Many business owners carry out business audit activities, usually annually, in order to ensure that the financial records are correctly filled completed and reliable. There is a common trend in many business sectors, whereby the accountants practices audit trails, whereby any financial transaction made, is recorded, along with the accurate date and the individual who made the recording. Business audits concentrate on accounting books, whereby all the financial is recorded and the financial statements, which are issued to the clients, and the copies left with the accountants. The following are the advantages of business audit;

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Easy tracing of a problem – through auditing in your business, you can easily make better decisions, which are more accurate and reliable, because the auditors can trace and rectify errors which might have been incorrectly recorded.

Reliable audit reporting – in order to ensure auditing efficiency, auditors write a detailed report of all the findings during the auditing process when a small or large business is audited. The business owners can therefore rely on the audit report in order to work on any record which is inaccurate, or missing.

Accounting books in every business are important, they help in recording all the income and expenses. Auditors also find it easy to go through well recorded accounting books, which have all the relevant details allowing them to trace all activities carried out through out the period of operation. The following are the main types of auditing, which helps business owners, especially in small firms to keep a better track of their business progresses;

Internal audit – this is managed by business owners or any member within the business platform. The major sector which is mostly investigated is the financial sector, in order to ensure that every financial spent or gain, is recorded according to budgets and goals. Internal auditors investigate the business management and operations sectors, in order to make sure that every part of the business is well taken care of and productive. The audit managed internally is very important for your business, because you will confidently provide an accurate report of the business analysis to the board members or the shareholders.

External audits- this means that your business shall be audited by a third party, which is not directly involved in the business operations. The external auditors, such as the local tax agency, IRS which focuses on small business tax return discrepancy, or the insurance company, are restricted to following a set General Accepted Auditing Standards (GAAS) which leads to an accurate end report. External auditors may work differently, because some may tend to write a full report of every business sectors operation, while others may major on specific parts, either the financial sector, or the operation and management sector.

In conclusion, a business audit is very important to every established business, because the owners will get accurate reporting at the end of every audit, hence measuring the current business progress. Through audits, you can develop improved or new accounting processes and you will also receive a guide to help you make good financial decisions.

Tax planning involves looking into a financial position from a tax point of view. This is aimed at reducing the tax burden and improving tax efficiency. Estate tax and inheritance tax are sometimes taken to mean the same thing but they differ. For estate tax, the net value of all the assets owned by a decedent at the date of death is considered and any outstanding tax bill transferred to the estate. Inheritance tax involves accruing from the property inherited from a deceased person after considering any tax exemptions. Planning for estate and inheritance taxes can be challenging especially if there are many assets involved.

The main source of government revenue is tax. The UK government has consistently focused on estate and inheritance tax planning to increase its revenue and hence achieve economic growth. The following are five major benefits of doing this:

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It reduces the amount of tax payable by the citizens: Estate and inheritance tax planning in the UK is beneficial for small and large scale businesses. When there is a proper plan, businesses are likely to lower the amount of taxable income and reduce the tax rate.

It increases savings and disposable income: Many people prefer to have a good succession plan such that the beneficiaries will not be left being harassed by the taxman. To reduce the inheritance tax bill, one may opt to give money to family, charitable institutions or political parties when they are still alive. The beneficiaries will, therefore, increase their savings.

It ensures that the citizens interact less with the tax authorities: It is important to follow the rules and regulations set up by government. If citizens comply with the law by paying the taxes due, the property beneficiaries will not need to interact with the government a lot after a beneficiary passes away.

There is a fair distribution of income and wealth among the citizens: The estate and inheritance taxes are imposed fairly and therefore the government ensures equality. All citizens are required to pay estate and inheritance tax at a minimum rate of 40% of the value of the assets, net of reliefs and exemptions.

This will preserve the value of the estate: When a citizen abides by tax law, this will minimize the possibilities of penalties and fines which may be transferred to beneficiaries after death. One may not want their property to be undervalued due to mere negligence.

Assets left behind by a deceased person can go a long way in providing financial help to those who are left behind. This can be well achieved if the citizens adhere to simple tax rules and regulations that have been set by the UK government regarding tax payments. Estate and inheritance tax planning in the UK is beneficial not only to the government but also to the citizens. Planning for ones demise is essential and everyone should be aware of this since assets are always transferable from generation to generation no matter what.

The one thing all tax payers try to avoid is getting an audit by the Internal Revenue Service (IRS). Just hearing the word causes stress in a lot of tax payers. There are situations and instances that will cause the IRS to take a closer look at your taxes and have you audited.Sometimes it may just be a bad luck of the draw since tax payers can be picked at random. The best way to try to avoid an audit is to avoid known triggers which we discuss below.

Are you reporting a huge loss? There are some people that have a vision to create a business that has so much potential in the beginning stages but then everything takes a dive and the business fails; this would be a huge loss. This happens to many people and if you are one of those people then you need to make sure that you have all of the proper documentation of your loss before you try to file it on your tax return. The IRS has been known to research all the losses that you are claiming and especially if they are large amounts. You want to make sure that your losses are not just on paper.

There are lots of people that have accounts in other countries and there is nothing wrong with that unless you are thinking that because it is in another country that you dont have to file taxes on it. Any account that has a minimum of $50,000 U.S dollars in it has to be reported every year to the IRS and it doesnt matter if you are out of the country at the time you file.

People with a higher income are more likely to be audited. Most people that have higher incomes do file taxes on their income and they have all the proper deductions and they still get audited; I know it sounds farfetched but it is absolutely true. When this person is audited, it doesnt mean that anything was done incorrectly or maliciously, it simply means that your income was just large.

There are other things that can trigger an audit but these are just a few of the reasons that happen most often. Speak with a professional tax accountant who can help advise you on best practices and even offer their tax services for your particular situation.

One of the most important things you need to remember when filing taxes is to always keep your documentation. When you are filing taxes, this means keep the proof of your deductions, receipts and etc., and be honest. If you follow those things then even if you are audited, you will come out on top.

Tax time can be a hectic time for any tax payer but particularly for a first time tax filer. Here you will find a few tips that will help to ease your stress. Taxes can be stressful but you have to keep calm and use these tips.

Organization is something that you want to have when dealing with the IRS. Usually, when you work for a company the company will mail you a W2 in either late January or the starting of February. A W2 is the paper that basically tells how much you made, how much you paid in state, federal and Medicare taxes.

If you worked and there were no taxes taken out then you are likely to be an independent contractor and you will be receiving a MISC 1099 form for each of the jobs that you worked. The MISC 1099 will only have the amount that you made and the company that paid you but again, without taxes being taken out. When there are no taxes taken out then you will have to figure out for yourself how much the taxes are that you must pay however, if you use a program like TurboTax then the taxes you pay will be figured for you. So make sure to examine all of the options you have available to you when it comes to preparing your taxes.

It is a good idea to put all of your W2s and any other paperwork that you might have that is tax related in a folder so, that you can get to them with ease. The other papers would be things like student loan interest payments, any IRA contributions and any other forms that could potentially mean a tax break for you.

Dont ever make the mistake of pretending not to receive the tax papers and not filing because the IRS will know and you will be penalized.

Speak with Parents if you are a student that has no dependents and you are planning to file your own taxes. It is important to speak with your parents because they might be planning to claim you as a dependent on their taxes. You cannot file your own taxes if you are going to be a dependent on anyone elses taxes because this will cause a problem for both parties.

Doing a little tax preparation and planning before hand can help save you time, money, and frustration when it comes to completing your taxes.

What gives someone the right to call himself or herself a professional? Some people believe that it requires a certain amount of hands on experience. Other people will say that you need to reach a certain level of education and achievement before you can adopt the title. Still others will argue that you can only call yourself a professional when you have demonstrated the qualities sought after in that profession.

Making sense of all of this and defining the rules of what is and is not a professional are various organizations and states in the country. For example, consider accountants. Texas requires that people who want to call themselves a CPA pass certain ethics courses to maintain their license. Lets take a moment to examine what this means and see for ourselves the implications of ethics courses for a field of professional workers.

What Is A CPA?

A CPA is a certified public accountant. In the state of Texas, you have to be a CPA in order to call yourself an accountant. Not getting the right education and certification means that you are not a professional in the field and are subject to legal action I you are claiming something you are not educated for. Certified public accountants can provide financial assistance to individuals and business, utilizing their skill and expertise to provide a superior service that people can trust. A professional position, a CPA can do a wide range of tasks and provide myriad services dependent on the needs of the client.

Texas Board Approved Ethics Courses

So what does this have to do with ethics? Well, recently Texas board approved ethics courses for all members. What this means is that new members pursuing their CPA will have to pass an ethics course. In addition, every person with a license will have to take a mandatory 4-hour ethics course approved by the Board every other year. Texas board approved ethics courses include a lot of information regarding appropriate practices and approaches to financial interactions.

Why Are Ethics Courses Important?

The board passed the ethics course ruling due to a real and present need for ethical practices to be reviewed. It is the goal of such practices to improve the overall quality of the service offered in the state. By making such changes, clients who hire CPAs can rest assured that their finances are being handled by someone who not only knows what they are doing but can navigate the moral and ethical framework they find themselves in.