FacebookInstagramLinkedIn

FAQ

27 10, 2023

Tangible Assets vs. Intangible Assets: What’s the Difference?

2023-10-24T11:25:33-05:00October 27, 2023|0 Comments

Businesses have many kinds of assets, including tangible assets vs. intangible assets. But what’s the difference? Let’s take a look!

What is a tangible asset?

A tangible asset is an asset that has a physical form, meaning it can be held and manipulated. These types of assets can typically be transacted for some type of monetary value through liquidity.

The owner of the tangible asset can decide to hire an appraiser who determines the fair market value of the asset, or they can choose to sell the asset for cash.

Types of tangible assets

Tangible assets come in two categories: current and fixed. Current assets are those that can be easily used and converted to cash. Fixed assets, on the other hand, have a lifespan of one year or more. For example, inventory is considered a current asset, and things like property and equipment are considered fixed.

There are many types of tangible assets. Some common forms include:

  • Equipment
  • Furniture
  • Inventory
  • Land
  • Property
  • Vehicles

Things such as stocks and bonds are also considered tangible assets, even though they cannot be held. This is because they derive their value from contractual claims.

What is an intangible asset?

An intangible asset is an asset that is not physical. This type of asset is recorded at its cost when acquired. Some intangible assets have a limited life and are more amortized to expense, while others have an unlimited life and are not amortized.

Types of intangible assets

The market value of a company’s intangible assets is often far greater than that of its tangible assets. Examples of intangible assets include:

  • Copyrights
  • Patents
  • Mailing lists
  • Trademarks, brand names and logos
  • Domain names
  • Goodwill

Summary

With that, it is now time to take a look at your tangible assets vs. intangible assets. Not sure where to get started or how to record them? Don’t stress—contact Todd Greene for all your booking and accounting needs!

And since you’re here, continue to check out our blogs for more accounting tips and news.

28 06, 2023

Understanding What It Means to Be a CPA

2023-06-28T09:49:26-05:00June 28, 2023|0 Comments

No matter what size your business is, it’s likely you’ll need a financial professional to help keep it on track. That’s where a CPA can help! But what exactly do they do? Let’s take an in-depth look to get a better understanding of what it means to be a CPA.

What is a CPA?

CPA stands for certified public accountant. Certified public accountant licenses are provided by the Board of Accountancy in each state.

It is important to note that not all accountants are CPAs. Becoming a CPA is a distinguished credential that shows dedication, knowledge and skill. Duties include accounting tasks such as producing reports as well as tax reporting and filing for both individuals and businesses.

Working with a CPA can help people and companies better create financial plans in order to minimize taxes and maximize their profits.

Becoming a CPA

To become a certified public accountant, individuals must have a bachelor’s degree in business administration, finance or accounting. From there, you must pass the Uniform CPA Exam in order to obtain the certified public accountant designation. In addition, there is a requirement of 150 hours of education and no less than two years of public accounting experience.

The official CPA exam has 276 multiple-choice questions, 28 task-based simulations and three writing portions. It is divided into four main sections: auditing and attestation, financial accounting and reporting, regulation and business environment and concepts.

Candidates must score at least 75% to pass each section.

But the work doesn’t end there—the CPA designation requires completing a number of continuing education hours annually.

CPA career paths

There are a wide range of career paths available for certified public accountants. This includes public accounting, corporate accounting or working in a government service. An individual with a certified public accountant designation can also move into executive positions such as chief financial officers.

Many CPAs generally work as accountants of some sort. That means they put together, maintain and review financial statements and other transactions. CPAs can also perform and sign off on audits.

Known for their role in tax planning and preparation, CPAs also file tax forms and returns. Moreover, they specialize in other areas such as auditing, bookkeeping, forensic accounting, managerial accounting and more.

Accountant vs. CPA

When understanding what it means to be a CPA, we must look at how they differ from an accountant.

An accountant is a professional with a bachelor’s degree in accounting. A CPA is a professional who has earned their license through education, experience and examination.

Additionally, CPAs are granted certain roles that only they can perform. This includes performing audits and preparing audited financial statements.

Summary

With a clear understanding of what it means to be a CPA, are you ready to find a CPA? Then contact Todd Greene and our team today! And finally, continue reading our blogs for more financial advice and industry news.

29 12, 2021

9 FAQs About Estate Planning

2021-12-22T21:40:25-06:00December 29, 2021|0 Comments

Preparing your loved ones for a life without you can be scary, stressful, and overwhelming. However, it’s also one of the kindest gifts you can give them. If you want to solidify your legacy—and protect those you care about—read these FAQs about estate planning.

Q. At what age should I start estate planning?

A. You’re never too young or too old to plan your estate. In fact, don’t think of this as an age-related task. If you have assets, dependents, and pets you want to protect, then you should start estate planning.

Q. What are some of the assets I can allocate?

A. You can allocate assets like:

  • Material goods, such as furniture, jewelry, or sentimental items;
  • Money and bank accounts;
  • Stocks; and
  • Properties, such as homes or land.

Q. Does estate planning just cover material goods, money, and properties?

A. No, it doesn’t—which is why it’s so important. As you plan your estate, you can specify who you want to take care of your children or adopt your pets after your passing.

Q. What dangers do I risk if I skip estate planning?

A. Forgoing estate planning can come with unwanted surprises. They include:

  • Stress in your loved ones’ lives;
  • A deluge of taxes on your assets;
  • Your assets being inaccessible due to the probate process;
  • Confusion and possible legal battles; and
  • Difficulty deciding who may look after your dependents.

Q. What is the probate process like?

A. One of the most common FAQs about estate planning involves the probate process. Essentially, that’s when the courts determine your assets and figure out how to disperse them properly.

They may also deal with disagreements about who will receive what. A will can make the process more straightforward, but it can still last anywhere from nine to 12 months—or longer.

Q. Is there a standard outcome that will occur if I don’t plan my estate?

A. No—which is why it’s so critical to plan your estate. Otherwise, your assets will be subject to interstate laws, which vary from state to state. That uncertainty can make a sad time even worse for your loved ones—so please consider taking the time to outline your plan.

Q. Should I get an estate planning lawyer?

A. It is a good idea. From requirements, to witnesses, to covering areas you may not have thought about, an estate planning lawyer can help.

Q. Do I need a witness for my will?

A. Yes, you will need not one but two—or more—witnesses to sign your will.

Q. How can my C.P.A. assist with estate planning?

A. Your C.P.A. knows all about taxes. Their assistance can be invaluable! After all, the amount you allocate to your loved ones may seem like a lot—unless you count in what the government will claim. Let your C.P.A. answer all your questions and give you the info you need!

Summary

The way you protect your loved ones can leave a long-lasting legacy of love. Put the most important people in your life first by establishing a will. That way, they can focus on honoring your memory.

If you have more queries beyond these FAQs about estate planning, message us here. Plus, for more on financial planning, check out our blog.

 

31 07, 2020

July Cares Act Update

2022-09-28T19:21:19-05:00July 31, 2020|0 Comments

As you may be aware, the Paycheck Protection Program that was passed into law earlier this year has seen some major changes since the law has passed. Remember, initially, you could borrow up to 2.5 times your average monthly payroll, and then utilize the proceeds for payroll for 8 weeks, rent, lease payments, and utilities. If you did utilize the proceeds for payroll over the next 8 weeks, and no more than 25% of the proceeds were used for rent, utilities, and lease payments, the loan would be considered forgivable, and therefore, you would not have to pay it back.

A couple of weeks ago, the SBA issued the Paycheck Protection Program Loan Forgiveness Application. It is highly convoluted, and we are looking into what it would cost for us to assist our clients with it. Please let us know if you have interest in us completing this application on your behalf. Click here for the application.

Regardless, below are some highlights of H.R. 7010 (THe Paycheck Protection Program Flexibility Act of 2020) that was passed into law this past Friday.

Since then, the IRS has issued guidance that although the loan forgiveness would not be considered taxable, any deductions paid from the proceeds would not be deductible. In effect, this would mean that the PPP loan would be taxable income. Our hope is that Congress was going to address this, but H.R. 7010 does not address this, and it doesn’t seem likely at this point that it will be addressed. A link to H.R. 7010 is below. https://www.congress.gov/bill/116th-congress/house-bill/7010/text

1. Unforgiven PPP loans maturity will now be over 5 years, instead of 2.
2. You can now apply for a PPP loan up until December 31, 2020. Previously June 30, 2020 was the deadline.
3. The 8 week period covered period has been extended to 24 weeks, but no later than December 31, 2020. 4. This changes the amounts that can be utilized for compensation from an 8 week period to a 24 week period, although you can elect to utilize the 8 week period if you received your loan proceeds before June 5, 2020. This also means that more compensation will be eligible to be used from PPP loan proceeds.
5. Non-payroll Costs may be up to 40% of the loan amount, up from 25%.

We understand that these are confusing times, so please contact us if you have any additional questions or concerns.

© Todd Greene CPA, PLLC - All Rights Reserved
Go to Top