Reply With QuoteBamps (08-31-2014)
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I just got the dumbest set of questions from our CPA's new accountant. Basically, we had asked for an extension on our business taxes. We've had our CPA for forever and she's not cheap but has always been very reliable.
Our business operated at a loss last year. It was significant. Not a big deal. It happens every few years or so. We've never been questioned about a business loss before.
Our CPA's new accountant e-mails me and asks me why the end of year balance is negative. And then says, and I quote
"Income on your spreadsheet appears to be a lot less than 2012. Could this be the problem?"
Now I don't know how often the average person uses math in their everyday lives, but I sure as heck hope that an accountant would. "Could this be the problem?" Why yes, yes it could. So I wrote back and told her which form to file to show the loss. Just in case she didn't know that either.
Bamps (08-31-2014)
OMG, are you nervous now?? I would be.
Very nervous. I cc'd the CPA and will ask her to review the return.
In this economy a lot of businesses aren't as profitable right now...blame Obama. Just hold onto all your receipts and cancelled checks, just in case. I got audited last year for 2009, the funny thing is we ended up getting more money back, and it wasn't the first time!
In our case, our product changes approximately once every four years when the law changes. By the fourth year, people aren't buying it because it's just about to become the old version. Then we get a flood of cash for about a year and a half which tapers off shortly thereafter, etc. It's a strange business model but it works.Originally Posted by Marmot
You know that saying, that someone has to pass at the bottom of the class.
Not a very comforting e-mail. Glad you're getting it reviewed by your regular CPA.
I canned ours. Ha ha, best thing I ever did. He wasn't working for me, he was a parasite.
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