cpa-from-engineer-eyes

[cpa-from-engineer-eyes]

Here are 10 humorous sentences about accounting that you can use for your word cloud presentation:

1. Why did the accountant break up with the calculator? Because she felt he was just adding to her problems!

2. Accountants never die—they just lose their balance!

3. What’s an accountant’s favorite exercise? Running the numbers!

4. How do accountants stay calm during tax season? They just take a deep ledger!

5. Why was the accountant always calm? Because he could always count on his friends!

6. What do accountants do at a party? They balance the fun!

7. Why did the accountant bring a ladder to work? To reach new heights in deductions!

8. What’s an accountant’s favorite type of music? A-counting tunes!

9. How do you make an accountant smile? Just show them a good balance sheet!

10. Why did the accountant get kicked off the plane? He kept trying to balance the luggage!

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https://www.barrons.com/articles/states-dont-tax-treasuries-directly-but-file-with-care-in-these-3-5ff07568

nontaxable and taxable incomes get lumped together on the Form 1099-DIVIncome earned on Treasuries and some agency bonds is exempt from state taxes.

But when these securities are part of a fund portfolio with other investments whose income is taxable, such as corporate bonds, the nontaxable and taxable incomes get lumped together on the Form 1099-DIV you receive from your fund custodian.

When rates were 0% it didn’t matter but now that we’re looking at interest of 4% or 5%, we’re talking about potentially big dollar amounts,” Jacobs says.

“The state tax is a meaningful amount for a lot of people especially in high tax states.”

[cpa-from-engineer-eyes]

https://poe.com/s/icV4N3yQFaSe3xnlpHE3

FESRA

FESRRApr

CPA= spectrum of human nature = think of 10 cpa -> follow their career trajectory for 10 years. One will stay with big 4, one will start his practice but do individual simple taxes, one will do small business taxes, ... MAIN POINT what will CEREBRAL CPA do?

.....

Fragmented

Economy of Scale ->

Roll Up

RECURRING. So Roll up. 1X multiple. So can CPC cherry pick clients. Lawyers only, Dr's only = concentrated

Advisory = Planning -> tax planning, estate planning, succession planning, 606 revenue recognition

3 A s in Accounting.

1 hand up= Advisory

Other hand down= Audit

Remember functional 2As in Accounting

1A Audit

Second A Advisory

Audit means *ARcc* Audit, Review, compilation (COMPLIANCE) is O in FOTMAS

*Whereas*

OTHER A is advisory services

OTHER A is S on FOTMAS

more advisory services and less compliance services.

[cpa-from-engineer-eyes]

Industry survey shows more profitable accounting firms are bigger, charge more, do less audit work- Thomson Reuters Institute

Remember 2As in A ccounting

First A Audit

Second A Advisory

Audit means *ARcc* Audit, Review, compilation (COMPLIANCE) is O in FOTMAS

*Whereas*

OTHER A is advisory services

OTHER A is S on FOTMAS

more advisory services and less compliance services.

[cpa-from-engineer-eyes]

Common stock

Preferred stock

Debt

[cpa-from-engineer-eyes]

Document Collection and Management

1. Drake Documents: Document storage and file organization integrated with Drake Tax software.

2. GoFileRoom: A Thomson Reuters tool for document management, designed for tax firms.

3. SmartVault: Secure document storage with client portals for easy sharing.

4. CCH Axcess Document: A cloud-based document management tool by Wolters Kluwer.

5. Lacerte Document Management System: From Intuit, it centralizes document storage.

Automated Data Extraction and Workflow

6. SurePrep: Automates document organization, data extraction, and tax preparation.

7. Canopy: Simplifies document management, client portals, and task tracking.

8. TaxDome: Combines document collection, management, and workflow automation.

Tax Preparation and Filing

9. UltraTax CS: By Thomson Reuters, integrates document management and tax prep.

10. ProConnect Tax Online: A cloud-based tax preparation tool by Intuit, integrating with QuickBooks.

[cpa-from-engineer-eyes]

One of the best Qns

Hint: both types of time value- annuity (2.8) from forward to present, PV multiple (0.6) from present to forward

[cpa-from-engineer-eyes]

Reconciliation

Bank versus Software

[cpa-from-engineer-eyes]

Why No One’s Going Into Accounting - WSJ

https://www.wsj.com/lifestyle/careers/accounting-salary-cpa-shortage-dec2caa2

Though the profession of accounting may have fewer takers now,  thinking from first principles the word accounting drives from the verb,  to account for. Assuming the person in accounting has unquestionable accountability, which equates to trustworthiness (= fiduciary responsibility),  simply combining cerebral application of first principles  of accounting with wealth growth such as selling puts on clients money achieving higher rate of return or with estate planning serving as a custodian for generational wealth transfer will ALWAYS stay in demand. 

[cpa-from-engineer-eyes]

Accountant -> Account -> to account for

Though the profession of accounting may have fewer takers now, accounting when taken to extreme, translated as human trait of Accountability -> trustworthy -> fiduciary responsibility combined with cerebral application will always stay in demand.

Combine accounting with other skills as selling puts= higher rate of return for clients or estate planning= Generational wealth transfer.

[cpa-from-engineer-eyes]

Assisting engineers with exercising company-granted stock options involves understanding several key tax regulations:

* Section 83(b): This section addresses the tax treatment when an employee purchases stock at a discount from its fair market value. The employee generally recognizes ordinary income equal to the discount at the time of exercise.

* Section 409A: This applies to incentive stock options (ISOs) granted to executives and other "disqualified persons." ISOs offer tax advantages, but only if specific holding periods are met after exercise.

* Section 422: This covers disqualifying dispositions of stock acquired through ISOs. Selling the stock too soon after exercise can trigger unfavorable tax treatment.

* Section 10b-5-1 of Regulation S-X: This implements anti-hedging provisions that prevent insiders from engaging in transactions that could undermine confidence in the company's stock.

[cpa-from-engineer-eyes]

Accounting Asset Values

In accounting, what are all the types of value?

Example

Present value

Future value

Carried value

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How to think critically?

Think in terms of OVERLAP

Think in terms of DUPLICATES

Superset and Subset

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Commercial land itself cannot be depreciated for tax purposes. Depreciation is for assets that wear out or become obsolete over time, and land is considered to have an indefinite useful life.

The buildings and improvements on commercial property, however, can be depreciated over a 39-year period according to the IRS. Residential buildings are depreciated over a 27.5-year period.

[cpa-from-engineer-eyes]

Commercial buildings typically cannot be depreciated as fast as residential buildings. The IRS sets the standard depreciation schedules, and commercial buildings have a longer useful life for tax purposes than residential buildings. However, there are some exceptions for certain types of commercial property that can be depreciated over a shorter period. These include:

* Leasehold improvements made by a tenant, which can be depreciated over the life of the lease or the useful life of the improvements, whichever is shorter.

* Short-lived components of a commercial building, such as HVAC systems or roofing, which can be depreciated over their own shorter useful lives.

Under what conditions can the commercial be depreciated faster or same as residential.