Service

In the U.S., the Internal Revenue Service (IRS) has the responsibility of collecting federal taxes and making sure people follow tax laws. The IRS handles the processing of tax returns, collection of tax money and the distribution of tax refunds. In 2018, the agency collected around 250 million tax returns and distributed tax refunds worth nearly $400 billion.

Many people only think about the IRS during tax season and as they wait to get their tax refund. There are times, though, when the IRS makes its presence known at other periods of the year. If the agency believes an individual or business hasn’t reported enough income, has underpaid or didn’t file a return when they should have, it can take action. When that happens, a person or company might need tax resolution services to help solve the issue, pay back taxes or get tax relief.

What Is Tax Resolution?

Tax resolution is the process of working with the IRS and tax professionals to find a solution to your tax problems. The IRS might have an issue with your tax return or tax situation for a few reasons. If you have a complicated tax return, for example, the IRS might audit you to verify you are reporting the appropriate amount of income and claiming legitimate deductions. In some cases, the IRS might believe you have underreported your income, and it might want to take a closer look at your tax situation.

Another example of an IRS problem occurs when you don’t file your taxes for several years. Eventually, the issue can be serious enough that you need outside help to get you back on track and to avoid being charged more than you owe by the IRS.

Some instances when you might use tax resolution services include:

Audit Representation

If you receive a notice from the IRS that you are going to be audited, don’t panic. Although the audit process can seem intimidating, it’s not something you need to go through on your own.

The IRS audits taxpayers for a range of reasons, and just because the IRS decides to audit you doesn’t mean you have done anything wrong. Hiring a professional tax consultant to help put together an audit defense for you can help you rest assured that the results of the audit will be as accurate and fair as possible.

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The IRS makes mistakes, too. Sometimes, it believes you made more money than you did, or it includes the income from an ex-spouse or a former business partner with your income. When that happens, you have the right to disagree with the IRS and to present evidence to help you make your case. Tax professionals can help you put together a transcript protest, so you don’t have to pay money you don’t owe.

Non-Collectible Debt

What happens when the amount you owe to the IRS is so much that you can’t repay it and continue to afford reasonable cost-of-living expenses? In that situation, you don’t have to choose between a roof over your head or paying the IRS.

The IRS does offer a form of relief when you can’t pay your tax debt. During what’s known as a “Currently Not Collectible” status, the IRS won’t try to collect the debt you owe. Using tax resolution services can help you see if you qualify for the status and can help you understand the benefits and drawbacks of using it.

Tax Penalties

The IRS tends to charge interest and tax penalties when individuals or businesses pay their taxes late or don’t pay at all. Fortunately, there are some instances when the IRS will waive the penalty. Tax resolution firms can help you determine if you’re eligible for tax penalty abatement and help you through the process of deciding whether or not you qualify for the penalty waiver.

Unfiled Returns

You’re expected to file a tax return each year, but in some instances, life and other circumstances can prevent you from filing. When that happens, the IRS might guess at how much you owe based on the documents it’s received, such as Forms W-2 and 1099. A tax consulting firm can help you prepare returns from past years. It can also help you file present-day returns and work with you to put together a tax plan for the future.

Paying Back Taxes

Should you owe back taxes, you might not be able to pay the full amount due in one lump sum. Part of tax resolution involves evaluating your returns to make sure you are responsible for the back taxes you’re being charged. It can also include working with the IRS to put together a plan that makes paying the tax you owe more manageable.

Compromising With The IRS

There are cases when the IRS is open to compromising with taxpayers. If you owe a hefty amount and aren’t able to pay it, the IRS’ Offer in Compromise program might accept a payment that is less than what you owe.

Compromising with the IRS can be tricky, as the agency usually doesn’t take requests for reduced payments. Working with a tax consultant can help you see if compromising with the IRS will help you resolve your tax issue or if another option, such as a payment plan, might be more appropriate.

Payroll Tax Recovery

Businesses that have employees need to pay payroll tax on their employee’s wages. When a company doesn’t pay payroll taxes, the IRS can penalize it, usually through the Trust Fund Recovery Penalty. A tax resolution professional can help you navigate the process when the IRS issues a penalty, including working with you to complete Form 4180 and helping you prepare for the 4180 interview.

Tax Liens

A lien is a claim against a property you own, such as your home. If you have trouble paying property taxes, federal taxes or state taxes, the tax agency can put a lien on your home or other valuable property.

To help you avoid foreclosure and other complications, any liens on a property must be adequately removed and discharged. Tax resolution can help protect your property from liens as well as confirm that any liens have been appropriately discharged or withdrawn.

Wage Garnishment Help

When the IRS wants its money, it will go to specific lengths to get it. One of those lengths is to garnish your wages, making your paycheck smaller or non-existent. Part of tax resolution involves negotiating with the IRS before it begins garnishing your income. A tax consultant can help you put together a payment plan to present to the IRS, demonstrating to it that you can pay what you owe without it having to step in and take the money directly.

The sooner your tax issue is resolved, the better. Getting professional help for tax resolution can mean less headache and stress for you and mean you don’t pay more than you need to the IRS.

How Does Tax Resolution Help You?

Although you do have the option of working through your tax issues with the IRS on your own, it’s often in your best interest to work with tax professionals who can help you work with the IRS and resolve your problem.

As a taxpayer, you have certain rights, which are outlined in the IRS’ Taxpayer Bill of Rights. You have the right to:

• Be informed
• Receive quality service
• Pay no more than you owe
• Challenge the IRS and be heard
• Finality
• Privacy
• Appeal the decision of the IRS
• Retain representation
• Confidentiality
• A tax system that is fair and just

Working with a company that provides tax resolution services helps you ensure your rights are protected. A tax resolution firm can help:

Evaluate Your Situation

The first step when working with a tax resolution firm is to schedule a consultation. During the meeting, you’ll have the chance to explain your particular issue, and a tax professional will have the opportunity to review your paperwork and assess your situation.

The consultation can help you see if you’d benefit from the services offered by a tax resolution firm. It also gives the tax consultant the chance to get to know your situation more in-depth and to start the process of coming up with a solution to your problem.

Put Together A Defense

If a tax consultant or enrolled agent believes your situation is one that can be resolved, the next step is to create a plan to help you work with the IRS and come to an agreement that satisfies everyone. If you’re being audited, an enrolled agent will go through your documents to get a thorough understanding of your situation before preparing a defense for you.

In the case of negotiating with the IRS or avoiding wage garnishment, your tax consultant can put together a repayment plan that demonstrates to the IRS that you can pay ⁠— or can’t pay, in some cases. Your plan and defense can keep you from being overwhelmed by a substantial tax bill.

Act As The Go-Between

You have the right to representation under the Taxpayer Bill of Rights. Your tax consultant can be the go-between or mediator between you and the IRS. Working with a tax resolution firm means you never have to worry about dealing with the IRS on your own.

Enrolled agents and tax consultants have years of experience working with the IRS and a full understanding of tax law. They know your rights and what you can and can’t be held responsible for by the IRS. Having a professional represent you reduces your stress and increases the likelihood of an outcome in your favor.

Solving Your Tax Issues, Accounting, Payroll, and Financial Services

Are you struggling with complex international tax matters? Look no further. At Nation Tax Relief, we specialize in providing comprehensive solutions for individuals and businesses facing international tax challenges. Our team of experienced professionals is here to assist you, no matter where you are located.

A Global Approach to Tax Solutions

Navigating the intricacies of international tax regulations can be daunting. With our global perspective and in-depth knowledge of tax laws across various jurisdictions, we offer tailored solutions to ensure compliance and optimize your tax position. Whether you are an expatriate, a multinational corporation, or an individual with cross-border investments, our international tax services are designed to meet your specific needs.

Expertise in Accounting, Payroll, and Financial Services

In addition to our international tax expertise, we also provide a wide range of related services. Our team of qualified accountants and financial professionals can assist you with bookkeeping, payroll management, financial statement preparation, and more. We understand the importance of accurate financial information for making informed business decisions, and we are committed to delivering high-quality services that meet your unique requirements.

Why Choose Nation Tax Relief?

When it comes to international tax matters, choosing the right partner is crucial. Here’s why Nation Tax Relief stands out:

1. Experience and Expertise: Our team has years of experience in handling international tax issues. We stay updated with the latest regulations and industry trends to ensure we provide the most effective solutions for our clients.
2. Personalized Approach: We understand that each client has unique circumstances. That’s why we take the time to listen and understand your specific needs, tailoring our services to provide the best possible outcomes for you.
3. Client Satisfaction: Our commitment to client satisfaction is unwavering. We strive to deliver exceptional service, prompt responses to your queries, and a transparent communication process throughout our engagement.
4. Global Network: Through our extensive network of international partners and affiliations, we can provide seamless assistance regardless of your location. We are well-equipped to handle complex international tax matters across borders.

Contact Us Today for Your International Tax Needs

Don’t let international tax complexities overwhelm you. Nation Tax Relief is here to provide you with expert solutions, reliable guidance, and peace of mind. Contact us today to schedule a consultation and discover how we can help you navigate the intricacies of international tax regulations efficiently and effectively. Remember, no matter where you are, we are just a call or email away.

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Understanding the Tax Obligations for Self-Employed Consultants

As a self-employed consultant, you have the freedom to run your own business and serve your clients with your expertise. However, along with this independence comes the responsibility of managing your income taxes effectively. Understanding the tax implications is crucial to ensure compliance and optimize your financial position.

Income Taxes and Self-Employment Tax

When you’re self-employed, your income taxes are calculated based on your net profit. The tax rates can range from 10% to 37%, depending on your taxable income. In addition to income taxes, self-employed individuals are also subject to self-employment tax, which covers Social Security and Medicare contributions. The self-employment tax rate is currently 15.3% of your net profit.

Streamline Your Tax Affairs with Our Business Consulting Plans

At Nation Tax Relief, we specialize in helping self-employed consultants navigate the complexities of tax obligations and maximize their financial success. Our tailored business consulting plans are designed to handle your company’s tax affairs efficiently, allowing you to obtain the lowest possible tax rate for your business or company.

Personalized Tax Strategies for Your Business

We understand that every business is unique, and tax planning should reflect that. Our experienced consultants will work closely with you to develop personalized tax strategies that align with your business goals. We’ll analyze your income, deductions, and credits to identify opportunities for tax savings, ensuring you’re in compliance while optimizing your tax position.

Expert Guidance and Compliance Support

Tax regulations and laws are constantly evolving. As a self-employed consultant, staying up-to-date with these changes can be overwhelming. Our team of experts is well-versed in the latest tax regulations and can provide you with the guidance and support you need to navigate the ever-changing tax landscape. From tax planning to preparation and filing, we’ve got you covered.

Partner with Nation Tax Relief for Tax Efficiency and Peace of Mind

When it comes to managing your tax affairs as a self-employed consultant, partnering with the right business consulting firm is essential. Here’s why [Your Company Name] is the ideal choice:

1. Expertise and Industry Knowledge: Our team consists of seasoned professionals who specialize in tax matters for self-employed individuals. We have in-depth knowledge of the specific challenges and opportunities that consultants face, allowing us to provide tailored solutions.
2. Maximized Savings: We are committed to helping you achieve the lowest possible tax rate for your business. Through strategic tax planning and meticulous attention to detail, we identify opportunities for savings and ensure you’re taking advantage of all available deductions and credits.
3. Timely and Accurate Compliance: We understand the importance of meeting tax deadlines and maintaining accurate records. With our assistance, you can rest assured that your tax obligations will be handled efficiently, minimizing the risk of penalties or audits.
4. Long-Term Partnership: We strive to build long-term relationships with our clients. As your business evolves, we’ll adapt our strategies to meet your changing needs, providing ongoing support and proactive advice to help you achieve sustainable growth.

Get in Touch Today to Optimize Your Tax Position

Don’t let tax obligations hinder your success as a self-employed consultant. Consult with Nation Tax Relief today to explore how our business consulting services can help you streamline your tax affairs, obtain the lowest tax rate for your business, and achieve long-term financial success. Contact us now to schedule a consultation and take the first step towards tax efficiency and peace of mind.

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Additionally, it’s essential to consult with a qualified tax professional for personalized advice tailored to your individual circumstances. The information provided in this post is for general informational purposes only and should not be considered as professional tax advice.

Remember, the success of your business depends on effective tax management. Partner with Nation Tax Relief to unlock your company’s potential and ensure tax efficiency. Contact us today to schedule a consultation and discover how we can help you achieve your business goals.

The form of business you operate determines what taxes you must pay and how you pay them. The following are the five general types of business taxes.

• Income Tax
• Estimated Taxes
• Self-Employment Tax
• Employment Taxes
• Excise Tax

Income Tax

All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form you use depends on how your business is organized. Refer to Business Structures to find out which returns you must file based on the business entity established.

The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return. For additional information refer to Publication 583.

Estimated tax

Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. For additional information, refer to Estimated Taxes. 

Self-Employment Tax

Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.

Generally, you must pay SE tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies.

• If your net earnings from self-employment were $400 or more.
• If you work for a church or a qualified church-controlled organization (other than as a minister or member of a religious order) that elected an exemption from social security and Medicare taxes, you are subject to SE tax if you receive $108.28 or more in wages from the church or organization.

Note: There are special rules and exceptions for aliens, fishing crew members, notary public, state or local government employees, foreign government or international organization employees, etc. For additional information, refer to Self-Employment Tax.

Employment Taxes

When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file. Employment taxes include the following:

• Social security and Medicare taxes
• Federal income tax withholding
• Federal unemployment (FUTA) tax

For additional information, refer to Employment Taxes for Small Businesses.

Excise Tax

This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following.

• Manufacture or sell certain products.
• Operate certain kinds of businesses.
• Use various kinds of equipment, facilities, or products.
• Receive payment for certain services.

Form 720 – The federal excise taxes reported on Form 720, consist of several broad categories of taxes, including the following.

• Environmental taxes.
• Communications and air transportation taxes.
• Fuel taxes.
• Tax on the first retail sale of heavy trucks, trailers, and tractors.
• Manufacturers taxes on the sale or use of a variety of different articles

Form 2290 – There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Report the tax on Form 2290. For additional information, see the instructions for Form 2290 .

Form 730 – If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. Use Form 730, to figure the tax on the wagers you receive.

Form 11-C – Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering.

Excise tax has several general excise tax programs. One of the major components of the excise program is motor fuel. For additional information, refer to Excise Taxes.

What Is an Individual Income Tax?

An individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S.

How Does the Individual Income Tax Work?

In the United States, individual income taxes are levied at the federal level as well as in most states. Many countries around the world also levy individual income taxes.

The U.S. income tax is progressive, which means that tax rates (the percentage of your income that you pay in taxes) increase as taxpayer income increases. The U.S. levies income tax rates ranging from 10 percent to 37 percent that kick in at the specific income thresholds outlined below. The income ranges for which these rates apply are called tax brackets. All income that falls within each bracket is taxed at the corresponding rate.

Get the lowest rate with us today.

A 401(k) is a retirement savings and investing plan that employers offer. A 401(k) plan gives employees a tax break on money they contribute.

We take care of planning 401k moves for you.

What Are the Advantages of a 401(k) Plan?

Financial planners often speak of there being a three-legged stool for funding retirement: government-provided benefits, employer-provided benefits and personal savings. But with Social Security’s future in doubt and pension plans going the way of the dodo bird, it’s a good idea to depend on your own resources as much as possible.

One of the best ways for you to save toward your own retirement and ensure your future security is through an employer-sponsored 401(k) plan. If you don’t participate, you’re missing a golden opportunity to save for retirement while lowering your tax burden on those savings.

Some of the features offered by many 401(k) plans include:

Matching Contributions

Many employers will match a portion of your savings. It’s like passing up free money if you don’t participate. A common match might be 50 percent of the first 6 percent of pay you save. Under that scenario, someone whose annual salary is $35,000 and who contributes 6 percent to the plan ($2,100) would receive an additional $1,050 in matching employer contributions. It’s pretty hard to find a 50 percent return on any investment. Even if your employer doesn’t offer matching contributions, the tax advantages of a 401(k) still make this one of the best ways to save money for retirement.

Tax-Deferred Earnings

When you contribute a percentage of your pay to a 401(k) plan, you immediately start paying less to Uncle Sam. That’s because your contribution comes out of your paycheck before income taxes are deducted. That means your taxable income is less, which in turn lowers your tax bill. Thus, you “defer” or postpone paying income tax on your 401(k) savings and any investment earnings they may accumulate until you withdraw the money at retirement. For many people, their income – and therefore income tax rate – is lower at retirement, so they’re paying a smaller amount of tax on the money. Plus, if you happen to retire to a state that has no or very low state income tax, you’ll be that much further ahead.

Loans

Many plans allow you to borrow from your account for specific reasons, such as buying a primary residence, paying for education or medical expenses, or in case of severe economic hardship. A loan usually must be paid back with interest within five years (although this may be extended for a home purchase), and as long as you remain employed by the company, you can pay it back without incurring any income tax liability. The interest you pay goes directly into your account.

Please note, however, that if you leave the company, you will be required to pay back the entire loan amount within 30 days, or face paying income tax on the unpaid loan amount as well as a 10 percent early distribution penalty if you’re under age 59 ½. Be sure to read your plan documents carefully before taking a loan from your account.

Investment Options

Most 401(k) plans provide a variety of investment vehicles from which you may choose. Typical investment choices might include:

• Money market funds
• Stable value accounts, including guaranteed investment contracts (GICs) or bank deposit accounts
• Bond mutual funds
• Stock mutual funds
• Your own company’s stock

Each type of investment offers varying degrees of risk and reward potential. For example, money market funds and stable value accounts have very low risk, since they’re often invested in certificates of deposit (CDs) or U.S. Treasury securities; however their earnings potential is much lower than other types of investments and they don’t always keep pace with inflation. Stocks and bonds have a higher risk for loss of value, but they also have the potential to earn much more, especially over long periods of time.

Typically, you can mix and match your account balance among the different options available. Check your plan documents to see if there are any restrictions on when or how often you can request changes. With many plans, these kinds of changes can be done online, at your convenience.

Your tolerance for risk will vary, depending on your age, how early you begin saving for retirement, and other factors. Speak to a financial advisor who can help you analyze your 401(k) investment options and determine the right mix for your situation.

Many financial professionals advise against investing more than 10 percent of your account in your own company’s stock, as a precaution against poor stock performance.

Timing is Everything

The sooner you start saving for retirement, the faster your account will grow. Conversely, the longer you wait to get started, the harder it will be to catch up. Some experts say that for every five years you delay getting started, you may need to double the amount you must save each month to reach the same level of income at retirement.

Here’s a hypothetical example: Say you contributed $5,000 a year to a 401(k) for 10 years – assume that your investment earned 8 percent a year and all investment earnings were reinvested in your account. Depending on how old you were when you made those contributions, you would see wildly different amounts at age 65 when you retire:

• If you started saving at age 25, stopping at age 35, when you retire at 65 your account would be worth about $787,000.
• If you started saving at age 35, stopping at age 45, it would be worth about $364,000.
• If you started at age 45 and stopped at age 55, its value would be only about $170,000.
• And, if you waited to start saving until age 55 and contributed until age 65, you’d only amass about $78,000.

These examples assume that you only invest $5,000 a year for 10 years and then stop. If you were to contribute that amount consistently from ages 25 to 65, you would amass more than $1.35 million during those 40 years. And, remember, these estimates don’t even factor in employer-matching contributions, which would make your account grow even larger – and faster.

Taking the Hassle Out of Payroll Management

Managing payroll can be a time-consuming and complex task for businesses of all sizes. That’s where Nation Tax Relief comes in. As a trusted payroll service provider, we handle all aspects of payroll on behalf of our clients, allowing them to focus on their core business operations.

Why Choose Nation Tax Relief for Your Payroll Needs?

1. Expertise and Accuracy: With years of experience in payroll management, we have a deep understanding of payroll regulations and tax obligations. We ensure accurate and timely payroll processing, taking care of calculations, deductions, and compliance with applicable laws.
2. Time and Cost Savings: By outsourcing your payroll to Nation Tax Relief, you can free up valuable time and resources within your organization. Our streamlined processes and efficient payroll software help reduce administrative burdens and minimize the risk of costly errors.
3. Comprehensive Payroll Services: We handle all aspects of payroll, including calculating employee wages, processing deductions, generating pay stubs, and preparing payroll reports. Our services are customizable to meet your specific payroll needs, whether you have hourly or salaried employees, handle multiple pay frequencies, or require specialized reporting.
4. Tax Compliance and Reporting: Staying compliant with tax laws and regulations is crucial for every business. Our payroll experts are well-versed in tax requirements, ensuring accurate tax withholding and reporting. We help you navigate complex tax obligations, reducing the risk of penalties and keeping you in good standing with tax authorities.

Experience the Benefits of Outsourced Payroll

By choosing Nation Tax Relief as your payroll service provider, you can enjoy numerous benefits:

1. Focus on Core Business: Outsourcing payroll allows you to allocate more time and resources to your core business activities, driving growth and innovation.
2. Accuracy and Compliance: Our dedicated payroll team ensures accurate payroll processing and compliance with tax laws, reducing the risk of errors and penalties.
3. Confidentiality and Security: We prioritize the confidentiality and security of your payroll data. Our systems are protected with advanced security measures, giving you peace of mind.
4. Cost-Efficiency: Outsourcing payroll can result in cost savings compared to maintaining an in-house payroll department. You eliminate the need for hiring and training payroll staff, investing in software and technology, and staying updated with ever-changing payroll regulations.

Simplify Your Payroll Today with Nation Tax Relief

Don’t let payroll management overwhelm your business. Trust Nation Tax Relief to handle your payroll needs with expertise, accuracy, and efficiency. Contact us today to learn more about our comprehensive payroll services and how we can streamline your payroll process, ensuring timely and accurate payments for your employees while keeping you in compliance with tax regulations.

Benefits of bookkeeping

Accurate and up-to-date financial information is key to properly managing a business. Here are some of the benefits of outsourcing bookkeeping services.

1) It helps you focus on what really adds value to the business.

2) You will be able to reduce costs by not relying on an in-house accountant to be responsible for your bookkeeping.

3) It is easier for a company to invest in specialized software in information systems that would otherwise be less efficient and more expensive.

Benefits of Accounting

Some of the key tasks for accountants include tax return preparation, conducting routine reviews of various financial statements, and performing account analysis. Another key responsibility for accountants includes conducting routine audits to ensure that statements and the books are following ethical and industry standards.

Difference between bookkeeping and accounting

Bookkeeping and accounting are both important parts of managing your finances. At first glance, the two can seem quite similar, but there are a few main differences.

Bookkeeping focuses on recording and organizing financial data. Accounting is the interpretation and presentation of that data to business owners and investors.

Bookkeeping typically consists of:

1. payroll
2. invoicing
3. receipts and bills
4. recording business transactions

Accounting typically consists of:

• financial statements and reports
• budgets
• tax returns
• analyzing business performance

The tasks that bookkeepers and accountants do vary between businesses. Bookkeepers working for smaller businesses might do some basic accounting duties. There’s often overlap, and the duties may change a lot from one business to another.

Accounting

An accountant is a common career choice for those with an analytical mindset and a desire to work with a business or personal financial data. An accountant primarily provides in-depth analysis and accurate reporting on financial records, most often completed as a supporting role to a chief financial officer (CFO) or a company’s finance department. Accountants also work directly with individuals to review financial records for tax filing for individuals or businesses. An individual trained as an accountant has the opportunity to work in a small, medium, or large company in either the public or private sector, as an independent in their own firm, or as a consultant or contractor to companies or nonprofit organizations.

Accountants are interested in specific and exacting details, day-to-day operations, financial accuracy, and taxes. For example, an accountant describes the present reality of a company or an individual’s finances.

Credentials are extremely important to accountants and financial analysts. Entry-level accounting jobs may require a recognized professional title, but advancement certainly depends on it. Pursuing a degree in accounting is the most obvious undergraduate course of action for a future accountant.

Each career choice has one dominant professional certification. For accountants, it is the title of Certified Public Accountant (CPA), which is bestowed by the Uniform Certified Public Accountant Examination and established by the American Institute of Certified Public Accountants. This is probably the most widely known and recognized professional designation in the financial industry.

Auditing

Auditors come in behind accountants and verify the work they do. They examine the financial statements prepared by accountants and ensure they represent the company’s financial position accurately. Auditors verify that these financial statements, particularly the ones of public companies that are required to be released annually, are assembled in accordance with generally accepted accounting principles (GAAP).

Like accountants, an auditor can work internally for a specific company or for a third party, such as a public accounting firm, to audit various businesses. Additionally, many auditors are employed by government and regulatory bodies, most notably the Internal Revenue Service (IRS).

Accounting vs. Auditing: An Overview

Accountants and auditors work with a business’s financial statements and ensure they are accurate, up-to-date, and in compliance with various regulatory standards. Accountants prepare these financial statements, which include the balance sheet, income statement, and statement of cash flows.

Beyond this, there are myriad additional duties that an accountant might perform, such as bookkeeping, tracking expenses and revenues, forecasting future profits and cash flows, and tax preparation. An accountant could be a dedicated employee of a company or work for a third party hired by businesses to manage their books and prepare their taxes.