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As experts in the accounting industry for over 50 years, we have seen that at times, business owners are unsure if they should seek the guidance of our expert tax accountants or accounting advisors. While both provide crucial financial services, their focus areas and responsibilities differ significantly, and it’s important to understand the difference so […]

As experts in the accounting industry for over 50 years, we have seen that at times, business owners are unsure if they should seek the guidance of our expert tax accountants or accounting advisors. While both provide crucial financial services, their focus areas and responsibilities differ significantly, and it’s important to understand the difference so you can make an informed choice.

In this Perry & Associates CPAs blog, gain a better understanding of the fundamental differences between tax accountants and accounting advisors.

What is the Role of a Tax Accountant?

Tax accountants are financial professionals who specialize in preparing tax documents, advising clients on taxation matters and ensuring that individuals and businesses comply with tax laws. At Perry & Associates CPAs, we are proactive in our approach and stay current on new tax laws and legislation so we can identify and address key tax planning opportunities to minimize your liabilities.

Our tax accountant services include the following:

  • Estate & Trust Tax Preparation
  • IRS Representation
  • Sales Tax Services
  • Tax Planning & Preparation
  • Non-Profit Tax Services

What is the Role of an Accounting Advisor?

An accounting advisor is a professional who provides guidance and support to businesses on various accounting matters. While they can have a broader, more strategic role that guides clients toward sustainable growth, they also help clients maintain meaningful, well-organized financial records that are paramount to running a business effectively and efficiently on a daily basis.

Our accounting advisor services include the following:

  • Audit Services
  • General Bookkeeping/Write-Up
  • Cash Flow & Budgeting Analysis
  • Payroll Services
  • Financial Forecasts & Projections
  • Financial Statement Preparation
  • Reviews & Compilations
  • As-Needed Accounting Consultation Services

Key Differences:

A tax accountant has specialized knowledge of tax laws, rules and regulations, whereas an accounting advisor usually has a broader range of financial expertise. Also, while some may only feel the need to consult their tax accountant to prepare for tax season, accounting advisors tend to work as part of the client’s financial team, providing advice and guidance throughout the year. In summary:

  • If your focus is on tax compliance, filing accurate tax returns, minimizing tax liabilities or resolving tax disputes, a tax accountant can provide you with the guidance you need.
  • If you need help with day-to-day financial management, such as bookkeeping, preparing financial statements, or making long-term financial decisions, seek an accounting advisor to stay on track.

If you think your organization could benefit from a tax accountant and accounting advisor, you can choose to have both!

Once you’ve analyzed the financial needs of your organization, make sure to contact our experts! We’ll schedule an appointment to assess your situation more in depth and guide you on the path to success!

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As tax and accounting leaders in our industry who believe in a proactive approach, the halfway point of 2024 is a good time to take stock of any changes in tax laws and procedures that could impact both your business and finances. In this Perry & Associates CPAs blog, learn our tax tips for 2024 […]

As tax and accounting leaders in our industry who believe in a proactive approach, the halfway point of 2024 is a good time to take stock of any changes in tax laws and procedures that could impact both your business and finances.

In this Perry & Associates CPAs blog, learn our tax tips for 2024 that could ultimately help you plan for this tax season.

Take Advantage of Tax Credits and Deductions

There are a variety of deductions and credits that businesses can utilize strategically, which is why it’s crucial to understand how your business is classified. Let’s discuss a few 2024 deductions and credits that could help your business save this year:

  • Section 179 Deduction: This allows businesses to deduct the full purchase price of qualifying equipment and software paid for or financed during the tax year. The maximum section 179 expense deduction is $1,220,000. Discover how else this deduction has changed in 2024 from the IRS.
  • Bonus Depreciation: Bonus depreciation is a tax incentive that accelerates by allowing businesses to write off a large percentage of cost for an eligible asset in the first year it was purchased. Learn more about depreciation here.

Leverage Retirement Plans

This year, both you and your employees can contribute slightly more to your retirement accounts. For employer-sponsored plans including 401(k), 403(b) and 457 retirement plans—as well as Thrift Savings Plans, the 2024 contribution limits will jump to $23,000. Not only can offering these plans have tax advantages, they help attract and retain employees.

Understand the Tax Implications of Your Business Structure

Every business structure (sole proprietorship, S-Corp, C-Corp, Partnership) has varying tax implications and tax filing requirements. Make sure you are filing under the correct structure, using the appropriate forms and receiving tax benefits as they apply accordingly.

Seek Out the Help of Experts

At Perry & Associates CPAs, we stay ever innovating and ever investing with the latest software, training, professional development and research to ensure that our team is aware of the latest tax rules and legislation to keep our clients ahead of the curve. We know that filing taxes and staying abreast of constantly changing laws and procedures is stressful, which is why we want to relieve the burden! Regardless of industry, we can show you how our passion beyond the numbers is an ideal solution for your business.

The year is already halfway over – make sure you are making the right tax decisions! Contact our experts and we’ll provide you with the guidance, tools, resources and information to ensure you are headed in the right direction.

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Since Perry & Associates CPAs was founded in 1974, we have had passion beyond the numbers for our non-profit and small business clients. As a firm that started out as a single person’s vision and steadily became one of the most respected accounting firms in the country, we understand that maintaining a successful small business […]

Since Perry & Associates CPAs was founded in 1974, we have had passion beyond the numbers for our non-profit and small business clients. As a firm that started out as a single person’s vision and steadily became one of the most respected accounting firms in the country, we understand that maintaining a successful small business requires a lot of hard work. And as a firm deeply committed to community involvement, we are inspired every day by the work of non-profits that change lives and make an impact.

This is why we are proud of our bookkeeping services that allow small businesses and non-profits to thrive and stay in compliance with current regulations. Check out our list of small business and non-profit bookkeeping checks and balances to ensure that your organization is running efficiently on a daily basis:

Identify Internal Controls

Internal controls are key to helping an organization run smoothly, as they make it clear to everyone, from the top down, the policies and procedures in place that must be followed. Examples of bookkeeping internal controls include tasks such as requiring approval for expenses above a certain threshold, maintaining proper documentation for all transactions, regularly reviewing financial reports, requiring two signatures on checks, conducting background checks on employees who handle money, and more.

Define Responsibilities

Assign different responsibilities to multiple individuals within your organization, even if your business is very small. Why? It requires those individuals to take accountability for their respective tasks, and also helps prevent errors or fraud. Requiring interaction between multiple parties that can hold each other responsible, and adds an extra layer of protection.

Budget Monitoring

Compare actual financial performance against budgeted amounts regularly to identify discrepancies and address any issues before they become a costly problem for your organization.

Reconcile Bank Statements Regularly

As a CPA firm with a forensic component, Perry Forensic, we know that financial fraud and embezzlement can happen to any organization. Reconciling bank statements, accounts payable and accounts receivable consistently ensures that all transactions are accurately recorded and accounted for, which can protect your business from being the victim of financial crimes in the long run.

Other important ways to stay on top of bookkeeping checks and balances at a small business or non-profit

  • Keep all cash in a locked drawer.
  • Deposit cash and checks in the bank soon after they are received.
  • Know what documentation you should be keeping.
  • Periodically have an independent party review your organization’s financial records and procedures.
  • Emphasize the importance of ethics, policies and procedures at staff meetings, and check that everyone follows the rules at all times.

We know that small businesses and non-profits require time, focus and dedication – and we’re here to help! Let us help you relieve the burden with bookkeeping services that increase efficiency and protect your organization, while also allowing you to stay focused on core operations. Contact us today and let’s figure out the best bookkeeping plan for your organization moving forward!

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At Perry & Associates CPAs, our culture of growth mindset inspires a forward-thinking, ever investing and ever-innovating approach to accounting, which includes staying on top of the latest accounting technology to ensure accurate reporting and compliance with security rules and regulations. Accounting Information Systems (AIS)  are a crucial component of any organization’s financial management. These […]

At Perry & Associates CPAs, our culture of growth mindset inspires a forward-thinking, ever investing and ever-innovating approach to accounting, which includes staying on top of the latest accounting technology to ensure accurate reporting and compliance with security rules and regulations.

Accounting Information Systems (AIS)  are a crucial component of any organization’s financial management. These systems involve the collection, storage, processing and dissemination of critical financial information. For most organizations, Accounting Information Systems (AIS) consists of six primary components: people, procedures and instructions, data, software, information technology infrastructure and internal controls. In this blog, we’ll dive into these key factors of AIS and explain how they work together to keep confidential data safe and secure.

1. People

An AIS helps the different departments within a company work together, and a variety of professionals may need to use an organization’s AIS, including accountants, consultants, business analysts, managers, chief financial officers and auditors. A well-designed AIS should allow everyone within an organization to access the same system and retrieve the same information. An AIS also simplifies the process of reporting information to people outside of the organization. Ideally, an AIS is easy to use and helps the people who use it improve efficiency.

2. Procedures and Controls

Procedures and controls encompass the policies and processes that govern AIS operations and include both manual and automated methods used to collect, store, retrieve, process and report data. While AIS procedures and instructions are coded into the AIS software, it’s important that they are also “coded” into employees through effective documentation and training. These internal controls are essential to the accuracy, reliability and security of financial data.

3. Data

AIS software uses a database structure to store information, and this includes financial transactions, journal entries, ledger entries and more. The data contained in an AIS is all of the financial information pertinent to the organization’s business practices, and any business data that impacts the company’s finances should go into an AIS. This data is then used to prepare accounting statements and financial reports.

4. Software

AIS software relates to the computer programs used to store, retrieve, process, and analyze an organization’s financial data. Businesses can choose from a variety of different software packages, including the popular Intuit Quickbooks software (which we provide training for) which works well for small to medium sized businesses, and packages such as Oracle’s PeopleSoft and Epicor Financial Management for larger organizations. At Perry & Associates CPAs, our experts set up and integrate AIS software into your organization and provide ongoing support that allows this technology to automate and simplify operations.

5. IT Infrastructure

This component includes the hardware and network infrastructure that supports the AIS, such as servers, computers, databases, printers, surge protectors, routers, storage media, back-up power supply and more. It’s important for the hardware selected for an AIS to be compatible with the intended software, and also that a plan is put in place for maintaining, servicing, replacing and upgrading components of the hardware system.

6. Internal Controls and Security Measures

Internal controls are a crucial component of AIS, as they provide security measures to protect sensitive data and also ensure accuracy and reliability. This includes user authentication, access controls, encryption and other security measures to protect sensitive financial data. AIS internal controls should limit access to authorized users and to protect against unauthorized access, and also protect from computer viruses, hackers, internal and external threats to network security, and even something like natural disasters that could cause data loss.

How Can AIS Protect Your Business?

Now that you have a better understanding of AIS, it’s time to make sure you have the best software and technology at your business to stay supported and secure! At Perry & Associates CPAs, we provide the following AIS services:

  • Information Systems Auditing
  • Internal Reporting Process Optimization
  • Business Data Analysis & Analytics Consulting
  • Systems, Financial & Data Risk Evaluation
  • Process Mapping & Documentation
  • System & Organizational Control (SOC) Reporting & Auditing

We are committed to partnering with you and using advanced technology to ease the burden and protect your organization. Contact us today to learn more about our AIS services and improve operations, security and safety!

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Audits are a great way to receive constructive solutions that improve processes and identify risks at your organization. However, to ensure your next audit goes as smoothly as possible and leaves everyone involved feeling satisfied and confident in the next steps that need to be taken, there are best practices that can ensure you are […]

Best Practices for an Effective Financial Audit

Audits are a great way to receive constructive solutions that improve processes and identify risks at your organization. However, to ensure your next audit goes as smoothly as possible and leaves everyone involved feeling satisfied and confident in the next steps that need to be taken, there are best practices that can ensure you are prepared.

Take a look at our top tips to ensure a successful audit that will make it easier to achieve your audit goals and objectives.

Reconcile Accounts and Prepare a Trial Balance

The audit process begins before the initial in-person meeting. A good first step is closing and reconciling all accounts, as this prevents balance sheet errors and allows auditors to check for possible fraud. Preparing a trial balance before the audit is also recommended, as this ensures that entries in a company’s bookkeeping system are mathematically correct and there are no errors. Once that is confirmed, more complex audit procedures and analysis can begin. If your organization has been through the auditing process before, it could also be helpful to disclose past audit findings to your new auditor so they have more insight into issues affecting your organization.

Create a Schedule and Stick to a Realistic Timetable

If you have found that audits for your organization have a trend of becoming a lengthier project than anticipated, then it’s time to develop a realistic audit timetable. The timetable should allocate time towards the planning phase, risk assessment, audit procedures, evaluating financial records and statements, and reporting. However, this could vary depending on the objectives of your organization. Setting up a shared calendar that includes both auditor and your team is a convenient way to ensure more accountability from your team, and is also more secure than exchanging confidential information through back and forth emails.

Don’t Be Afraid of Innovative Technology

Advanced technology is being used to transform many areas of the finance and accounting industries, and that applies to audits as well. Certain technologies help the auditing process become more streamlined, efficient and cost-effective. Analytics, in particular, help auditors better understand processes and data flow, create better audit recommendations and enhance an audit’s value proposition to your organization. So if you haven’t used technology to transform your audit process, the time is now! Asking your auditor if they use certain software or technologies throughout the process could be an indicator of capability and if they are a good fit for your organization. We recommend this article from RSM to learn how automation, analytics, AI and other innovative technology can improve the audit experience.

With these best practices, an effective, positive auditing experience is on the horizon! Remember that our team has experience with numerous non-profit and government agencies, so if your organization falls into either of those categories, we have the skills required to ensure you meet all audit rules and regulations. We also have experience conducting many types of audits, so whatever type of audit is needed, we can perform at the highest level.

Contact Us Today – Let’s work together to make sure your next audit runs as smoothly as possible!

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As a team of investigators who have received extensive training at the best organizations in the world, we have encountered a variety of different types of fraud at many different types of organizations. Regardless of the type of fraud, however, one thing remains the same – it causes government agencies, non-profits, financial entities and businesses […]

Perry Forensic Services
As a team of investigators who have received extensive training at the best organizations in the world, we have encountered a variety of different types of fraud at many different types of organizations. Regardless of the type of fraud, however, one thing remains the same – it causes government agencies, non-profits, financial entities and businesses to experience major financial setbacks and embarrassment.

Check out the following statistics according to studies conducted by the Certified Fraud Examiners (ACFE):

  • The median loss due to business fraud was $125,000
  • More than 10% of fraud occurs within non-profit agencies, and 18.7% of fraud happens to governmental agencies.
  • 66% of frauds were committed by individuals from one of six departments (accounting, operations, sales, management, purchasing, and customer service).

The Perry Forensic team is on a mission to prevent you from becoming another alarming statistic, which is why we have provided our best tips on preventing financial fraud at your organization.

Don’t Leave 100% of the Accounting Duties to One Person

Regardless of organization type, it is highly recommended that multiple people share accounting duties because this encourages employees to hold each other responsible for any suspicious activity. Implementing a system of checks and balances and separation of duties limits the opportunity for fraud. Outsourcing some of your accounting needs to a firm such as Perry & Associates CPAs is a great way to ensure a highly respected team of financial experts keeps your sensitive financial information safe and secure.

Conduct Regular Audits

Consistent audits are an effective way to identify risks, detect irregularities and ensure employees are following established internal controls that protect your organization from threats. It allows you to review your company’s policies and procedures and determine if changes should be made to safeguard your company. With all organizations, it has been proven that audits can be most effective if they are not routine, but unplanned, as it prevents anyone in the middle of fraud or a scam from covering their tracks.

Establish a Culture of Ethics and Integrity

While this may seem obvious, sometimes everyone needs to be reminded about fair employment practices and organizations need to stress the importance of integrity, honesty and transparency in all financial dealings. Encourage team members to speak up if they suspect any financial wrongdoing or have concerns about current financial practices. Better yet, establish a fraud policy and code of conduct that makes all protocols, procedures and potential consequences very clear.

Establish Updated Cybersecurity Measures

In our current digital age, every type of organization needs to implement new security measures such as two-factor authentication, encryption, ID management and more. This goes a long way in protecting sensitive information and reducing data breaches.

And remember, if you notice the following taking place at your business:

  • Unusual cash transactions
  • Mismatched payees
  • Strange, out of character emails
  • Questionable activity from those who have access to assets
  • Suspicious looking documents
  • High travel reimbursement costs
  • Mishandling of donations or grant funds
  • Missing inventory

It’s time to call Perry Forensic and identify the source of error or wrongdoing. With forensic services that range from litigation support, whistleblower allegations, embezzlement, money laundering, hidden assets, ponzi schemes and more, we can immediately, discreetly and comprehensively find ways to protect your organization and give you the upper hand.

You worked hard to make your organization a success – make sure it is protected with Perry Forensic!