should check the following aspects, because they highly influence the process.

Do not leave it until the last minute

If you know that you have to send your business partners money, then you should do not wait until the last minute because you may make the wrong decision. Check online in advance, to see what money transfer websites are most favorable when it comes to exchange rates and if you are at risk if you use a certain provider. You know in advance when the deadline of the payment comes, so make sure that you do not wait until the last minute, because chances are that in the hurry you will choose a money transfer service that will charge you a high fee.

Do your homework

The majority of people make the mistake to go their bank and simply ask for an international money transfer, without checking on the market what other options they have. The majority of banks ask a higher charge than the other money exchange services, so you should ask your bank what the charge for your transfer is, and compare it with the one of the other money transfer services. There are multiple foreign providers that offer a great value for your transfer, and you should make sure that you choose one of them.

Compare rates

One of the most important steps when transferring money abroad, is to compare the rates different providers offer. You should do it before every one of your transfers, because they may change them from time to time. You have the possibility to look online for a website that offers complete information on the foreign exchange suppliers, so you find everything you need from the comfort of your house.

Check for hidden fees

Before you choose a certain money transfer service, you should make sure that you see if they charge any hidden fees. You have to check if they offer the same rate for different sums, or they change the rate according to the sum you transfer. Also, it is important to read their conditions of transferring money, because they may have “out of currency” or “processing” fees. In case you are not sure, if the provider you choose has a hidden fee you should check for reviews online, because there are definitely other businesspersons who have used it, and they are willing to offer information on their experience.

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Posted on Mar 13, 2017 in Financial

Why are 1031 exchange services such a popular choice in Las Vegas?

Why are 1031 exchange services such a popular choice in Las Vegas?

We live in the 21th century when everybody is looking for easy ways of making money. But, believe it or not, making money and doing successful business is not just a matter of good luck. Financial experts say that it is mostly related to flair and the idea of taking advantage of every opportunity. Due to this fact, 1031 exchange services may sound like an interesting idea, especially since it has become such a popular choice in Las Vegas. But why are people so highly concerned about 1031 exchange Las Vegas? Find out by continuing reading this article.

How does it work?

The idea of using 1031 exchange services has grown its popularity a lot, but there are many people who do not know precisely how it works. Thus, there are some commercial real estate buyers who refuse to use the advantages of tax-deferred 1031 exchange, because they are afraid of making mistakes. But if you do a small research, there is much information that you can find. It is also true that not all of these sources of information are reliable enough.

 

To sum up, exchanging is also known as “trading up”, under the Section 1031. The main purpose of such services is to re-invest in larger companies, while deferring capital gains taxes. But it is very important to understand that this activity is applied only for commercial purposes. You cannot change your property with another one and just move there for living.

 

On the other hand, these exchange services allow you to benefit from a large variety of options. For example, you can exchange several small properties to a single larger one which can meet your needs and expectations. But there is more. Let’s suppose that you a doctor and you are searching a building for you to practice. In case you do not have the necessary money to buy a new one, you can convert the nature of the investment. Thus, you are free to use these services and exchange from a rental house, for example,  to a small medical building.

But why exactly Las Vegas?

According to financial experts, Las Vegas is not only a popular touristic destination from the USA, but also a good alternative for those who are interested in finding innovative ways of making more money. Thus, you can firstly invest in a property in this city and then use 1031 exchange services for finding a better choice for increasing your profit.

 

But, you cannot do it alone. You need a company that is specialized in this domain for helping you take the wisest decisions. Our advice is to look for someone with experience in this industry. Ask them about their previous projects and find out if there is something that can meet your needs and expectations.

 

Last but not least, this delayed exchange procedure is a completely legal choice for people and it has been used in thousands of cases before, not only in Las Vegas, but also worldwide in the USA and even in other countries from Europe. The procedure is so popular because it comes with many advantages.

 

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Posted on Jan 10, 2017 in Financial

How to collect small business debt

How to collect small business debt

What businesses do is provide products and services in exchange for payments. Unfortunately, customers do not pay their invoices on time, which is detrimental to the cash flow of the company. Small businesses face the challenge of managing their debt ratio because if they do not receive cash, they are required to get bank credits or increase their cost of doing business. Debt collection is a difficult endeavour to say the very least. You need tools as well as the right procedures to lessen de amount of late payments. To spare yourself the effort, you can use London debt collectors. Such persons allow small business owners to focus on daily operations and not have to worry about pursuing payment from overdue customers. In what follows, we will discuss more about how a debt collection agency can help and what else you can do to recover your money.

 

Working with professional debt collectors

Hiring debt collectors will increase your chances of recovering money from customers. Trained professionals know what techniques to use to determine customers to pay their invoices and they can secure your capital much quicker. Unlike you, they have the experience and resources to handle such battles. The cost of hiring debt collectors is surprisingly affordable. While it is true that such professionals charge a certain percentage of what they recover, it is still better than nothing.

Staying in control of the phone call

Keep a contact with the customer. Initial communication is important because it more than often results in voluntary payment. It is important to keep the phone calls short and make sure that the person on the other end of the line does not take the conversation too personally. You should always be professional and attentive, but maintain a sense of urgency about being paid. Equally important is to reach some kind of agreement as to what can be done.

Writing a formal demand letter

If your efforts have failed, then the last thing you can do is send a formal demand for payment. A demand letter is a powerful document as it allows you to get the desired results without resorting to litigation. You can have your attorney draft the demand letter or a debt collection agency. Either way, the other party will be persuaded to pay up. If this does not happen, you can use the formal document as proof when laying the case in front of a judge.

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Posted on Oct 6, 2016 in Financial

Things that forensic accountants investigate when assisting with a divorce

Things that forensic accountants investigate when assisting with a divorce

Among the many roles forensic accountants have, they also provide services to couples who need someone to assist them with the divorce in the court. It is worth mentioning that those who need the services of a specialist in forensic accounting should only work with experienced and trust-worthy professionals in order to benefit from the best results. One of the easiest and timesaving methods to find one of the best tax tribunal appeal specialists to help you with your divorce is to do some detailed research on the internet. Here is a list of things that these accountants look for when they have to deal with such situations.

Decreased earnings and unreported retirement funds

Among the things that forensic accountants investigate when dealing with a divorce are both parties’ unreported retirement funds, which in most cases is a deceptive practice and decreased earnings. Although the latter ones might not be considered a red flag by most regular people, in the eyes of a highly trained accountant, this can offer valuable information that can be used in court. They start the investigation from the moment the earnings started to decrease and look for the right reason why this has happened, which in most cases shows that money is being funnelled in a different direction.

Tax returns

Another item that forensics investigate in such cases is tax returns that belong to both partners in the couple. Believe it or not, a specialist in forensic accounting can find valuable and useful information out of reviewing tax returns, such as details about real estate, investments, businesses, partnerships, estates and trusts and much more.

Financial data gathered from hard drives

It is worth mentioning that the accountant makes use of any tool he or she has in order to find the needed financial information and the best friend in this case is technology. An important task in this process implies using specialized software that can read all the data that can be currently found on a hard drive and that had once been stocked there. This means that even though that data has been deleted at some point from that hard drive, the forensic accountant can still manage to retrieve it using a computer program and there can be some highly valuable information hidden deep in the heart of the hard drive.

Overall, these are only a few examples of tasks that forensic accountants have to look for when they assist with a divorce.

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